Woodside approves massive LNG project as $40bn BHP deal inked

Woodside has approved its Scarborough LNG project despite growing opposition from environmental groups, as the energy giant announced its $40 billion deal to absorb BHP’s petroleum assets via an all stock merger had been finalised by both companies boards.

Woodside chief executive Meg O’Neill said the decision to proceed with Scarborough and finalising the BHP deal were landmark achievements for Woodside.

“Today’s decisions set Woodside on a transformative path,” Ms O’Neill said in an ASX release.

“Scarborough will be a significant contributor to Woodside’s cash flows, the funding of future developments and new energy products, and shareholder returns.”

BHP, which owns 26.5 per cent of the Scarborough project, has also approved the investment.

The Conservation Council of WA released in November a long list of incomplete regulatory approvals for the project that will produce gas from the new offshore Scarborough gas field to be supplied to a new LNG train at Woodside’s Pluto LNG plant 400 km away.

CCWA executive director, Maggie Wood, said her group was angry that Woodside and BHP were “pursuing this climate-destroying development.”

“The coordinated national campaign against Scarborough gas will continue to apply pressure on this development, its investors and its buyers,” Ms Wood said.

The Perth-based LNG giant also announced after trading closed on Monday the execution of agreements with BHP for the scrip purchase of the miner’s oil and gas assets announced in August that will see BHP shareholders own 48 per cent of the new entity.