Industry News

The Northern Territory’s four key industries have strong growth potential and could even help the Territory’s economy exceed a $40 billion dollar economy by 2030-31.

A new report by Deloitte Access Economics, commissioned by the Northern Territory Government, measures the current value of the maritime, agribusiness, minerals, and oil and gas industries.

It found these 4 industries contribute $7 billion in direct value, and support over 11,000 jobs in the Territory.

This contribution is equivalent to 26 per cent of the Territory’s Gross State Product and 8 per cent of total employment.

Importantly, there are sizable growth opportunities for the Territory’s maritime, agribusiness, minerals and oil and gas industries over the next decade.

The minerals industry will be boosted by production from the new Finniss Lithium Project.

The maritime industry is poised to benefit from broader economic growth and the demand for trade.

While the agribusiness industry will continue benefiting from general population growth in Australia and the demand for food.

There are 22 priority actions identified to maximise industry growth over the period of 2030-31, which include:

* Capitalising on the increases in demand for critical minerals by increasing exploration and production activities

* Extending the value chain to deliver economic growth and more jobs to the Territory by using local gas production to develop gas-based processing and manufacturing sector

* Establishing Darwin as a key maintenance hub for vessels operating in the Indo-Pacific region with purpose built berths

* Improving productivity for the cattle industry by adopting new technology and improving sustainable management practices for land assets.

The report also identifies pathways for government to help industry overcome barriers to growth which include skill shortages, access to land and water, lack of regional connectivity, market maturity, climate change and red tape.

Work is underway with industry to work together on suggested actions and pathways in order to maximise growth over the period to 2030-31.

The Territory Economic Reconstruction Commission set the task of achieving a $40 billion economy, and in its Final Report identified maritime, agribusiness, minerals and oil and gas industries having the greatest growth opportunities for the Territory.

Read the report here: https://industry.nt.gov.au/economic-valuation

Quotes attributable to Minister for Mining and Industry, Nicole Manison:

“Growing a $40 billion economy by 2030 requires reaching for bold new economic opportunities and overcoming long standing challenges facing the Northern Territory.

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

The Territory Labor Government is committed to achieving a more diverse and sustainable economy, which will mean well-paying jobs and better outcomes for all Territorians.”

Quotes attributable to Deloitte Access Economics partner, and principal report author, John O’Mahony:

“Approximately half of the estimated growth in the NT economy could be contributed through sectoral spillovers—efficiency gains in the upstream and downstream industries dependent upon the maritime, agribusiness, minerals and oil and gas industries.

The Northern Territory  Government has an opportunity to deliver sustainable growth—and spread resulting social benefits more widely—by maximising the downstream manufacturing and services opportunities from growing maritime, agribusiness, minerals and oil and gas services.”

Quotes attributable to Gaurav Sareen, Lead Partner, NT Government and Public Sector:

“This report can facilitate discussions between industry and the NT Government to identify potential opportunities and options to overcome barriers to growth across a number of key sectors that are important to the Territory’s economy, and   support the government’s goal of a $40 billion economy by 2030.”

Source: NT Government newsroom

The Territory Labor Government has successfully delivered the Petroleum Royalty Act 2023, which benefits the entire Northern Territory and provides industry with consistency.

The new legislation provides the framework for the calculation, payment and administration of petroleum royalties, repealing and replacing the current arrangements.

It imposes royalty at a rate of 10% on the gross value of petroleum at the wellhead, including sales made on an exploration permit. The royalty rate is unchanged from the current petroleum royalty arrangements.

The royalty calculation is set out clearly in legislation, replacing the current regime that requires individual agreements for each petroleum field, to be negotiated between producers and the Minister.

As petroleum is not usually sold at the wellhead, a netback methodology is used to recognise the costs incurred after the wellhead to the point of sale.

A deduction cap limits the recognition of post well-head costs to 75% of the sales value  to ensure that the Territory always receives a return for removal of its resources.

