Industry News

The Department of Industry, Science, Energy and Resources has given the GR Engineering subsidiary an extension to the contract by another four months. The contract now ends September 30. 

UPS will continue to provide maintenance, project, and transition services to the FPSO and associated infrastructure in preparation for a disconnection and removal of the vessel. 

The latter work will be undertaken by a separate company which won a tender six weeks ago.

"We are pleased to continue working with the DISER team and the relevant regulatory bodies to safely manage and maintain the FPSO, and preparing for transition to support a safe removal of the FPSO in the future," managing director Geoff Jones said. 

Petrofac won a contract for Phase 1 work from DISER April 1 worth $325 million, with the government saying then that the company would take over from UPS as part of a managed transition. 

The company won after the government called for expressions of interest in July last year. 

UPS was production manager aboard the vessel when it was shut down over safety concerns. 

The lack of production strangled cash flow and forced the owner Northern Oil and Gas Australia into liquidation, as it had no money to decommission the ageing vessel it had picked up from Woodside Petroleum in a cheap but legal sale in 2016. 

Resources minister Keith Pitt insisted tax payers not foot the bill and after consultation with industry that was reportedly difficult on both sides imposed trailing liabilities, which will affect future sales, and a 46c per barrel of oil equivalent tariff on industry until full costs are paid. 

Separately this week Petrofac took another decommissioning contract in Mauritania worth US$60 million while today GR Engineering announced a contract for services with a gold miner. 

Source: Energy News Bulletin

23 May 2022

Chief Minister Natasha Fyles has today announced her new ministry.

The new ministry is focused on continuing to drive multiple next generation projects and on working hard for Territorians.

The changes will allow ministers to deliver for Territorians whilst providing stability.

The ministers will be sworn into their new portfolios this morning at Government House.

The Member for Fong Lim Mark Monaghan has been selected by Caucus to become the new speaker.

Quotes attributable to Chief Minister Natasha Fyles:

“Our new cabinet, which will be sworn in today, will focus on strengthening the economy and tackling social challenges across the Territory.

“The new ministry will help keep our cabinet and caucus stable and balanced during this important time of change.

“We are prioritising sustainable communities for all Territorians with a transparent, united and stable government.

“Once sworn in, our team will continue putting our focus on our first priority – serving Territorians.”

FIRST FYLES MINISTRY

NATASHA FYLES

Chief Minister

Health

Alcohol Policy  

Major Projects

Defence

NICOLE MANISON

Deputy Chief Minister

Tourism and Hospitality

Parks and Rangers

Advanced Manufacturing

Mining and Industry

Northern Australia and Trade

 

EVA LAWLER

Treasurer

Education

Infrastructure, Planning and Logistics

Territory Development

 

LAUREN MOSS

Environment, Climate Change and, Water Security

Mental Health and Suicide Prevention

Equality and Inclusion

Youth

Seniors

 

SELENA UIBO

Housing and Homelands

Renewables and Energy

Essential Services

Aboriginal Affairs

Treaty and Local Decision Making  

 

PAUL KIRBY

Business, Jobs and Training

Agribusiness and Fisheries

Public Employment

Major Events

Veteran’ Affairs

 

KATE WORDEN

Police, Fire and Emergency Services

Territory Families

Prevention of Domestic, Family and Sexual Violence

Sport

CHANSEY PAECH

Attorney-General and Minister for Justice

Leader of Government Business

Racing, Gaming and Licensing

Local Government

Arts, Culture and Heritage

Desert Knowledge Australia

 

NGAREE AH KIT

Corporate and Digital Development

International Education

Disabilities

Multicultural Affairs

Central Petroleum Limited (Central) (ASX: CTP) announces that joint venture approvals have been provided for Santos as operator to carry out certain key activities, such as rig contracting, ordering long lead items and environmental and land access approvals, related to the planned drilling of three sub-salt exploration wells in 2023.

