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  • 26 Sep 2022 11:17 AM | Stephanie Berlin (Administrator)

    In 2022 October Business Month (OBM) will deliver an exciting and inspiring program featuring high profile keynote speakers covering leadership, resilience and overcoming adversity. This year also sees the return of OBM Partner Events, independently hosted events delivered by Territory business and industry as part of the broader program.

    Events will be held across the regions throughout the month of October with a focus on motivating business owners and employees to encourage networking, facilitate professional development and provide business improvement strategies to support business growth.

    To find out more and book go to www.obm.nt.gov.au

  • 21 Sep 2022 3:11 PM | Stephanie Berlin (Administrator)

    Santos notes today’s decision by Justice Bromberg of the Federal Court to set aside the acceptance by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) of an environmental plan covering the drilling and completion activities in relation to the Barossa Gas Project.

    The relevant drilling activities were to occur at a site in the Timor Sea, approximately 140 kilometres north of the Tiwi Islands.

    As a result of the decision, the drilling activities will be suspended pending a favourable appeal outcome or the approval of a fresh Environment Plan. Santos will be seeking to expedite these processes.

    The Court’s decision was based on a finding that NOPSEMA could not be lawfully satisfied that the Drilling Environment Plan met the criteria required by the Regulations[1] and in particular failed to assess whether the Drilling Environment Plan demonstrated that Santos consulted with each person that it was required by the Regulations to consult with.

    This is a disappointing outcome. Consistent with previous practice, Santos engaged about the proposed drilling activities with the Tiwi Land Council, a representative body with statutory authority under the Aboriginal Land Rights (Northern Territory) Act 1976. Similarly, Santos had engaged about the proposed drilling activities with the Northern Land Council, the Native Title representative body for the Tiwi Islands. NOPSEMA had accepted our efforts to consult with Tiwi Islanders in accordance with the Regulations when it decided to accept the Environment Plan for those activities.

    Given the significance of this decision to us, our international joint venture partners and customers, and the industry more broadly, we consider that it should be reviewed by the Full Federal Court on appeal.

    Santos is committed to continuous improvement in our consultation processes. Our relationships with the Traditional Owners, local communities and landholders where we operate are very important to us.

    Barossa is an important gas project for the nation, enhancing jobs, exports, and our relationships with investors and gas customers in Asia who have depended on Australia for their energy security for decades.

    The Barossa Gas Project is approximately 46 per cent complete. The drilling activities are not on the critical path for the project and we have headroom in the project cost contingency.

    Santos appreciates the strong support from our Japanese and Korean joint venture partners, who have, in good faith, and on the back of Australia’s historical reputation as a safe and stable investment destination, invested in this project.

    Project approval uncertainty is a public policy issue that should be urgently addressed by Australian governments to reduce risk for trade and investment in projects around the country.

    [1] Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009

    This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.

    To view the media release click here

  • 19 Sep 2022 11:52 AM | Stephanie Berlin (Administrator)

    Origin Energy Limited (Origin) will divest 100 per cent of its interest in the Beetaloo Basin, and has announced an intention to exit its upstream exploration permits, as the company focuses on its strategy and ambition to lead the energy transition.

    Agreements have been executed with Tamboran (B1) Pty Limited (Tamboran (B1)), an entity 50/50 owned by Tamboran Resources Limited (Tamboran) and its substantial shareholder, Bryan Sheffield, to divest Origin’s interest in the Northern Territory’s Beetaloo Basin for an upfront consideration of $60 million and a royalty on future production over the life of field across the Origin interest being acquired. Origin has also executed a gas sale agreement for offtake of future gas production.

    Origin will undertake a strategic review of all remaining exploration permits (excluding its interests in Australia Pacific LNG) with a view to exiting those permits over time. Origin will continue to comply with its obligations under existing joint venture agreements and work with its joint venture partners as it considers its exit.

    Origin CEO Frank Calabria said, “The decision to divest our interest in the Beetaloo and exit other upstream exploration permits over time, will enable greater flexibility to allocate capital towards our strategic priorities to grow cleaner energy and customer solutions, and deliver reliable energy through the transition.

    “We believe gas will continue to play an important role in the energy mix and it remains a core part of our business.

    “Notwithstanding the prospectivity of any of these permits, typically the experience in progressing these types of projects is that the exploration and appraisal phase can be uncertain, and it can be capital intensive to bring projects into production. Ultimately, we believe Origin is better placed prioritising capital towards other opportunities that are aligned to our refreshed strategy.

    “The suite of agreements executed with Tamboran (B1), allow Origin to realise value created by our investment and exploration activities to date, and ensures another operator present in the area and committed to developing its resources, can continue to take the venture forward.

    “We have also signed a gas sales agreement that will deliver competitively priced gas supply to Origin if development ultimately occurs from the Beetaloo.

