Acquisition of half of BHP Billiton’s Scarborough area assets: Woodside Petroleum Limited (ASX: WPL) has entered into binding sale and purchase agreements with BHP to acquire half of BHP Billiton’s Scarborough area assets in the Carnarvon Basin, located at offshore Western Australia. The deal would complement WPL’s growth strategy and would leverage the company’s deep water production and LNG capabilities. The acquisition includes a 25% interest in WA-1-R for which ExxonMobil is the operator and a 50% interest in WA-62-R, which together would comprise the Scarborough gas field. The group would also acquire a 50% interest in WA-61-R and WA-63-R which contain the Jupiter and Thebe gas fields. Meanwhile, WPL has agreed the deal for $400 million which consists of US$250 million on completion of the transaction and a contingent payment of US$150 million upon a positive final investment decision to develop the Scarborough field. The Scarborough area assets including the Scarborough, Thebe and Jupiter fields are estimated to contain the gross 8.7 trillion cubic feet of gas resources at the 2C confidence level. WPL’s net share of the resources is estimated to be 2.6 trillion cubic feet of gas. The group is targeting completion of the transaction by the year-end 2016. However, the acquisition is subject to the pre-emption rights, FIRB clearance and NOPTA approval and registration. The resources would then be booked by WPL as contingent resource after the completion.
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