Industry News

Environment Protection Legislation Amendment (Chain of Responsibility) Bill 2022

The Environment Protection Legislation Amendment (Chain of Responsibility) Bill 2022 was introduced to the Legislative Assembly last week during the October 2022 parliamentary sittings.  

The Bill’s amendments to the Environment Protection Act 2019 will establish an environmental chain of responsibility framework for onshore petroleum activities. This is in response to recommendation 14.30 of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, which states that prior to the grant of any further production approvals, the Government enacts provisions establishing a chain of responsibility for gas companies and related parties to ensure compliance with environmental obligations. 

The Bill is available on the Government’s Legislation database website and will be debated in the November 2022 parliamentary sittings. 

Introduction of the amendment Bill last week follows a number of stakeholder engagement processes, including consultation on an information paper in 2021 and an Exposure Draft of the amendment Bill earlier this year.
 
Thank you to all stakeholders that have constructively contributed to the development of these laws. 

Copies of the stakeholder submissions received on the Exposure Draft of the Bill, including a summary of outcomes arising from the consultation, are available to view on the Department of Environment, Parks and Water Security website here

Please direct all correspondence to:
Hydraulic Fracturing Inquiry Implementation Taskforce
GPO Box 4396, Darwin NT 0801
T 08 8999 6573
E hydraulic.fracturing@nt.gov.au
W hydraulicfracturing.nt.gov.au

Petroleum Legislation Amendment Bill 2022

The Petroleum Legislation Amendment Bill 2022 was introduced to the Legislative Assembly last week during the October 2022 parliamentary sittings. The Bill’s amendments to the Petroleum Act 1984 (the Act) will implement 13 recommendations from the Final Report of the Hydraulic Fracturing Inquiry (the Inquiry).

The changes introduced in the Bill will significantly improve the regulatory framework for the onshore petroleum industry and the ability to manage environmental impacts and risks to acceptable levels in a manner contemplated by the Inquiry.

The Bill contains the following amendments relative to the Inquiry recommendation:

• introduces the requirement to comply with nationally consistent guidelines for human health and environmental risk assessment (Rec 7.4 and 10.1);
• provides for the implementation of new charges to recover the cost of undertaking the Strategic Regional Environmental Baseline Assessment (SREBA) studies, including the Strategic Social Impact Assessment (Rec 12.2);
• introduces a framework for new charges for industry, that will recover the costs associated with regulating the onshore gas industry (Rec 14.1);
• establishes a comprehensive financial assurance framework to improve securities and insurance requirements for onshore petroleum operations (Rec 14.13);
• introduces an orphan well levy and fund to enable the government to monitor orphan wells as well as take action, as required, to secure the integrity of any orphan wells (Rec 14.14);
• enables the repeal of the Schedule of Onshore Petroleum Exploration and Production by establishing a legal framework for activity permissioning plans, assessment timeframes, approval criteria and reporting obligations in the Act and introducing new regulation-making powers to support them (Rec 14.17);
• empowers the community through key decision making processes. This includes introducing third party merits review for key decisions made under the Petroleum legislation (Rec 14.24);
• strengthens community confidence in the regulatory framework by amending cost rules so that litigation genuinely brought in public interest may not be subject to a costs order, introducing new civil enforcement proceedings and reversing the onus of proof for pollution and environmental harm offences; (Rec 14.25; 14.31 and 14.32);
• enables a more rigorous legislative framework that will provide a strong deterrent for non-compliance. Inspectors appointed under the Act, and relevant CEOs will have broader powers and more ways to ensure that gas companies are compliant with the law (Rec 14.29); and
• increases penalties and offences in the Act so that they will be comparable with or exceed equivalent penalties across all Australian jurisdictions (Rec 14.33).

Other amendments within the Bill include:

• enabling exploration for and production of naturally occurring hydrogen by amending the definition of petroleum; and
• enabling industry applications for Government to consider the use and sale of appraisal petroleum in preference to flaring or venting to reduce greenhouse gas emissions at the source. These applications will not be considered until the commencement of the Act and all Inquiry recommendations have been implemented, as determined by Government in 2023.

The Bill is available on the Government’s Legislation database website and will be debated in the November 2022 parliamentary sittings. This Bill is the third amendment to the Act since implementation of Inquiry recommendations commenced in 2018.

Government will not consider any production approvals for shale gas activities until all Inquiry recommendations are implemented.

