Woodside Petroleum (WPL) has continued its shopping spree for global oil and gas assets, but instead of focusing offshore for the latest deal, has returned home to its old stomping ground off the NW coast of WA.
Woodside yesterday announced the $US400 million purchase of BHP Billiton’s stake in the Scarborough LNG project.
The deal will see Woodside take a 50% stake in one offshore permit (WA-62-R) and a 25% interest in a second offshore permit (WA-1-R), which together contain the Scarborough gas field off Western Australia.
BHP had owned 100% and 50% of those fields respectively, meaning Woodside has acquired half of BHP’s stake.
Woodside has also acquired a half interest in two other permits that BHP had owned outright; those permits contain the prospective Jupiter and Thebe gas fields.
The deal is subject to approval from ExxonMobil, which has pre-emptive rights over the assets.
Under the terms of the deal $US250 million will be paid to BHP immediately, and a further $US150 million will be paid upon a final investment decision to develop the Scarborough field.
It’s the latest in a growing number of asset acquisitions that Woodside has launched in the past year or two.
Woodside spent $US430 million in July buying ConocoPhillips’ exploration acreage in offshore Senegal (although there is talk of a new higher offer), and last year failed with a $US8 billion bid for Oil Search.
In April of last year it spent $US2.75 billion buying Apache Energy assets, including a stake in the Wheatstone LNG project in WA, and gas assets in Canada.
It has also established a small presence in Myanmar and Ireland over the past three years.
Woodside chief executive Peter Coleman said yesterday the development approach would not change immediately.
"Woodside is committed to working with the Scarborough JV to ensure the asset is commercialised and Retention Lease obligations are satisfied. The JV is currently working FLNG as its preferred development option and Woodside supports this work," he said in a statement.
"If the Scarborough JV elects to look at other development options, including an onshore tieback via Woodside operated infrastructure, then Woodside would offer its support in understanding these opportunities."
Woodside shares rose 1.5% to $28.51.
