CANBERA (dpa-AFX) - Woodside Energy Group Ltd (WDS) announced on Tuesday that it has entered into an agreement with LJ Scarborough Pty Ltd or LNG Japan for the sale of a 10 percent non-operating participating interest in the Scarborough Joint Venture.
The purchase price is $500 million, and LNG Japan will reimburse Woodside for its share of expenditure on the Scarborough project from the transaction effective date of January 1, 2022. The total consideration including the purchase price, reimbursed expenditure and escalation is estimated to be around $880 million.
Upon completion of the deal, Woodside will hold a 90% interest in the Scarborough Joint Venture and will remain as operator.
The deal is expected to close in the first quarter of 2024.
Both the companies have also entered into a non-binding head of agreement for the sale and purchase of 12 LNG cargoes per year for 10 years commencing in 2026.
Woodside has entered into non-binding agreements to collaborate with Sumitomo Corp. and Sojitz Corp. on opportunities in new energy which could include ammonia, hydrogen, carbon capture and storage or CCS and carbon management technology.
Currently, shares of Woodside Energy are trading at 1930.00 pence, down 0.92% on the London Stock Exchange.
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