WOODSIDE TO ACCELERATE SCARBOROUGH
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.”
Woodside is mulling over concepts for the expansion of Pluto to support its Scarborough gas field development.