    “We’ve been exploring in the Beetaloo Basin alongside our partner Falcon for eight years, and we’re grateful for the strong support we have received from the local community, including Native Title holders and contractors, as well as the Northern Territory and Federal governments.

    “Gas will continue to have an important role in our business, particularly through our interest in Australia Pacific LNG and role as upstream operator in that venture, and in the broader energy mix as we look to underpin reliable energy supply to customers and accelerate our investment into the energy transition,” Mr Calabria said.

    Under the terms of the agreement with Tamboran (B1), Origin will fully divest the entity which holds its 77.5 per cent interest in the Beetaloo Basin joint venture. Tamboran will assume operatorship of the Beetaloo Basin joint venture, which is 22.5 per cent owned by Falcon Oil & Gas Australia. The agreement has an economic effective date of 1 July 2022, and as a result, Tamboran (B1) will reimburse Origin for any costs incurred for the current Beetaloo workplan from the effective date until completion.

    Origin will also receive a 5.5 per cent royalty based on wellhead revenues produced from the three Beetaloo permits which are held by the entity being acquired by Tamboran (B1).

    In addition, Origin has executed a gas sales agreement for up to 36.5 PJ per annum over 10 years, conditional on Tamboran taking a final investment decision on developing the project and associated infrastructure and obtaining regulatory approvals.

    Completion of the transaction is subject to certain conditions, including Northern Territory Ministerial consent relating to the transfer of the shares in the entity which holds its 77.5 per cent interest in the Beetaloo Basin joint venture. Origin will work closely with Tamboran to facilitate a smooth transition to the new ownership, particularly for key stakeholders in the Northern Territory. Falcon has a pre-emptive right to acquire Origin’s 77.5 per cent interest in the Beetaloo Basin joint venture.

    Origin expects to record a non-cash post-tax loss of $70 - $90 million in relation to the transaction. This estimate is subject to finalisation of Origin’s half year 2023 financial statements.

    Divestment of the Beetaloo interests and the review of remaining exploration permits will have no impact on other aspects of Origin’s Integrated Gas business, primarily the company’s investment in Australia Pacific LNG and role as upstream operator, or Future Fuels which includes potential hydrogen projects and carbon offset projects.

    For full ASX/Media Release, click here

  • 15 Sep 2022 3:23 PM | Stephanie Berlin (Administrator)

    The operator of the Mereenie project Central Petroleum announced the one-year gas supply agreement. 

    Under the contract Shell will take a total of 3.65 PJ from January 1, 2025. 

    Shell has been supplying around 10% of the east coast domestic market from its Queensland operations since 2017.

    "This new gas supply agreement allows Central to broaden its customer base across the Northern Territory and eastern Australia," Central chief executive Leon Devaney said. 

    "We are very excited to have Shell Energy as a customer and hope this will be the start of a long relationship."

    The Mereenie project is a joint venture with Central holding a 25% interest, Macquarie Group a 50% stake, New Zealand Oil & Gas a 17.5% interest and junior Cue Energy the remaining 7.5%. 

    The fields were only connected to the east coast in 2017, when the Northern Gas Pipeline became operational. 

    Gas is piped 622 kilometres from Tennant Creek in the NT to Mount Isa in Queensland and is then distributed across Victoria and New South Wales.

    Central and Shell will need to execute a transportation agreement with the owner of the pipeline, Jemena

    Central said the agreement was for firm gas supply, with take-or-pay provisions and fixed price. It did not reveal the value of the contract but noted that it covered existing uncontracted production. 

    "This agreement demonstrates how the industry is working together on bringing more supply to customers in the domestic east coast market and we are proud to be connecting gas from the NT to our east coast retail customers for the first time," Shell Australia trading vice president David Guiver said. 

    Production from Mereenie peaked in 2019 at 16 PJ. June figures show the field produced at around 30.5 terajoules per day. 

    Central is currently drilling wells on the flank of the Mereenie field to intersect reservoirs within the Pacoota sand. 

    It drilled two production wells in mid-2021. Another two production wells will be drilled next year along with a six-well recompletion campaign to boost production. 

    Separately, the venture is looking to develop the Stairway Formation which has a contingent resource of 100 PJ. 

    Source: Energy News Bulletin

    Read ASX media release here

  • 12 Sep 2022 10:00 AM | Stephanie Berlin (Administrator)

    Beetaloo Operations Update: IP30 Rates

    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”).

    Please click here to read the full announcement. 

  • 08 Sep 2022 5:00 PM | Stephanie Berlin (Administrator)

    As the Northern Territory continues to transition to living with COVID-19, isolation rules are set to change from Friday 9 September.

    Following advice from the Australian Health Protection Principal Committee (AHPPC) to National Cabinet the NT will see isolation for positive COVID-19 cases reduce from seven to five days.

