Woodside to Sell 10% Scarborough Interest to LNG Japan Woodside Energy Group Ltd

Woodside to Sell 10% Scarborough Interest to LNG Japan

Woodside, a leading energy company, has entered into a strategic relationship with LNG Japan, which involves equity in the Scarborough Joint Venture, potential LNG offtake, and collaboration on opportunities in new energy. As part of this relationship, Woodside has agreed to sell a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough Pty Ltd (LNG Japan) in a transaction worth US$500 million. The completion of the transaction is expected in the first quarter of 2024, subject to necessary approvals.

Strengthening the Relationship

In addition to the sale and purchase agreement, Woodside and LNG Japan Corporation have signed a non-binding heads of agreement for the sale and purchase of 12 LNG cargoes per year for 10 years, beginning in 2026. This agreement highlights the ongoing demand for gas from Japanese buyers and supports Japan's energy security.

Woodside has also formed non-binding agreements with Sumitomo Corporation and Sojitz Corporation to collaborate on global opportunities in new energy. These collaborations may involve ammonia, hydrogen, carbon capture and storage (CCS), and carbon management technology.

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Woodside's Role in Scarborough Joint Venture

Following the completion of the transaction, Woodside's interest in the Scarborough Joint Venture will be 90%, and the company will continue to operate the project. The Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside holds a 51% participating interest in the Pluto Train 2 Joint Venture.

Excitement for the Future

Woodside CEO Meg O'Neill expressed her excitement about the strategic relationship with LNG Japan and the prospects of the Scarborough project. She emphasised the importance of Scarborough as a source of gas, supporting both the Western Australian and international markets and contributing to job creation and tax revenue.

LNG Japan CEO Mr Kyo Onojima also expressed enthusiasm for the partnership and looked forward to finalizing the LNG offtake agreement and exploring business opportunities in the new energy sector.

About Scarborough Joint Venture

The Scarborough Joint Venture consists of the Scarborough field and associated offshore and subsea infrastructure. Located approximately 375 km off the coast of Western Australia, the Scarborough field contains less than 0. 1% carbon dioxide. The project involves a floating production unit and the drilling of wells to extract gas, with the first LNG cargo targeted for 2026.

About LNG Japan
LJ Scarborough Pty Ltd, a wholly owned subsidiary of LNG Japan Corporation, is a joint venture between Sumitomo Corporation and Sojitz Corporation. Sumitomo Corporation is a Fortune 500 global trading and business investment company, while Sojitz Corporation is a general trading company operating worldwide.

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Mining_Mate 2y

#ASX:WDS Woodside to Sell 10% Scarborough Interest to LNG Japan

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