Offshore staff
PERTH, Australia — Woodside Energy and LJ Scarborough Pty Ltd (LNG Japan) have formed a strategic partnership that covers the latter taking equity in the Scarborough joint venture (JV) offshore/onshore Western Australia, potential LNG offtake and collaboration on opportunities in new types of energy.
Under the agreement, LNG Japan will acquire a 10% non-operating stake in the Scarborough JV for $500 million, subject to adjustments. In addition, LNG Japan will reimburse Woodside for its share of expenditure for the Scarborough project from Jan. 1, 2022.
Upon completion of the transaction, anticipated in first-quarter 2024, the total price could rise to about $880 million. Woodside would then retain a 90% operated interest in the JV.
Scarborough’s gas will be processed at the onshore Pluto LNG facility, where Pluto Train 2 is under construction.
The JV comprises the Scarborough Field, 375 km from the coast of Western Australia, and associated offshore and subsea infrastructure. Development will include the installation of a floating production unit with eight wells in the initial phase and 13 wells drilled over the life of the field.
The gas will be transported for processing at Pluto LNG through a new 430-km trunkline.
A separate, non-binding heads of agreement covers the sale and purchase of 12 LNG cargoes annually (900,000 metric tons/year) over a 10-year period starting in 2026.
Moreover, Woodside has entered further non-binding arrangements to work with Sumitomo Corp. and Sojitz Corp. on opportunities that could include ammonia, hydrogen, carbon capture and storage (CCS), and carbon management technology.
08.08.2023
