Industry News

Woodside Energy Group and INPEX have been awarded two of Australia’s first offshore greenhouse gas storage permits, with the titles regulator signing off on the initial applications this week. 

The permits are for a term of six years. 

Woodside's G-8-AP is in the Browse Basin and expires in August, 2028. It covers 3,476 square kilometres across 42 blocks and is between retention leases WA-28-R and WA-31-R. 

It lies directly on top of its Browse fields, which hold 10% CO2.

he project to send gas 900 kilometres to the North West Shelf facility to use as LNG backfill has been paused since 2020 but since the Russian invasion of Ukraine and changing world circumstances, has been back on the table. 

CEO Meg O'Neill told a press conference at the APPEA conference in May CCS would be a part of the project from the get go. 

The company must undertake subsurface geoscience and engineering studies by 2025 and a risk assessment for legacy wells in the area. It must acquire 250sq.km of new 3D seismic between 2025 and 2026 at an estimated cost of $6.5 million and complete well design and planning by 2028. 

INPEX takes its G-7-AP, which is in the Bonaparte Basin and expires in August 2028. It is spread across 27,500sq.km and covers 348 blocks.

INPEX is operator but shares the block with Woodside and France's TotalEnergies. In addition to seismic acquisition the partners must drill two appraisal wells in the six-year work program at a cost of an estimated $105 million by 2025. 

The total work program is estimated to cost $159 million and includes large amounts of geological and reservoir modelling. 

The permit is close to the Petrel Sub-basin, the Bayu-Undan fields, the Barossa field and INPEX's own Ichthys. 

The company has pledged to build a CCS hub in Darwin to capture emissions and also suggested it may join Santos' ambitious Bayu Undan proposition, which would use the depleted reservoirs to store up to 10 million tonnes a year of CO2 some 560 kilometres offshore Darwin. 

Source: Energy News Bulletin

Australia’s oil and gas industry says it will work constructively with the Federal Government on its emissions safeguard mechanism as part of the sector’s commitment to net zero by 2050.

The Australian Petroleum Production & Exploration Association (APPEA) today welcomed the release of the Safeguard Mechanism Reforms consultation paper.

APPEA Chief Executive Samantha McCulloch said: “The oil and gas industry is already spending billions of dollars on decarbonisation and renewable energy initiatives and is strongly committed to reducing greenhouse gas emissions economy-wide to net zero by 2050.

“Gas will be central to a cleaner energy future given its role stabilising renewables, replacing coal, supporting manufacturing, making everyday products and as a feedstock for hydrogen. The expertise of the industry will also be critical to deliver key decarbonisation technologies such as carbon capture and storage.

“We’ve always worked with regulators and governments throughout Australia on emissions reduction policy and frameworks and will do so again to ensure both reduced emissions and ongoing international competitiveness.”

It is important to acknowledge the Government’s commitment to provide tailored treatment for emissions-intensive, trade-exposed industries based on the principle of comparative impact.

Ms McCulloch said: “Australia’s LNG industry is one of the country’s most trade-exposed and operates in a highly competitive global market in which it’s one of the global leaders – with export earnings expected to hit another record of over $80 billion this financial year.

“The value of these exports to Australians was seen recently when the Queensland Budget forecast petroleum royalties to more than double – helping fund vital public services and infrastructure like hospitals and schools.

“The Federal Government’s commitment to provide tailored treatment to ensure that export-focused businesses are not competitively disadvantaged is important to help ensure the nation decarbonises while keeping our economy strong and resilient.”

Source: APPEA

ASX Announcement 

Tanumbirini 2H and 3H flow rates increase to 4.3 & 7.4 mmscfd following installation of production tubing (normalised to a 1,000-metre lateral)

The Tanumbirini 2H (T2H) and Tanumbirini 3H (T3H) wells in EP 161 (Santos 75% and operator, Tamboran 25%) are currently flowing at 40% and 150% higher eight-day average flow rates, respectively, when compared to corresponding rates in January 2022.

The T3H well peaked at 9.1 million standard cubic feet per day (mmscfd) and is flowing at an eight-day average rate of 4.4 mmscfd over a 600-metre horizontal section (normalised at 7.4 mmscfd over 1,000-metres).

The T2H well peaked at 4.0 mmscfd and has an eight-day average rate of 2.8 mmscfd over a 660-metre horizontal section (normalised at 4.3 mmscfd over 1,000-metres).

Flow rates from the T3H well are the highest sustained flows seen from any well in the Beetaloo Sub-basin to date, reflecting the high productivity of Tamboran’s deep ‘Core’ Beetaloo acreage.

