Woodside has announced the completion of the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture to JERA, Japan’s largest power generation company.(1)
The completion follows Woodside’s announcement on 23 February 2024 that it had broadened its strategic relationship with JERA through a transaction that included: equity in the Scarborough Joint Venture; LNG offtake; and collaboration on potential opportunities in new energy and lower carbon services.(2)
The sale proceeds of approx. US$1.4 billion received by Woodside for equity in the Scarborough Joint Venture comprise the purchase price and reimbursed expenditure.
Woodside CEO Meg O’Neill warmly welcomed JERA to the Scarborough Joint Venture.
'Participation in the Scarborough Joint Venture is a key part of our strong and highly valued strategic relationship with JERA. That relationship reflects our shared view that gas will play an important role in the global energy transition for decades to come.
'This latest sale of equity in Scarborough again underlines the long-term value Japanese customers like JERA are placing on gas and the significance of LNG in Japan and the region’s energy security.
'In addition to supplying markets in north Asia the project will be an important source of gas for the domestic market in Western Australia.
'The team is delivering the Scarborough Energy Project to plan and work is now almost three-quarters complete. We remain on track for targeted first LNG cargo in 2026.'
JERA’s Senior Managing Executive Officer and Chief Low Carbon Fuel Officer, Mr Ryosuke Tsugaru, welcomed the collaboration with Woodside.
'JERA and Woodside share a determination to responsibly navigate the energy transition, with LNG set to be an essential ‘firming fuel’ across the world for many years to come – particularly in developing regions,' Mr Tsugaru said.
'As population grows, so does the demand for energy and the first step in the energy transition for many countries is to make the move away from coal-fuelled power to LNG.
'JERA is directly involved in decarbonisation efforts in the Asian region, including projects in various stages of development to switch power plants from coal to LNG.'
Woodside holds a 74.9% interest in the Scarborough Joint Venture and will remain as operator.
As a result of completion of the sale, applying estimates effective as at 31 October 2024, Woodside's
Scarborough field proved (1P) undeveloped reserves reduced by 194.3 MMboe to 964.0 MMboe
(Woodside share).(3) Proved plus probable (2P) undeveloped reserves reduced by 303.6 MMboe to
1,506.1 MMboe (Woodside share).(4) Woodside's Scarborough field Best Estimate (2C) contingent
resources reduced by 3.4 MMboe to 16.8 MMboe (Woodside share).(5),(6)
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 Karratha, 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. The Scarborough Energy Project was 73% complete at the end of 30 September 2024.(7) Woodside is operator of Pluto LNG and Pluto Train 2.
About JERA
Established in 2015, JERA is an equal joint venture of two major Japanese electric power companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company, and produces about 30% of all electricity in Japan. JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG upstream projects and fuel procurement, through fuel transportation to power generation. JERA, which stands for Japan’s Energy for a New Era, will take on the challenge of achieving net zero CO2 emissions from its domestic and overseas businesses by 2050 and is supporting an energy transition in an environmentally and socially responsible manner. For more details: https://www.jera.co.jp/english
(1) The sale and purchase agreement is with JERA Scarborough Pty Ltd, a wholly owned subsidiary of JERA Co., Inc.
(2) Woodside uses the term ‘lower carbon services’ to describe technologies such as carbon capture, utilisation and storage (CCUS) or offsets that could be used by customers to reduce their net greenhouse gas emissions.
(3) Fuel consumed in operations proved (1P) undeveloped reserves will reduce by 21.4 MMboe to 106.2 MMboe (Woodside share).
(4) Fuel consumed in operations proved + probable (2P) undeveloped reserves will reduce by 33.3 MMboe to 165.1 MMboe (Woodside share).
(5) Fuel consumed in operations Best Estimate (2C) contingent resources will reduce by 0.4 MMboe to 1.9 MMboe (Woodside share).
(6) Excludes the Thebe and Jupiter fields.
(7) Excludes Pluto Train 1 modifications
Source: Woodside
