Woodside has completed the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough Pty Ltd (LNG Japan).(1)
The completion follows Woodside’s announcement on 8 August 2023 that it had established a strategic relationship with LNG Japan that involved three elements: equity in the Scarborough Joint Venture; potential LNG offtake; and collaboration on potential opportunities in new energy. The sale proceeds received by Woodside of US$910 million for equity in the Scarborough Joint Venture comprises the purchase price, reimbursed expenditure and escalation.(2)
Woodside CEO Meg O’Neill welcomed completion of the sale.
'LNG Japan’s commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition. Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026.
'We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment in LJ Scarborough Pty Ltd. JOGMEC’s support reflects the contribution Scarborough gas will make to Japan’s energy security.'
Woodside holds a 90% interest in the Scarborough Joint Venture and will remain as operator. Following completion of the transaction with JERA announced on 23 February 2024, Woodside’s interest will be 74.9% in the Scarborough Joint Venture.(3)
As a result of completion of the sale, applying estimates effective as at 26 March 2024, Woodside's Scarborough field proved (1P) undeveloped reserves reduced by 128.7 MMboe to 1,158.3 MMboe (Woodside share).(4) Proved plus probable (2P) undeveloped reserves reduced by 201.1 MMboe to 1,809.7 MMboe (Woodside share).(5) Woodside's Scarborough field Best Estimate (2C) contingent resources reduced by 2.2 MMboe to 20.2 MMboe (Woodside share).(6),(7)
The attached notes on petroleum reserves and resource estimates form part of this announcement.
About Scarborough
The Scarborough Energy Project comprises the Scarborough Joint Venture, the Pluto Train 2 Joint Venture and modifications to Pluto Train 1 to process Scarborough gas. The Scarborough Joint Venture includes the Scarborough field and associated offshore and subsea infrastructure.
The Scarborough field is located approximately 375 km off the coast of Western Australia and the reservoir contains less than 0.1% carbon dioxide. Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is operator of Pluto LNG and Pluto Train 2.
In addition to the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LNG Japan, Woodside announced in February 2024 it had entered into a sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture.(3)
About LNG Japan
LJ Scarborough Pty Ltd is a jointly owned subsidiary of LNG Japan Corporation (which is a 50:50 joint venture between Sumitomo Corporation and Sojitz Corporation) and Japan Organization for Metals and Energy Security (JOGMEC). JOGMEC has a 49.9% interest in LJ Scarborough Pty Ltd.
Sumitomo Corporation is a leading Fortune 500 global trading and business investment company with 129 locations (Japan:20, Overseas:109) in 66 countries and regions.
Sojitz Corporation consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions.
(1) The sale and purchase agreement is with LJ Scarborough Pty Ltd, a jointly owned subsidiary of LNG Japan Corporation (which is a 50:50 joint venture between Sumitomo Corporation and Sojitz Corporation) and Japan Organization for Metals and Energy Security (JOGMEC). JOGMEC has a 49.9% interest in LJ Scarborough Pty Ltd.
(2) The sale proceeds remains subject to adjustments.
(3) Completion is expected in the second half of 2024.
(4) Fuel consumed in operations proved (1P) undeveloped reserves will reduce by 14.2 MMboe to 127.6 MMboe (Woodside share).
(5) Fuel consumed in operations proved + probable (2P) undeveloped reserves will reduce by 22.0 MMboe to 198.4 MMboe (Woodside share).
(6) Fuel consumed in operations Best Estimate (2C) contingent resources will reduce by 0.3 MMboe to 2.3 MMboe (Woodside share).
(7) Excludes the Thebe and Jupiter fields
Source: Woodside Energy
