Industry News

His Honour Professor the Honourable Hugh Heggie AO PSM, Administrator of the Northern Territory, has appointed Stuart Knowles as the Territory Coordinator.

Mr Knowles has been acting in the role since November last year.

Chief Minister Lia Finocchiaro said Mr Knowles' appointment as Territory Coordinator for four years meant the government could focus on delivering its promise to rebuild the economy.

“Stuart has extensive experience across both private and public sectors and brings a wealth of local knowledge through his deep connections and understanding of the Northern Territory’s unique challenges and opportunities," she said.

"In our year of action, certainty and security we are charging ahead with rebuilding the economy and the Territory Coordinator has a crucial role to play."

In March, the CLP Government passed the Territory Coordinator Bill in Parliament, delivering on its commitment to streamline decision-making and ensure a more coordinated response to supporting significant and complex developments in the Territory.

“The Territory Coordinator strengthens our ability to deliver economic growth, attract investment, and streamline processes," said Mrs Finocchiaro.

The Territory Coordinator will work closely with government agencies, industry, and key stakeholders to prioritise projects, facilitate approvals, and ensure the Territory remains competitive on a national and global stage.

The Territory Coordinator legislation underwent rigorous consultation with industry, community groups, and key stakeholders to ensure it delivers real benefits for Territorians.

Source: Northern Territory Government Newsroom 

Highlights

• Tamboran and Daly Waters Energy, LP (DWE) have signed a binding agreement to finalize the checkerboard of the joint acreage position across EPs 76, 98 and 117.
• In conjunction with the checkerboard, Tamboran and DWE have entered into a binding agreement whereby DWE will acquire a non-operating and noncontrolling interest in 100,000 acres within two areas for a consideration of US$15 million. The transaction is subject to certain conditions precedent and regulatory approvals.
• On completion, Tamboran will have retained approximately 1.9 million net prospective, development-ready acres across the Beetaloo Basin.
• Tamboran has reserved 406,693 gross acres as its Phase 2 Development Area, located immediately north of the Pilot Area, where Tamboran plans to focus development on supplying gas into Australia’s East Coast domestic gas market.
• On completion of the sale to DWE, Tamboran is expected to hold 236,370 net acres (58.12% operated interest) over the Phase 2 Development Area, with DWE (19.38%) and Falcon Oil & Gas Australia Limited (Falcon) (22.5%) holding the remaining interest.
• Tamboran has engaged RBC Capital Markets to commence a formal farm-down of the Phase 2 Development Area. The formal process will commence on release of the IP30 flow test from the Shenandoah South 2H sidetrack (SS-2H ST1) well, planned for June 2025. DWE will have participation rights to any transaction on the same terms.
• Ownership of the proposed northern Pilot Area, which will provide initial gas production to the Northern Territory, remains unchanged (Tamboran 47.5% operator) with expansion into the proposed southern Pilot Area (Tamboran 38.75%) anticipated in accordance with the terms of the acreage sale. Future working interests are subject to participation of parties in the Joint Venture.
• Tamboran will hold 77.5% operating interest in the remaining half of the ex-EP 76, 98 and 117 acreage positions following the completion of the checkboard process, with Falcon holding the remaining 22.5% interest.

Source: Tamboran Resources Press Realease 

Stage 3 tender award

The Australian Government and Northern Territory Government are progressing major upgrades to the Carpentaria Highway.

A tender has been awarded to Exact Contracting Pty Ltd for the design and construction of Stage 3 of the works. The Stage 3 upgrades will deliver a dual lane seal from chainage 140km to 175km of the Highway. The upgrades include the construction of a new two-lane sealed October Creek Bridge.

The works will include reconstructing, widening, lifting and other flood immunity improvements. The upgrades will improve safety and travel times, reduce vehicle operating costs and improve flood immunity to increase year round access.

The Stage 3 construction is planned to commence in May 2025 and is expected to be completed by December 2025.

During construction, detours and traffic management will be in place to reduce any impact to nearby businesses, properties and all road users.

