By David Winning
SYDNEY--Woodside Petroleum Ltd. said it has agreed to sell a 49% stake in a proposed expansion of its Pluto liquefied natural gas facility in Western Australia to Global Infrastructure Partners.
Terms of the deal are based on the Pluto Train 2 project costing $5.6 billion to complete. The project will receive natural gas from the Scarborough field that will mostly be turned into LNG.
Woodside said GIP will fund 49% of the capital expenditure for Pluto Train 2 and an additional $835 million of construction costs.
"The final quantum of GIP's capital contribution is dependent on interest rate swap and foreign exchange rates on the date of the final investment decisions for Scarborough and Pluto Train 2," the Perth-based company said.
Woodside said GIP will need to pay more if Pluto Train 2 costs less than $5.6 billion to build. If costs run over budget then Woodside said it would fund up to $835 million "in respect of a 49% share of any overrun."
"The sale of the interest in Pluto Train 2 is a significant milestone as we progress toward a final investment decision on our Scarborough development, further de-risking this globally competitive investment," said Chief Executive Meg O'Neill.
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(END) Dow Jones Newswires
November 14, 2021 18:32 ET (23:32 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.