A Sale and Purchase Deal’s Impact on Woodside Energy Shares
Woodside Energy Group Ltd WDS shares are trading lower after it inked a binding sale and purchase deal with JERA to sell a 15.1% non-operating participating interest in the Scarborough Joint Venture (JV) for $1.4 billion.
This constitutes the purchase price of about $740 million and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective January 2022.
The company expects the transaction to close in the second half of 2024, and following the sale’s completion, Woodside will hold a 74.9% interest in the Scarborough Joint Venture and remain as operator.
Woodside and JERA have also penned a non-binding agreement for the sale and purchase of six LNG cargoes on a delivered ex-ship basis per year for ten years starting 2026 from Woodside’s global portfolio.
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The companies have also signed a non-binding agreement for new energy collaboration to support decarbonization ambitions, encompassing potential opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage.
Additionally, the transaction includes an option for JERA to acquire a 15.1% non-operating participating stake in the Thebe and Jupiter fields and a non-binding deal outlining a long-term collaboration to pursue opportunities for additional feed gas and joint investment in offshore gas fields for future tieback to the Pluto LNG facility via Scarborough infrastructure.
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Earlier this month, Woodside terminated acquisition discussions with Santos, citing a lack of identified benefits.
Price Action: WDS shares are down 1.15% at $19.81 premarket on the last check Friday.