Please direct all correspondence to:
Hydraulic Fracturing Inquiry Implementation Taskforce
GPO Box 4396, Darwin NT 0801
T 08 8999 6573
E hydraulic.fracturing@nt.gov.au
W hydraulicfracturing.nt.gov.au

Territory Labor is delivering the NT’s ambitious response to the challenges of climate change.

The NT’s Minister for Environment, Climate Change and Water Security has tabled in parliament the latest annual report highlighting significant reforms already taken to reach net zero emissions by 2050 as part of the Government’s key climate change strategy.

The Climate Change Response: Towards 2030 Annual Progress Report outlines key achievements in the past 12 months aimed at reducing greenhouse gas emissions, while pushing towards a 50 per cent renewable energy target by 2030.

The Climate Change Response recognises the opportunities that will come from emissions reduction and the transition to a low carbon future, while growing the economy in a sustainable way.

Since last year the government has implemented its electric vehicle strategy, reducing stamp duty and introducing grants for home and business charging stations; introduced a home and business battery grant scheme, and; has started construction on the first battery storage power station at Channel Island.

This is supported by initiatives such as the Darwin-Katherine Electricity System Plan, the Alice Springs Future Grid project, and the strategy and master plan setting out a future for the Territory as a world leader in renewable hydrogen.

Developing the renewable energy sector is one way the Territory Labor Government is unlocking new economic and development opportunities, while helping to build a resilient Territory that can more easily adapt to the challenges climate change brings.

To view the annual climate change report, visit: climatechange.nt.gov.au

Quotes from Minister for Environment, Climate Change and Water Security, Lauren Moss:

“Climate change remains one of the greatest global threats to our society, economy and environment and our government understands that the majority of Australians expect and demand action.

“We are acting and will continue to drive forward our transition to a low carbon future, while ensuring that the Territory builds the necessary resilience to resist the impact of climate change that’s already irreversible.

“We’re on track but we won’t be easing back as we also enable our community to capitalise on the opportunities that a renewables-led economic transition will provide for a cleaner, brighter future.”

Source: NT Government Newsroom

14 October 2022

Territory Labor is fulfilling its election promise to deliver water security for all Territorians now and into the future.

Today the Draft Territory Water Plan has been released for further community input after its development through extensive public and stakeholder engagement.

Ensuring the continuity of safe drinking water for all Territorians is a priority for the NT Government, as is taking action to address climate change risks to water security, including in remote communities.

The plan also focuses on ensuring water is managed and allocated responsibly and highlights the importance of putting a value on water through a charging framework to ensure that industry pays for water they use – not the taxpayer.

It also outlines the need for an independent Controller of Water Resources, a position for which Expressions of Interest are now being sought.

This is the Territory’s first whole-of-government, long-term strategic plan for water security across the Northern Territory, providing a roadmap for strengthening water governance.

The Draft Water Plan is another part of a suite of policies being implemented by Territory Labor to provide comprehensive protection for the environment and address the challenges of climate change.

It completes a recommendation in the Final Report from the Territory Economic Reconstruction Committee and addresses key recommendations of the Pepper Inquiry into Hydraulic Fracturing.

The Office of Water Security will take a lead role in implementing the Plan, and will report on its progress annually. The Plan will be holistically reviewed every four years.

The Territory Labor Government is determined to ensure an acceptable quantity and quality of water for people, economic opportunities, cultural and environmental flows.

Water is intrinsic to our lifestyle, culture, industry and health – Territory Labor will help protect it.

See the Draft Territory Water Plan here: https://haveyoursay.nt.gov.au/territory-water-plan

Quotes from Minister for Environment, Clime Change and Water Security, Lauren Moss:

“We are the first Territory government to take a long-term view on the need for a secure water future with continued access to safe drinking water as the top priority, especially for our remote areas.

“We need a plan like this to ensure we have clean, healthy water supplies to sustain our environment and ancient cultural values, for our community to live, and for our economic development goals.

“This plan ensures that the future use of water is based on science and on sustainability, and that it reflects the insights, expertise and aspirations of as many Territorians as possible.”

Source: NT Government Newsroom

From 12.01am tomorrow, Friday 14 October 2022, it will no longer be mandatory for people who test positive for COVID-19 in the Northern Territory to self-isolate.

It remains important for all people stay home when unwell to limit the spread of infection and protect the community. This applies not just to COVID-19 but all illnesses. 

