Woodside awards Scarborough contracts ahead of FID next year

16th January 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Woodside awards Scarborough contracts ahead of FID next year

Photo by: Bloomberg

PERTH (miningweekly.com) – Australian oil and gas major Woodside is pushing ahead with the development of its $11-billion Scarborough gas project, announcing four contract awards for front-end engineering design activities.

CEO Peter Coleman said the award of the contracts would support the project schedule and Woodside’s targeted final investment decision next year.

“We have made good progress since announcing last year that we had increased our stake in Scarborough. The award of these contracts brings us closer to unlocking the Scarborough resource,” Coleman said.

“We want to continue to maintain the momentum that has been generated during 2018 towards a targeted final investment decision in 2020.”

Woodside’s preferred development concept for the 7.3-trillion cubic feet Scarborough gas resource is through a new offshore facility connecting an export pipeline to the Burrup Peninsula, with onshore processing at the expanded Pluto liquefied natural gas facility.

The contracts awarded were for engineering activities related to the upstream development’s floating production unit, the export trunkline and the subsea umbilical risers and flowers.

McDermott Australia have been awarded a contract to undertake the engineering studies for the floating production unit, which will include the option to progress to an engineering, procurement and construction (EPC) contract.

Subsea Integration Alliance, which is a consortium between OneSubsea Australia and Subsea 7 Australia Contracting, has been awarded a contract to undertake the engineering studies for the subsea umbilical risers and flowlines, and also had the option to progress to an EPC and installation contract.

Intecsea has been awarded the contract for export trunkline engineering while Saipem Australia has been awarded a contract to provide export trunkline engineering support service, with an option to execute line pipe coating and installation activities.