The Australian energy group Woodside has signed a binding share sale agreement (SSA) with BHP Group, under the terms of which Woodside will acquire 100% of BHP Petroleum International (BHP's oil and gas portfolio) in exchange for new Woodside shares, to comprise around 48% of all Woodside shares (on a post-issue basis) (Australia). The transaction is expected to be completed in the second quarter of 2022, subject to regulatory conditions. The combined company will reportedly, be one of the top 10 independent energy companies by production worldwide and the largest energy company listed in Australia, including high margin oil portfolio and long life LNG assets. Woodside and BHP are already cooperating on the Scarborough joint venture (73.5% and 26.5%, respectively).
In addition, Woodside has made final investment decisions (FIDs) for the Scarborough and Pluto Train 2 developments, including new domestic gas facilities and modifications to Pluto Train 1. The US$12bn project will process 8 Mt/year of gas from the Scarborough field - estimated proven reserves of 957 Mboe and 2P reserves of 1.4 Gboe - by modifying the existing first train of the 4.9 Mt/year Pluto LNG plant to process up to 3 Mt/year of Scarborough gas and by building a new 5 Mt/year liquefaction train (Pluto Train 2). First LNG is expected in 2026. Woodside would hold a 51% participating interest in the Pluto Train 2, as the group recently agreed to sell a 49% non-operating interest of the train to Global Infrastructure Partners (GIP).
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