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Woodside and BHP deal on Scarborough

While the price has not been revealed, the two companies said a non-binding heads of agreement on other tolling terms has also been signed.

The agreement refers to the price for processing gas from the Scarborough fields at the Pluto LNG facility on the Burrup Peninsula, with the deal having been one of the last remaining hurdles to clear before a final investment decision (FID) on the project will be made.

The toll is based on BHP maintaining a maximum 25 per cent interest in Scarborough up to an FID and Woodside CEO Peter Coleman said the two companies would look to finalise the required conditional binding agreements by the end of the first quarter of 2020.

“It is a key milestone as we target a go-ahead for the development of the high-quality Scarborough gas resource through an expanded Pluto LNG facility,” said Mr Coleman.

“The joint venture is now in a strong position to proceed to FID in the first half of next year.”

The Scarborough gas field is located mainly within the WA-1-R lease offshore Western Australia.

An FID would see the resource developed via a deep-water floating production unit and a 430 km pipeline to a potential second LNG production train at Pluto.

For more information visit the Woodside website.

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