Industry News

The Territory Labor Government is establishing the Territory as a renewable energy powerhouse and the Middle Arm Precinct is a crucial element of this plan.

This week the Territory Government has signed a Memorandum of Understanding (MoU) with Larrakia Energy and Korea Midland Power Co. to work in co-operation to achieve the rapid, efficient and effective development of the Green Energy Project.

Larrakia Energy is a Northern Territory company owned and managed by Larrakia Development Corporation (LDC) and Western Australia based renewable energy company, Progressive Green Solutions Pty Ltd (PGS).

The Green Energy Project includes the scoping, construction and operation of a 300MW photovoltaic power plant (also known as a solar farm) on land in the Greater Darwin Area in close proximity to the Middle Arm Sustainable Development Precinct.

The two-year agreement strengthens local and international ties and formalises the relationship with the Territory to complement the proponent’s own expertise in renewable energy, project development and financing. 

The Middle Arm Precinct is a game changer for the Northern Territory and is set to create 20,000 local jobs and generate billions of dollars into our economy.

Quote attributable to Minister for Infrastructure, Planning and Logistics, Eva Lawler:

“By capitalising on every opportunity and creating strong relationships the Northern Territory has what it takes to be a thriving economy and reach our goal of a $40 billion economy by 2030.

“The Green Energy Project has the potential to create thousands of jobs and increase our sustainable energy production for countless years to come.

“Our focus on clean energy will drive us long into the future as we become leaders in the green energy sector”.

Quote attributable to Chief Executive Officer of Larrakia Development Corporation, Nigel Browne:

"Today's MOU signing is an important step in achieving the government's vision for the Northern Territory's renewables future. 

Through dedicated work being undertaken by Larrakia Energy, we are bringing together the resources and goodwill needed to lower emissions and care for Country, on Larrakia Country."

Source: NT Government Newsroom

Northern Territory business and government leaders have come together in Canberra to showcase their industries and talents and to urge the federal government and Australia to face north.

Organised by the Darwin Major Business Group and the Northern Territory Government, the Facing North Forum highlighted the NT’s strategic, economic, commercial and cultural capacity, and demonstrated how business and government can work together to accelerate NT development.

The annual forum returned after a three-year break due to the COVID pandemic, providing business leaders with an opportunity to discuss key initiatives for Northern Australia, including the refresh of the 2015 White Paper on Developing Northern Australia.

Minister for Resources and Northern Australia Madeleine King said the White Paper refresh will centre on the north’s growing contribution to the Australian economy, as well as opportunities for First Nations communities and businesses, and opportunities for climate adaptation in the north.

“The Northern Territory’s vital contribution to our north and our nation cannot be overstated,” Minister King said.

“With a population of around 250,000, the NT contributes an impressive $61.5 billion to the Australian economy.

“The Northern Territory’s globally significant critical mineral reserves and renewable energy sources will help the nation drive the development of Australia’s future net-zero economy.

“The Northern Australia Infrastructure Facility (NAIF) will continue to drive economic opportunity in the north with $7 billion in finance for transformation infrastructure projects, including for crucial critical minerals projects.”

For more information on how the Government is delivering for the north, visit www.infrastructure.gov.au/territories-regions-cities/regional-australia/office-northern-australia.

The Hon Madeleine King MP

Minister for Northern Australia

Tamboran signs four LOIs for 510 – 750 TJ per day with potential East Coast gas buyers

Highlights

• Tamboran Resources has signed four separate non-binding Letters of Intent (LOIs) with Origin, AGL, EnergyAustralia and Shell Energy Australia (together the “Parties”) to potentially purchase in aggregate 510 - 750 TJ per day (185 – 270 PJ per annum) of gas from Tamboran’s low-reservoir CO2 Beetaloo Basin gas assets for a period of up to 10 – 15 years.

• Tamboran will separately work with the Parties toward executing separate binding fully termed Gas Sales Agreements (GSAs), including purchase price, transport arrangements and other key commercial terms.

• First gas is targeted to commence in 2028, subject to commercial flow rates from Tamboran’s Beetaloo Basin assets.

• The binding GSAs support the progress of APA Group’s (ASX: APA) proposed pipeline between the Beetaloo Basin and the East Coast gas transmission network.

• APA has commenced preliminary land access approvals and pre-engineering studies with the objective of potentially connecting the Beetaloo Basin to the existing East Coast Gas Grid.

