Woodside Closes Sale of Stake in Scarborough JV to JERA

Woodside Energy Ltd. has completed the sale of a 15.1 percent non-operating participating interest in the Scarborough Joint Venture to JERA, Japan's largest power generation company.

Woodside received approximately $1.4 billion in sales proceeds and reimbursed expenditures, it said in a news release.

The Scarborough Energy Project comprises the Scarborough Joint Venture, the Pluto Train 2 Joint Venture and modifications to Pluto Train 1 to process Scarborough gas. The Scarborough Joint Venture includes the Scarborough field and associated offshore and subsea infrastructure.

The Scarborough field is located approximately 233 miles (375 kilometers) off the coast of Western Australia. Scarborough gas will be processed at the Pluto (liquefied natural gas) LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is the operator of Pluto LNG and Pluto Train 2.

Woodside CEO Meg O'Neill said, "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,” O’Neill continued. "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,” O’Neill noted.

JERA's Senior Managing Executive Officer and Chief Low Carbon Fuel Officer Ryosuke Tsugaru said, "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".

Woodside holds a 74.9 percent interest in the Scarborough Joint Venture and will remain as operator.

Construction Contract for Pluto 1

Meanwhile, Woodside Energy Ltd. subsidiary Woodside Burrup Pty Ltd. has awarded a construction contract to Winyama Contracting Group for the delivery of civil works for the Pluto Train 1 Modifications project in the Scarborough field near Western Australia.

Winyama Contracting Group will be working alongside Kellogg Brown & Root Pty Ltd, Woodside’s Engineering Procurement and Construction Management contractor for the project. The selection of Winyama Contracting Group followed a commercially competitive bid process based on criteria including experience, local content and HSE performance, Woodside said in a separate news release.

Woodside Pluto Expansion Project Manager Paul Baker said, “By engaging a local Indigenous-led and owned contractor, we’re securing the delivery of an important service while contributing to the local economy. The contract will also support the growth of Winyama Contracting Group, increasing the company’s capacity to deliver services to other industries across the Pilbara”.

Woodside’s Scarborough Energy Project has awarded more than $2.37 billion (AUD 3.6 billion) in contracts to Western Australian businesses since the project began, the company said. Together with its contractors, it has invested approximately $75.67 million (AUD $115 million) with Karratha-based businesses, according to the release.

Arthur Ramirez, Winyama Contracting Group Chairman and Indigenous Business Manager, said, “This project will allow our team to grow by about another 65 new employees, with the majority being residential employees”.

“Being engaged on the Pluto Train 1 Modifications project will help fulfill Winyama Contracting Group’s vision to increase its footprint in the region, which will enable us to increase our focus on outcomes for Aboriginal people through our Reflection Reconciliation Action Plan,” Ramirez continued.

“We are really proud that Woodside has chosen a local Karratha-based Indigenous business to execute a major portion of one of their largest current projects, showing they live their values, and support local and Indigenous business growth in the region,” he added.

To contact the author, email rocky.teodoro@rigzone.com