PERTH (miningweekly.com) – Diversified major BHP on Thursday announced a decision to progress the Scarborough gas development, offshore Western Australia, into the feasibility study phase.
BHP in 2016 sold a 50% stake in the undeveloped Scarborough gasfield to Australian oil and gas major Woodside Energy for an initial $250-million cash consideration, and a further $150-million payment on a final investment decision.
The mining major on Thursday said that the decision to progress Scarborough to its final phase of study continued the progress made over the last few months.
“Scarborough is consistent with our petroleum strategy to invest in advantaged gas, offering options to unlock future upside through adjacent resources,” said BHP Petroleum Australia country manager Graham Salmond.
“We will continue to work closely with Woodside so that Scarborough delivers value for our shareholders, partners and the community.”
The project is expected to be submitted to the BHP board for a final investment decision from the middle of the 2020 calendar year. First liquefied natural gas is targeted for 2024.
Woodside in January this year reported a 52% increase in the resource volume at the Scarborough field, from 7.3-trillion cubic feet to 11.1-trillion cubic feet.