LNG

Western Australian LNG operator Woodside Energy reported quarterly revenues down by nearly a third from lower oil and natural gas prices as projects progressed in LNG in Australia and in oil offshore Senegal in West Africa.

Woodside Energy, the operator of the Northwest Shelf LNG project and Pluto LNG in Western Australia, has completed the sale of a 10 percent non-operating participating interest in the Scarborough Gas joint venture for US$910 million to the LNG Japan group.

The completion follows Woodside’s announcement in August 2023 that it had established a strategic relationship with LNG Japan that involved equity in the Scarborough project, potential LNG offtake and collaboration on opportunities in new energy.

“The sale proceeds received by Woodside of US$910M for equity in the Scarborough Joint Venture comprise the purchase price, reimbursed expenditure and escalation,” said Woodside in a statement.

Trading houses

Woodside’s sale and purchase agreement is with a jointly owned subsidiary of LNG Japan, which is a 50-50 joint venture between two Japanese trading houses, Sumitomo Corp. and Sojitz Corp., and a Japanese state-owned agency called the Japan Organization for Metals and Energy Security (Jogmec).

The Scarborough gas field project comprises the Pluto Train 2 joint venture and modifications to Pluto Train 1 to process Scarborough gas.

The venture includes the Scarborough field itself and associated offshore and subsea infrastructure.

The Scarborough field is located 375 kilometres (233 miles) off the coast of Western Australia and the reservoir contains less than 0.1 percent carbon dioxide.

Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing a second liquefaction Train .

In addition to the sale of a 10 percent non-operating participating interest to Japan LNG, Woodside additionally stated in February 2024 that it had entered into an SPA with the largest Japanese LNG importer and power company, JERA Co. Inc. for a 15.1 percent non-operating participating interest in Scarborough.

Commitment

“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,” said Woodside Chief Executive Meg O’Neill.

“Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026,” O’Neill stated.

“We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment,” the CEO added.

“Jogmec’s support reflects the contribution Scarborough gas will make to Japan’s energy security,” she added.

Woodside still holds a 90 percent interest in the Scarborough venture and will remain as operator.

Following completion of the transaction with JERA Woodside’s interest will be 74.9 percent in the Scarborough venture.

After completion of the JERA deal, Woodside estimated that as of 26 March 2024, the Perth-based company’s Scarborough field proved (1P) undeveloped reserves are reduced by 128.7 million barrels of oil equivalent to 1,158.3 million barrels of oil equivalent.

Western Australian LNG operator Woodside reported a plunge in annual earnings of 74 percent as it focused on its next phase of growth in the Scarborough Gas project, Sangomar oil offshore Senegal and on the Trion venture in the Gulf of Mexico.

Woodside Energy, the Western Australian LNG plant operator with global oil and gas interests, expects to recognise non-cash, post-tax asset impairments amounting to around US$1.50 billion with US$1.20Bln related to the Shenzi asset, the deepwater oil and gas fields in the Gulf of Mexico, and the remainder for Wheatstone LNG.

Australia’s largest liquefied natural gas companies Woodside Energy and Santos have ended their merger discussions after failing to agree terms for creating a A$88 billion (US$58Bln) LNG mega-company in the Southern Hemisphere.

Wood, the London-listed energy engineering and consulting company formerly known as John Wood Group Plc, has secured a contract from South Korea’s Hyundai Heavy Industries for detailed engineering of the topsides facilities on LNG operator Woodside Energy's Trion Floating Production Unit (FPU) to be deployed in Mexican waters of the Gulf of Mexico.

Woodside Energy, the operator of the Northwest Shelf and Pluto LNG plants in Western Australia, has received a boost for one of its main overseas ventures, the Sangomar project offshore Senegal in West Africa, with the sail-away from Singapore of the “Léopold Sédar Senghor” floating production storage and offloading (FPSO) facility.

Woodside Energy, the operator of the Northwest Shelf plant and Pluto LNG, has signed a Sales and Purchase Agreement (SPA) with Pilgangoora Operations Ltd, a subsidiary of lithium producer Pilbara Minerals for the supply of LNG from the Pluto truck-loading facility at the liquefaction plant.

Woodside Energy, the operator of the Northwest Shelf and Pluto LNG export plants in Western Australia, has signed a sales and purchase agreement with Mexico Pacific Limited (MPL) to purchase 1.3 million tonnes per annum from the venture in the northern Mexican state of Sonora.

Woodside Energy, the operator of the Northwest Shelf and Pluto LNG export plants in Western Australia, is widening its oil and gas activities in the Gulf of Mexico by moving forward with a joint venture costing more than US$7-billion in partnership with Petróleos Mexicanos (Pemex), the state-owned energy company.