The Woodside Energy Group Ltd (ASX: WDS) share price was down 0.2% during the early part of the lunch hour on Tuesday.
Then the S&P/ASX 200 Index (ASX: XJO) oil and gas stock reported on a major asset sale.
Investors reacted by bidding up the Woodside share price to $38.45 for an intraday gain of 0.7%.
Here’s what investors are considering.
What’s piquing ASX 200 investor interest?
The Woodside share price lifted off after the company announced it has entered into a sale and purchase agreement with LNG Japan to sell a 10% non-operating participating interest in its Scarborough Joint Venture.
The sale price is US$500 million, which remains subject to adjustments.
However, Woodside should receive considerably more.
The company said that LNG Japan will reimburse it for its share of expenditure for the Scarborough project backdated to 1 January 2022. The estimated total consideration is around US$880 million (AU$1.3 billion).
The transaction remains subject to the standard conditions, including Foreign Investment Review Board approval. Woodside expects the transaction to complete in the first quarter of 2024. On completion, Woodside will hold a 90% interest in the Scarborough Joint Venture and will remain as the operator.
Woodside also reported it’s entered into a non-binding agreement with LNG Japan for the sale and purchase of 12 LNG cargoes per year for a period of 10 years commencing in 2026.
Commenting on the sale agreement helping lift the Woodside share price today, CEO Meg O’Neill said:
The support of LNG Japan is testament to the quality of the Scarborough project. It also underscores the ongoing demand from Japanese buyers for new supplies of gas and the role of gas in supporting Japan’s energy security.
On the sustainable energy front, Woodside said it’s also entered into non-binding agreements to collaborate with Sumitomo Corporation and Sojitz Corporation to explore new opportunities for energy sources and technology. That includes ammonia, hydrogen and carbon capture and storage (CCS).
“Our new energy agreements with Sumitomo and Sojitz provide further opportunities for us to work closely together on our shared decarbonisation and energy security ambitions,” O’Neill said.
Woodside share price snapshot
The Woodside share price has gained 21% since this time last year.