• The LOIs demonstrate the ongoing importance of natural gas in Australia’s energy mix. 

To view full ASX announcement, click here.

H&P rig spuds Shenandoah South 1H and Amungee 2H update

Highlights

• Tamboran has successfully commenced drilling of the Shenandoah South 1H (SS1H) well with the Helmerich & Payne, Inc. (H&P), (NYSE: HP), super-spec FlexRig® Flex 3 Rig.

• The SS1H well is targeting the deeper Mid-Velkerri “B Shale” in EP 117. The deeper shale is expected to host higher pressures and therefore deliver higher flow rates than the Amungee 2H (A2H) well location in EP 98.

• Drilling activity is expected to take ~45 days, including a pilot hole and 1,000-metre horizontal section. The stimulation program is planned to commence during the fourth quarter of 2023.

• On completion of the SS1H flow testing, Tamboran and Daly Waters Energy LP will complete the farm-in requirements to earn the 77.5 per cent interest (38.75 per cent each) and operatorship of the EP 76, 98 and 117 permits. Falcon Oil and Gas Australia Limited will hold 22.5 per cent.

• Success at the SS1H well location could support the pilot development investment decision, which includes use of the Clean Energy Fuels Australia (CEFA) facilities and APA Group (ASX: APA) pipeline to the Amadeus Gas Pipeline (AGP). Tamboran is targeting first domestic gas sales from the pilot development by the end of 2025.

• Fluid lab analysis from the A2H well is ongoing with remedial intervention work planned for later this year, subject to joint venture approvals. The intervention is likely to coincide with activities at the Amungee well pad where the JV is planning to drill the Amungee 3H well following SS1H.

To view full ASX announcement, click here.

Amadeus Basin – Palm Valley And Dingo Field Reserves Upgrades

Highlights

• 2P Total Reserves increase of 14% at Palm Valley to 2.1 million barrels of oil equivalent (mmboe), associated with the successful drilling and flow performance of the PV-12 well.

• 2P Total Reserves increase of 13% at Dingo to 3.5mmboe, owing to ongoing strong performance from the wells and additional modelling work.

New Zealand Oil & Gas Limited (ASX:NZO)(NZO) and the other Joint Venture partners have upgraded their reserves in the Palm Valley and Dingo gas fields in the Amadeus Basin, Northern Territory, central Australia.

New Zealand Oil & Gas Chief Executive Andrew Jefferies says the reserves upgrade is significant news for the Company.

“It’s great to see hard work pay off in reserves additions” says CEO Andrew Jefferies “drilling at Palm Valley and some excellent technical work has shown there is more gas in the ground in our Amadeus Basin assets. These assets provide much needed energy for both Central Australia which is working hard to provide the e-materials we need to transition; and the East Coast which is moving off coal to unreliable wind and solar, with gas the only sensible option to fill in the ever-widening gap. Gas is a three-letter word for transition.”

To view the full announcement, please see News Release

Source: New Zealand Oil & Gas

Fourth quarter activities report for period ended 30 June 2023

Highlights

• The Northern Territory Government granted Tamboran exclusivity over 170-hectares (420-acres) on the Middle Arm Sustainable Development Precinct (Middle Arm) for a proposed LNG development, Northern Territory LNG (NTLNG).

• Tamboran selected APA Group (ASX: APA) as the preferred transmission pipeline partner. The parties will work towards jointly developing pipelines to connect Tamboran’s Beetaloo Basin assets to Australia’s domestic East Coast gas market and Tamboran’s proposed NTLNG development.

• Tamboran announced two non-binding MOUs with bp and Shell to each purchase up to 2.2 million tonnes of LNG per annum (MTPA) over a 20-year period from the proposed NTLNG development.

• Tamboran entered a framework agreement with Clean Energy Fuels Australia (CEFA) group of companies to obtain exclusivity over gas compression, liquefaction and mini-LNG facilities for potential early production from the Beetaloo Basin.

• During the quarter, the Amungee 2H (A2H) well in EP 98 achieved gas breakthrough. Modelling and independent third-party analysis of fluids recovered from the well have identified potential skin with options to clean up the well being evaluated, subject to JV approval.