These flow rates highlight the potential of Tamboran’s 100% owned and operated Maverick 1H (M1H) well, expected to commence drilling in September 2022, which has been designed with an optimised and modern US fracture simulation program.

The forward plan is to continue flow testing both the T2H and T3H wells to gather further information on the Mid-Velkerri “B Shale” formation

Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:

“These results provide us with much increased confidence in delivering commercial rates from the upcoming M1H well within our 100 per cent owned and operated EP 136 permit, which is expected to spud in early September 2022. The M1H well has been designed with optimised fracture stimulation, with learning taken from the drilling, stimulation and flow results from the T2H and T3H wells. This will incorporate an optimised 5 ½-inch production casing well design over a planned 1,000-metre (3,280 foot) horizontal section and will include up to 20 fracture stimulated stages

“The T2H and T3H wells will continue to be flow tested over the next few months and we look forward to providing additional details to the market following 30 days of production.”

Read full announcement here  

Source: Tamboran Resources

The Territory Labor Government and international renewable energy company, Total Eren, have today signed a Memorandum of Understanding (MoU), to develop a new green hydrogen project in Darwin.

The MoU frames how Government and Total Eren will work together to progress the Darwin H2 Hub.

The Darwin H2 Hub has the potential to create more than 2,000 jobs during construction and 175 ongoing during its operation and help to fast-track a net zero economy. 

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

Total Eren is a global renewable energy producer, headquartered in Paris with over 3.5 GW of wind and solar power plants and regional offices in the Asia-Pacific region located across Australia (Melbourne, Adelaide and Brisbane), Indonesia, Singapore, Philippines, South Korea, Cambodia and Vietnam.

Plans for the Darwin H2 Hub comprise of more than 2GW of solar PV generation on 4000ha of land providing energy for a 1GW hydrogen electrolyser to produce more than 80,000 tonnes of hydrogen per annum.

Green hydrogen is an important energy vector that will support the transition of economies worldwide as well as the Territory economy, this is why Budget 22 allocates $5.01 million over four years for accelerated hydrogen industry development.

 Quotes attributed to Chief Minister Natasha Fyles:

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

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

“The signing of this MoU will help position the Territory as the next Australian home of renewable hydrogen production.”

“We are excited to partner with Total Eren on this significant renewable project”

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

”Total Eren as a leader in renewable energy is excited to be present in the Northern Territory through the development of the proposed Darwin H2 Hub.

Our plan is to accelerate the development of the project to supply green hydrogen and also the opportunity to provide renewable energy which supports the decarbonisation plans for energy-intensive industries in the Territory. Total Eren appreciates the Territory’s support on the Darwin H2 Hub and we look forward to working in partnership with the Territory to realise our vision in a net-zero economy.”

Source: Northern Territory Government Newsroom

Central Petroleum has advised that the Palm Valley 12 well, located in the Northern Territory, has reached a measured depth of 2150 m in the lower P2 unit of the Pacoota Formation.

Drilling of the side-track has progressed a total of 130 m this week with hole angle continuing to build towards horizontal.

The objective of the side-track is to test the vertically fractured lower P2 sandstone, encountered in the original well, from a horizontal well bore before entering the P3 sandstone at a near horizontal angle.

Gas was initially discovered at the Palm Valley 1 well in 1965. The gas primarily dwelled in an extensive fracture system in the Lower Stairway Sandstone, Horn Valley Siltstone and Pacoota Sandstones. The system varied in depth between 1800 to 2200 m.
Gas production at Palm Valley predominantly comes from natural fractures which have potential to provide solid production rates.

The PV12 well is being drilled under a joint venture (JV) between Central, New Zealand Oil and Gas (NZOG) and Cue Energy Resources and is scheduled to be completed this year. Central holds a 50 per cent interest in the joint venture, with NZOG holding another 35 per cent interest and Cue Energy holding the remaining 15 per cent.

Cue Energy is an oil and gas production and exploration company with a diversified mix of gas and oil production assets as well as exploration assets in Australia, Indonesia and New Zealand.

The PV12 well is the first of a two-well program which also includes the Dingo-5 exploration and production well.

Source: Oil & Gas Today

On August 12, we announced a change to our corporate logo. The new design is more modern and reflective of our organisations vision, mission and values. We believe our new logo will better represent who we are as an organisation and help us to better connect with all energy sub-sectors.

While the logo change is aesthetic, it’s also an important change as we embark on a journey of new energies and the energy transition.

