Woodside and JERA executed a binding sale and purchase agreement in February 2024 for the sale of a 15.1% non-operating participating interest in the Scarborough JV, covering the Scarborough gas field and associated offshore and subsea infrastructure for an estimated total consideration of $1.4 billion.
The deal entails the purchase price of around $740 million and reimbursement to Woodside for JERA’s share of expenditure incurred from the effective date of January 1, 2022. According to the Australian player, the partial divestment has been finished and the firm has received the sale proceeds of approximately $1.4 billion.
Meg O’Neill, Woodside’s CEO, commented: “Participation in the Scarborough joint venture is a key part of our strong and highly valued strategic relationship with JERA. That relationship reflects our shared view that gas will play an important role in the global energy transition for decades to come. This latest sale of equity in Scarborough again underlines the long-term value Japanese customers like JERA are placing on gas and the significance of LNG in Japan and the region’s energy security.
“In addition to supplying markets in north Asia the project will be an important source of gas for the domestic market in Western Australia. The team is delivering the Scarborough energy project to plan and work is now almost three-quarters complete. We remain on track for targeted first LNG cargo in 2026.”
Woodside, which holds a 74.9% interest in the Scarborough JV, will remain as operator. After the completion of the sale, applying estimates effective as of October 31 show Woodside’s Scarborough field proved (1P) undeveloped reserves were reduced by 194.3 million boe to 964 million boe while proved plus probable (2P) undeveloped reserves were cut by 303.6 million boe. Woodside’s Scarborough field best estimate (2C) contingent resources decreased by 3.4 million boe to 16.8 million boe.
Ryosuke Tsugaru, JERA’s Senior Managing Executive Officer and Chief Low Carbon Fuel Officer, highlighted: “JERA and Woodside share a determination to responsibly navigate the energy transition, with LNG set to be an essential ‘firming fuel’ across the world for many years to come – particularly in developing regions.
“As population grows, so does the demand for energy and the first step in the energy transition for many countries is to make the move away from coal-fuelled power to LNG. JERA is directly involved in decarbonisation efforts in the Asian region, including projects in various stages of development to switch power plants from coal to LNG.”
Encompassing the Scarborough JV, the Pluto Train 2 joint venture, and modifications to Pluto Train 1 to process gas, the Scarborough energy project was 73% complete at the end of September 2024. Located approximately 375 km off the coast of Karratha, Western Australia, the Scarborough field’s reservoir is said to contain less than 0.1% carbon dioxide.
The gas from Scarborough will be processed at the Pluto LNG facility, where Woodside, as the operator, is currently constructing Pluto Train 2. Recently, Saipem completed the trunkline installation after around 12 months, 433 kilometers, and more than 36,000 lengths of pipe at depths of up to 1,400 meters.
Once operational, the 433 km trunkline will transport gas from the offshore Scarborough field to the onshore Pluto LNG processing facility in Karratha, helping to meet demand for the lower carbon and reliable energy the world needs today and into the future, according to Woodside.
The delivery of the first LNG cargo is expected in 2026, generating more than A$50 billion ($33.43 billion) in direct and indirect taxes for Australia’s economy, over 3,000 jobs during the construction phase, and creating or sustaining almost 600 jobs on average during operations.