Industry News

Central Petroleum Limited (ASX:CTP) (“Central” or “Company”) advises that the recentlycompleted WM30 production well at the Mereenie field was tied-in and brought online on 26 February.

WM30, the second and last well in the Mereenie drilling program, is currently producing over 4 TJ/d at the wellhead (100% JV) and is expected to stabilise at between 4 TJ/d and 4.5 TJ/d, exceeding the pre-drill expectation of circa 3 TJ/d per well. Combined, WM29 and WM30 have increased Mereenie sales gas capacity1 by circa 9 TJ/d.

Total Mereenie field sales capacity is currently circa 32 TJ/d, meaning the two-well development program has significantly exceeded expectations. Mereenie sales volumes over the past week have ranged between 28 and 32 TJ/d due to temporary export pipeline restrictions and maintenance to existing wells.

The additional Mereenie gas is being sold on an as-available basis into the Northern Territory market under recently executed GSAs. Firm gas under those contracts can be expanded by up to 6 TJ/d (100% JV) to generate further firm cash flow from this development well program.

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

Central’s Managing Director Leon Devaney said, “This is a great outcome for the project, with production rates about 50% above pre-drill expectations, commencement ahead of schedule, and project delivery under budget. A sincere thanks to all our staff, contractors, and Joint Venture partners involved in this project. Working over summer in the Territory heat is never easy, but the team worked together to safely deliver reliable affordable energy to Territorians. We now look forward to other opportunities to increase production within a tight NT gas market to drive further value from our operating assets.” 

Source: Central Petroleum Announcements

The Finocchiaro CLP Government is committed to rebuilding the economy through a strong and competitive resources sector, as new figures confirm a significant surge in petroleum exploration investment across the Territory.

Australian Bureau of Statistics data shows petroleum exploration expenditure in the Northern Territory reached $200 million in the December 2024 quarter, which is the second-highest quarterly result on record in the NT.

For the full calendar year, petroleum exploration expenditure totalled $369.7 million, an increase of 469% from the 2023 figure of $78.8 million, reinforcing the Territory’s position as a key destination for investment in resource development.

Minister for Mining and Energy Gerard Maley said the figures highlight growing investor confidence in the Territory’s world-class gas basins and the Government’s commitment to unlocking economic opportunities.

“These results confirm that investors see the Northern Territory as a powerhouse for resource development, with our onshore gas basins leading the way in creating jobs and driving economic growth,” said Mr Maley.

“Importantly, this investment translates into real benefits for Territorians, with more jobs and more opportunities for local businesses supporting the sector.”

A significant proportion of this expenditure is likely to have been onshore, primarily in the Beetaloo Sub-basin and Amadeus Basin.

In total, petroleum and mineral exploration expenditure in the NT for 2024 reached $545.7 million, which is the second-highest combined annual exploration investment ever recorded in the Territory, behind the peak in 2014.

Mineral exploration faced more challenging market conditions in 2024, along with a downturn in prices for many critical minerals, contributing to a decline in NT expenditure. This reflected a broader national trend across all jurisdictions.

Total expenditure for the calendar year reached $176 million, a 23% decline from 2023, but still the fourth-highest annual expenditure on record.

The transition to a new environmental licensing regime also impacted activity, but with regulatory changes now in place, the sector is expected to stabilise in 2025.

“The NT Government is backing our resources sector because it is the backbone of our economy and a key driver of economic recovery, and we remain focused on ensuring the Territory remains a leading jurisdiction for exploration, investment, and job creation,” said Mr Maley.

Source: Northern Territory Government Newsroom

The Finocchiaro CLP Government’s expanded Home and Business Solar Battery Scheme (HBBS) has seen a surge in uptake since it was more than doubled from $5,000 to $12,000.

Minister for Renewables Gerard Maley said the significant increase in applications since the launch of the improved scheme in December highlighted the growing demand from Territorians to reduce their power bills through renewable energy solutions.

“Since the CLP more than doubled the battery bonus, we’ve seen an overwhelming response with over 310 applications submitted and more than 80 per cent already approved,” said Mr Maley.

“In December alone, we received 164 applications – that’s three times more than the average monthly applications under the old scheme. This is a clear indication that Territorians are eager to take control of their energy costs and contribute to a more sustainable grid.

“The increase in the subsidy means that more households and businesses can afford to invest in solar batteries, which not only reduce their energy bills but help stabilise the power grid.”

“We have reduced red tape making it easier to do applications and added the Tesla 3 Powerwall  battery to the approved list of batteries available under the scheme.”

According to data from the Clean Energy Regulator, the Territory has led the nation in solar battery installations since 2021, with 34 per cent of solar systems now paired with batteries.

This is more than double the rate of South Australia, which stands at 16 per cent, and almost five times the national average of 7 per cent.

With the bonus now increased to $12,000, the scheme provides Territorians with subsidies of $400 per kilowatt-hour of usable system capacity for both new and existing solar PV systems, giving eligible Territorians the opportunity to:

Batteries allow homes and businesses to store excess solar energy generated during the day, which can then be used during peak times or when solar generation is low.

“By storing energy during the day, families and businesses can reduce reliance on the grid during high-demand periods, improving efficiency and saving on costs,” said Mr Maley.

This scheme expands access to renewable energy solutions for households and businesses, helping to reduce energy bills and support local businesses involved in solar PV system and battery supply and installation.

The HBBS grant will remain open for 12 months, or until the $6 million funding pool is exhausted, offering Territorians a practical way to lower energy costs while supporting local businesses.

For more information on the HBBS grant, visit the Territory Renewable Energy website or access the grant via https://grantsnt.nt.gov.au/.

Source: Northern Territory Government Newsroom

The Finocchiaro CLP Government is committed to rebuilding the economy through the Territory’s world-class resources sector, by today announcing the opening of its highly competitive Geophysics and Drilling Collaborations (GDC) grant program.

Round 18 of the program will provide up to $3 million to co-fund projects that address geoscientific knowledge gaps, advance exploration activity, and support the discovery and development of resources across the Territory.

Minister for Mining and Energy Gerard Maley said: “The NT Government is backing our resources sector because we know this is what will underpin our economy, creating opportunities for businesses and for local jobs across the Territory.”

“This investment in our exploration sector is instrumental for our economy, and with the potential for Territory’s critical minerals set to increase, a minimum of $2 million of this funding will be directed into projects targeting critical minerals,” said Mr Maley.

The GDC program awards co-funding of up to 50 percent of the cost of drilling (both greenfields and brownfields), regional scale geophysical surveys, innovative exploration targeting and advancing critical minerals projects.

This year includes an increase in the capped amount of co-funding for regional-scale geophysics from $100,000 to $150,000.

Recent co-funded drilling projects have contributed to the discovery of new critical minerals resources at the Leliyn project near Pine Creek (graphite), and in the Barkly (rare earths, vanadium, gallium).

To further support local business, a Territory Supplier Incentive has been introduced that offers additional funding to engage NT enterprises, which must be spent on local service and supply directly supporting the co-funded program.

Applicants must meet eligibility requirements and for further information about the application process, project specific eligibility, the funding sequence, and application guidelines go to https://resourcingtheterritory.nt.gov.au/.

Applications for Round 18 of this program, supporting projects in 2025–26, open on 25 February and must be submitted by Monday, 28 April 2025, via https://grantsnt.nt.gov.au/

Santos today announced its full-year results for 2024, reporting annual production of 87.1 mmboe and sales volumes of 91.7 mmboe. Free cash flow from operations was US$1,891 million and underlying profit was US$1,201 million. Santos delivered its best personal safety performance in 10-years.

The Board resolved today to pay a final dividend of US 10.3 cents per share, unfranked. This brings full-year dividends to US 23.3 cents per share unfranked, representing 40 per cent of free cash flow from operations in line with the company’s dividend policy.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the company’s strong free cash flow from operations reflects the cash generative nature of the base business.

“A highlight of the year was the successful startup of Moomba CCS phase one in September, which had an immediate and ongoing impact on the company’s emissions. Net equity Scope 1 and 2 emissions for 2024 reduced by 26 per cent and fourth quarter emissions intensity reduced by 18 per cent compared to our baseline year of 2019-20.

“Importantly, Moomba CCS phase one gives us confidence in the potential to build a commercial carbon management services business as customer demand for CCS grows in Australia and in Asia.

“Another strong cash flow year from the long-life gas assets in our base business has enabled the company to deliver returns to shareholders and invest in our Barossa and Pikka development projects that will bring new production online this year and next.

“The Barossa LNG project is 91 per cent complete and remains on track for first gas in the third quarter this year. Final welds on the Darwin Pipeline Duplication are underway today and when complete will connect the Barossa field to the Darwin LNG plant. Three wells are drilled and completed. The fourth well is partially drilled and suspended for later completion. Production from these four wells can deliver nameplate capacity, materially derisking the project. Other work packages are progressing well and remain on track to support the first gas date.

“We continue to see strong progress at our Pikka phase one project in Alaska. The remainder of the pipeline is expected to be installed in this winter season, a year ahead of schedule. Sixteen of 26 wells are now drilled and completed, and we have significantly improved drilling performance with a 25% improvement in drill time over the last few months, down to 30 days per well. First oil remains on track for mid-2026 with an early start-up possible but subject to weather and logistics.

“Our low-cost disciplined operating model underpins our business and is more important than ever in a volatile external market. As part of our continuing focus on productivity and efficiency, we are targeting US$100 to US$150 million in annual structural savings over the next one to two years, driving long-term value for shareholders.”

“Our 2P reserves and 2C resources position of 4,897 mmboe provides 1P reserves life of 11 years, 2P reserves life of 18 years and multi-tcf resources to backfill and sustainably grow our production to meet strong ongoing customer demand for our products. We will continue to develop and replace our reserves and resources in accordance with our capital allocation framework to drive long-term shareholder value.

“Our LNG marketing business performed strongly across the year. Long-term LNG Supply and Purchase Agreements were signed with Hokkaido Gas and Shizuoka Gas Co, and mid-term agreements were signed with TotalEnergies and Glencore. These agreements with tier one customers strengthen Santos’ equity LNG portfolio which is around 90 per cent contracted over the next five years with strong pricing driven by the high heating value of our LNG, reliability, and our proximity to growing markets in Asia.”

Today, Santos released its 2024 Sustainability and Climate Report as part of the integrated suite of reporting. In 2024, Santos’ Scope 1 and 2 equity emissions were 26 per cent lower than the baseline year of 2019-20. This reduction represents 84 per cent progress to our 2030 emissions reduction target of 30 per cent Scope 1 and 2 emissions.

“The 2024 Sustainability and Climate Report provides a comprehensive view of our energy transition activities, including progress towards achieving our emissions reduction targets,” Mr Gallagher said.

Source: Santos 

The Operator of the Mereenie Joint Venture, Central Petroleum Ltd (ASX: CTP) has advised that drilling of West Mereenie 30 (WM-30) the well is completed and will be tied-in, with gas sales commencing soon after.

This marks the end of this 2 Well drilling campaign, and the Ventia Rig 101 has been released. It has delivered on an accelerated schedule and is forecast to come in under budget. The first well in the two well program, WM-29, is online at a stabilised production rate of approximately 5TJ/d continuing to improve as it cleans up. Following a positive post drilling flow test, WM-30 is expected to produce at or above pre-drill expectations of 3TJ/d. A further update will be provided when the well is tied-in and on production..

As a result, the Mereenie field is expected to have a production capacity above 30TJ/d available to meet the long term Gas Sales Agreement with the Northern Territory Government that under wrote the activity.

“While we are yet to hook up WM-30 everything points to this campaign being a game changer for Mereenie, with a production increase easily exceeding the 6 TJ/d we were expecting.” says Chief Executive Andrew Jefferies. “The work done by the Joint Venture seems to have found the right sauce for this sausage roll, proving there is plenty of opportunity in the field yet. My heartfelt thanks to Operator Central Petroleum and drilling contractor Ventia. They have done a standout job, on an ambitious, accelerated

program bringing it in: on time; safely; and under budget despite the baking Central Australian summer and remote location.”

Participants in Permit OL4/OL5 are Central Petroleum Mereenie Pty Ltd as trustee of the Central Petroleum Mereenie Unit Trust (25%), Echelon Mereenie Pty Ltd (42.5%), Cue Mereenie Pty Ltd (7.5%) and Horizon Australia Energy Pty Ltd (25%).

Source: Echelon Resources News

Norway’s BW Offshore has held a naming ceremony for its newbuild floating production storage and offloading (FPSO) vessel, which is on track to start work at a giant field off the coast of Australia in 2025.

When Saturday morning dawned on February 15, Seatrium celebrated the naming ceremony for the FPSO BW Opal at its flagship mega yard, Tuas Boulevard Yard, in Singapore. Since the hull’s arrival in November 2023, around 43,000 tons of topside modules got integrated to stay on track for ahead-of-schedule delivery of the vessel to Santos and enable the start-up of the Barossa gas project offshore Australia.

“The BW Opal will be a valuable asset as we build momentum in this critical project. This milestone showcases our strong partnership with BW Offshore and Santos Ltd, representing a significant achievement in offshore energy innovation,” highlighted the Singapore-based player.

BW Opal is said to be one of the industry’s largest FPSOs, measuring 358 meters in length and 64 meters in width. Once in place at the Barossa field, the vessel will have a gas handling capacity of 850 million standard cubic feet per day and a design capacity of 11,000 barrels per day of stabilized condensate.

“A core focus of the BW Opal is sustainability. With sustainability at its core, it incorporates energy-efficient technologies that reduce CO₂ emissions, and its combined-cycle gas turbines with waste heat recovery cut energy consumption to maximise both efficiency and environmental performance,” explained Seatrium.

According to the gas project operator, Kevin Gallagher, Santos’ CEO, went to Singapore to attend the naming ceremony for the BW Opal, described as one of the world’s largest and most advanced FPSOs and a cornerstone of the Australian firm’s $3.6 billion Barossa development.

Gallagher was not alone at the ceremony, as he was joined by Keith Spence, Santos’ Chairman, and over 125 guests representing Santos, its joint venture partners, SK E&S and Jera, BW Offshore, and global government stakeholders.

“The Barossa gas project is important for jobs, exports and relationships with investors and gas customers in the Asia Pacific region, who have depended on Santos and Australia for their energy security for decades,” emphasized Santos.

BW Offshore secured a contract in March 2021 for the construction, connection, and operation of an FPSO destined for the Barossa field. The final investment decision (FID) for the project, which followed the award, kick-started a $600 million investment in the Darwin LNG life extension and pipeline tie-in projects.

Dyna-Mac was selected to build the topside modules for the Australian development project, encompassing an FPSO unit, subsea production wells, supporting subsea infrastructure, and a gas export pipeline tied into the existing Bayu-Undan to Darwin LNG pipeline to extend the facility life for around 20 years.

The Gas Export Pipeline (GEP) to deliver gas from the field to Darwin LNG was recently completed, with construction activities for the Darwin Pipeline Duplication also underway. The FPSO is anticipated to head to Australia in the first quarter of 2025 to enable the first gas from the project to be achieved in the third quarter of 2025.

Seatrium underscored: “With this achievement, we mark our 18th FPSO for BW Offshore, reaffirming our commitment to future collaborations that strengthen our client’s position as the leading FPSO specialist. Over the years, Seatrium has leveraged deep engineering expertise, a global yard footprint, and a proven track record to deliver over 260 floating production units (FPU) and FPSO conversions and newbuilds, solidifying our market leadership.