The NT will enter a four week transition period for some COVID-19 public health measures to enable health services and high-risk settings to develop appropriate policies to ensure the safety of vulnerable people.

Until Friday 11 November, 2022 the following Chief Health Officer (CHO) Directions will remain in place:

·       People in the NT who test positive to a Rapid Antigen Test to declare their result using the online declaration form. 

·       Face masks must be worn in high-risk settings including: hospitals and health care facilities, aged care facilities, disability residential facilities, correctional facilities and family violence, sobering up and homeless shelters.

Changes to public health measures are a timely reminder for Territorians to stay up-to-date with their COVID-19 vaccinations to make sure they have the best protection.

It has now been three months since the most recent peak in COVID-19 cases in the NT, which means many people will now be eligible for a booster or fourth dose.

A fourth dose of the COVID-19 vaccine is available for all Territorians aged 30 years and over at participating GP clinics, pharmacies, respiratory clinics, urban and remote health clinics and Aboriginal health clinics.

Some people who test positive for COVID-19 are more at risk of becoming seriously ill. Anti-viral treatments are available for those at moderate to high risk, but timing is critical. Treatments are most effective when taken within five days of symptoms first starting. Territorians should talk to their GP or other hospital specialist to discuss care options and work out which risk group they are in. 

To help stop the spread of COVID-19, all Territorians should continue to:

·       Stay home if unwell, even if your symptoms are mild

·       Practise personal hygiene including hand washing or using hand sanitiser

·       Maintain a distance of 1.5 metres away from others where possible

·       Wear a mask indoors and outdoors when social distancing is not possible 

·       Stay up to date with your vaccinations

·       Avoid visiting people at high risk of severe illness, people in hospital, aged care or disability facility when unwell.

For COVID-19 information and updates visit health.nt.gov.au/covid-19.

Quotes attributed to Dr Jacqueline Murdoch, Acting Chief Health Officer, NT Health:

“As COVID-19 isolation ends, it remains important all Territorians stay home if feeling sick or experiencing COVID-19 symptoms, so you don’t pass any illness onto others.

“If you test positive for COVID-19 you may be infectious for up to 10 days, but you’re most infections two days before symptoms start and while you have symptoms such as a runny nose, sore throat, cough, fever.

“We’ve learned throughout the pandemic that simple measures including staying home and wearing masks can help us protect one another from COVID-19. I encourage everyone to continue practising those COVID-safe behaviours that we know work to limit the spread of infection. ” 

Source: NT Government Newsroom

Beetaloo Operations Update Carpentaria 3 Drilling Underway

Empire Energy Group Limited (“Empire”) is pleased to provide shareholders with an update regarding the operations in Empire’s 100% owned and operated EP187 tenement, located onshore Northern Territory in the Beetaloo Sub-basin (“Beetaloo”).

• Carpentaria-3H (“C-3H”), Empire’s second horizontal appraisal well with a planned 2,000m horizontal section targeting the Velkerri B shale, has commenced drilling
• C-2H average production rate over the first 51 days of testing was 2.2 million standard cubic feet (mmcsf) per day, equivalent to 2.4 mmscf per day per 1,000 metres of horizontal section
• C-2H tracer data analysis has commenced, with results to be used to inform C-3H completion and fracture stimulation design
• Carpentaria-4V (“C-4V”) to be drilled after the drilling of C-3H Cash at bank at 30 September 2022 was $32.7 million

Please click here to read the full announcement. 

Falcon Oil & Gas to waive pre-emptive rights on Tamboran’s purchase of Origin’s Beetaloo Basin assets

• The 50/50 Joint Venture (JV) between Tamboran and Bryan Sheffield (Sheffield) has entered into a binding Letter of Intent (LOI) with Falcon Oil & Gas Australia Limited (Falcon) to amend the terms of the Joint Operating Agreement (JOA) and the existing Farm-in Agreement (FIA) with respect to Origin Energy’s Beetaloo Basin assets.

• Under the LOI, Falcon, owner of 22.5% non-operating interest in Origin’s Beetaloo assets, will not exercise its pre-emptive rights in relation to the JV’s purchase of Origin’s 77.5 per cent operated interest in exchange for a partial extension to the carry consideration under the FIA, to be borne equally by Tamboran and Bryan Sheffield.

• Subject to completion of the Origin transaction, Tamboran will be the largest acreage holder in the Beetaloo, with approximately 1.9 million net prospective resources and hold ~1.8 trillion cubic feet (TCF) of net 2C contingent gas resources.