• Tamboran completed analysis of flow tests from the Tanumbirini 2H (T2H) and 3H (T3H) wells in EP 161 (Tamboran 25 per cent). The independently modelled decline curves demonstrated a 20- year Estimated Ultimate Recovery (EUR) of approximately 16.8 billion cubic feet (BCF) and 18.5 BCF, respectively, in-line with the most productive regions of the Marcellus Basin, USA.

• In June, Tamboran announced a $71.4 million capital raise to fund further drilling activity at Shenandoah South and Amungee. The raise included a placement of $53.2 million (before costs) at $0.18 per share, a $13.3 million Convertible Note with Helmerich & Payne (H&P) and a Share Purchase Plan to raise up to $5 million.

• At 30 June 2023, the Company had a cash balance of $10.6 million

To view full ASX Announcement, click here.

Highlights

• Tamboran Resources (Tamboran) has awarded John Wood Group plc, (Wood), (LON: WG) the contract to undertake the Concept Select Engineering phase for the proposed NTLNG development at the Middle Arm Sustainable Development Precinct (Middle Arm) in Darwin.

• This initial engineering phase will evaluate the technical and commercial opportunity to construct a 6.6 million tonne per annum (MTPA) LNG development, subject to establishment of commercial flow rates from Tamboran’s Beetaloo Basin assets.

• The Concept Select phase is expected to be completed during the first half of 2024, ahead of entering pre-Front-End Engineering and Design (pre-FEED) during 2024.

• The scope of the studies includes evaluation of the proposed three train concept, LNG liquefaction technology selection including the evaluation of e-drives powered by renewables and carbon capture and storage infrastructure, site configuration and initial cost estimates.

The view the full ASX Announcement 

H&P rig mobilised to the Beetaloo Basin for drilling of Shenandoah South 1H

Highlights

• The Helmerich & Payne, Inc. (H&P), (NYSE: HP), super-spec FlexRig® Flex 3 Rig has been successfully mobilised to the Shenandoah South 1H (SS1H) well pad location in EP 117 (previously Kyalla 117 N2-1 well pad).

• The SS1H well will target the Mid-Velkerri “B Shale” approximately 700 metres (30 per cent) deeper than the Amungee 2H (A2H) well in EP 98, which is approximately 60 kilometres north. The deeper reservoir is expected to deliver higher pressures, based on data from the two Tanumbirini wells in the Santos-operated EP 161 permit.

• Tamboran expects the SS1H well to commence drilling in early August 2023, subject to final Beetaloo Joint Venture approval. Drilling activity is expected to take ~45 days, which includes a pilot hole and 1,000-metre horizontal section. The stimulation program planned to commence during the fourth quarter of 2023.

• Learnings from the Tanumbirini wells and the A2H well have been incorporated into the SS1H well and stimulation designs, with focus on delivering commercial flow rates from the location.

To read the full ASX announcement, click here.

Global energy consultancy Xodus has been awarded a contract to provide technical and project support services for Phase 1 of the decommissioning of the Northern Endeavour Floating Production Storage and Offtake facility (FPSO).

This specific phase of decommissioning covers activities to facilitate the disconnection and removal of the FPSO including topsides and subsea flushing and well suspension.

Xodus will be working on behalf of the Australian Government, providing advice on project coordination, regulatory and environment, health and safety, technical, quality assurance, and contract management as part of the agreement.

Alasdair Gray, Late Life and Decommissioning Lead at Xodus said: “We have a highly experienced local team with several of our colleagues having extensive experience of the Northern Endeavor either from the early design and installation phase of the project or during production operations. This means that whilst being able to bring a fresh approach, the facility is already familiar to much of the team.

“We understand environmental sensitivities and the impact these can have on any proposed activity or execution plan. Expert technical advice and careful planning will be critical to the successful decommissioning of the offshore field in a safe and responsible manner. We are pleased to provide the necessary support to ensure that the decommissioning strategy is robust and ultimately compliant with regulatory expectations.”

A spokesperson for the Department of Industry, Science, and Resources (DISR) Phase 1 NE Decom Project Management Team said: “We are pleased that Xodus has officially joined as our assurance team for Phase 1 of the Northern Endeavour Decommissioning Project. This marks a significant step forward in our role in managing the environmentally responsible and safe closure of the Northern Endeavour FPSO, permanent plugging and abandonment, and remediation of associated fields. We value Xodus’ forthcoming contributions and look forward to a collaborative and productive partnership.”