About the project

The Carpentaria Highway is a key access road to Borroloola and the Beetaloo Sub-basin, and an important service route for the growing mining, pastoral, tourism and agricultural industries.

To enable the developing industries to benefit from the opportunities that are present in the region, there is a reliance on the surrounding road infrastructure to provide efficient transport connections.

The Carpentaria Highway upgrades are being delivered in five stages:

• Stage 1 CH2km to 50km – completed September 2024.
• Stage 2 CH50km to 140km – construction is underway, expected completion in June 2025.
• Stage 3 CH140km to 175km – contract awarded for design and construction.
• Stage 4 Carpentaria and Stuart Highway intersection upgrade - design underway.
• Stage 5 CH175km to 270km - planning and investigation in progress.

Source: Carpentaria Highway major upgrade website

MEREENIE OIL AND GAS FIELD (OL4 AND OL5) – NORTHERN TERRITORY CTP - 25% interest (and Operator), Echelon Mereenie Pty Ltd - 42.5%, Horizon Australia Energy Pty Ltd - 25%, Cue Mereenie Pty Ltd - 7.5%

Average gross gas sales from the Mereenie field were 9% higher than the previous quarter, averaging 27.2 TJ/d (100% JV). Production rates (net of system use gas) reached as high as 32 TJ/d during the quarter, following the successful drilling and commissioning of two new production wells, WM29 and WM30, in January and February, adding approximately 9 TJ/d of production capacity.

The sales capacity of the Mereenie field was approximately 31.5 TJ/d (100% JV) at the end of the quarter. There were minor impacts on sales volumes during the quarter due to a wireline programme which required the temporary shut-in of wells.

Oil sales averaged 355 bbls/d (100% JV) during the quarter.

Successful Mereenie drilling program

Two new production wells were successfully drilled and commissioned at Mereenie during the quarter. Similar to our last drilling program at Mereenie, the wells were designed to maximise production rate potential by applying air drilling techniques in a highly deviated well bore at crestal locations.

The first well, WM29, was brought online on 20 January. The second well, WM30, which spud on 16 January was brought online on 26 February. Both of these commencement dates were ahead of schedule. Combined, the two new wells initially increased Mereenie sales gas capacity (total wellhead production capacity less system use gas) by circa 9 TJ/d, significantly exceeding pre-drill expectations.

The project was delivered safely to an accelerated schedule with a total delivered cost under the budgeted $8 million (CTP 25% share).

PALM VALLEY (OL3) – NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Palm Valley Pty Ltd - 35%, Cue Palm Valley Pty Ltd - 15%

Production from the Palm Valley field averaged 7.1 TJ/d over the quarter (Central share: 3.55 TJ/d), 6% lower than the previous quarter due to an interruption for planned maintenance and natural field decline. S

ales capacity was approximately 7.3 TJ/d (100% JV) at the end of the quarter.

The Palm Valley JV has been progressing permitting and approvals for two new Palm Valley appraisal wells to increase field production capacity, subject to market conditions and a joint venture final investment decision.

DINGO GAS FIELD (L7) – NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Dingo Pty Ltd - 35%, Cue Dingo Pty Ltd - 15%

The Dingo gas field supplies gas directly to the Owen Springs Power Station in Alice Springs. Sales volumes were 5% lower than the seasonal-high previous quarter, averaging 4.3 TJ/d (Central share: 2.13 TJ/d). Central is considering opportunities to expand the Dingo plant, however this will be entirely subject to market conditions and successful gas contracting, and a joint venture final investment decision. 

