Herbert Smith Freehills advises JERA on its investment in Woodside Energy’s Scarborough Project

Herbert Smith Freehills (HSF) has advised JERA Australia Pty Ltd, the Australian subsidiary of Japan’s largest power generation company, JERA Co., Inc., on its proposed acquisition of a 15.1% participating interest in Woodside Energy’s Scarborough Project. 

The total consideration payable by JERA is estimated to be around US$1.4 billion, which comprises the base purchase price and a reimbursement of JERA’s share of project expenditure from the effective date to completion. 

The transaction is part of a broader strategic collaboration agreed by the parties, which also includes the entry into non-binding agreements in respect of LNG supply and collaboration in new energy and decarbonisation initiatives. 

Completion of the transaction is subject to customary regulatory approvals. 

The HSF team was co-led by partners Mark Hatfull and Robert Merrick, with the assistance of lead associate Sakura Kajimura. The team was supported by partners Damien Roberts, Sarah Benbow, Adelaide Luke and Daniel Zador, special counsel Naomi Hutchings, of counsel Joel Rheuben, senior associates Jared Peut, Howard Chan and Emily Clarke, and a number of associates from the firm’s Perth, Sydney, Melbourne, and Tokyo offices.  

Partner, Mark Hatfull said HSF is delighted to have acted for JERA on this transaction. 

“The Scarborough Project will provide considerable benefits for the Western Australian economy and will also play a crucial part in future energy security for Japan (and some of Australia’s other trading partners). JERA has made a significant investment into the project, and we are very pleased to have assisted it in reaching this milestone,” he said.