    This change will make sure we are keeping our workforce moving while also keeping the community safe.

    Other isolation and mask wearing changes which come into effect on Friday 9 September are:

    1. Upon a positive COVID-19 test isolation starts for five days. People who have no symptoms can leave isolation at 12 noon on day five.
    2. For five days following isolation, masks must be worn when outside the home. People must also not enter a high risk facility for five days unless they live there or require access to a service. 
    3. People who work in high risk settings, including aged care and disability care, cannot return to work until day seven of their isolation period, but can leave isolation on day five to undertake their normal activities.
    4. Passengers travelling on all outbound flights from the Territory are no longer required to wear a mask while on the plane.
    5. The NT will transition to the publication of weekly COVID-19 data on the NT Health COVID-19 website.
    6. The requirements for people who are a close contact in the NT remain in place, including having a Rapid Antigen Test (RAT) within three days of becoming a close contact and on day six. 

    People who test positive to a Rapid Antigen Test must immediately declare their result using the online declaration form. Territorians are also required to test for COVID-19 if they experience symptoms 28 days after a COVID-19 infection.

    Free Rapid Antigen Tests are available from a number of participating GP clinics, remote and urban primary health clinics and Aboriginal health clinics across the NT. They can also be purchased from pharmacies and supermarkets. For a full list of distribution points visit: health.nt.gov.au/covid-19

    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. To ensure the best protection against COVID-19, make sure you stay up to date with your vaccinations. You can get your COVID-19 vaccine at participating GP clinics, pharmacies and respiratory clinics as well as Aboriginal health clinics. For more information and to book online visit: health.nt.gov.au/covid-19/

  • 05 Sep 2022 3:18 PM | Stephanie Berlin (Administrator)

    Santos has been awarded permits to undertake evaluation and appraisal work for the potential storage of carbon dioxide in the offshore Carnarvon and Bonaparte basins, off the coast of Western Australia, the company announced today.

    Permits G-9-AP and G-11-AP will enable Santos to pursue potential carbon capture and storage (CCS) opportunities with its joint venture partners.

    Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said the permits build on Santos’ CCS strategy and have the potential to yield additional CCS opportunities.

    “Carbon capture and storage is critical for the world to reduce emissions and in line with Santos’ net-zero scope 1 and 2 equity-share emissions by 2040 target, we are committed to looking at all options for CCS capabilities,” Mr Gallagher said.

    “Santos is working towards developing its three hub CCS strategy across our operating footprint in Australia and Timor-Leste, and the award of these permits represents further demonstration of our commitment to that strategy.

    “In the Carnarvon Basin, the permit creates potential new acreage for CCS beyond our Reindeer fields. This is particularly significant as our plans for a WA CCS hub at Reindeer and Devil Creek develop.

    “The other permit is significant in size, covering more than 26,000 square kilometres in the Bonaparte Basin. Its proximity to our Bayu-Undan CCS project, which has the potential to be one of the largest CCS projects in the world, is important as we look to build our Northern Australia and Timor-Leste CCS hub.

    “At Santos, we have the technology, infrastructure and knowledge to be able to deliver lowcost CCS competitively on a global scale. We know a large scale-up of CCS is required to meet the world’s climate objectives.

    “Working with our partners to assess the storage potential in these permit areas will provide us with a greater understanding of the geology and inform us of the possible storage opportunities.”

    Santos’ first CCS project at Moomba will be one of the biggest in the world and paves the way for a significant carbon reduction and storage story for Santos, and for Australia. The project is 20 per cent complete, with 100 million tonnes of CO2 capacity and contingent resources already booked.

    In addition, Santos’ Bayu-Undan CCS project entered into front-end engineering and design (FEED) phase earlier this year.

    G-9-AP has been awarded to Santos Offshore Pty Ltd (50% and Operator) and Chevron Australia Pty Ltd (50%) and covers an area of 3,589 km2 within the Carnarvon Basin

    G-11-AP has been awarded to Santos Offshore Pty Ltd (40% and Operator), Chevron Australia Pty Ltd (30%) and SK E&S (30%) and covers an area of 26,239 km2 within the Bonaparte Basin.

    Globally, there are 133 commercial CCS projects operational or under development.

    Ends. 

    Source: Santos

  • 04 Sep 2022 1:11 PM | Stephanie Berlin (Administrator)

    The voice of Australia’s upstream oil and gas industry will represent its 80,000 workers today at the Federal Government’s Jobs and Skills Summit, demonstrating how its highly skilled workforce is critical to the nation’s cleaner energy future.

    Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch will be among invited guests in Canberra, representing the workers responsible for delivering energy security and emission reductions at home and abroad.

    Ms McCulloch said: “The oil and gas workforce will play a pivotal role in our cleaner energy future given the skills and expertise in the sector.

