Global mining company, BHP (ASX:BHP) has entered into an agreement with Woodside in relation to the proposed development of the Scarborough gas field off Western Australia.
BHP has given the green light for ExxonMobil to sell its majority stake in the project to Woodside.
The sale will lift Woodside’s stake in the project to 75 per cent and Woodside will become the Scarborough’s main operator.
Under the agreement Woodside grants BHP an option to purchase an additional 10 per cent interest in the project up until December 2019.
However Woodside has waived it’s right of pre-emption, or the first opportunity to acquire an additional holding in the project.
BHP says the deal will strengthen the alignment and certainty of the Scarborough development
Shares in BHP (ASX:BHP) closed 2.08 per cent higher at $28.91, while Woodside (ASX:WPL) shares were 1.19 per cent higher at $28.94.