Source: Central Petroleum Announcements 

Highlights:

• Empire’s focus through the Quarter has been planning for the hydraulic stimulation of Carpentaria-5H, which is scheduled to take place later this Quarter, and preparation for installation of the Carpentaria Gas Plant in accordance with the Company’s goal to commence gas sales from EP187
• NLC meeting for the consideration of approval of Beneficial Use of Gas to take place in mid-May
• Documentation of the Macquarie Midstream Infrastructure Facility completed shortly after Quarter end. Funds under this facility will be applied to the construction of the Carpentaria Gas Plant and associated in-field infrastructure
• Total liquidity available at the end of the Quarter was $32.2 million, comprised of cash of $14.4 million and $17.8 million of undrawn funding available under the Macquarie facilities

Source: Empire Energy Group Announcements

The Finocchiaro CLP Government is backing the Territory’s gas sector and delivering on our commitment to rebuild the NT economy by growing our gas production, royalty revenue streams and attracting greater private investment.

Deputy Chief Minister Gerard Maley recently toured the Mereenie gas facility in Central Australia, accompanied by executives from Central Petroleum, Echelon Resources and Horizon Oil Limited.

The Mereenie Joint Venture, operated by Central Petroleum in partnership with Echelon Resources, Horizon Oil Limited and Cue Energy, demonstrates the long-term viability and economic value of onshore gas production in the Territory, by providing years of energy security, royalty revenue and local employment to Territorians.

The Mereenie gas field has been in operation for about 40 years, providing vital energy to Territory homes and businesses.

As the NT’s primary onshore gas producer, the Mereenie JV has demonstrated a longstanding commitment to local employment and has generated millions in royalty revenue and supported local NT supply chains.

Typically, the Territory begins receiving petroleum royalties once a company moves from the exploration and appraisal phase through to production, with the granting of a production licence. 

Alternatively, if a company receives a Beneficial Use of Gas or ‘appraisal gas’ approval while holding an exploration permit or retention licence and they subsequently sell the appraisal gas, then royalties are payable to the Northern Territory.

Each year, Central Petroleum and its partners pay royalties to both the NT Government and the Central Land Council.

Recent drilling of the West Mereenie 29 and 30 wells has exceeded expectations, with Central Petroleum and partners recently supplying about 30 terajoules of gas to the NT market per day, which is about half of the Territory’s daily gas demand.

Mr Maley also visited the Inpex Ichthys Liquefied Natural Gas processing facility at Bladin Point, which represents one of the largest private investments ever in the Northern Territory, valued at about $60 billion.

“The Mereenie and Ichthys projects symbolise the scale and significant opportunity afforded to the Territory by our gas industry," said Mr Maley.

“The Finocchiaro CLP Government promised 2025 would be a year of action, certainty and security, and these operations are not only driving energy security, but they’re creating jobs and opportunities for Territorians.”

Inpex is preparing for a planned maintenance shutdown from late August to October this year, at an estimated cost of over $300 million, to lay the groundwork for future expansion and emissions reduction initiatives.

This will result in an additional 1,000 workers at the Ichthys LNG facility and 22 local contracts, providing opportunities for Territory businesses.

Last week, Inpex, as operator of the Bonaparte Carbon Capture and Storage Venture, with partners TotalEnergies and Woodside Energy, announced the commencement of preliminary front-end engineering design work to develop the Bonaparte CCS Project in the Bonaparte Basin, about 260 km offshore to the west of Darwin.

This is a critical milestone in the development of Darwin as a low-emissions and decarbonisation powerhouse, with Inpex's Ichthys LNG project to be the anchor customer for the Bonaparte CCS project, which is capable of storing up to 10 million tonnes of carbon dioxide per annum.

Source: Northern Territory Government Newsroom

Operational excellence supporting strong financial results

• Strong free cash flow from operations of ~US$465 million, up 9 per cent on the prior quarter, from sales revenue of US$1.3 billion.
• Increased production of 21.9 mmboe, up two per cent on the prior quarter driven by higher production from Western Australia.
• Sales volumes of 23.3 mmboe, down one per cent on the prior quarter.  LNG sales were 3 per cent higher than the prior quarter, offset by lower liquids sales.
• Gearing is at 22.2 per cent, excluding operating leases (25.1 per cent when included).
• Unit production cost for the year is expected to be within market guidance.