All petroleum produced will be subject to the new legislation from its commencement. Existing producers will be transitioned into the new scheme under a process that provides appropriate notice and complies with the principles of natural justice and procedural fairness.

The new legislation also applies the administrative provisions of the Taxation Administration Act 2007 bringing the administration of petroleum royalties in line with other revenue lines in the Territory.

The Bill modernises the Territory’s petroleum royalty legislation and aligns with the recommendations of the Territory Economic Reconstruction Commission final report.

Quotes from Treasurer, Eva Lawler:

“The Petroleum Royalty Bill streamlines the regulatory framework for the industry and provides a robust investment environment to grow the Northern Territory’s economy.

A modern and contemporary royalty act ensures Territorians get the maximum benefit from the petroleum industry, which sees the returns stay in the Territory.

It will provide ongoing jobs for Territorians, opportunities for regional and remote areas and an increase in infrastructure right across the Territory.”

Source: NT Government newsroom

Partner news: Santos Energy Solutions' carbon neutral e-methane collaboration takes next step.

Santos, through its energy transition business Santos Energy Solutions, is progressing with its ambition to create a cleaner energy future by entering an agreement with Osaka Gas Australia (OGA) for Pre-Front End Engineering and Design (Pre-FEED) work on a demonstration scale project to produce carbon neutral e-methane from green hydrogen.

Santos Energy Solutions is focused on delivering decarbonisation projects and clean fuels.

Santos and OGA will commence Pre-FEED, which will include renewable power and carbon capture infrastructure studies, site selection for e-methane and green hydrogen plants, optimisation of e-methane production efficiency and processes, and further detailed assessment of costs, schedules, feasibility, and risks.

Santos Managing Director and CEO Kevin Gallagher said the company has a long-standing, positive relationship with OGA, and Santos is committed to delivering on its net-zero by 2040 target.

“I believe it is increasingly clear gas will play a leading role in the transition to a decarbonised future, and Santos is excited to be progressing a new business opportunity that seeks to leverage our assets and capabilities to deliver a cleaner energy that will help create a better world for everyone,” Mr Gallagher said.

“Decarbonising natural gas supports a long-term supply of reliable and affordable energy, as well as the production of cleaner fuels such as e-methane. The advantage of e-methane is that it overcomes the challenges associated with the transport and export of hydrogen by allowing the use of existing transport, liquefaction and end user infrastructure providing a scope 1 and 2 as well as a scope 3 carbon neutral outcome.”

OGA is an Australian company that owns upstream energy assets and is a wholly owned subsidiary of Osaka Gas Co. Ltd, a major natural gas, electricity, and energy service provider, which has about 10 million customers in Japan.

The demonstration project aims to produce e-methane from green hydrogen, which is generated through water electrolysis powered by renewable energy, and CO2, which instead of being emitted into the atmosphere, is captured at industrial sites or by Direct Air Capture technology.

Santos is studying the potential to use its existing extensive infrastructure position to generate, liquefy and export e-methane to Japan.

Santos and OGA aim for FEED entry in 2024 and to be Final Investment Decision ready in 2026 to produce e-methane at a plant with a planned capacity of 10 TJ/day and export about 60,000 tonnes of e-methane annually by 2030.

Santos Energy Solutions is developing one of the world’s largest Carbon Capture and Storage projects in Moomba, South Australia, which is expected to store up to 1.7 million tonnes of CO2 each year with first injection on track for 2024.

Santos Energy Solutions is also planning to trial Direct Air Capture, a technology used to capture CO2 from the atmosphere, which could be used to expand the Moomba CCS project and provide feedstock for e-methane production at Moomba.

Source: Santos

To view full release, click here

Highlights

• A Helmerich & Payne (H&P), (NYSE: HP), FlexRig® has departed the United States and is now on its way to Australia’s Beetaloo Basin.

• Once operational in Australia, the rig is expected to be the country’s most powerful onshore drilling rig, capable of drilling more than 4,000-metre horizontal sections within the Mid-Velkerri “B Shale”. This is expected to support a material reduction in cost per unit of recoverable gas and minimize the environmental footprint.

