Woodside Agrees to Sell Stake in Scarborough JV to Japan's Jera for $1.4 Billion

By David Winning

SYDNEY--Woodside Energy said it has agreed to sell 15.1% of the venture developing the Scarborough natural-gas field offshore Australia to Japan's Jera for $1.4 billion as part of a broader strategic relationship.

Woodside said it expects to complete the deal for the nonoperating interest in the second half of this year. The transaction comprises an upfront purchase price of around $740 million, with Jera also reimbursing some of the development costs incurred by Woodside since the start of 2022.

"Jera's participation in the Scarborough Joint Venture, which will also include LNG Japan, is a further demonstration of the importance of the project to Japanese customers and confidence in long-term demand," said Woodside Chief Executive Meg O'Neill.

Woodside said it has concluded an initial agreement to sell six cargoes of liquefied natural gas to Jera annually from 2026. That sale-and-purchase agreement, currently nonbinding, would run for 10 years, it said.

Woodside has also signed a nonbinding agreement to collaborate with Jera on new energy opportunities that include ammonia, hydrogen and carbon capture and storage.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

February 22, 2024 20:27 ET (01:27 GMT)

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