Industry News

The floating production, storage and offloading (FPSO) unit to be put to work by Santos is on its way from Singapore to the Barossa field. 

Fully commissioned and ready for offshore deployment, the BW Opal left Seatrium's Tuas Boulevard Yard on May 28 to be tugged to the waters off Australia's Northern Territory.

According to BW Offshore, hook-up operations are set to start as soon as the vessel arrives at the destination and will be followed by the start-up phase, which includes offshore commissioning, well clean-up, and preparation for gas export, targeted for Q3 2025.  

The BW Opal is set to have a 25-year offshore lifespan. 

The vessel is 358m long and 64m wide and has 230 MW of installed power, gas processing facilities of 850 million standard cubic feet per day, as well as the capacity to process 11,000 barrels per day of stabilised condensate. 

According to Seatrium, efficiencies and modern tech on the FPSO will cut greenhouse gas emissions by 15% compared to traditional systems, translating to a reduction of up to 2.3 million tonnes of CO2 emissions over the asset's life. 

In April this year, Santos finally secured a critical element of regulatory approval for its $5.8 billion Barossa gas project, as NOPSEMA signed off on a key pipeline production plan. The approval allowed Santos to begin final commissioning activities, bringing the long-delayed project a step closer to first gas.  

At the time a Santos spokesperson confirmed to Energy News Bulletin "Barossa remains on track for first gas in the third quarter of 2025 and within cost guidance."  

The environment plan for production operations accepted by NOPSEMA covers six subsea wells connected to the soon to arrive BW Opal vessel. 

Under its EP, gas will be piped 262 kilometres to the Darwin LNG facility, replacing supply from the aging Bayu-Undan field. At the same time, condensate will be offloaded by tanker. 

Source: Energy New Bulletin

The 2025 Australian Energy Producers Conference and Exhibition has been an important opportunity to showcase the Northern Territory’s critical role in Australia’s energy future. 

Chief Minister Lia Finocchiaro used the opportunity to reinforce the reform which has been delivered by her new government to deliver confidence and certainty.

“The feedback we received is that the economic and regulatory reform we have delivered in just nine months is restoring investor confidence," said Mrs Finocchiaro.

Speaking at the conference as part of a panel on gas exploration and the economy, Mrs Finocchiaro reinforced that the Territory is open for business.

“It is clear that momentum is building, and all eyes are looking north to the Territory," she said.

Deputy Chief Minister Gerard Maley hosted an industry breakfast showcasing the Beetaloo to a packed room of people who were eager to learn more about the strategic advantages and benefits of Territory gas. 

“The strong turnout at the NT Minister’s Breakfast with Beetaloo, which is the first NT-focused event to be held at the AEP conference in several years, shows just how much interest there is in Territory gas and the enormous potential of the Beetaloo Sub-basin,” said Mr Maley.

"We heard directly from Beetaloo gas industry leaders Empire Energy, Santos, Tamboran Resources and Daly Waters Energy who all backed in our government’s pro-gas, pro-business approach and the reforms we’ve made to help them attract capital investment and bring the Beetaloo into production. 

"This conference also gave us the chance to engage with major players from the US shale gas industry such as Liberty Energy and Halliburton who are bringing decades of experience to the Territory to help unlock the Beetaloo’s full potential. 

"Having a strong NT delegation including myself, the Chief Minister, Department executives, and the Territory Coordinator sent a clear message to the energy sector: we’re serious about making the NT a key player in powering the nation, with the most cost-effective, timely, and emissions friendly potential solution to the emerging East Coast gas crisis.”

Australian Energy Producers Chief Executive Samantha McCulloch said: "It was a pleasure to host the Northern Territory Government at the Australian Energy Producers Conference and Exhibition in Brisbane this week."

"The Chief Minister has made it clear that the Territory is open for business and is leading by example in removing regulatory barriers and providing certainty for investment," she said.

"The NT Government recognises natural gas is essential to the Territory’s economic growth and energy security; powering homes, industry, and supporting thousands of local jobs. 

"Projects like the Barossa development and the Beetaloo Basin are key to accelerating economic growth and delivering reliable and affordable energy for Territorians." 

Mrs Finocchiaro added: "Our message was clear, as part of our year of action, certainty and security we are restoring confidence and certainty in the future of the Territory."

"Territorians know that we have everything this country needs to deliver affordable, reliable and cleaner energy; this conference gave us the opportunity to showcase that on the national and international stage," she said. 

Source: Northern Territory Government Newsroom

The Finocchiaro CLP Government has today reaffirmed its commitment to the Territory Energy Link – a proposed multi-user, multi-asset infrastructure corridor stretching from Elliott to Darwin.

A tender has been awarded to provide on-demand specialist technical advice to the project team.

This expert support will drive corridor planning and pipeline development, ensuring the 670km priority section is development-ready by 2028.

Formerly known as the Tennant Creek to Darwin Infrastructure Corridor, the Territory Energy Link project will deliver a buried services corridor designed to carry gas, water, optical fibre, hydrogen and other utilities critical to the Territory’s future.

Minister for Logistics and Infrastructure Bill Yan said the project was a flagship initiative in the CLP Government’s year of action, certainty and security.

"The Territory Energy Link is the kind of enabling infrastructure that delivers real outcomes – not just talk,” said Mr Yan.

“It will connect the Beetaloo to Darwin and the world, laying the foundations for billions in investment and thousands of local jobs.”

The Territory Energy Link is key to unlocking private investment and accelerating projects that will rebuild the Northern Territory economy, especially in and around the Beetaloo Sub-Basin.

Minister for Mining and Energy Gerard Maley said: "The Territory Energy Link project reflects our government’s strategic and proactive approach to attracting and facilitating major, generational investments in the Northern Territory, through energy, infrastructure and logistics programs.

"Securing of tenure is commonly cited as one of the largest material risks to project viability by proponents, and our government has pledged to provide certainty and security to industry and investors, to unlock decades of prosperity for Territorians,” said Mr Maley.

The project will support the coordinated development of gas, hydrogen and critical minerals industries, while also future-proofing infrastructure for services like water and fibre optics.

“This isn’t just pipes in the ground. It’s about building confidence, securing jobs, and ensuring the Territory leads the nation in next-generation energy and infrastructure,” said Mr Yan.

As part of the CLP Government’s plan to rebuilding the economy, the Territory Energy Link delivers long-term economic and strategic benefits for the Territory, and Australia.

Source: Northern Territory Government Newsroom

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