18 November 2019
BHP and Woodside have signed a non-binding Heads of Agreement (HoA) to progress the Scarborough gas development offshore Western Australia.
While specifics of the HoA remain commercial-in-confidence, key elements include:
- Alignment on a plan that targets a BHP final investment decision (FID) by mid-2020.
- Agreement on a competitive tariff for gas processing through the Pluto facility.
- BHP election to not exercise the option for an additional 10% of the Scarborough main title (WA-1-R).
- Unitisation of WA-62-R (Woodside 50 per cent, BHP 50 per cent) prior to FID.
- Agreement to evaluate processing additional Scarborough gas through the North West Shelf LNG facility.
Country Manager BHP Petroleum Australia, Graham Salmond, said: “BHP is committed to Scarborough. It is a project that can compete for capital within our capital allocation process and provides potential for our Australian business to grow value and returns.
“We are pleased to align on a non-binding commercial Heads of Agreement with Woodside, which includes a competitive processing tariff that reflects BHP’s view on value and risk, and agreement to fully assess optimisation to process additional Scarborough gas through the North West Shelf.
“We will continue to work closely with Woodside to ensure Scarborough delivers value for our shareholders, partners and the community.”