WOODSIDE has entered into a binding Sale and Purchase Agreement (SPA) to acquire ExxonMobil’s share of the Scarborough gas field located in the Carnarvon Basin, offshore Western Australia.

The sale is subject to a number of conditions, but if completed will see Woodside pay ExxonMobil $444 million initially and a contingent payment of $300 million upon positive Final Investment Decision (FID) for a Scarborough development.

Woodside is looking to commercialise the large stranded gas field through a low-cost development via an expansion of it Pluto LNG Project, while there is also an opportunity to supply the North West Shelf Project through a Pluto-NWS Interconnector.

Under the terms of the SPA, Woodside will acquire from ExxonMobil an additional 50% interest in WA-1-R which contains the majority of the Scarborough gas field. Upon completion of the transaction Woodside will have a 75% interest in WA-1-R and a 50% interest in WA-61-R, WA-62-R and WA-63-R.

Woodside managing director Peter Coleman said the Scarborough acquisition delivered greater alignment, control and certainty for the project while also unlocking shareholder value.

“Our Burrup Hub concept is advanced by our announcement today of an increased stake in the Scarborough gas field. The development concept involves maximising existing infrastructure at the Pluto LNG plant to meet a market gap we expect will emerge from the early 2020s,” Mr Coleman said.