Woodside secures $1.6bn in Scarborough LNG acquisition funding

Image: Woodside

Woodside has completed the first stage of a $2.5 billion equity raising announced last week to increase its ownership of the Scarborough gas field offshore Western Australia.

The company plans to increase its Scarborough stake by 50 per cent, giving it an overall 75 per cent interest in WA-1-R in the Carnarvon Basin.

Woodside purchased its current 25 per cent stake in the gas field from BHP in November 2016 for $US400 million — $532 million at the time, or $505 million at the current exchange rate — in a deal that increased the company’s resources by 462 million barrels of oil equivalent (MMboe).

At close of the entitlement offer on February 15, $1.57 billion had been raised at $27 per new share, with 90 per cent of eligible shareholders electing to take up entitlements.

A book building period followed on February 15–16, resulting in a final clearing price of $29.60 per share, up $2.60 from the initial $27 offer price.

Peter Coleman, chief executive officer of Woodside, said that he was pleased with the strong support shown from investors, and looked forward to progressing the project further.

“We consider this a positive endorsement of our strategy with the equity raising underpinning the acquisition of an increased interest in the Scarborough resource and its development,” he said, “as well as progressing other projects in Woodside’s portfolio.”