BHP Billiton and Australian energy group Woodside have entered into binding Sale and Purchase Agreements (SPAs) on the acquisition by Woodside of assets in the Scarborough area in the Carnarvon Basin, located offshore Western Australia.
Woodside will acquire a 25% stake in WA-1-R operated by ExxonMobil and a 50% interest in WA-62-R (operator), which together contain the Scarborough gas field. Woodside will also acquire a 50% interest and operatorship in WA-61-R and WA-63-R which contain the Jupiter and Thebe gas fields. The Scarborough, Thebe and Jupiter fields are estimated to contain gross 8.7 Tcf (245 bcm) of gas resources at the 2C confidence level, including 6.9 Tcf (195 bcm) for the Scarborough gas field alone. Woodside’s net share of the resources is estimated to be 2.6 Tcf (73 bcm) of gas.
Woodside will pay BHP Billiton US$250m on completion of the transaction (subject to pre-emption rights and customary regulatory approvals and targeted by year-end 2016) and a contingent payment of US$150m upon FID of the Scarborough gas field.