Woodside Energy Group has agreed to sell a 15.1% non-operated interest in the Scarborough project to JERA Co. Inc. for an estimated consideration of $1.4 billion. In addition to the equity stake, the agreement includes an LNG offtake deal and possible collaboration on low-carbon projects.
This deal comprises the purchase price of about $740 million plus reimbursement to Woodside JERA’s share of Scarborough project expenditure from the transaction effective date of Jan. 1, 2022.
The Scarborough project comprises Scarborough field and associated offshore and subsea infrastructure. The field lies in Carnarvon basin about 375 km off the coast of Western Australia and is estimated to contain more than 11 tcf of dry gas (OGJ Online, Feb. 21, 2024).
Development includes installation of a floating production unit (FPU) with eight wells drilled in the initial phase and 13 wells drilled over the life of the field. Gas will be transported for processing at the Pluto LNG plant on the Burrup Peninsula, where Woodside is currently constructing Pluto Train 2, through a new 430-km trunkline. The first three Pluto Train 2 modules for the project have recently arrived in Karratha, Western Australia (OGJ Online, Feb. 21, 2024).
The project is expected to produce up to 8 million tonnes/year (tpy) of LNG and up to 225 terajoules/day of domestic gas for an initial period of 20 years.
As part of a broader partnership, Woodside and JERA have entered into a non-binding agreement for 6 LNG cargoes (about 0.4 million tpy) for 10 years beginning in 2026.
A non-binding agreement was signed for new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage (CCS).
Completion of the transaction is expected in the second half of 2024.
Woodside is operator at Scarborough.