Woodside raises cost estimate for Scarborough gas field
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Woodside, the nation’s largest oil and gas producer, has raised the cost estimate for the multibillion-dollar Scarborough gas field it plans to develop off Western Australia in a joint venture with BHP.
With both companies aiming to give the giant gas project the financial go-ahead later this year, Woodside on Wednesday revised the price tag up by 5 per cent to $US12 billion ($16.2 billion).
Woodside is seeking to expand its Pluto LNG plant in Western Australia.
Australia: Woodside reports increased cost estimate for Scarborough development
04 Aug 2021
In the lead up to the targeted final investment decision (FID) later this year,
Woodside has finalised technical work to support execution readiness and completed an update of the capital expenditure requirements for the
Scarborough development.
Refreshed pricing from major contractors underpins the updated cost estimate, and reflects Woodside’s work with them since 2020 to maximise the value of the project by optimising design and execution planning, and increasing offshore processing capacity.
The
updated cost estimate is US$12.
0 billion (100% project, nominal), comprising $5.7 billion for the offshore component and $6.3 billion for the onshore component.
Woodside revises cost estimate of Scarborough gas project to $12bn
Cost estimate of the onshore component of the Australian gas project has been increased by almost 3%
Woodside has increased the cost estimate of the Scarborough gas project by around 5%. (Credit: Woodside)
Woodside has revised the cost estimate of the Scarborough gas project in Australia to $12bn, which is nearly a 5% increase compared to the previous cost estimate announced in November 2019.
The offshore component of the project will cost $5.7bn, while the onshore part would need an investment of $6.3bn.
Compared to the previous estimate, the onshore component has an increase of nearly 3% in its cost estimate. The onshore component includes modifications to Pluto Train 1 to facilitate the processing of gas drawn from the offshore Scarborough field.
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