Deal Description: On 8 August 2023, LNG Japan Corporation’s wholly owned subsidiary LJ Scarborough Pty Ltd entered into a Sale and Purchase Agreement with a wholly owned subsidiary of Woodside Energy Group Ltd to acquire a 10% participating interest in the Scarborough Joint Venture in Australia, which includes Scarborough Production Licence WA-61-L and Production Licence WA-62-L. This transaction is subject to the relevant Australian and Western Australian government approvals. The project is targeting first LNG cargo in 2026. Following the start of production, LJ Scarborough will sell its equity LNG cargoes independently.
Baker Botts L.L.P. represented LNG Japan Corporation in relation to all aspects of the acquisition and equity LNG sales.
The Scarborough field contains a relatively low volume of CO2 (less than 0.1 percent). Greenhouse gas emissions during the production phase are planned to be further mitigated as a result of the implementation of energy efficient measures in the design and operation of the project and a government-approved GHG abatement program.
Daniel Reinbott, partner at Baker Botts, said: “The demand for natural gas and LNG is anticipated to continue to rise as natural gas plays a significant role in the global energy transition, particularly in Asia where natural gas is vital for replacing coal and other higher carbon energy sources.”
“The signing of the Sale and Purchase Agreement is a great achievement for LNG Japan and we are sincerely honoured to be able to continue our team’s long standing relationship with LNG Japan.”
“The Baker Botts Singapore team is rapidly expanding and we are pleased to have been able to apply our expertise in supporting LNG Japan and LJ Scarborough on this significant strategic acquisition and related equity LNG sales.”
The Baker Botts Singapore team was led by Daniel Reinbott and included partner Michael Harrison, special counsel Giles Ashman and Jessica Ham, senior associate Michael Walton, and associates Celia Tan and Ciaran Mcilwham. The Baker Botts team worked with Ashurst Australia, led by partner Jane Hall, together with partner Ratha Nabanidham, counsel Annabel Doneley and associate Robert Boag, who advised on Australian regulatory aspects of the transaction.
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