Woodside: Scarborough field FID by 2020
Australia’s Woodside Petroleum has informed that the final investment decision for the undeveloped Scarborough fields offshore W. Australia could be expected by 2020.
To remind, Woodside acquired a 25 percent stake in the field from BHP Billiton in the fourth quarter of 2016.
Scarborough, discovered in 1979, is located off the coast of Western Australia approximately 220 kilometers northwest of Exmouth in 900 meters of water. It is one of the most remote of the Carnarvon Basin gas resources.
In its operational update on Thursday, Woodside said that it had started work with the Scarborough field Joint Venture to progress towards commercialization of the Scarborough area resources.
ExxonMobil’s affiliate Esso Australia Resources Pty Ltd is the operator and owner of 50% of the Scarborough gas field in a joint venture with BHP Billiton (25%) and Woodside Petroleum (25%).
“Consistent with retention lease obligations, the development is positioning to support FEED readiness in 2018 and a FID by 2020,” Woodside said on Thursday.
According to information disclosed by ExxonMobil, the economic development of Scarborough includes several challenging factors such as location, water depth, resource characteristics, execution complexities and the current LNG market.
The development concept is yet to be decided on, and according to a piece of information found on ExxonMobil’s website Floating LNG is considered the best development option based on a balance of economic, environmental and social considerations. However, there is also a tieback option to one of the existing onshore LNG facilities.
Back in 2013, Exxon and BHP Billiton had received the environmental approval for the Scarborough field development via what was to be the world’s largest FLNG facility. The FID had been slated for 2014-2015, but the collapse in oil prices then forced the partners to pull the breaks on the project.
Offshore Energy Today Staff