Name of the Project
Scarborough gasfield development.

Location
About 375 km off the coast of Western Australia.

Project Owner/s
The project is a joint venture (JV) between Woodside Petroleum and BHP. The JV partners reached an agreement in February 2021 to align their participating interests across the Scarborough and North Scarborough titles, resulting in Woodside’s holding a 73.5% interest and BHP holding the remaining 26.5% interest in both titles.

Project Description
Scarborough is estimated to contain 11.1-trillion cubic feet (100%) of dry gas.

Development of the project will include the installation of a floating production unit, with eight wells drilled in the initial phase and 13 wells drilled over the life of the Scarborough field.

The gas will be transported to Pluto LNG through a new trunkline of about 430 km.

Potential Job Creation
Not stated.

Capital Expenditure
Woodside recently flagged a 5% increase in the capital cost estimate for the Scarborough development, which is now estimated to require a $12-billion capital investment comprising a $5.7-billion investment for the offshore component and a $6.3-billion investment for the onshore component.

Planned Start/End Date
First production from the Scarborough gasfield has been targeted for 2026.

Latest Developments
BHP and Woodside Energy have made a final investment decision (FID) on the $12-billion Scarborough and Pluto Train 2 developments, and have formally signed a binding share sale agreement that will see Woodside acquire the entire share capital of BHP Petroleum International.

The merger was first announced in August, and will create a global top ten independent energy company by production and the biggest energy company listed on the ASX.

Completion of the merger is targeted for the second quarter of 2022. Before the completion of the merger, the two companies will continue with their respective businesses in the normal course and will put in place appropriate plans to allow for a smooth transition of ownership.

The effective date of the merger will be July 1, 2021.

The Scarborough and Pluto Train 2 joint ventures have executed a fully termed processing and services agreement for the processing of Scarborough gas through the Pluto LNG facilities. The agreement provides for the Scarborough JV to access LNG and domestic gas processing services at up to eight-million tonnes a year of LNG, and up to 225 terajoules a day of domestic gas for an initial period of 20 years, with options to extend.

The agreement is subject to certain conditions precedent, including the relevant regulatory approvals, the execution of the Domestic Gas Commitment Agreement, as well as the execution of the associated infrastructure and development agreements with the Western Australia government.

Western Australian Premier Mark McGowan has welcomed the final investment decision, saying the project could create more than 3 200 jobs in the region.

Expansion of Pluto LNG will include the construction of Pluto Train 2, associated domestic gas processing facilities, supporting infrastructure and modifications to Pluto Train 1 to enable it to process Scarborough gas. Bechtel has been selected as the engineering procurement construction contractor for Pluto Train 2 and integration into existing Pluto LNG facilities.

Woodside recently struck a deal with infrastructure investor Global Infrastructure Partners (GIP) to sell a 49% stake in the Pluto Train 2 Joint Venture (JV).

In addition to its 49% share of capital expenditure, the JV arrangements require GIP to fund $835-million in additional construction expenditure, with Woodside’s share of capital spend to reduce accordingly.

Key Contracts, Suppliers and Consultants
SNC Lavalin (engineering subdesign contract).

Contact Details for Project Information
Woodside, tel +61 8 9348 4000.