© Reuters
By Sonali Paul
MELBOURNE (Reuters) – Woodside (OTC:) Petroleum has acquired robust curiosity from firms for a stake within the Scarborough mission it’s growing off Western Australia within the wake of the Ukraine battle, Chief Govt Meg O’Neill mentioned on Friday.
Woodside is ready to turn into 100% proprietor of the $5.7 billion Scarborough mission following its merger with BHP Group (NYSE:)’s petroleum arm, permitted by Woodside traders on Thursday.
Australia’s largest impartial fuel producer has lengthy flagged it wished to promote down its curiosity, however has been ready to amass BHP’s stake to have the ability to present certainty on the dimensions of its sell-down.
“Scarborough goes to be a crown jewel for Woodside. What’s essential for us is discovering the best companion on the proper value,” O’Neill instructed Reuters, including there may very well be multiple companion.
Woodside desires to keep up a majority stake, however has not specified what proportion.
“We’ve had robust curiosity post-Ukraine, as many shoppers world wide realise the significance of power safety,” O’Neill mentioned, including that there was curiosity in each LNG provide and an fairness stake within the mission.
Following Russia’s invasion of Ukraine, sanctions have resulted in an indefinite delay to the 20 million tonnes a yr Arctic LNG 2 mission. LNG consumers and traders at the moment are in search of options.
“They have a look at Scarborough as a mission … that will likely be producing within the second-half of the 2020s, filling a niche that’s anticipated to come up out there at that time limit,” O’Neill mentioned.
Scarborough fuel will feed Woodside’s $6.3 billion Pluto LNG growth. Its first cargo is predicted in 2026.
LNG initiatives usually seal long-term gross sales earlier than a remaining funding choice, however Woodside lined up contracts for under about half its volumes forward of the Scarborough/Pluto go-ahead final November, positioning it to make the most of a soar in costs, Wooden Mackenzie analyst Dan Toleman mentioned.