• Tamboran has contracted the rig for a minimum of two years and will be used in Tamboran’s proposed 2023 Beetaloo Basin drilling program.

Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said:

“We are extremely excited to see an H&P FlexRig® super-spec rig on its way to the Beetaloo Basin. H&P have done an excellent job in meeting the timelines that will see the super-spec rig commence drilling in the basin during the second half of calendar year 2023.

“The dedicated use of this rig in the Beetaloo will transform our drilling operations, enabling us to achieve significant cost savings, particularly in drilling efficiency and mobilisation. Importantly, from an environmental perspective, the ability to drill increased lateral lengths will result in a smaller number of well pads, reducing our environmental footprint in the area.

“This marks a major milestone for us as we continue to prioritise sustainable practices while maximising operational efficiencies.”

John Lindsay, H&P’s President and CEO commented,

“Our strategic alliance with Tamboran is going extremely well. This provides H&P with a great opportunity to utilise rigs from our existing U.S. FlexRig® fleet to international unconventional growth areas. In addition to the rig, we will bring H&P’s technology and operational capabilities, which combined with the Tamboran team’s extensive unconventional expertise accelerates unlocking the potential of the Beetaloo Basin.”

For photos and and the view the full media release, click here

Empire Energy Group: Beetaloo Operations Update - Solid Progress being made towards commercialisation 

• Carpentaria-3H (“C-3H”) has been flow tested for 27 days and is currently shut in for soaking (the practice of shutting in a well for a period following fracture stimulation to maximise long-term productivity). Gas production rate has ranged between 2.3 million standard cubic feet per day (“mmcf / day”) and 5.7 mmcf / day with an average of 2.6 mmcf / day. Flow rates are yet to be optimized by the shut-in and soaking. Empire believes that higher flow rates will be achieved when the well is reopened.

• Carpentaria-2H (“C-2H”) has been brought back online to test the benefit of soaking with excellent results. A sustained average gas flow rate of 3.24 mmcf / day over eight days (“IP8”) has been achieved over the 927-metre stimulated horizontal section, approximately 21% higher than the initial IP8 with a lower rate of decline.

• This is a normalised flow rate of 3.5 mmcf / day per 1,000 metres at C-2H, demonstrating that soaking has had a material beneficial impact on flow rates, consistent with productivity improvements seen in other wells in the Beetaloo Sub-basin and in US shale gas basins.

• Empire intends to continue flow testing C-2H to develop an early production type curve that will be incorporated into Empire’s ongoing Front-End Engineering and Design (“FEED”) process. Management is working towards pilot project Final Investment Decision (“FID”) this year (subject to financing, gas sales agreement, regulatory approvals and Board approval).

• Petrophysical interpretation of Carpentaria-4V (“C-4V”) data has confirmed that net pay in the Middle Velkerri B is 20% greater and ~150 metres deeper than at the C-2H / C-3H location. C-4V formation evaluation results are being incorporated into the updated independent resource assessment that is expected to be complete in the coming weeks.

• Current cash balance is $18.2 million with recent drilling and stimulation projects coming in well under budget. The $15 million credit facility is available but undrawn. Final Beetaloo Cooperative Drilling Program progress payment of ~$7.6m is expected to be received soon.

• An investor webinar including Q&A will be conducted today at 11am AEDT during which Managing Director Alex Underwood will provide an overview of these results and investors can ask questions. Dial in details can be found below.

Comments from Managing Director Alex Underwood:

"The Empire team is highly encouraged by the stabilised flow rates we have achieved at C-2H. At this stage, the rates appear to exceed thresholds that others in the Beetaloo have proposed as being commercial. Empire has high earnings leverage due to the reduced capital costs we enjoy at shallower depths than other parts of the Beetaloo and high net revenue interest (working interest adjusted for royalties) in our Beetaloo properties.