These wells are targeting hydrocarbons, helium and naturally-occurring hydrogen at the Mahler prospect (EP82, having now been formally chosen by the joint venture over the Magee prospect), the Dukas prospect (EP112) and the Mt Kitty prospect (EP125).

These wells have been programmed to be drilled under the Peak Helium farmout transaction announced on 9 February 2022, where Central will be free carried (i.e. funded) effective 1 October 2021 by Peak Helium for the Mahler and Mt Kitty wells (capped at $20 million gross cost per well).

Satisfaction of conditions precedent for the Peak Helium farmout agreement are progressing towards completion. Upon completion, Peak Helium will reimburse Central for joint venture costs incurred by Central from 1 October 2021 for the free carried portion of the wells and Peak Helium’s participating interest share of well costs.

For full ASX Announcement, click here.

Central Petroleum has announced non-firm gas from the Mereenie field will be sold into east coast trading markets.

Until now, the lack of flexible transportation options have limited Mereenie gas field sales to the Northern Territory. However, Central has made transportation and market trading arrangements with Strategic Gas Market Trading on behalf of the Mereenie Joint Venture.

These arrangements will allow for cost-efficient delivery of up to 7 TJ/d (gross JV) of gas into eastern Australia on a day-to-day basis for a two year term. Gas from the Mereenie field will now be sold into high-priced trading hubs, including Brisbane, Melbourne and Sydney Short Term Trading Markets (STTMs).

Central completed its first east coast spot sale last week, achieving an ex-field price of over $13/GJ. This is approximately double the average price Central received for non-firm gas in the March quarter.

Managing director Leon Devaney said the company is very pleased with this outcome.

“This is a very exciting development for the Mereenie joint venture. Commencement of the Northern Gas Pipeline in 2019 was a milestone for the company as it unlocked the opportunity for firm gas sales into the broader east coast market,” he said.

“We haven’t had the same ability to sell non-firm gas into the east coast spot market, which as we have seen over the past few months can be very attractive. Today’s announcement is another milestone for gas marketing from Mereenie, with non-firm production now able to go to those east coast markets with the greatest need.”

An average of 1 TJ/d of spot sales over the next 12 months could generate up to $2 million in additional profit, and this increased cashflow could allow the company to invest in other exploration and development activities.

Source: https://www.oilandgastoday.com.au/

Community Engagement and Information Program lead appointed

The Northern Territory Government has signed a five-year agreement with CSIRO to deliver the Community Engagement and Information Program face-to-face through a full-time dedicated position based in the Northern Territory.

CSIRO recently appointed Dr Heather Stewart as the new Community Engagement and Information Program lead based in Darwin. Heather is in the Indigenous Science and Knowledge team with CSIRO Land and Water Business Unit. The team conducts a range of research with Indigenous co-research partners to address the challenges and harness future opportunities to support Indigenous leaders and their research and innovation agendas.

Dr Stewart is a social scientist and has worked in cross-cultural stakeholder engagement and storytelling across the Northern Territory, Queensland and Indonesia.

She will lead CSIRO’s work in collaboration with partners, to develop further evidence-based community information products on the potential impacts and benefits of the onshore gas industry.

Dr Stewart is based in CSIRO’s Darwin laboratory, commenced on 26 April 2022 and has begun planning on-country engagement as a priority.

Aboriginal Information Program factsheets

Through the Aboriginal Information Program, CSIRO has worked collaboratively with land councils to identify immediate information requirements and develop factsheets with clear, factual and relevant content for translation into languages of local Aboriginal communities potentially affected by shale gas development and hydraulic fracturing.

The factsheets are currently being translated into Aboriginal languages and will be available to use when engaging with Aboriginal people regarding the shale gas development and hydraulic fracturing in the coming months.

This program will continue to be delivered as part of the broader 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

$300M FOR ENERGY

THE Northern Territory’s dream of becoming a clean energy superpower will be turbocharged by the $300m pledge, which the Coalition claims will see more than 3800 new jobs created.

