Woodside expands strategic relationship with JERA through the sale of Scarborough interest and LNG offtake agreement
Woodside has taken significant steps to strengthen its strategic partnership with JERA through a multifaceted transaction. The deal includes the sale of a 15.1 percent non-operating participating interest in the Scarborough Joint Venture to JERA for an estimated total consideration of US$1,400 million. This move is set to enhance collaboration in new energy and lower-carbon services between the two entities.
Additionally, Woodside and JERA have entered into a non-binding agreement for the sale and purchase of six LNG cargoes per year for 10 years, starting in 2026. This agreement further solidifies the partnership and extends cooperation into Woodside’s global LNG portfolio.
Woodside CEO Meg O’Neill expressed enthusiasm about the expanded relationship with JERA, highlighting the importance of the Scarborough project to Japanese customers and the significance of LNG in supporting Japan’s decarbonisation goals. The Scarborough Energy Project is expected to provide economic benefits to Australia while meeting the energy needs of the Asian region.
Yukio Kani, JERA global CEO and chair, emphasised the importance of collaboration in addressing global energy challenges and expressed eagerness to develop the partnership with Woodside. The completion of the Scarborough equity transaction is subject to various regulatory approvals, including Foreign Investment Review Board approval.
The transaction also includes provisions for potential further collaboration, such as the option for JERA to acquire interests in other gas fields and agreements for carbon management services to assist JERA in meeting its emissions obligations. Upon completion, Woodside will retain a 74.9 percent interest in the Scarborough joint venture and will continue to serve as operator.
For more information visit www.woodside.com
