Woodside is set to become the operator of the Scarborough gas field, located offshore Australia, after reaching a deal with BHP.
BHP has approved Woodside’s acquisition of ExxonMobil’s 50% interest in Scarborough.
The agreement for the acquisition will result in Woodside holding a 75% interest in the field and was signed last month.
Woodside will assume the operatorship once the purchase is completed.
The company has entered a deal wherein BHP has the option to buy an additional 10% interest in Scarborough, exercisable before 31 December 2019 or the receipt of approval to start the front-end engineering and design phase of the field development, whichever is earlier.
The terms and consideration of the sale are expected to be similar to the transaction with ExxonMobil.
Woodside CEO Peter Coleman said: “I am pleased BHP has agreed that Woodside will become operator of the Scarborough Development.
“The Scarborough joint venture will now be focused on finalising the development concept prior to entering FEED and positioning for FID in 2020.”
Furthermore, the company will hold negotiations with BHP regarding the unitisation of WA-1-R, which contains the majority of Scarborough, and the adjacent WA-62-R.
The partners will also discuss potential offers to divest up to a 10% interest in Scarborough to foundation LNG buyers.
The transaction involving Woodside’s acquisition of ExxonMobil’s interest in the field is scheduled to be closed by the end of the first quarter of this year.