Industry News

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

A major project poised to be Australia’s biggest renewables energy operation has taken a step forward.

Sun Cable proponents Grok Ventures and Quinbrook Infrastructure Partners met with Chief Minister Natasha Fyles in Darwin on Tuesday ahead of Grok, owned by Mike Cannon-Brookes, formally acquiring the company.

The asset sale agreement is expected to complete in early August.

It comes after Mr Cannon-Brookes made a winning bid for control over the $30bn project in May, signalling the end to the billionaires’ tussle and Andrew ‘Twiggy’ Forrest’s involvement.

The Australia-Asia PowerLink is Sun Cable’s flagship project that plans to develop the world’s largest solar farm and battery storage, running a 4200km undersea cable from the Barkly region to Darwin and Singapore.

Grok Ventures, a foundation investor in Sun Cable, will become majority owner of the AAPowerLink project when the sale completes.

Quinbrook Investment Partners are the development services partner and will direct the delivery of the onshore component, while Sun Cable will continue to lead the project’s execution.

AAPowerLink is expected to deliver at least 800 megawatts of zero emissions electricity to the NT and 1750MW to Singapore.

Sun Cable Australia chief development officer Mark Branson said the company would continue to progress both the onshore and offshore components of the “nation-building project” to a final investment decision.

“The AAPowerLink is the first renewable energy project of this scale in the Northern Territory and will deliver multiple GW of firmed green power to advance a new wave of green industrial development in the NT and create a renewable energy export market for Australia,” he said.

“We look forward to continuing work with the government, customers and local stakeholders to deliver on Sun Cable’s ambitious renewable energy projects.”

Ms Fyles said the AAPowerLink would help the Territory get to its ambitious $40bn economy by 2030 goal.

“The AAPowerLink project will position the Territory as a renewable energy powerhouse – powering Territory industries with Territory sunshine, creating new permanent jobs, and establishing a new export industry,” she said.

“With greater clarity over the project’s direction, the Territory Labor government is committed to completing the project for the benefit of our community and local suppliers, and securing ample supply of renewable power for the Territory.”

Sun Cable was placed into voluntary administration in January after Mr Cannon-Brookes and Dr Forrest clashed over funding, management and direction of the company.

The Darwin-Singapore cable would be more than five times longer than the largest undersea link ever constructed.

Source: NT News

The ASX-listed junior wants to map the Zevon sub-salt lead which lies ibn the north-western section of the Amadeus Basin between the Mereenie oil and gas field and the Surprise oil field.

The 2D seismic project will look to define and highlight the area as prospective for gas, helium and native ‘gold' hydrogen.

Central has previously said it expects the Zevon target to hold multi-trillion-cubic-feet of resources.

Zevon covers a massive 1664 square kilometres, broken down into two areas. Zevon West spreads across 582sq.km. Zevon East is approximately 180sq.km.

Two year's ago, Central said it was looking to test the structure in early 2023. A well was to be drilled to 2000 metres.

However, the company's initial EP for seismic acquisition was knocked back because it did not contain enough information.

Central suggests helium and hydrogen are most likely present in the Basement and Heavitree closures and high concentrations had previously been measured at wells Magee and Mt Kitty / Jacko Bore.

Santos drilled Mt Kitty / Jacko Bore in 2014, finding some hydrogen traces but not enough to be commercial.

Central loses dance partner in nearby permits

The company said a week ago its farm-out agreement with Peak Helium had fallen over some 16 months after the two parties first inked the deal.

In February 2022, Central agreed to farmout three exploration permits to Peak in exchange for a free carry on exploration work.

Under the terms, Peak took a 31% interest in EP82, a 10% in EP112, and a 6% interest in EP125. Santos is the operator of the permits and Central was left with a 29% stake in EP82, 35% in EP112, and 24% in EP125.

These permits are all near the Zevon permit EP115.

At the time, Central CEO and managing director Leon Devaney described the farmout as a "great catalyst" for the venture.

Last week, Central told shareholders Peak had failed to pay over $3 million in carrying costs.

The company said it had formed the view that Peak may not be able to fund its obligations under the farmin arrangements and that the future of a planned three well program was now "at risk."

A well was planned for EP82, EP112 and EP125, targeting subs-salt prospects with hydrogen and helium potential. The targets were called Mahler, Dukas, and Jacko Bore, respectively.

"Notwithstanding the extraordinary cost increases visible across the sector, Central has worked hard to preserve capital to fund its 35% share of any joint venture approved Dukas well," Devaney said.

"We will look at options for recovery of the monies owed and will work with Santos as operator regarding the future of the planned sub-salt exploration program, whilst protecting Central's legal rights."

Central has approached Peak and its financiers to restructure the joint venture.

Source: Energy News Bulletin

The Northern Territory is working to become a major player in the global supply chain for critical minerals required for new technologies and energy transition.

Avenira Limited, a current proponent of Middle Arm Sustainable Development Precinct, recently signed a Mining Agreement with the Arruwurra Aboriginal Corporation to continue to develop its Wonarah Phosphate Project.

The Wonarah Phosphate project in the Barkly will initially export phosphate rock, and later supply to Avenira’s lithium iron phosphate (LFP) project at Middle Arm Sustainable Development Precinct. 

