08/11/2019 - 15:34

Woodside expands Scarborough gas resource

08/11/2019 - 15:34

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Woodside Petroleum said today its Scarborough gas project had a strengthened case for development after the company raised its reserves estimate by 52 per cent.

Woodside expands Scarborough gas resource
Peter Coleman says the increase in estimated resource volume at Scarborough underscores its potential as a world-class project.

Woodside Petroleum said today its Scarborough gas project had a strengthened case for development after the company raised its reserves estimate by 52 per cent.

The company said its estimated gross contingent resources for the Scarborough field had increased from 7.3 trillion cubic feet to 11.1 trillion cubic feet.

Chief executive Peter Coleman said the increase in estimated resource volume at Scarborough underscored its potential as a world-class project that could meet growing demand for gas in Asia and beyond, as well as supplying the Western Australian market.

“Our understanding of the value of the Scarborough gas resource has increased after applying leading-edge technology to geophysical data collected since the field’s discovery almost 40 years ago,” he said.

“By unlocking the huge potential of the Scarborough gas resource, we’ve strengthened the case for the development and extended the expected cashflow from Scarborough for years.

“This resource upgrade further improves Scarborough’s existing value proposition as we target the delivery of a new, globally competitive liquefied natural gas project from 2024.”

Woodside is targeting a final investment decision for the development of the $15 billion Scarborough gas resource in the first half of 2020.

The project includes development of the offshore gas field and construction of a subsea pipeline to the Pluto LNG plant, which will be expanded to have a second processing train.

It has been engaged in long-running discussions with joint venture partner BHP, which has a 25 per cent stake in the project.

The Scarborough gas field has the single-largest resource within the Greater Scarborough project, which also includes the Thebe and Jupiter fields.

Greater Scarborough has an estimated dry gas contingent resource volume of 13 trillion cubic feet – a 41 per cent increase from the previous 9.2 trillion cubic feet estimate.

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