Australian Woodside to Operate Scarborough

Australian Woodside Energy will become the operator of the Western Australia Scarborough gas field asset, after boosting its stake in an agreement with ExxonMobil, Woodside said March 12.

“BHP waives its right of pre-emption and provides its consent to the sale by ExxonMobil to Woodside of its 50% interest in WA-1-R and the Scarborough Joint Venture Operating Agreement,” Woodside told the Australian Stock Exchange. “Woodside will become the Scarborough operator on completion of the transaction between ExxonMobil and Woodside,” it added.

Woodside CEO Peter Coleman said the announcement strengthens the alignment and certainty of Scarborough’s development.

“I am pleased BHP has agreed that Woodside will become operator of the Scarborough Development. The Scarborough joint venture will now be focused on finalising the development concept prior to entering FEED and positioning for FID in 2020,” he said. The completion of the transaction between ExxonMobil and Woodside remains targeted for the end of the current quarter, Woodside said.

Earlier this year, Woodside entered into a sale and purchase agreement with ExxonMobil to take its 50% interest in the project, which will lift Woodside’s stake to 75%.

Woodside has granted BHP the option of purchasing an additional 10% interest in Scarborough on equivalent consideration and terms to the transaction with ExxonMobil. BHP has until December 2019 to decide.