    “If science and technology is to help get us there, then Australia will need the brains, skills and creativity of our people to facilitate it and our industry has a competitive advantage to do this.

    “With gas set to play a critical role in a net zero world, the industry can be the foundation for the technologies and skills to get us there.

    “Our sector employs 80,000 people upstream to power homes and businesses to deliver energy security and lower emissions, both in Australia and overseas.

    “But these people do so much more – enabling almost $500 billion of annual economic activity and supporting countless other jobs given  the role of natural gas in firming renewables in electricity generation, facilitating manufacturing and transport, and  as a feedstock to hydrogen.

    “Our members are already integrated energy companies and the skills of our workforce are transferrable to the decarbonisation technologies we will need at scale. For example, our skills in subsurface geology and reservoir characteristics give us a competitive advantage to deploy carbon capture utilisation and storage (CCUS) technologies.

    “Australia can also utilise its skills and knowledge as one of the world’s largest producers and exporters of natural gas to enable potential new energy exports such as hydrogen.

    “The skills requirement of the oil and gas industry is strongly aligned with the future growth of the hydrogen industry.”

    To view this media release as a PDF, please click here.

  • 02 Sep 2022 11:37 AM | Stephanie Berlin (Administrator)

    Information available on groundwater, methane and shale gas in Aboriginal languages

    Through the Aboriginal Information Program, initiated in response to recommendation 11.6 of the Inquiry, CSIRO worked collaboratively with land councils to identify immediate information requirements to support the independent provision of information to communities. In doing so factsheets and Frequently Asked Questions (FAQs) with clear, factual and relevant content for translation into Aboriginal languages have been developed.

    Audio files about groundwater, methane and shale gas are now available to use when engaging with Aboriginal people across the Territory regarding shale gas development and hydraulic fracturing in the following languages and can be accessed at Onshore Gas Website.

    • Burarra
    • Kunwinjku
    • Murrinh-Patha
    • Warlpiri
    • Westside Kriol
    • Yolngu Matha
    • English.

    Audio files for the following languages are currently in production and will be made available when finalised:

    • Anmatyerr
    • Ngarinyman
    • Anindilyakwa
    • Pintupu-Luritja.

    CSIRO has been engaged to deliver the ongoing Community Engagement and Information Program in collaboration with NT Government, working with all interested parties including land councils and AAPA, to ensure that reliable, accessible, trusted and accurate information is effectively communicated to Aboriginal communities potentially affected by shale gas development and hydraulic fracturing in the future.

    Additional resources arising from ongoing consultations with communities will be developed through the Community Engagement and Information Program.

    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

  • 30 Aug 2022 6:30 PM | Stephanie Berlin (Administrator)

    Santos, as operator of the Barossa joint venture, today announced a final investment decision (FID) has been taken to proceed with the Darwin Pipeline Duplication Project, located offshore the Northern Territory.

    The decision will extend the Barossa Gas Export Pipeline to the Santos-operated Darwin LNG (DLNG) facility and allow for the repurposing of the existing Bayu-Undan to Darwin pipeline to facilitate carbon capture and storage (CCS) options.

    Gas from the Barossa field, located 300 kilometres north of Darwin, is intended to replace the current supply from the Bayu-Undan facility located in Timor-Leste. First gas production at DLNG using Barossa gas is targeted for the first half of 2025.

    Santos Managing Director and Chief Executive Officer Kevin Gallagher said the DLNG Life Extension, Darwin Pipeline Duplication and Bayu-Undan CCS projects would promote sustainable development and jobs growth in the Northern Territory and Timor-Leste, while building momentum for a whole of region carbon reduction solution.

    “Taking FID on the Darwin Pipeline Duplication Project will allow for the Barossa project to be CCS ready,” Mr Gallagher said.

    “The Bayu-Undan CCS project has the potential to capture and store up to 10 million tonnes of carbon dioxide per annum, equivalent to about 1.5 per cent of Australia’s carbon emissions each year from other projects, customers and other hard to abate industries and has the potential to be the largest CCS project in the world.”

    Adding the Darwin Pipeline Duplication project is estimated to increase Santos’ share of capital expenditure for the Barossa project by approximately US$311 million.

    The Barossa joint venture has agreed with the DLNG joint venture partners to terminate the toll arrangement for using the original Bayu-Undan to DLNG pipeline, reducing operating expenses for Barossa.

    Work is scheduled to commence on the Darwin Pipeline Duplication project in 2023, subject to Commonwealth and NT regulatory approvals.

    A final investment decision on Bayu-Undan CCS is targeted for 2023. Santos continues to work with Australian and Timor-Leste governments to establish regulatory frameworks to support future CCS operations.

    Ends.

    This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.

    Source: Santos

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