The Woodside (ASX: WPL) share price is up almost 2% after the resource company made an announcement.
Woodside Petroleum is Australia’s largest independent oil and gas company with a global portfolio. It is an explorer, developer, producer and supplier of energy. The company has been operating for over 60 years and is now Australia’s leading LNG producer. Some of its current development projects are in Senegal (SNE), Myanmar, Canada (Kitimat) and Timor-Leste / Australia (Sunrise).
Woodside Petroleum’s Resource Win
Woodside announced that the estimated gross contingent dry gas volume for the Scarborough field has increased to 11.1 Tcf (trillion cubic feet), an increase of 52%.
This means Woodside’s share has risen from 5.5 Tcf to 8.3 Tcf.
Woodside’s interest in Greater Scarborough, which includes Scarborough, Thebe and Jupiter field) comprises a 75% interest in WA-1-R and a 50% interest in each of WA-61-R, WA-62-R and WA-63-R, with Woodside being the operator of these retention leases.
The increased volume estimates came from new seismic reprocessing to improve the reservoir imaging quality and increased reservoir sand distribution.
An independent external reserves auditor has provided assurances of the work.
Woodside is targeting a final investment decision for the development of the Scarborough gas resource in the first half of 2020.
Scarborough gas would be initially processed on a deep water floating production unit and then transported through 430km pipeline to a proposed second LNG production train at the Woodside-operator Pluto LNG facility.
Woodside CEO Peter Coleman said: “Our understanding of the value of the Scarborough gas resource has increased after applying leading-edge technology to geophysical data collected since the field’s discovery almost 40 years ago.
“This resource upgrade further improves Scarborough’s existing value proposition as we target the delivery of a new, globally competitive LNG project from 2024.”
Woodside said this news showed how Scarborough could meet growing demand for gas in Asia as well as supplying the domestic market in Western Australia.
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At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.