The Scarborough JV is part of the Scarborough Energy Project which also includes the Pluto Train 2 JV and modifications to Pluto Train 1 for processing the gas drawn from the Scarborough field located in the in the Carnarvon Basin offshore Western Australia
LJ Scarborough takes 10% stake in Scarborough JV. (Credit: QR9iudjz0 on Freeimages.com)
Woodside Energy Group has wrapped up the previously announced sale of a 10% non-operating participating stake in the Scarborough joint venture (JV) in Australia to LJ Scarborough.
LJ Scarborough is now jointly owned by LNG Japan (50.1％) and Japan Organization for Metals and Energy Security (JOGMEC), which holds 49.9%. LNG Japan, in turn, is a 50:50 joint venture between Sumitomo and Sojitz.
LNG Japan stated: “LNG Japan, Sumitomo, and Sojitz, together with Woodside and JOGMEC, through the Scarborough Gas Project, will contribute to stable energy supply, particularly to Japan and other Asian countries.”
The deal was announced by Woodside and LNG Japan in August 2023.
At that time, the parties established a strategic relationship, involving three elements, one of which being the sale of equity in the Scarborough JV. The other two elements are potential offtake of LNG and partnership on possible opportunities in new energy.
Woodside secured sale proceeds of $910m, which is made up of the purchase price, reimbursed expenditure, and escalation.
Woodside CEO Meg O’Neill said: “LNG Japan’s commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition. Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026.
“We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment in LJ Scarborough Pty Ltd. JOGMEC’s support reflects the contribution Scarborough gas will make to Japan’s energy security.”
Last month, Woodside signed a deal to divest an additional 15.1% stake in the Scarborough JV to Japan-based JERA for a price of about $1.4bn. Upon closing of the transaction, Woodside will have a reduced operating interest of 74.9% in the JV.
The Scarborough JV is part of the Scarborough Energy Project which also includes the Pluto Train 2 JV and modifications to Pluto Train 1 for processing the gas drawn from the Scarborough field.
Located in the Carnarvon Basin, nearly 375km off the northwest coast of Western Australia, the Scarborough field along with its related offshore and subsea infrastructure make up the Scarborough JV.