In addition to significant pledges toward clean hydrogen industry and carbon capture in Darwin, INPEX would also receive $30m to explore whether the Petrel subbasin would be suitable for CO2 storage. The company would get a further $1m to conduct a study into the feasibility of clean hydrogen.

The Japanese government has previously expressed interest in using INPEX’s Darwin operations to export clean hydrogen back to Japan, to help the nation meet growing energy demand.

A further $96m would be made available to new clean energy projects in the Northern Territory. In addition to 16,000 new jobs by 2050, Mr Morrison said construction of renewable projects in the NT could employ another 13,000.

“Our economic plan for the Territory will deliver a jobs boom, creating a stronger economy for a stronger future,” the Prime Minister said.

“We want to harness the Territory’s position as a world leader in energy and turbocharge it, unlocking investment and generating more jobs.”

Energy Minister Angus Taylor said the investment in the Northern Territory’s LNG exports was vital, given global pressure on supply.

“Global demand for LNG is poised to grow in response to the Russian invasion of Ukraine, and the Territory will benefit from another jobs boom as production decarbonises and new fields like the Beetaloo are opened up,” Mr Taylor said.

He said greenhouse gas storage opportunities gave Australia’s LNG a competitive advantage on the global market.

Harnessing of LNG in the Beetaloo Basin has been hotly contested by environmentalists, with the NT government putting in place significant controls on fracking.

Excerpt from NT NEWS article 

Northern Territory, Australia: Aqua Aerem, the proponent of the $US10.75 billion 10GW Desert Bloom Hydrogen project, and Japan’s Osaka Gas have entered into a historic joint development agreement that will position the venture at the forefront of Australia’s renewable hydrogen ambitions.

Desert Bloom Hydrogen is a world-first project that will produce truly renewable hydrogen for domestic and export markets using only off-grid renewable energy and its own atmospheric water source (which will produce water for the project without environmental degradation).

The agreement, which was ratified at a signing ceremony held jointly in Australia and Japan in the presence of the Northern Territory Chief Minister Michael Gunner on Tuesday, will see the two companies jointly develop the project, which will produce ~410,000 metric tonnes of green hydrogen per year when at full scale.

Details of the agreement are confidential but will involve Osaka Gas contributing to the following in conjunction with Aqua Aerem:

• Project management, engineering and technical support for the project;

• Identifying customers and negotiating the sale of hydrogen from the project; and

• Identifying, evaluating, and negotiating with equipment manufacturers.

Aqua Aerem Chief Executive Officer Gerard Reiter said the company was looking forward to working closely with Osaka Gas, which, in addition to being one of the world’s largest gas buyers and distributors, has an extensive global portfolio of energy projects, including LNG terminals, pipelines and independent power projects.

​“We are pleased to be collaborating with Osaka Gas on the further development of Desert Bloom Hydrogen, which is the most advanced, shovel-ready green hydrogen project in Australia,” Mr Reiter said.

“This deal is a strong endorsement of the massive value of the project and Aqua Aerem’s innovative air-to-water technology, which is opening the door for green hydrogen projects to be located where the best renewable power sources are available, which is generally in the driest areas of the planet.”

Northern Territory Chief Minister Michael Gunner welcomed Osaka Gas’s contribution to the development of a green hydrogen sector in the region, which is set to play a key role in meeting the NT’s ambitious economic targets.

“The project, which features pioneering technology to capture water from the atmosphere in arid environments, has been awarded Major Project Status by the Northern Territory Government.

“Today’s announcement is great news for the Northern Territory, for Australia and for Japan, as we strive to reach our shared destination of net-zero emissions by 2050.

“This major project is also providing a big boost to our economy, with around 1,000 jobs to be created during construction and a further 120 once it is operational, and we look forward to marking many more important milestones along the way.”