Both projects will provide significant economic and strategic opportunity for the Northern Territory.

It’s estimated the Wonarah project will initially create 25 jobs in the Barkly, growing up to 50 jobs during the Direct Shipping Ore (DSO) program. This is in addition to the 100 jobs estimated in the first stage of the LFP facility, generating more than US$4 billion in revenue annually once scaled to full production.

Phosphate is traditionally used in agricultural fertiliser, and is in increasing demand for use as a critical active material used within an electric vehicle battery or energy storage battery. 

This agreement is a founding step in a strong relationship between Avenira and Arruwurra’s members, and creates pathways to sustainable commercial outcomes and social benefits.

Recently, the Territory Government granted Avenira two mineral leases, enabling the company to extract a bulk sample for testing. 

If successful, Avenira will commence a DSO operation. Avenira secured environmental approvals prior to being awarded the mineral leases.

Together with this project and other proposals, Middle Arm Sustainable Development Precinct, is set to become a renewable energy hub, while creating 20,000 jobs in the process.

Quotes attributed to Chief Minister Natasha Fyles:

“Growing a $40 billion economy by 2030 requires reaching for new, innovative economic opportunities.

“Projects are moving forward and the jobs will start flowing. It is important that we continue to diversify our economy and have support for all our regions.

“With the potential to create over 1,000 jobs this project will benefit Territorians from the Top End to the Barkly with the manufacturing plant to be built in Darwin, which will exclusively source phosphate from the Wonarah Phosphate Project in the Barkly.”

Quotes attributed to the Minister for Mining and Industry, Nicole Manison:

“The Northern Territory has what it takes to be a thriving economy with world class mineral deposits, a strong agriculture sector, emerging information technology capabilities and strategic advantages as a location for trade and defence.

“Increasing demand and the transition to renewable energy, battery storage and use of high technology products has resulted in global organisations looking to establish diversified, reliable and stable supply chains.

“Creating jobs up and down the track, this project is the way future and what the Territory needs.”

Source: Northern Territory Government Newsroom

Airnorth, Australia’s second longest operating airline, today celebrate 45 years in aviation. Since its inception in 1978, Airnorth has been delivering safe and reliable air service across Australia and beyond.

Headquartered in Darwin, with a base in Perth, Airnorth is a regional aviation leader flying to 15 destinations across Australia and Timor-Leste, with over 200 scheduled weekly passenger departures to Broome, Kununurra, Nhulunbuy, Groote Eylandt, Alice Springs, Cairns, Townsville, Perth, Dili and more. Airnorth also offers a range of flight charters, ad-hoc charters and freight services across Australia.

As an essential air service provider across northern Australia, Airnorth has a long history of assisting with humanitarian efforts during severe weather anomalies and natural disasters. Airnorth is proud to be a part of the social and economic fabric of the communities we operate to and from.

Remaining faithful to its Territory roots, Airnorth is one of the largest private employers in the Northern Territory, with over 220 staff. We also provide indirect employment by contracting ground service operations across all our destinations.

To celebrate this remarkable milestone, Airnorth has launched a network wide sale. “45 laps around the sun” with airfares starting from $174.00* one way. Sale ends 10 July 2023. Seats are limited.

*Terms and Conditions apply.

For more information or to book, head to www.airnorth.com.au, or call 1800 627 474.

For more information, please contact:

Teyghan Stadelbauer / Marketing and Communications Manager

teyghan.stadelbauer@airnorth.com.au

Tamboran receives commitments for the institutional placement component of its ~$71.4 million capital raise to accelerate development of the Beetaloo

Highlights 

• Tamboran Resources has received binding commitments for a non-underwritten placement to new and existing shareholders to raise up to ~$53.2 million (before costs) at $0.18 per share. The price represents a 12.2 per cent discount to the closing price on Thursday, 22 June 2023 and 13.0 per cent discount to the 10-day VWAP for the period ending 22 June 2023.

• In conjunction with the placement, Helmerich & Payne (NYSE: HP) and Tamboran have signed a binding Heads of Agreement (HOA) for a Convertible Note (CN) of ~US$9 million (~$13.2 million), which is subject to shareholder approval. The CN has a 5-year term and 5.5% interest rate (paidin-kind), with a conversion floor of $0.21 per share and ceiling of $0.30 per share.

• The Company intends to launch a Share Purchase Plan (SPP) allowing existing shareholders to participate on the same terms as the placement at $0.18 per share of up ~$5 million.

• The funds from the Placement, CN and SPP (together, the Capital Raise) will support Tamboran’s Beetaloo Basin drilling activity, fully satisfy the farm-in commitments associated with the Origin transaction in 2022 (securing a 38.75% interest in EPs 76, 98 and 117) and allow Tamboran to book initial 2C gas resources over the Shenandoah South area.

• The placement was supported by a ~$14.7 million investment from Tamboran’s largest shareholder, Mr Bryan Sheffield (Sheffield). 

• At the completion of the Capital Raise, Tamboran will be fully funded to undertake clean-up activities at the Amungee 2H (A2H) well and drill the Shenandoah South 1H (SS1H) and Amungee 3H (A3H) wells in EP 117 and 98, respectively.

To view full ASX Announcement, click here.

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.”

Source: Northern Territory Government Newsroom

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

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