As we transition to a new phase of innovation and development for the energy industry now more than ever there is a clear movement for collaboration across our diverse energy sector.

Hydrocarbons will continue to play an important role in energy production, with renewables and oil and gas projects co-existing to provide innovative solutions across the industry.

Industry has shown a significant trend in adding renewables and alternative energy sources to the mix as we work towards a decarbonised future.

Collaboration to realise critical decarbonisation strategies not only supports the Territory’s transition to a net-zero emissions future aligning with Northern Territory Government’s 50 per cent renewable energy target by 2030, such strategies also pave the way for substantial industry growth.

The Energy Club NT has been very successful engaging membership across a diverse group of stakeholders and businesses in the oil and gas industry, as well as in the renewables and hydrogen space.

The sharing of information across our diverse industry sectors in the Northern Territory will continue to bring businesses together to support a sustainable energy future.

Stephanie Berlin

Chief Executive Officer - Energy Club NT

Carpentaria-2H Generates Strong Initial Gas Flow Rates

Empire Energy Group Limited is pleased to provide shareholders with an update regarding the ongoing flow testing of the Carpentaria-2H well in Empire’s 100% owned and operated EP187 tenement, located in the Northern Territory’s Beetaloo Sub-basin.

Our Managing Director Alex Underwood wishes to express his gratitude to all of our shareholders for your support, without which Empire will not have reached this historic milestone.

Empire looks forward to providing further updates to you as we continue to execute the largest appraisal program in the history of the Beetaloo.

Please click here to read the full announcement. 

Source: Empire Energy Group

Project planning and design, and work on the environmental assessment for the Middle Arm Sustainable Development Precinct are progressing.

Project update available to be downloaded here  

Darwin Harbour values mapping

A values mapping exercise has launched as part of the social impact assessment for the precinct. Independent consultant True North Strategic Communication is conducting this work as part of the Strategic Environmental Assessment.

What do you love about Darwin Harbour? What do you worry about? We want to hear your thoughts.

Visit the Middle Arm Have Your Say page to learn more about the values mapping, complete a survey and drop comments on a map. Your feedback will help improve understanding about how Darwin residents value and use the harbour and its catchment area.

Ongoing engagement

DIPL is continuing to engage with stakeholders and the community about the Middle Arm precinct. The project team is available to provide briefings, answer questions and take your feedback.

A series of community information stalls will be held over the coming months to provide the general public an opportunity to engage and provide feedback. Dates and times for these stalls will be confirmed shortly.

If you have any queries about the project or would like to arrange a meeting, please do not hesitate to touch base via return email or visit the project page.

If you have any queries about the social impact assessment and values mapping, please contact Jane Munday on jane@truenorthcomm.com.au or 0427 880 083. 

Middle Arm Project Team

Middle Arm Sustainable Development Precinct

Department of Infrastructure, Planning & Logistics

Northern Territory Government

e contact.MASDP@nt.gov.au

w www.dipl.nt.gov.au/projects

Shell’s quarterly report has shown that the company is taking significant steps to invest in energy security and in the transition to low carbon energy.

The company has demonstrated a strong commitment to the reduction of emissions going forward and has managed to reduce scope 1 and scope 2 carbon emissions by 32 per cent compared to Q2 2013. In the same period, teams managed to reduce process safety incidents by 83 per cent.

In a video presentation, CEO Ben van Beurden acknowledged that the last quarter has been a turbulent time world-wide, acknowledging a number of major factors that have contributed to the increased cost of living, especially with regards to the price of oil and gas.

The company has also announced the final financial decisions with regards to the Crux field in Australia, a project which will provide gas to Shell’s floating LNG facility, Prelude. The decision to approve the development of the gas field was reached alongside Shell’s joint venture partner, SGH Energy.

When compared to the first quarter of 2013, Shell’s adjusted earnings are up 65 per cent.

“Our company is truly changing. It’s transforming for the future, and we are setting ourselves up for success in that transformation,” said van Beurden.

“We are using our financial strength to benefit society through secure energy supplies,” said van Beurden.

Subscribe to Oil and Gas Today for the latest project and industry news.

ASX ANNOUNCEMENT

Successful Hydraulic Stimulation of Carpentaria-2H

Empire Energy Group Limited is pleased to update shareholders on the hydraulic stimulation of Carpentaria-2H, a key milestone in the execution of the 2022 drilling, stimulation and flow testing program, the largest in the company’s history.

Please click here to read the full announcement.