26/02/2020 - 16:03

Title reshuffle for Scarborough

26/02/2020 - 16:03

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Woodside Petroleum and BHP have reshuffled their interests in two petroleum titles key to the Scarborough LNG project, as the companies prepare for a final investment decision this year.

BHP is the minor partner in the Scarborough development. Photo: Gabriel Oliveira

Woodside Petroleum and BHP have reshuffled their interests in two petroleum titles key to the Scarborough LNG project, as the companies prepare for a final investment decision this year.

BHP will now hold 26.5 per cent of both titles, with Woodside owning a 73.5 per cent share.

Prior to the move, Woodside held 75 per cent of title WA-1-R, the Scarborough title, and 50 per cent of WA-62-R, the North Scarborough title.

The two will also apply for production licences across the titles, which cover the Scarborough field.

No ownership changes to the Thebe or Jupiter titles, which are split 50/50 per cent between the two companies and could form part of any development, were announced.

Woodside chief executive Peter Coleman said the alignment would support development of the field.

“This is a world-class Australian resource,” Mr Coleman said.

‘The production licence applications are another key step to unlocking the full value of the Scarborough resource through the expansion of our existing Pluto LNG facility.”

A tolling agreement between Woodside and partner BHP should be finalised within months, Mr Coleman told investors at a recent briefing.

BHP country manager of petroleum Graham Salmond was also upbeat.

“The proposed Scarborough development fits with our strategy of seeking to commercialise advantaged gas resources with potential future upside, and we continue to take positive steps in its development,” Mr Salmond said. 

“We will continue to work closely with Woodside towards a development that can deliver value for our shareholders, the joint venture and the community.”

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