Woodside Buys 50% of BHP Billiton's Scarborough Assets Off WA for $400M
Woodside Petroleum Ltd. inked binding Sale and Purchase Agreements to acquire half of BHP Billiton’s Scarborough area assets in the Carnarvon Basin, located offshore Western Australia for $400 million, the firm said Monday.
Under the agreements, Woodside will acquire 25 percent interest in WA-1-R and 50 percent stake in WA-62-R, which comprise the Scarborough gas field. The company will also acquire a 50 percent interest in WA-61-R and WA-63-R which contain the Jupiter and Thebe gas fields. Woodside will operate WA-61-R, WA-62-R and WA-63-R, while ExxonMobil is the operator of WA-1-R.
When the transaction is completed, Wodside will pay BHP Billiton $250 million and a contingent payment of $150 million is due upon a positive final investment decision to develop the Scarborough field. The Scarborough area assets -- include the Scarborough, Thebe and Jupiter fields -- are estimated to contain gross 2C gas resources of 8.7 trillion cubic feet (Tcf), with Woodside’s net share at around 2.6 Tcf.
Woodside CEO Peter Coleman said the addition of Carnarvon Basin volumes to its Australian portfolio would complement the firm’s growth strategy and leverage its deepwater and liquefied natural gas (LNG) capabilities.
"We look forward to working with ExxonMobil and BHP Billiton following completion of the transaction to progress commercialization of these world-class resources," he said.
BHP Billiton President Operations, Petroleum, Steve Pastor said Monday in a separate press release that "BHP Billiton considers the proposed sale to Woodside to be a positive outcome for all parties. Woodside is a strong partner with substantial LNG experience in Western Australia, and we believe they will contribute positively to the future development of the Scarborough resources."
The effective date of the transaction is July 1. Completion, which is subject to pre-emption rights and customary regulatory approvals, is targeted by end 2016.
Industry sources said the urgency to develop the Scarborough LNG Project has been slowed by the industry downturn that commenced in the second half of 2014 as gas prices tracked the more than 50 percent decline in global crude oil markets.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Malaysia's InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur
- Petrobangla Invites EOIs for 3 Offshore Exploration Blocks in Bay of Bengal
- Malaysia's SapuraKencana Posts 7.1% Gain in 2Q FY17 PAT to $27M
- TH Heavy Engineering, McDermott End Partnership in Malaysia
- Singapore's NUS Slowly Builds its Petroleum Engineering Program
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension