Industry News

Eni holds a 63% stake in Oslo Stock Exchange listed Var, and together they will acquire all of Neptune's assets stretching from Europe to Asia.

Var will take Neptune's Norweigian fields, while Eni will take the remainder of the business for C$2.6 billion.

In a statement on Friday, Eni chief executive Claudio Descalzi said the deal would "deepen" eni's presence in offshore Indonesia and build the company's gas portfolio in Europe.

"Eni sees gas as a critical bridge energy source in the global energy transition and is focused on increasing the share of its natural gas production to 60% by 2030," Descalzi said.

"Neptune will contribute predominantly gas resources to Eni's portfolio.

"Moreover, the geographic and operational overlap is striking," he added.

Eni will add 386 million barrels of oil equivalent to its 2P reserves, translating to an acquisition cost of US$10.1 per boe.

Blacktip backfill from Petrel project

For years Eni has struggled to maintain production from its Blacktip gas field offshore Northern Australia.

It has left the NT government to buy emergency supply from Ichthys LNG and the Darwin LNG project at much higher prices than usual.

In the interim, Santos will send gas from its depleting Bayu-Undan project however this may not last long.

Eni's acquisition of Neptune will see it take a 54% interest in the Petrel project in the Bonaparte Basin alongside Santos (40.25%) and Beach Energy (5.75%).

"Though development options for Petrel are currently being assessed, there could be optionality to leverage existing infrastructure including the Eni Blacktip field which produces and processes gas offshore for deliver to shore," Eni said on Friday.

Global expansion

In the UK, Neptune produced around 15,000 boepd - predominantly gas - from its North Sea assets.

The deal sees Eni also acquiring fields producing at 18kboepd in the Dutch portion of the North Sea. Neptune was the largest gas producer in the Netherlands.

In Algeria and Egypt, Eni is building its presence dramatically. It will acquire 100% at the Touat field in Algeria which needs maintenance and upgrades across infrastructure. When Touat comes back online, it should produce at around 70kboepd.

"In the context of the war in Ukraine, Algeria has become a key supplier of gas to Europe," Eni noted.

The company also consolidates its interest in the Jangkrik and Merakes fields of Indonesia.

Source: ENB - Energy News Bulletin

Key Points

• Power and Water Corp is hoping Beetaloo gas will fix supply issues

• Eni's Blacktip gas field continues to undersupply

• The Department of Industry CEO says the delay in commissioning solar farms is "unacceptable"

The Northern Territory government-owned Power and Water Corporation (PWC) is planning to buy and on-sell tracked gas from the Beetaloo Basin to make money, budget estimates have revealed.

For the past 18 months, PWC has had to turn to an emergency gas agreement with LNG exporter Inpex to keep generators running because its long-term supplier has not been able to meet demand.

Italian energy company Eni has attempted to boost supply from its Blacktip gas field by drilling a new well but output has not increased significantly, forcing PWC to look elsewhere for more gas.

PWC chair Peter Wilson told a budget estimates committee this week the corporation had "active discussions" with Beetaloo gas companies Empire Energy and Tamboran Resources about "enabling that supply to come to Darwin".

"We have problems with Eni ... but the longer-term prospects for gas supply with Beetaloo are very strong," Mr Wilson said.

"We have to navigate this [Blacktip supply] dip, which we've been able to do to date, and hopefully Beetaloo will give [gas] access to Territory customers."

Not only is PWC hoping Beetaloo gas can be used to generate electricity, but it is also looking to on-sell the gas.

PWC has projected revenue from gas sales to reach $402 million in the 2028/29 financial year, up from

$235 million in 2022/23, according to its latest statement of corporate intent.

Mr Wilson said that projection was based on "expectations that we'll be able to put in new arrangements with producers, primarily in the Beetaloo".

"And the expectation of a huge amount of gas being available to the Territory from the extensive resource [in the Beetaloo]," he said.

Both Tamboran and Empire have announced their first gas supply from the Beetaloo could commence in 2024, subject to approvals.

Shadow Minister for Renewables and Energy Joshua Burgoyne said the gas supply issues "should be a huge concern to Territorians".

"As a result of the ongoing disputes with Eni Energy, the Territory is having to pay more to top up our supply- this is simply outrageous," Mr Burgoyne said.

"What this means is that we have no idea how much we are paying for our gas up front in the former arrangement with Eni despite this not being delivered, or how much we are paying to other providers under emergency provisions to top up our supply."

PWC would not reveal the cost of the emergency gas, citing commercial-in-confidence arrangements.

"We have a number of contingency arrangements in place with offshore and onshore suppliers that are used as required to ensure ongoing electricity supply to Territorians and to other customers through contractual agreements," a PWC spokesperson said.

'Emergency' INPEX gas being on-sold

he reduction in Blacktip's supply has also impacted fertiliser manufacturer Incitec Pivot, which has a contract to buy excess gas from PWC to run a mine near Mount Isa in north-west Queensland.

PWC chief executive Djuna Pollard said it could offer its contracted customers emergency gas taken from Inpex as part of its supply contract.

"They are not obliged to take that gas from us," Ms Pollard told budget estimates.

"They can source gas from the east coast gas markets, as an example. It's a commercial decision for those contracted customers."

Neither Incitec Pivot nor PWC would confirm to ABC Rural if any emergency gas from INPEX had been transacted.

In June, Incitec Pivot said it had been informed by PWC that Blacktip's supply issues would be ongoing until mid-2028, and the gas shortfall could cost it up to $90 million by the end of the financial year.

Last week, PWC commenced a dispute resolution process with Eni to get an understanding of why the gas company was not meeting its supply agreements.

What about renewable energy?

The Northern Territory government has a target to reach 50 per cent renewable energy by 2030.

But just 5.5 per cent of NT electricity was generated by renewables in 2022, according to data from the federal Department of Climate Change and Energy.

Nearly three years after four solar farms with a combined output of about 55 megawatts were built, none are consistently putting power into the Katherine to Darwin grid.

The Katherine solar farm - built by Eni - dispatched a small amount of electricity into the grid for nearly 10 weeks to the end of March as part of its commissioning process.

However, this week Department of Industry CEO Shaun Drabsch said the delay in getting the solar farms on line was "not acceptable".

"It has taken far too long," he said.

"The under-treasurer and I have been meeting regularly with proponents and PWC on these matters for an extended period of time.

"We're confident that we're getting towards the end of that, and we hope that we will be in a position very shortly where firming is provided, and they can provide solar energy into the system on a more consistent basis."

The NT government expects 15 per cent of electricity to be produced by renewables by the end of 2023.

Source: ABC Rural news daily

To view online article, click here.

Tamboran Resources selects APA Group as preferred Beetaloo Basin pipeline partner

Highlights

• Tamboran has selected APA Group (ASX: APA) as the preferred transmission pipeline partner for Tamboran’s Beetaloo Basin development following a six-month competitive process.

• APA and Tamboran have signed a term sheet, which is planned to be converted into a longerform agreement in the coming months, to jointly develop gas transmission pipelines to connect Tamboran’s Beetaloo Basin assets to Australia’s domestic East Coast gas market and Tamboran’s proposed Northern Territory LNG development at Middle Arm.

• The principles of the term sheet between APA and Tamboran are that:

− APA will fully fund all activities proposed under the strategic partnership, including spending of up to $10 million on studies and approvals over the next twelve-months.

− APA will commence a project to install a gas pipeline connecting Tamboran’s proposed pilot development at Shenandoah South (SS) to the Amadeus Gas Pipeline (AGP), targeting completion by 2025.

− When operational, the proposed SS to AGP pipeline would enable Tamboran’s gas to stabilise the Northern Territory gas grid and commence sales under Tamboran’s existing 36.5 PJ per annum (gross) Gas Sales Agreement (GSA) with Origin Energy.

− APA will further progress initial stages of a project to connect the Beetaloo Basin to its existing East Coast gas network to enable gas to flow by 2028. 

• The proposed projects and long-form agreements to be based on the term sheet are subject to further negotiations and approvals between APA and Tamboran.
  

To view the full ASX Announcement, click here.

Tamboran Resources signs two MOUs with bp and Shell for supply of 4.4 MTPA of LNG from the Company’s proposed NTLNG development

Highlights

• Tamboran has entered into two non-binding Memorandum of Understandings (MOU) with BP Singapore Pte. Limited (bp), a subsidiary of BP plc., and Shell Eastern Trading (Pte) Ltd. (Shell), a subsidiary of Shell plc. regarding the potential purchase of liquefied natural gas (LNG) from Tamboran’s proposed NTLNG project at Middle Arm.

• The two MOUs include volumes for bp and Shell to each purchase up to 2.2 million tonnes of LNG per annum (MTPA) over a 20-year period.

• Gas volumes have the potential to be supplied from Tamboran’s Beetaloo Basin gas assets, subject to completion of the Concept Select studies, successful Beetaloo appraisal drilling and Government approvals.

• Tamboran to progress discussions with both bp and Shell prior to the completion of the FEED in 2024 and aim for formal execution of the LNG Sale and Purchase Agreements (SPA) in 2025

To view the full ASX Announcement, click here.

EP 161 Update: Flow test analysis of Tanumbirini wells

Highlights

• Tamboran has completed analysis of two Tanumbirini flow tests in the Santos-operated EP 161 permit (Tamboran 25 per cent), including modelling of the production curves by independent third-party subsurface experts, Subsurface Dynamics, Inc.

• Modelling of Tanumbirini 2H (T2H) and 3H (T3H) has demonstrated a 20-year Estimated Ultimate Recovery (EUR) of approximately 16.8 – 18.5 billion cubic feet (BCF), respectively, for a proposed ~3,000-metre development scale well. These results are in-line with the most productive regions of the Marcellus Basin, USA, one of the world’s most prolific shale gas basins.

• The productivity of the wells, which flow tested the Mid Velkerri “B Shale” at depths of more than 3,400 metres total vertical depth (TVD), validate Tamboran’s view that the ‘core’ areas of Beetaloo Basin remains the most productive and validate further testing.

• The results support the Beetaloo Joint Venture drilling decision of the Shenandoah South 1H (SS1H) well in EP 117 (Tamboran 38.75 per cent), where the Mid Velkerri “B Shale” is expected to be approximately 700 metres (30 per cent) deeper than at Amungee 2H. This greater depth is expected to experience higher pressure and therefore improved flow rates and EURs.

To view the full ASX Announcement, click here.

EP 98/117 Operational Update: Interim Amungee 2H update and forward plan

Highlights

• The Amungee 2H (A2H) well in EP 98 has achieved gas breakthrough, however modelling and independent third-party analysis of fluids recovered from the well have identified potential skin inhibiting gas and water flow. Tamboran is highly encouraged that the initial results from the laboratory provide a potential pathway to cleaning up the well and delivering improved flow rates.

• Despite gas flow rates being potentially constrained and with only 10 per cent of water used in the stimulation program recovered to date, the well is currently flowing at a steady rate of 0.83 million cubic feet per day (mmscfd) and averaged 0.97 mmscf over the first 50 days.

• Clean up activity is proposed to be undertaken during the third quarter of 2023. An update is expected to be provided on completion of these activities.

• The Beetaloo Joint Venture (BJV) does not believe this is a reservoir issue or that the initial results are indicative of the prospectivity of the Amungee area. The Amungee NW1H well achieved flow rates of >5 million cubic feet per day (mmscfd) over a normalised 1,000-metre horizontal section from the same well pad in 20211 .

• The BJV plan to drill the Shenandoah South 1H (SS1H) in EP 117 during the third quarter of 2023, where the Mid Velkerri "B Shale" is expected to be approximately 700 metres (30 per cent) deeper than at A2H. The SS1H well will complete the farm-in commitment with Falcon Oil and Gas Australia Limited (Falcon).

• Following the drilling of SS1H, the BJV plans to drill the Amungee 3H (A3H) well to follow up results from the A2H location. Tamboran will incorporate lessons learned from the drilling and stimulation program at A2H across both SS1H and A3H wells.

• Upon success at A3H and SS1H, the Amungee or Shenandoah area could underpin a proposed Flare Avoidance Project, including Clean Energy Fuels Australia Marketing’s (CEFAM) mini-LNG facility, to provide a cleaner and economic alternative to diesel for electricity generation and fuel in the transport and mining industries.

To view the full ASX Announcement, click here.

Falcon Oil & Gas Ltd (TSXV: FO, AIM: FOG) provides an update on operations at the Amungee NW-2H in the Beetaloo Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited

To view the full release, click here.

One of the five proponents working to call the Middle Arm Sustainable Development Precinct home, is in Darwin this week to progress work on its project in the precinct.

Total Eren, a renewable energy, global independent power producer, is proposing to develop a green hydrogen production facility – the Darwin H2 Hub – by using solar energy with the capability of producing more than 80,000 tonnes of renewable-based hydrogen per annum for domestic and export potential.

Total Eren is aiming to construct the Darwin H2 Hub at Middle Arm, which has the potential to create approximately 2,000 jobs during construction and 175 ongoing during its operation and help to fast-track a net zero economy.

In August 2022, the Territory Government signed a Memorandum of Understanding with Total Eren to develop the project.

This week Total Eren will continue to meet with project partners and the Territory Government on their project. They will also continue to work on their environmental baseline studies and mature site design.

Based in Darwin, the H2 Hub will be a renewable energy generation and hydrogen production plant which can assist domestic and international companies to decarbonise through the use of green hydrogen and to facilitate new industries in a net-zero economy

Recently, the Territory Government provided five job creating projects ‘not to deal’ commitments to provide certainty as they develop projects at Middle Arm.

Collectively, these projects represent tens of billions of dollars in capital investment, with the entire Middle Arm development creating around 20,000 jobs in the Territory.

These companies will now progress their facility designs, engineering work and pre-feasibility studies and environmental approvals.  They will be required to comply with all conditions set by the NT EPA as part of the Strategic Environmental Assessment process for the precinct which is currently underway.

Quotes attributed to Chief Minister Natasha Fyles:

“This project is another great opportunity for the Territory to create jobs in this new clean energy sector and significantly contribute to the Territory’s drive to reduce greenhouse gas emissions.

“With our abundant solar resources and our strategic location to support exports into the Indo-Pacific, the production of green hydrogen is a key opportunity for the Territory to address the growing demand for this green energy globally.

“We’re  growing our economy while also transitioning to net zero emissions, and Middle Arm will play a huge part in that transition. This is what responsibly decarbonising and diversifying our economy looks like.”

Quotes from Total Eren Australia’s Managing Director, Kam Ho:

“Since the execution of the Memorandum of Understanding with the NT Government in August 2022, we have established a collaborative partnership with key NT Departments and thank the continued guidance and support of the Major Projects and Investment Commissions.

To date, we have progressed with on ground surveys of our proposed GW-scale generation facility through the engagement to expert, local, Darwin-based ecological consultants and will imminently commence more detailed surveys, analysis and design on our downstream H2 design within Middle Arm precinct over the next 12 months.

The Darwin H2 Hub will be a fundamentally transformative project for Australia and I am pleased to be here today to demonstrate our commitment in advancing the project through development.”

Source: Northern Territory Government Newsroom

Today the Northern Territory Parliament passed Budget 2023, which invests in our future and delivers for all Territorians. Budget 2023 broadens our investments in new industries and jobs, addresses cost of living pressures, strengthens essential services, tackles complex social challenges and protects our great Territory lifestyle. Budget 2023 is made for a Territory on an upward growth trajectory. It is not only focused on the coming financial year, it invests in the future of all Territorians and ensures our children and young people will be well-equipped for the Territory of the future. The Territory’s economy is getting stronger year on year, and Budget 2023 ensures all Territorians will benefit. For the first time since the 2016 Budget, the Territory is projecting a fiscal balance surplus of $67 million within the three-year forward estimates period.   This will meet government’s key objective of returning the budget to balance, two years ahead of the Fiscal Strategy panel’s 2028-29 target. Budget 2023 also expects a net operating surplus from 2024-25 onwards. The Territory’s state final demand has grown by 18% since 2019, significantly higher than any other Australian jurisdiction. Unemployment is currently at a low 3.6% and employment in the Territory is at a record high of 143,600, surpassing the levels seen at the peak of the construction of the Ichthys LNG plant. The Territory’s bottom line is significantly stronger thanks to an increase in own-source revenue, GST collection, strategic investment and the continuation of the Government’s Budget repair Strategy. For more information on Budget 2023, visit https://budget.nt.gov.au/ Quote attributable to the Treasurer, Eva Lawler: “The Territory Labor Government is planning for the future of the Territory, we are creating more jobs in more sectors for more locals. “Budget 2023 invests across the length and breadth of the Territory, we are diversifying our economy, and diversification means opportunity. “We are moving forward strongly as Government to reach our goal of a $40 billion economy by 2030, with many exciting major projects to come over the next few years.”

Highlights

• Tamboran Resources (Tamboran) has entered into a Framework Agreement with the Clean Energy Fuels Australia (CEFA) group of companies including Clean Energy Fuels Australia Marketing Pty Ltd (CEFAM) to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo Basin.

• These facilities have the potential to accelerate gas production and minimise flaring from appraisal wells under the Northern Territory's "beneficial use of gas" regulation as early as 2024, subject to standard regulatory, stakeholder and joint venture consents and approvals.

• The parties will work together to finalise a contract for long term use of the compression and gas conditioning facility for the proposed pilot development. Exclusivity will last until the end of 2023 when the parties expect to move into longer term arrangements.

• The existing compression facilities can be expanded to utilise any available capacity in either the Amadeus Gas Pipeline (AGP) or McArthur River Pipeline (MRP).

• Tamboran has also secured exclusivity over a mini-LNG facility for four months, which could be deployed to supply remote NT communities or mines by the end of 2024, subject to approvals.

• The supply of LNG into the region aims to provide a cleaner and economic alternative to diesel for electricity generation and fuel in the transport and mining industries. This is in line with the Federal Government's Clean Energy Regulations “Emissions Reduction Guidelines”.

To view full ASX Announcement, click here.