Development of Scarborough had previously looked uncertain with very public differences of opinion between the two equal partners about the prospects for developing the field.
BHPB has long wanted to use Scarborough to feed the Pilbara LNG project, which would be sited on the Pilbara coast near Onslow. The development is intended to supply LNG to California via the proposed Cabrillo Port LNG terminal.
Scarborough is under about 900m of water about 280km off the coast in Western Australia's Carnarvon Basin. BHPB has long been more bullish on the field’s potential than its 50:50 partner and field operator ExxonMobil.
After ExxonMobil refused to participate in further assessment of the field, BHPB undertook extensive appraisal work on its won with no funding or technical assistance from its partner.
BHPB has previously said the Scarborough and smaller nearby Jupiter fields were believed to contain more than 8 trillion cubic feet of gas. It is not yet clear whether the recent appraisal program has confirmed this estimate or has led to it being upgraded.
ExxonMobil Australian chairman Mark Nolan last year said he disagreed with BHPB's high assessment of reserves at eight trillion cubic feet of gas and that the field was unlikely to be commercially viable in the near term.
But MarketWatch yesterday reported that ExxonMobil spokesman Rob Young said the oil and gas giant's view of the project has now evolved as more technical information has come to light following the BHPB-driven appraisal program.
Young reportedly said ExxonMobil and BHPB are now in “joint evaluation” and are “certainly aligned on that path forward,” working to find the best development option in order to commercialise the resource.
MarketWatch said BHPB this week also told analysts at a briefing there was a possibility of a feasibility study on the project in 2007 and that the two partners are now “very aligned.”
Gas from the field would be definitely be converted into LNG for export, but the partners have yet to agree on a development concept, it reported.
The Western Australian Government has previously estimated the project could cost about $5 billion.