Strategically based in Central Australia to take advantage of high solar irradiation levels and proximity to Asian markets, Desert Bloom Hydrogen comprises a large-scale, off-grid system producing renewable hydrogen that does not require a ground based, riverine, aquafer or a sea water source.

The project consists of a series of modular 2MW Hydrogen Production Units (HPUs) capable of generating water from the atmosphere, as well as producing heat, renewable electricity, and green hydrogen.

The venture is backed by Sanguine Impact Investment.

Aqua Aerem Chairman and Sanguine Managing Director, David Green, said Osaka Gas was an ideal partner to jointly develop the Desert Bloom Hydrogen project.

Existing close ties with and proximity to Japan make the location of a major green hydrogen in the NT strategically beneficial to Japan and Australia as Japan implements its hydrogen roadmap to “Beyond-Zero” Carbon,” said Mr Green. 

“Desert Bloom Hydrogen will produce revenue from the installation of the first module and does not require large upfront expenditure, including investment in large infrastructure that may become stranded or suffer from technological obsolesce. “As a result of these substantial savings, Desert Bloom will be on track to produce green hydrogen at an export price international customers want to pay – less than $US2/kg within five years.” 

Desert Bloom Hydrogen will create more than 1,000 jobs during the construction phase and 120 ongoing jobs. It has Major Project Status with the NT Government and is finalising an offtake agreement with Territory Generation.

Aqua Aerem is also in discussions with other potential partners regarding the purchase of its green hydrogen as well as joint-venture opportunities spanning the energy, chemical, mining, transport, and aviation industries.

Mr Green said Sanguine was in the process of increasing the scale of the Project to 20GW to meet the quickly developing demand for green hydrogen as companies position to deliver on their international commitments.

“An equitable global energy transition and water security are the key challenges of this generation and Aqua Aerem is well-placed to assist with the expected surging demand for reliable, affordable, green energy and provision of security water supplies,” he said.

Media:

Rebecca Urban +61 411 790 304

Felix Eldridge +61 490 296 214 

media@aqua-aerem.com

Queensland and Northern Territory-focused gas explorer Top End Energy listed at 40c on Monday – a 100 per cent premium to its initial public offer price.

The company raised $6.4m at 20c a share, with the money to be used to explore across its ATP1069 prospect in Queensland as well as its TG Project – a portfolio of 30 oil and gas permit applications in the Northern Territory.

The shares debuted at 40c before hitting 41c, then settling back to close at 35.5c with more than 1.4 million shares traded.

Queensland resources entrepreneur Paul Williams has a 22.2 per cent stake in Top End Energy after vending the NT assets into Top End, and will retain a 50 per cent joint venture interest in them also, through his company Mckam Aust.

ATP 1069, which was acquired from Tri-Star Energy Company, is in central Queensland, 130km north west of Charleville, 50km from the existing Charleville gas field and 15km from a gas pipeline. “The company’s ATP 1069 permit will be the company’s flagship project until the Northern Territory applications are granted and a complete geological review has been undertaken over the entire portfolio,’’ the Top End Energy prospectus reads.

“Activity in both the Queensland and Northern Territory gas sector has recently increased due to, among other factors, the lifting of the (fracture stimulation) moratorium in the Northern Territory as well as the federal government’s ‘Gas Led Recovery’ program, which aims to mitigate the looming gas shortage on the east coast of Australia.

“ATP 1069 has possible prospectivity for conventional gas, unconventional coal-seam gas and shale oil.’’

The NT permits, put together by Mr Williams, cover about 160,000sq km, with a large portion of the applications centred on the territory’s western edge, at the top of the Amadeus Basin.

“The process of proceeding to grant of the exploration licence over several key permits is underway, with certain permits expected to be granted in 2022 (subject to a timely passage through the land tenure process),’’ the company said. “Post-grant, studies will be completed to plan acquisition of 2D seismic data to identify drilling targets.’’