This result has significantly de-risked EP187 and propels us towards a final investment decision on our pilot project later this year. We are rapidly optimising how to drill, stimulate and complete the Middle Velkerri B shale, and expect further improvements as we drill future pilot wells that, along with C-2H and C-3H, will generate production revenue (subject to FEED, sales and transportation agreements, financing, regulatory approvals and FID).

Netherland, Sewell & Associates are due to upgrade our EP187 Contingent Resources including our recent C-4V results. We anticipate a material increase.

C-3H has remaining fluid that the Empire team wants to remove to see the full C-3H well result. We expect soaking to reduce water saturation and to increase gas pressure that will help to remove the remaining fluid, in addition to providing the other matrix gas benefits seen in C-2H.

The global gas market remains in serious structural deficit. New sources of responsibly sourced, low CO2 gas are urgently required to avoid more seasonal price spikes. The IEA recently forecast that LNG demand from the world's largest importer, China, is expected to increase by up to 35% this year as its economy reopens, but new sources of supply are not coming onstream quickly enough. The NT gas market is undersupplied due to production issues at legacy fields, so our short-term opportunity is to support the NT Government to ameliorate forecast gas shortfalls by bringing our pilot project online quickly.

These flow testing results reinforce our commercialisation strategy."

To view full ASX announcement, click here

Source: Empire Energy Group

The Northern Territory is set to enjoy a renewed focus on vocational training with Charles Darwin University (CDU) launching CDU TAFE, a dedicated TAFE area focusing on future growth and job opportunities in the Northern Territory.

The more focused and streamlined structure has taken over from CDU’s previous Vocational Education and Training (VET) model.

CDU TAFE will also aim to better meet the needs of those in regional and remote communities, through formalized from other local RTOs into its courses, and development of new direct pathways from its TAFE courses into CDU’s higher education degrees.

An expansion of course offerings on the cards as part of the establishment of CDU TAFE with three new courses, a Certificate IV in Cyber Management, Certificate III in Aviation (Remote Pilot) and a short course Webdev Client-Side Scripting being some of the new courses available to students in 2023.

CDU TAFE will continue to offer its existing suite of training courses, with no impact on current students, and expand its course offering to reflect the changing face of the Northern Territory’s skilled workforce needs.

Former Director VET Strategy and Growth at CDU Michael Hamilton has been appointed as the new Pro Vice-Chancellor and Chief Executive of CDU TAFE, with more than 20 years’ experience working in the vocational training sector behind him.

Quotes attributable to Minister for Business, Jobs and Training, Paul Kirby:

“CDU TAFE will allow Territory VET students, trainees and apprentices to focus their energy and learning onto specific trades, to ensure their time in the classroom best prepares them for their time on the site.

“The establishment of CDU TAFE will provide more opportunities for those wanting to further their training here, and will make the Territory a more attractive option to develop skills and to join a strong and robust workforce.”

Quotes attributable to CDU Vice-Chancellor, Professor Scott Bowman:

“The opportunities for vocational education have changed and have increased significantly so it’s critical that the University is set up to deliver and offer more opportunities to develop skills and training for all Territorians.

“Establishing CDU TAFE means that we can be more agile to pursue growth opportunities in a rapidly changing training environment.

“Michael is a wonderful leader and I know with him at the helm, CDU TAFE will thrive.

 “CDU is ready to fulfil its vision of being Australia’s most connected university and is best placed to develop the Territory’s vocational education and training system and ensure Territorians are able to obtain the necessary skills and knowledge to fill workforce gaps.”

Quotes attributable to CDU TAFE Pro Vice-Chancellor and Chief Executive, Michael Hamilton:

“It is no secret that workforce limitations have impacted the Territory’s growth and CDU TAFE will provide a boom for future training to help better meet the needs of industry, employers and regional and remote communities.

 “At CDU TAFE we look forward to developing more courses to make the most of the opportunities to build a highly-skilled workforce in the Territory.

