Woodside has accepted an offer from Japan Australia LNG (MIMI Browse) Pty Ltd. to purchase a stake in Woodside’s proposed Browse LNG project for US$ 2 billion. Before the sale can go through, Woodside’s partners in the Browse joint venture have pre-emption rights to purchase the stake.
The sale involves MIMI taking 16% interest in the East Browse joint venture and 8% interest in the West Browse joint venture. This would give MIMI an estimated 14.7% interest in the Browse development. Woodside’s interest in Browse would fall from 46% to 31.3%. Woodside remains operator of the development.
Woodside has also accepted an offer from MIMI for a long-term sales and purchase agreement for around 1.5 million tpy of LNG from the Browse development subject to completion of the equity offer.
The transaction includes a joint marketing agreement between Woodside and MIMI under which the parties will jointly market co-mingled LNG volumes to the Asian market, primarily Japanese customers.
“Browse is a world-class resource and the level of interest shown during this process reflects the strong ongoing demand for LNG from premium developments such as this,” said Woodside CEO Peter Coleman.
Adapted form press release by Peter Farrell.
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