Page 95 - Annual Report 2020

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Strategic Report

Petroleum Governance at BHP

Key developments during FY2020 Other conventional petroleum assets
Remuneration Report
Scarborough Overview
In the March 2020 quarter, BHP and Woodside (operator) agreed Trinidad and Tobago
to align participating interests across the WA-1-R and WA-2-R titles BHP operates the Greater Angostura field (45 per cent interest
resulting in BHP holding a 26.5 per cent interest in each title. BHP in the production sharing contract), an integrated oil and gas
also holds a 50 per cent non-operated interest in Jupiter and Thebe development located offshore 40 kilometres east of Trinidad.
titles (WA-61-R and WA-63-R) in the greater Scarborough area The crude oil is sold on a spot basis to international markets, Directors’ Report
located offshore northwest Australia. Scarborough offers material while the gas is sold domestically under term contracts.
growth potential in Western Australia and opportunities to develop
the Scarborough gas field are progressing. Algeria
BHP and Woodside also signed a non-binding Heads of Agreement Our Algerian asset comprises an effective 29.2 per cent interest in
to progress the Scarborough gas development during the the Rhourde Ouled Djemma (ROD) Integrated Development, which
December 2019 quarter. Among other terms, this includes consists of the ROD, Sif Fatima – Sif Fatima North East (SF SFNE)
agreement on a competitive tariff for gas processing through the and four satellite oil fields that pump oil back to a dedicated
Pluto LNG facility. In March 2020, Woodside announced deferral processing train. The oil is sold to international markets. ROD
of the Scarborough gas development to the second half of CY2021. Integrated Development is jointly operated by Sonatrach and ENI.
A final investment decision by BHP is expected to align with this Key developments during FY2020
revised timing. Building on our existing position in the region, Ruby is an offshore Financial Statements
Bass Strait West Barracouta shallow water oil and gas development in Trinidad and Tobago that
Two new West Barracouta wells were completed under budget in the will consist of five production wells tied back into existing operated
June 2020 quarter. Construction on production infrastructure linking processing facilities. The BHP Board approved its development
the West Barracouta development to the existing Barracouta field is on 8 August 2019 with an expected investment of US$283 million
currently underway. First gas is expected in CY2021. (BHP share). First production is targeted in CY2021. The project
is estimated to have the capacity to produce up to 16,000 gross
North West Shelf Greater Western Flank barrels of oil per day and 80 million gross standard cubic feet
A final investment decision was reached for Greater Western Flank of natural gas per day.
Phase 3 (GWF-3) and Lambert Deep in January 2020. This four well
tie back will take advantage of existing infrastructure and first gas For more information on Ruby, refer to section 6.5. Additional information
is expected in CY2023. Shareholder information

BHP Annual Report 2020 93