Maximising production through existing infrastructure

• Western Australian production volumes increased by more than 18 per cent on prior quarter, driven by the Halyard-2 infill well.
• Continued high reliability of 99.8 per cent from the operated gas facilities and high throughput at PNG LNG resulted in full plant capacity in the first quarter. This was supported by strong Angore production.
• Record daily GLNG upstream production from Scotia field of 97.3 TJ per day, supporting annualised run rate of 6.0 million tonnes of LNG for the quarter.
• Executed Memorandum of Understanding (MOU) with Tamboran Resources for joint study on Beetaloo gas export options through Darwin, where Santos has approved expansion capacity to a maximum of 10 million tonnes of LNG per annum.

Development projects nearing production

• Barossa LNG is 95.2 per cent complete with the Gas Export Pipeline and Darwin Pipeline Duplication complete, the majority of subsea infrastructure installed and the FPSO shipyard commissioning over 90 per cent complete. Four wells have been drilled and completed, a fifth well is suspended for later completion and drilling of the sixth well is in progress.  Production from four wells is capable of delivering full production rates at DLNG.  The project remains on track for first gas in the third quarter of this year.
• Pikka phase 1 is 82.2 per cent complete and average well flow rates at 6,900 bbls/day. The 120-mile pipeline is now substantially complete.  While there is no change to market guidance of first production in mid-2026, this creates the opportunity for an early startup, subject to weather and logistics which will become clearer in the second quarter.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said that Santos delivered another solid quarter of production and cash flow generation from our diversified portfolio, demonstrating the strength of our disciplined low-cost operating model.

“The business remains strong and resilient, maintaining free cash flow from operations breakeven oil price less than US$35 per barrel in 2025.

“Despite volatile capital markets and commodity prices, Santos stayed focused on operational and project execution excellence, and the company continued to perform well. Our LNG contract portfolio provides flexibility and positions Santos to capitalise on emerging market opportunities amid ongoing volatility,” Mr Gallagher said.

“Our development projects are nearing completion within cost and schedule guidance. When the Barossa and Pikka projects come online, production is expected to increase by more than 30 per cent by 2027.  These two world-class projects are expected to set the company up with long-term, stable cash flows to underpin competitive shareholder returns in line with our commitment to return at least 60 per cent of all-in free cash flow to shareholders, and up to 100 per cent when gearing falls below our target range.

“Moomba CCS is online and performing as predicted. In the first six months of operations, more than 685,000 tonnes (gross) of CO2-equivalent were injected for safe, permanent storage.  Carbon capture and storage (CCS) underpins our decarbonisation strategy which was overwhelmingly endorsed by our shareholders at our Annual General Meeting last week,” Mr Gallagher said.

“Whilst the current market environment is challenging, our focus in 2025 remains clear: operating our base business safely and reliably, bringing our development projects online within guidance and staying focused on cost of supply. Our portfolio is resilient in a volatile environment and we have an advantaged geographical position into regions with growing demand and highly sought after products,” Mr Gallagher said.

Source: Santos Website

The Bonaparte CCS Joint Venture (INPEX Browse E&P Pty Ltd 53% as Operator; TotalEnergies CCS Australia Pty Ltd 26%; and Woodside Energy Ltd 21%) announced it has commenced preliminary front-end engineering design (pre-FEED) work to support development of the Bonaparte CCS Project, located in the Bonaparte Basin, approximately 260 kilometres offshore Darwin, Australia. The Bonaparte CCS Joint Venture was formed in 2022 to appraise the awarded greenhouse gas storage assessment acreage (title G-7-AP). The decision to progress the project into pre-FEED follows the successful completion of both the selection of engineering concept and a comprehensive appraisal program, which included ~1,800 square kilometres of new three-dimensional seismic surveying and two carbon dioxide (CO2) storage appraisal wells. The appraisal program confirmed the presence of a high-quality saline aquifer reservoir in the Bonaparte Basin together with thick sealing formations considered suitable for safe and permanent long-term carbon storage.