The (update), attended a launch event today, unveiling a plaque to commemorate the establishment of CDU TAFE.”

Source: NT Government newsroom

A renewables future is one step closer for the Tiwi Islands with a design and construct tender for a pilot program in Wurrumiyanga awarded to Circular Solutions.

The Territory Labor Government is investing $8.6 million over four years towards its Renewable Remote Power Program - including $6.1 million towards the Wurrumiyanga Solar Infill and Energy Storage Pilot Project.

Circular Solutions will replace some of the current diesel generated power supply with renewable technology, with works expected to be completed by April 2024.

Wurrimuyanga is already operating some solar technology and this investment will significantly increase the energy generated from solar, with the installation of additional solar PV panels and a new battery energy storage system.

The project will add 1.1 megawatts of additional solar PV and a Battery Energy Storage System of about 3 megawatt hours. It is expected that the percentage of renewable energy delivered to the community will increase to almost 50 per cent.

The Territory Government is also investing $2 million over the next two years to advance the delivery of clean and reliable electricity to remote communities across the Territory. This investment has so far resulted in a framework to deliver renewable energy systems to the 73 remote communities supplied by Indigenous Essential Services (IES), including opportunities for innovative technologies such as hydrogen.

Work is progressing on the detailed analysis of each IES community to map the optimal renewables development pathway, considering, among other things, the design and configuration of existing energy assets, electricity demand profiles and forecast growth.

This pilot is an important step towards the Territory Labor Government achieving its target of 50 per cent renewables by 2030, which includes a 70 per cent target in all communities supplied by IES. Renewable investments in remote power system services can lead to diesel cost savings and deliver substantial reductions in emissions as diesel is replaced, as well as generating local jobs.

Quotes attributable to Chief Minister Natasha Fyles:

“Energy and renewables play a key role in unlocking private investment and creating local jobs – and the Territory Labor Government is taking every opportunity.

“We will keep doing the hard work as we push towards our target of 50 per cent renewables by 2030 and zero emissions by 2050.

“A renewables future is now one step closer for the Wurrumiyanga community and we look forward to the lessons learnt from this project being extended to other remote Territory communities.”

Quotes attributable to Minister for Renewables and Energy Selena Uibo:

“Wurrumiyanga is an incredible place, both for its people and beautiful country. This renewable energy project will help to protect and preserve it and ensure future generations can continue to thrive with help from solar energy.

“I am proud that the Territory Labor Government is delivering this important project and changing the way power is generated in our communities for a cleaner, greener Territory.”

Source: NT Government Newsroom

Nautilus Aviation, Northern Australia’s largest helicopter operator has announced the expansion of its fleet, adding five additional Bell 407GXi’s.

Nautilus Aviation recently celebrated its 30th year of operations and remains a privately owned helicopter operator with a mixed turbine fleet of Bell 206, 206L4, 505, 407 and 412EP helicopters. In 2018, it was the first helicopter operator in Asia Pacific to take delivery of the Bell 505.

In late 2022, Nautilus Aviation took delivery of the first of five custom built Bell 407GXi aircraft with a second delivered in mid-January 2023. These helicopters were immediately put into operation servicing our commercial and VIP clients.

The Bell 407 GXi is a new generation of high-powered single engine turbine helicopter originally developed from the Bell 206L with dramatic capability enhancements most notably in the 4-blade fully articulated rotor head delivering speeds in excess of 135 kts and tremendous hot and high performance.

Nautilus Aviation will continue to take delivery of the remaining orders of the BELL 407GXi aircraft in the first quarter of 2023 and assists Nautilus Aviation’s commitment to further reduce our environmental footprint.

