What's Going On Woodside Energy Shares Premarket Friday?

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 comprises 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 anticipates 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.

Also Read: Australia’s Woodside Pockets 5-Year LNG Supply Deal With Pilbara Minerals

The companies also signed a non-binding agreement for new energy collaboration to support decarbonization ambitions, including potential opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage.

Apart from this, the transaction also 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 that outlines 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. 

Also Read: Shenzi Sinks: Woodside Takes $1.2B Asset Impairment Charge On BHP Merger

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.