INPEX Managing Director and Country Chair Australia Tetsu Murayama said achieving the Bonaparte CCS pre-FEED milestone is an important step towards a lower carbon future. “The Bonaparte CCS appraisal results are outstanding and have exceeded our expectations. The G-7-AP acreage is proving up to be one of the most promising CO2 storage sites globally. “Bonaparte CCS Joint Venture intends to transport and store CO2 safely and permanently offshore northern Australia in the Bonaparte Basin, which has a potential carbon storage capacity of more than 10 million tonnes per annum, with Ichthys Joint Venture expected to be the anchor customer.

“With a plan to commence CO2 injection around 2030, the proposed Bonaparte CCS project could substantially contribute to decarbonising northern Australia and potentially the wider Indo-Pacific region,” Mr Murayama said.

The Bonaparte CCS Assessment Joint Venture is now conducting detailed analysis of the reservoir appraisal data, to support a Declaration of Identified GHG Storage Formation application in advance of obtaining a greenhouse gas injection licence.

Source: INPEX Australia

Echelon Resources Limited refers to its release dated 3 February 2025 and advises the existing conditional Gas Sales Agreement with Arafura Rare Earths has lapsed due to the condition precedent on Arafura final investment decision not being satisfied.

Echelon’s CEO, Andrew Jefferies, said “this is simply a case of timing and priorities no longer aligning. The condition satisfaction period for the agreement has been extended several times, but as we focus on providing production and development certainty, the Mereenie Joint Venture has decided that it’s time to re-market the gas. We part with Arafura, on this agreeement, on good terms and remain strong supporters of the Nolans Project. We look forward to working together as this project phases progress."

Source: Echelon Resources ASX Announcement

The Territory’s future workforce has received a major boost today with the official opening of the new $10 million Trades Training Centre at Charles Darwin University’s Casuarina campus.

Funded through a $6.8 million investment from the Finocchiaro CLP Government, the state-of-the-art centre will play a pivotal role in developing a skilled, agile and capable workforce to meet the growing demands of industry across the Territory as we rebuild our economy.

Minister for Education and Training Jo Hersey said the new facility was a significant step forward in supporting apprentices and trainees across a broad range of essential trades.

"This is an exciting day for the Territory. The Trades Training Centre will give more Territorians the opportunity to train locally, stay locally, and contribute to the growth of our economy,” said Ms Hersey.

“We're not just investing in bricks and mortar — we're investing in people, skills and a strong future workforce for the Northern Territory.

“This is real action to deliver certainty for students and industry, and to build long-term security for our local economy.

"2025 is our CLP Government's year of action, certainty and security."

The 2,400-square metre, two-storey building includes a heavy equipment precinct, assembly and workshop spaces, an industrial sandpit, and modern classrooms, all designed to provide hands-on, industry-standard training environments.

The Centre will cater to over 500 students per year and offer qualifications in key trades including construction pathways, carpentry, plumbing, roof plumbing, and electrotechnology.

CDU TAFE will also have the capacity to expand offerings into painting and decorating, wall and floor tiling, plastering, block laying and waterproofing.

“This new training hub is purpose-built to meet the needs of both students and employers,” said Ms Hersey.

“Whether you're starting out as an apprentice or looking to upskill, this Centre provides a real pathway to employment and success in the trades that are vital to our Territory’s development.”

CDU Pro Vice-Chancellor and Chief Executive TAFE Michael Hamilton said the new Centre would ensure a more enriching educational experience for the NT’s future tradies.

“The University has enhanced trades training and the student experience by providing high-quality equipment, industry-relevant curriculum, and collaborations with leading trade professionals,” said Mr Hamilton.

“The Centre offers a dynamic learning environment that will contribute to the professional growth of our students.”

The new Trades Training Centre reaffirms the Finocchiaro CLP Government’s commitment to training the workforce of the future and strengthening vocational education and training across the Top End.

Source: Northern Territory Government Newsroom