Woodside hands out Scarborough contracts

Australian energy company Woodside has awarded four contracts for front-end engineering design activities for the proposed Scarborough project located offshore Australia. 

Scarborough upstream concept schematic / Image source: Woodside

According to Woodside’s statement on Wednesday, the contracts are for engineering activities related to the upstream development’s floating production unit, the export trunkline, and the subsea umbilical risers and flowlines.

Each contract includes an option to progress to execute phase activities, which is subject to, among other conditions, a positive final investment decision (FID) being taken on the project by the Scarborough Joint Venture, Woodside added.

The contracts

McDermott has been awarded a contract to undertake engineering studies for the floating production unit, which includes the option to progress to an engineering, procurement and construction contract for execute phase activities.

Subsea Integration Alliance, a consortium between OneSubsea and Subsea 7, has been awarded a contract to undertake engineering studies for the subsea umbilical risers and flowlines, with the option to progress to an engineering, procurement, construction and installation contract for execute phase activities.

Saipem has been awarded a contract to provide export trunkline engineering support services with an option to execute line pipe coating and installation activities.

Intecsea has been awarded a contract for export trunkline engineering.

Each contract was awarded by Woodside in its corporate capacity as a Scarborough titleholder and will be funded initially by Woodside on a 100% basis.

Woodside CEO, Peter Coleman, said the award of these contracts would support the project schedule and Woodside’s targeted FID for the Scarborough Project 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.

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

Woodside’s preferred concept for development of the 7.3 Tcf (2C 100%) Scarborough gas resource (Woodside 75%) is through new offshore facilities connected by an approximately 430 km export pipeline to the Burrup Peninsula with onshore processing at the expanded Pluto LNG facility.

It is worth reminding that Woodside has already found a buyer for a portion of natural gas to be produced from its Scarborough field, one of the most remote of the Carnarvon Basin gas resources. Namely, Woodside in November 2018 entered into a long-term gas sale and purchase agreement (GSPA) with W. Australia-based Perdaman for the supply of pipeline gas for a term of 20 years.