Woodside Energy marked a significant milestone in its global energy operations by completing the sale of a 10% stake in the Scarborough Joint Venture to LJ Scarborough Pty Ltd, a subsidiary of LNG Japan, for a sum of US$910 million. This move, finalized following Woodside’s strategic announcement on August 8, 2023, enhances the collaborative energy landscape, embedding equity, potential LNG offtake, and new energy opportunity collaboration between the entities.
LNG Japan
Meg O’Neill, CEO of Woodside, heralded the sale as a pivotal achievement, underscoring LNG Japan’s commitment to securing gas as a cornerstone for energy transition. “This sale is not just a transaction but a testament to the trust and value our partners place in us as we steer towards our first LNG cargo from Scarborough by 2026,” O’Neill stated, highlighting the broader implications for energy security and sustainability.
The transaction, which saw Woodside’s direct holdings in the Scarborough venture reduce to 90%, precedes a further dip to 74.9% following a deal with JERA. The sale’s completion on March 26, 2024, led to adjustments in reported reserves, notably a reduction in Scarborough field proved and probable undeveloped reserves to 1,158.3 MMboe and 1,809.7 MMboe, respectively.
Scarborough Strategic Importance
Scarborough’s strategic importance lies in its vast gas reserves, positioned 375 km off Western Australia’s coast, renowned for their low carbon dioxide content. Woodside continues its role as the pivotal operator of the Pluto LNG facility, crucial for processing Scarborough gas, alongside ongoing development of Pluto Train 2.
New Woodside Partnership
In parallel, Woodside announced a partnership in February 2024 with JERA, marking the sale of a 15.1% stake in the Scarborough Joint Venture. This series of strategic divestments and partnerships underscores the company’s dedication to enhancing global energy security through its extensive gas reserves and infrastructure projects.
LNG Japan, represented by LJ Scarborough Pty Ltd, is a joint venture between major global entities Sumitomo Corporation and Sojitz Corporation, with JOGMEC holding a significant share. This collaboration represents a confluence of international expertise and resources aimed at bolstering energy security and environmental stewardship.
As Woodside navigates the complex terrain of global energy supply and sustainability, these strategic moves underscore a commitment to fostering international partnerships, enhancing energy security, and paving the way for a sustainable energy future.