Woodside to acquire 50% of Scarborough area assets

Woodside has entered into binding sale and purchase agreements to acquire half of BHP Billiton’s Scarborough area assets in the Carnarvon Basin, located offshore Western Australia.

The acquisition includes a 25% interest in WA-1-R and a 50% interest in WA-62-R, which together contain the Scarborough gas field. Woodside will also acquire a 50% 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. ExxonMobil is the operator of WA-1-R.

Woodside will pay BHP Billiton $250 MM on completion of the transaction and a contingent payment of $150 MM upon a positive final investment decision to develop the Scarborough field. The effective date of the transaction is July 1, 2016.

The Scarborough area assets include the Scarborough, Thebe and Jupiter fields, which are estimated to contain gross 8.7 Tcf of gas resources at the 2C confidence level. Woodside’s net share of the resources is estimated to be 2.6 Tcf of gas.

Woodside CEO Peter Coleman said that adding Carnarvon Basin volumes to the Australian portfolio would complement Woodside’s growth strategy and leverage the company’s deep water and LNG capabilities.

Completion is subject to pre-emption rights and customary regulatory approvals and is targeted for the end of 2016.

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