Woodside Receives $1B Loan from JBIC for Scarborough LNG Development

On May 30, 2024, Woodside finalized a $1 billion loan pact with the Japan Bank for International Cooperation (JBIC).

In Tokyo, a loan accord was inked between Woodside CEO Meg O’Neill and JBIC Deputy Governor Kazuhiko Amakawa, earmarking funds for Woodside’s Scarborough Energy Project. This move bolsters Woodside’s financial position, offering a mix of funding sources and enhanced liquidity.

The agreement stems from a memorandum of understanding inked by Woodside and JBIC in November 2022, with the objective of ensuring a reliable energy supply for Japan and aiding in the pursuit of its decarbonization objectives.

Ms. O'Neill remarked that the loan underscored the enduring partnership between the two entities and the continuous trust exhibited by Japanese investors in Woodside's Australian liquefied natural gas (LNG) endeavors.

"JBIC has backed every significant Australian project undertaken by Woodside, including the North West Shelf, Pluto LNG, and now Scarborough. Therefore, it's appropriate that we've finalized this agreement during the same week that Woodside commemorates 35 years of consistent and trustworthy LNG exports to Japan."

"Investing in new Australian LNG sources, such as Scarborough, can assist Japanese clients in fulfilling their energy security requirements while also advancing regional decarbonization objectives," she remarked.

Mr. Amakawa highlighted that the loan acknowledges Woodside's significant role as the operator of major Australian LNG projects, ensuring a consistent energy supply for Japan.

"This loan will aid in securing long-term, stable LNG supplies, a crucial energy resource for Japan," he noted.

The Scarborough Energy Project remains on track for its first LNG cargo delivery in 2026. Progress at the Pluto LNG facility is advancing, with the continuous arrival and installation of modules for Pluto Train 2 in Karratha, Western Australia. Concurrently, work continues on the installation of subsea infrastructure and the drilling program, while the living quarters for the floating production unit have been installed on the topsides.

The signing comes after the earlier disclosed sale of two non-operating participating interests in the Scarborough Joint Venture to JERA (15.1%, completion subject to conditions precedent) and LNG Japan (10%, finalized in March 2024).

Woodside Energy is a leading global energy firm originating in Australia, committed to delivering dependable and affordable energy to enhance quality of life. Woodside Energy strives to prosper amid the worldwide energy transition by maintaining a cost-effective, low-carbon, profitable, resilient, and diversified portfolio. The recent integration with BHP's petroleum business has augmented the scale and diversity of the company's global portfolio, encompassing oil and gas assets and interests across Australia, the Gulf of Mexico, the Caribbean, Senegal, and Timor-Leste