Woodside Completes Scarborough Deal

Australian major Woodside Energy has completed the acquisition of ExxonMobil’s stake in the Western Australian Scarborough offshore gas field, the company said March 29.

“Woodside has acquired an additional 50% interest in WA-1-R (which contains the majority of the Scarborough gas field), and now holds a 75% interest in WA-1-R and a 50% interest in WA-61-R, WA-62-R and WA-63-R,” Woodside said.

“These retention leases cover the Scarborough, Thebe and Jupiter gas fields, which are estimated to contain gross (100%) contingent resources (2C) of 9.2 trillion ft³ of dry gas,” it said.

Woodside announced earlier in the month that it will be the operator of the asset following equity holder BHP agreeing to the sale. BHP has the option to purchase an additional 10% interest in Scarborough on the same terms to Woodside’s transaction with ExxonMobil. Announcing the acquisition in February, Woodside said it will pay A$744mn (US$585mn) for the stake, made up of $A$444mn on completion, plus a contingent payment of A$300mn upon a positive FID in the project.  

Woodside, which will now operate Scarborough, plans to develop the field through its Pluto LNG facility - in contrast to ExxonMobil which was considering Scarborough's development as a floating liquefaction project.