• The completion of the acquisition of Origin’s Beetaloo assets remains subject to Northern Territory Government approval, which is expected by the end of October 2022.

Click here to read the full announcement. 

Strong gas shows in Tamboran’s Maverick 1V well and material reduction in drilling time

Highlights

• The Maverick 1V (M1V) vertical well, drilled within Tamboran’s 100 per cent owned and operated Beetaloo Basin permit, EP 136, has safely reached a total depth (TD) of 3,050 metres.
• Based on mud-logs, the M1V well has intersected Mid-Velkerri “A”, “B” and “C” shales exhibiting strong gas shows, consistent with other nearby wells and in line with expectations. Preparations are underway for a comprehensive wireline logging evaluation before suspending the well.
• TD was reached in 18.3 days, representing a 54 per cent reduction in drilling time compared to other near-field vertical sections drilled deeper than 2,500 metres in the Beetaloo Basin. This also compares to the more than 100 days to reach TD at the vertical well at Tanumbirini 1 in EP 161.
• Tamboran’s newly designed bit and bottomhole assembly delivered a 314 per cent faster rate of penetration through the Moroak sandstone, the toughest interval to drill efficiently in the deeper Beetaloo due to its abrasive and hard nature. 
• The drilling results highlight how Tamboran’s team has successfully incorporated US technical expertise and shale drilling experience to increase drilling speed and efficiency. This is expected to play a key role in reducing future drilling costs within the Beetaloo Basin.

For full ASX Announcement, click here

Engineering company Monadelphous Group Limited has secured a contract to provide operations, maintenance and industrial services to support Petrofac in the decommissioning of the Northern Endeavour Floating Production, Storage and Offtake (FPSO) facility.

The Northern Endeavour is a 274 m long FPSO, permanently moored between the Laminaria and Corallina oilfields, approximately 550 km northwest of Darwin in the Timor Sea. Production began in 1999 and peaked at 170,000 barrels of oil per day.

In 2019, the facility was shut down by NOPSEMA after an immediate threat to health and safety was found at the facility. After owners Northern Oil & Gas Australia went into liquidation, it fell to the Government to maintain and ultimately decommission it.

Petrofac was contracted earlier this year as outsourced operator responsible for decommissioning and disconnection of the FPSO. The scope includes the provision of its unique integrated services, working with both local and global suppliers.

The support to Petrofac represents Monadelphous’ first offshore decommissioning contract with work expected to be completed in the second half of 2023.

It represents a host of new contracts and contract extensions awarded to Monadelphous totaling approximately US$160mn.

View Monadelphous full ASX Announcement 

Source: Offshore Network

Petrofac, a leading provider of services to the global energy industry, has officially taken over operatorship of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility on behalf of the Australian Government. This major milestone is a huge step in the landmark decommissioning contract which heralds the start of an era of decommissioning in the nation’s offshore oil and gas sector.

Petrofac’s Australian team based in Perth, Western Australia, was contracted approximately six months ago to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO by the Australian Government’s Department of Industry, Science and Resources (DISR).

Since the award, work has been underway to prepare the FPSO for disconnection. The first task was to carry out extensive due diligence including physical inspections of the remote FPSO, which is being maintained in non-production mode. The Northern Endeavour is a 274-metre-long vessel, moored between the Laminaria and Corallina oil fields about 550 kilometers northwest of Darwin in the Timor Sea.

As the nominated operator on behalf of the Australian Government, Petrofac is responsible for the safety and day-to-day operation of the FPSO, as well as preparing it for disconnection.

Petrofac’s team in Perth has grown since the award, creating local jobs and opportunities for upskilling in the Australian workforce. The team is supported by the company’s global technical hubs with their extensive decommissioning experience. A large proportion of the existing offshore crew on board the Northern Endeavour have been retained to ensure critical asset knowledge is retained.

Josie Philips, Petrofac’s Regional Director, Australia, said:

"The whole team including our subcontractors, the supply chain and the original operator, as well as the regulators and the Commonwealth, have pulled together to make this a safe, efficient and successful transition to our operatorship. Now under regulation, as operators we can focus on the next steps to safe disconnection.”

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said:

“This is a high profile, landmark project both for Petrofac, and for the Australian decommissioning industry so I’m delighted to see the progress the team are making in setting the benchmark for the future using our unique integrated services approach.”

Source: Petrofac