BELL 407GXi SPECIFICATION:

• Passengers: six
• Cruise speed 240km/hr
• Approximate Payload 600kg
• Ability to lift up to a 1 ton external load

CEO Mr Aaron Finn: “Based on our helicopter fleet and steadfast commitment to the safety of all passengers and personnel, we have earned and developed a reputation for quality. The Bell 407GXi helicopter has great all-round visibility and we appreciate Bell’s outstanding customer service. After careful consideration of our operational requirements and a commitment to further reduce our environmental footprint through reduced fuel consumption, I am confident these new fleet additions will enhance our reputation and position us for growth as the Australian economy continues its recovery from the pandemic.” We look forward to introducing two of our Bell 407 fleet into the Northern Territory in the very near future Mr Finn said.

Bell’s managing director in Asia Pacific, Jacinto Monge, said, “As Northern Australia’s largest helicopter operator, Nautilus’ selection of the Bell 407GXi demonstrates the confidence they have in the ability of the Bell 407GXi to fulfil their multiple mission requirements. We are honoured that Nautilus has chosen the Bell 407GXi and we look forward to providing the support they need for entry into service.”

For more information visit https://www.nautilusaviation.com.au or contact Nautilus Aviation on:

email: info@nautilusaviation.com.au / phone: 07 4034 9000

To view full information brochure, click here.

Armour Energy Limited, (Armour), is pleased to announce that it has signed a Heads of Agreement (HOA) with Australian Natural Diamonds Ltd, a wholly owned subsidiary of Lucapa Diamond Company Limited (ASX: LOM), for gas supply to the Merlin Diamond Project from its Glyde discovery in EP 171 in the McArthur Basin, Northern Territory.

HIGHLIGHTS

▪ HOA in place for 14 years supply of gas produced from the Glyde gas discovery to Merlin Diamond Project.

▪ The agreement reinforces the hydrocarbon potential of the McArthur Basin in the Northern Territory and Armour’s ability to provide this valuable resource to the domestic market.

▪ Successful execution of the development plan will represent the first production from the Basin which lies within 20 km of the Merlin site. The HOA contemplates the sale of gas produced from the Glyde Field from production startup (mid-CY2025) for 14 years through to the end of CY2039 providing fuel to support the development of the Merlin Diamond Project which is currently undergoing a feasibility study. This is anticipated to be a minimum of 7 PJ of gross sales gas over the contract term.

The terms set out in the HOA will form the basis of a fully termed Gas Sales Agreement (“GSA”) once all the conditions precedent have been met. 

For full ASX announcement, click here

Applications are now open for the Territory Labor Government’s Geophysics and Drilling Collaborations program, to support an industry that creates thousands of local jobs.

Up to $3million in grants will be awarded in 2023-24, in a program designed to encourage and assist exploration activity in the Territory.

Part of the $9.5 million Resourcing the Territory program, these grants aim to address geoscientific knowledge gaps, advance exploration activity and support the discovery and development of resources in the Territory.

The scope of exploration activities that are eligible for co-funding has been broadened in this round to support a wider range of exploration activities.

Grants are awarded to companies that are exploring in new areas or using innovative techniques.

Information gained from collaborative projects are released to the public six months after the completion of field work, to enhance publicly available knowledge on the Territory’s geology and resources, and encourage further exploration.

A huge driver of the economy, the total value of mineral production in the Northern Territory was $4.86 billion last year, with 4,400 people employed within the industry.  

The Territory has 15 of the world’s critical minerals, with high geological potential for a further 13.

Demand for these critical minerals is projected to rapidly grow with the increasing transition to renewable energy and battery storage, along with the crucial role of these minerals in areas such as medicine and defence.

This presents a significant economic and strategic opportunity for the Northern Territory, and one that is a key part of the Territory Government’s plan to build a $40 billion economy by 2030.

Quotes from Minister for Mining and Industry, Nicole Manison:

“We know that resources is the biggest contributor to the Territory economy, creating thousands of local jobs directly and indirectly.

Our $9.5 million Resourcing the Territory program is the biggest investment by any Territory Government into programs to attract and support resources exploration in the Territory.

The program is designed to accelerate mineral exploration and discovery that will drive mining development and create even more jobs right across the Territory.”

Source: NT Government Newsroom