“Our heartfelt appreciation goes out to BW Offshore, Santos, valued partners, and contractors for remarkable teamwork and trust. We look forward to continuing our journey in offshore energy production and shaping sustainable solutions for the future of energy!”

Source: Offshore-Energy.biz

Chief Minister Lia Finocchiaro has today made history by introducing the Territory Coordinator legislation into Parliament.

Mrs Finocchiaro said the reform was "the most important piece of economic reform the Territory has seen in a decade."

"Our Territory Coordinator laws will herald a new way of developing the Territory," she said.

"It will give us a competitive edge against other states, who have not undertaken the level of reform we have."

The Territory Coordinator will signal to the world that we are a mature jurisdiction with the capability and capacity to play a major role in the advancement of:

"With the appointment of Stuart Knowles as Interim Territory Coordinator in November last year, the work of the Territory Coordinator has already begun," said Mrs Finocchiaro.

The consultation report for the draft Bill has also been released following four months of public consultation.

By the end of the consultation period, 321 participants had attended six Community Information Forums across the Territory, 559 written submissions had been received, and 89 meetings were held with 267 individuals representing various sectors.

"The consultation on our draft Territory Coordinator legislation highlights the need for a balanced approach which aligns economic growth with social and environmental outcomes and that is what we have delivered," said Mrs Finocchiaro.

The draft Bill has been referred to the Legislative Scrutiny Committee for consideration. 

Click here to read the consultation report.

Source: Northern Territory Government Newsroom

The NT gas industry says the Territory Government’s moves to clamp down on lawfare will boost investment and energy security.

Australian Energy Producers NT Director David Slama welcomed the Petroleum, Planning and Water Legislation Amendment Bill 2025, set to be introduced in Parliament this week, as an important step in stopping activist groups from vexatiously using the legal system to delay critical gas projects in the Territory.

“We commend the Territory Government for moving decisively to stamp out activist lawfare putting at risk economic and energy security for Territorians,” Mr Slama said.

“At a time when Australians are facing cost-of-living pressures, the Territory Government has recognised the need to remove barriers to new gas supply so Territorians continue to have reliable and affordable energy.

“It is not in the public interest for activist lawyers to damage the Territory’s attractiveness as a place to do business and to invest, undermining our economic and energy security.”

Mr Slama said activists exploiting the Merits Review process had deterred much-needed investment in the Territory.

“A long list of vexatious cases has exposed the extreme tactics of activists who are more interested in delaying projects than genuinely representing the interests of Territory communities,” he said.

“Removing the Merits Review process is a significant step towards streamlining approval processes to enable new gas supply to be brought online sooner.

“We need to expedite project delivery, improve environmental outcomes, and attract the investment in new gas supply that will be essential to the NT’s long-term energy security and economic prosperity.”

Source: Australian Energy Producers

Highlights

• Tamboran Resources successfully completed stimulation activities over 35 stages across a 5,483-foot (1,671-metre) horizontal section in the Mid Velkerri B Shale within the Shenandoah South 2H sidetrack (SS-2H ST1) well. The stimulation was conducted using the Liberty Energy (NYSE: LBRT) modern stimulation equipment.
• The SS-2H ST1 completion operations achieved five stages over a 24-hour period on multiple days, exceeding previous Beetaloo Basin records.
• Average proppant intensity of 2,706 pounds per foot (lb/ft) across the 35 completed stages exceeded all previous completion activities in the Beetaloo Basin to date and achieved wellhead injection rates above 100 barrels per minute (bpm).
• The SS-2H ST1 well will be completed ahead of clean out activities and the commencement of initial flow back and extended production testing.
• Further updates on the completion of the Shenandoah South 3H (SS-3H) well will be provided in due course. 

Source: Tamboran Resources Announcements