WOOD­SIDE TO AC­CEL­ER­ATE SCARBOROUGH

The Australian Energy Review - - FRONT PAGE - CAMERON DRUMMOND WA

WOOD­SIDE Pe­tro­leum plans to ac­cel­er­ate the de­vel­op­ment of its Scarborough gas field through ex­pand­ing the Pluto LNG project. In March, the oil and gas ma­jor ac­quired Exxon­mo­bil’s stake in Scarborough for $US444 mil­lion, tak­ing its in­ter­est to 75 per cent, with BHP hold­ing the re­main­ing 25 per cent. “We now op­er­ate both the Scarborough off­shore gas re­source and Pluto LNG on­shore pro­cess­ing fa­cil­ity,” Wood­side chief ex­ec­u­tive Peter Cole­man said. “It is our plan to ac­cel­er­ate the de­vel­op­ment of Scarborough through an ex­pan­sion of Pluto LNG. “Con­cept se­lec­tions for both the off­shore and on­shore com­po­nents of the project are tar­geted by the end of this year.” Cur­rently, Pluto’s on­shore con­fig­u­ra­tion con­sists of a sin­gle LNG pro­cess­ing train, pro­duc­ing about 4.9 mil­lion tonnes (mt) a year. “We also com­pleted our suc­cess­ful $2.5bn en­ti­tle­ment of­fer, which will pro­vide eq­uity fund­ing sup­port to de­liver Scarborough and Sne-phase 1, and Browse to tar­geted Fi­nal In­vest­ment De­ci­sion,” Mr Cole­man said. Wood­side also re­ported an in­crease in pro­duc­tion at Wheat­stone as the project achieved steady pro­duc­tion and demon­strated pro­duc­tion rates above name­plate ca­pac­ity. Wood­side pro­duced 22.2 mil­lion bar­rels of oil equiv­a­lent (MMBOE), up from 21.9 MMBOE from the pre­vi­ous quar­ter. “Out­put from Wheat­stone un­der­pinned an in­crease in LNG pro­duc­tion in the first three months of this year, while rev­enue climbed 18 per cent quar­ter-on-quar­ter to $1.17 bil­lion,” Mr Cole­man said. He added that Train 2 at Wheat­stone was close to com­ple­tion and is ex­pected to start pro­duc­ing some­time dur­ing the June quar­ter. “Once both LNG trains and the do­mes­tic gas fa­cil­ity are fully op­er­a­tional, Wheat­stone will con­trib­ute more than 13 Mmboe of an­nual pro­duc­tion.” On the Bur­rup Hub, Wood­side started con­struc­tion of an LNG truck-load­ing fa­cil­ity at Pluto. “This will open up new uses for our prod­uct as a low-emis­sions trans­port fuel and for re­mote power gen­er­a­tion, while un­der­lin­ing our com­mit­ment to the pro­vi­sion of gas in WA,” Mr Cole­man said. On 26 April, Wood­side signed a me­moran­dum of un­der­stand­ing (MOU) with urea pro­ducer Per­daman Chem­i­cals and Fer­tilis­ers for do­mes­tic gas sup­ply. Un­der the agree­ment, Wood­side will sup­ply about 125 ter­a­joules per day of do­mes­tic gas for use in Per­daman’s pro­posed 2 mil­lion tonne per an­num urea plant on the Bur­rup Penin­sula. If de­vel­oped, sup­ply would com­mence from the early 2020s for a pe­riod of be­tween 20 and 25 years. “Sup­ply­ing do­mes­tic gas from our port­fo­lio will un­der­pin a fresh wave of in­vest­ment in the Pil­bara re­gion,” Mr Cole­man said. “Our Bur­rup Hub projects can sup­port the eco­nomic di­ver­si­fi­ca­tion of the re­gion in the years ahead and en­sure we are po­si­tioned to meet long-term global LNG de­mand.”

Im­age: Wood­side.

Wood­side is mulling over con­cepts for the ex­pan­sion of Pluto to sup­port its Scarborough gas field de­vel­op­ment.

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