Page 12 - AsianOil Week 14 2022

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Woodside receives key primary

approvals for Scarborough project

PROJECTS & WOODSIDE said on April 6 that it had received floating production unit (FPU) at the field with
COMPANIES two key primary approvals for its Scarborough eight wells drilled in the initial phase and 13 wells
gas project from the federal Australian gov- drilled over Scarborough’s lifetime. The gas will
ernment and the state government of Western be transported to Pluto LNG via a new trunkline
Australia. with a length of around 430 km.
The approvals cover a licence to build and McDermott has been selected as the contrac-
operate an offshore pipeline, as well as the field tor for the FPU, while Subsea Integration Alli-
development plan for Scarborough. Approval ance is the key contractor for subsea hardware,
of the field development plan allows Woodside risers and flowlines, Valaris for drilling, Euro-
to begin gas recovery operations from two pipe for the trunkline pipe and Saipem for the
Output from Petroleum Production Licences, WA-61-L and trunkline installation.
Scarborough will be WA-62-L. According to Woodside’s announcement,
used as feedstock for Gas from Scarborough will be used as feed- Scarborough gas contains only 0.1% car-
the Pluto LNG plant. stock for the Pluto LNG plant, where Woodside bon dioxide (CO2) and after being processed
is also adding a second liquefaction train. The through Pluto Train 2 it will be one of the low-
company anticipates producing LNG using gas est carbon intensity sources of LNG delivered to
from Scarborough from 2026. Woodside and its customers in North Asia,
partner in the Scarborough joint venture, BHP, Woodside’s CEO, Meg O’Neill, said the
made the final investment decision (FID) on the pipeline licence and field development plan
Scarborough field and Pluto Train 2 in Novem- were among the final primary state and federal
ber 2021. The development is estimated to cost approvals required to develop the Scarborough
$12bn. resource.
The Scarborough field is located roughly The announcement comes as Woodside
375 km offshore Western Australia and is esti- shareholders are preparing to vote on a proposed
mated to contain 11.1 trillion cubic feet (314bn merger between the company and BHP’s oil and
cubic metres) of dry gas. Woodside will install a gas business next month.™

NEWS IN BRIEF

SOUTH ASIA have had Western buyers shunning Russian overseas, or about 33mn barrels.
crude. India is also looking to increase its Previously unconfirmed reports claimed
Russia and India are setting imports of coking coal from Russia. that Indian Mangalore Refinery, Bharat
Petroleum and Petrochemicals had also
Reportedly, the representatives of the
up direct oil payment Central Bank of Russia (CBR) and the Reserve considered buying discounted Urals blend oil.
Bank of India will meet at the beginning of
channel April to come up with the regulatory and
operational basis for direct cross-border trade
Russian state development bank VEB.RF and and banking operations. Concept of shipping
the Reserve Bank of India have set up a direct Separate reports from Bloomberg claimed Turkmen gas piped to Iran’s
payment channel as an alternative to SWIFT, that the discount for otherwise “toxic Russian
Indian The Economic Times reported citing oil” for India is now as wide as $35 per barrel Chabahar port has its fans
unnamed sources. Reportedly, the channel of Urals blend crude. The first such discounted
will serve transactions in rupee and rubles, shipment could amount to 15mn barrels in India
most notably for Russian oil and gas. and could be paid directly in rubles between
Indian oil refineries are continuing to Rosneft and Indian Oil Corp. (IOC). The concept of gas being piped from
buy heavily discounted Urals blend oil, as In 2021, oil from Russia accounted Turkmenistan to Iran’s southeastern Chabahar
sanctions for the military invasion of Ukraine for 2% of India’s overall purchases from port for further distribution by ship has some

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