WOODSIDE has continued to build on its LNG asset base by agreeing to acquire half of BHP Billiton’s Scarborough area assets in the northern Carnarvon Basin off the coast of Western Australia.

Woodside will pay BHP Billiton 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 include the Scarborough, Thebe and Jupiter fields, which are estimated to contain gross 8.7 trillion cubic feet (tcf) of gas resources at the 2C confidence level.

Woodside CEO Peter Coleman said that adding these volumes to the Australian portfolio would complement Woodside’s growth strategy and leverage the company’s deep water and LNG capabilities.

“We look forward to working with ExxonMobil and BHP Billiton following completion of the transaction to progress commercialisation of these world-class resources,” he said.

The acquisition includes a 25% interest in WA-1-R and a 50% interest in WA-62-R permits, which together contain the Scarborough gas field. Woodside will also acquire a 50% interest in WA-61-R and WA-63-R which contain the Jupiter and Thebe gas fields.

Woodside will operate WA-61-R, WA-62-R and WA-63-R, whiele ExxonMobil will be operator of WA-1-R.