Scarborough FID mooted for 2020

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Peder%20Coleman_jpgWOODSIDE has flagged a final investment decision for its Scarborough fields offshore north-Western Australia by 2020.
Having acquired a 25% stake in the field from BHP Billiton in the fourth quarter of 2016, Woodside said in its operational that it had started work with the Scarborough field joint venture with the aim of commercialising the resource.
The field, located about 220km northwest of Exmouth in 900m water depths, was discovered in 1979 and is one of the most remote of the Carnarvon Basin gas resources.
ExxonMobil affiliate Esso Australia is operator of Scarborough with a 50% stake with BHP Billiton and Woodside holding the remaining interest.
“Consistent with retention lease obligations, the development is positioning to support FEED readiness in 2018 and a FID by 2020,” Woodside said.
Scarborough development faces several challenges including its remote location, water depth, resources characteristics, execution complexities and the currently saturated LNG market.
Industry speculation has suggested a floating LNG (FLNG) facility as the best development option. However, a tieback to an existing, onshore LNG plant is also possible.
No development concept has been approved, but in 2013 Exxon and BHP Billiton were given environmental approval for Scarborough, with FID then targeting 2014-15 and FLNG processing offshore.
Subsequently, the project was shelved as crude oil prices crashed.

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