The Northern Endeavour is a 274m long FPSO which is permanently moored between the Laminaria and Corallina oil fields in the Timor Sea. It stopped producing oil in 2019. In non-production mode, the now redundant production system comprises a network of subsea wells tied back to the permanently moored vessel unit through a system of subsea manifolds, flowlines, umbilicals, and dynamic risers. Produced oil was stored onboard the vessel and unloaded via offtake tankers using a tandem mooring system.

The decommissioning follows the liquidation of the owner of the Northern Endeavour, the Northern Oil and Gas Australia (NOGA) group of companies, in 2020. A temporary levy on offshore oil production is recovering the full costs of decommissioning and remediating the Laminaria and Corallina oil fields.

Source: Xodus

Northern Endeavour has been a burden on government, its offshore regulator NOPSEMA and the Australian petroleum industry since it was shut down three years ago when its most recent operator, Northern Oil and Gas, collapsed into liquidation.

The former Woodside operated facility has remained in limbo in the Laminaria and Corallina fields since then while its future and who was responsible for the vessel, were debated.

Now it appears this ugly chapter in the history of the Australian oil and gas industry is finally coming to an end.

Xodus will now take responsibility for Northern Endeavour's immediate future after it was awarded a contract to provide technical and project support services for Phase 1 of the decommissioning of the FPSO.

Under the Phase 1 contract, Xodus will be responsible for a wide range of decommissioning activities to facilitate the disconnection and removal of the FPSO including topsides and subsea flushing and well suspension.

On behalf of the Australian Government, Xodus will also provide advice on project coordination, regulatory and environment, health and safety, technical, quality assurance, and contract management as part of the agreement.

"We have a highly experienced local team with several of our colleagues having extensive experience of the Northern Endeavor either from the early design and installation phase of the project or during production operations," Alasdair Gray, the Late Life and Decommissioning Lead at Xodus, said.

"This means that whilst being able to bring a fresh approach, the facility is already familiar to much of the team.

"We understand environmental sensitivities and the impact these can have on any proposed activity or execution plan. Expert technical advice and careful planning will be critical to the successful decommissioning of the offshore field in a safe and responsible manner. We are pleased to provide the necessary support to ensure that the decommissioning strategy is robust and ultimately compliant with regulatory expectations."

Government responsibility

After much toing-and-froing, the Australian Government eventually determined that decommissioning of the vessel was the most effective way to protect the environment from future potential risks.

With the former owner of the FPSO, the Northern Oil and Gas Australia (NOGA) group of companies having gone into liquidation, decommissioning costs are to be recovered from the oil and gas industry through the Laminaria and Corallina Decommissioning Cost Recovery Levy.

The decommissioning program is being delivered across three phases.

• Phase 1: Decommissioning and disconnecting the Northern Endeavour from subsea equipment and temporarily suspending the wells.
• Phase 2: Permanently plugging and abandoning wells
• Phase 3: Removing subsea infrastructure and remediating the Laminaria and Corallina fields

A spokesperson for the Department of Industry, Science, and Resources (DISR) Phase 1 NE Decom Project Management Team said the awarding of the contract marks a significant step forward in the government's role in managing the environmentally responsible and safe closure of the Northern Endeavour FPSO, permanent plugging and abandonment, and remediation of associated fields.

Colourful history

The 274m long Northern Endeavour FPSO came into operation with much fanfare in 1999.

After a number of very successful and productive years, the Laminaria and Corallina fields began to naturally decline and the project ceased producing oil in 2019.

Now permanently moored, the now redundant production system comprises a network of subsea wells tied back to the permanently moored vessel unit through a system of subsea manifolds, flowlines, umbilicals, and dynamic risers.

Xodus a decommissioning specialist

In June 2022 Xodus established a new Contaminant Advisory Group to help tackle the decommissioning regulatory challenges facing operators in Australia.

The group, which included representatives from ANSTO, SA Radiation, Total Hazardous Integrated Solutions and Qa3, was formed in response to the Australian Government's Offshore Petroleum and Greenhouse Gas Storage Amendment Bill which was created to strengthen and clarify Australia's offshore oil and gas regulatory framework.

The bill, an amendment to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, requires operators who are decommissioning in situ to report their precise contamination levels to limit further pollution.

 "We believe that collaboration will be key to the future success of decommissioning in the region, and we are excited to bring this group together to tackle some important challenges relating to legacy offshore oil and gas equipment," Mr Gray said.

Source: Energy News Bulletin