Mr Williams has a long history in the resources sector, with large interest in the Queensland coal sector.

“Paul started his career underground opal mining in Lightning Ridge at the age of 15 and developed a knack for mining and contracting,’’ Top End’s prospectus reads. “Over the years he has started and owned various mining, contracting and development companies, which lead him to upstream resources projects.

“Over the past 10 years, Paul has had the foresight to acquire greenfield projects including iron ore projects in the Pilbara and Mid-West on top of the 30 oil and gas projects throughout the Northern Territory.

“Paul additionally held a coal portfolio over the past 15 years.’’

Top End Energy said it was committed to minimising its carbon footprint, which could involve carbon offsetting and carbon capture and storage.

“The company also intends to investigate the potential in the vicinity of its core assets for the development of complementary renewable energy revenues streams (including wind, solar, biomass and biogas),’’ the company says in its prospectus.

“The company’s primary objective is to be a net zero emissions (Scope 1 and Scope 2) energy -producer.’’

On a fully diluted basis, based on the 20c listing price, the company’s market capitalisation on listing was $23.9m.

The company is headed by managing director Oliver Oxenbridge, with Emmanuel Correia non-executive chairman and Greg Lee technical director.

Decommissioning of the Northern Endeavour is set to enter its next significant stage, Minister for Resources and Water Keith Pitt said today.

A $325 million contract has been signed with Petrofac Facilities Management Limited to deliver Phase 1 of the project. This will see the Northern Endeavour disconnected from the subsea equipment, and temporary suspension of wells. 

“The Australian Government is delivering on its commitment to keep the Northern Endeavour and its workers safe while protecting the environment,” Minister Pitt said.

“Decommissioning the Northern Endeavour is a unique and unprecedented responsibility for the Commonwealth after its owners went into liquidation.

“We are working closely with industry and regulators to progress decommissioning as safely, efficiently, quickly and cost-effectively as possible.

“Petrofac Facilities Management Limited has been selected and engaged through a robust global, competitive procurement process. I thank all the respondents for their engagement on this important matter.”

Minister Pitt said Petrofac Facilities Management Limited has extensive global experience in successfully leading and delivering large-scale and complex offshore decommissioning projects.

Parliament last night passed legislation to impose a temporary levy on industry to recover the costs of decommissioning and remediating the oilfields and associated infrastructure. 

This delivers on the Australian Government’s commitment to ensuring Australian taxpayers aren’t left footing the bill. 

For more on the decommissioning project, click here

This, the company says, allows an EPA referral attached to the project to be finalised with GEV confident it will be given the all-clear to get a start on its flagship hydrogen project. 

GEV continues to develop its patented compressed hydrogen vessel which will, eventually, become a crucial part of the logistics underpinning the viability of Tiwi H2. Midstream hydrogen transport helped along via the company's Gascoyne-based HyEnergy project. 

The company today reassured its investors it has "strong support" from the Munupi Landowners and Tiwi Plantation Corporation Board. 

Both bodies, it says, are in approval of an increase in the Tiwi H2 acreage; GEV is advancing environmental and engineering studies towards this end, including those to inform the development of a 2.8GW solar power installation and water desalination for electrolysis onsite. 

GEV also says it is continuing preliminary marketing strategies for its green hydrogen products. 

"GEV is advancing the design of its 2.8GW solar site and transmission line," GEV executive director Garry Triglavcanin said. 

It also says today its compressed hydrogen vessel is risk-free, and there are no issues preventing the ultimate classification of the vessel, allowing it to sail with the same freedom as normal LNG ships. 

GEV pivoted from CNG ships last year, which it had been progressing since 2017 when it bought a company with a patented ship design. 

While it signed a slew of memoranda of understanding with every jurisdiction from Iran—after Donald Trump came to power and reimposed sanctions—to Brazil, a firm deal that would securely finance building of the ships never made it across the line. 

Source: Energy News Bulletin