PERTH, Australia – The Commonwealth and Western Australian Joint Authority have granted petroleum production licenses to the Scarborough joint venture for the offshore WA-1-R (Scarborough) and WA-62-R (North Scarborough) permits.
In February, partners Woodside Energy and BHP agreed to align their participating interests, giving Woodside 73.5% and BHP 26.5% in both cases.
Woodside CEO Peter Coleman said the companies intended to accept the production licenses and will work to take the project forward.
“The impacts of COVID-19 and the ensuing volatility in market and investment conditions have provided us with an opportunity to review options for the Scarborough development, allowing us to improve execution certainty and increase the value…
“With production licenses and the offshore project proposal environmental approval in place, Woodside will have secured the key primary Commonwealth approvals required to support a final investment decision.”
The JV will next advance its application for a pipeline license and submission of the field development plan to the Joint Authority, ahead of FID targeted for the second half of 2021.
Retention lease renewal applications for the WA-61-R and WA-63-R titles containing the Thebe and Jupiter fields (part of the Greater Scarborough gas resource) remain under assessment by the Joint Authority.
Woodside estimates 2C dry gas volumes at Scarborough at 11.1 tcf.