Industry News

Santos, as operator of the Bayu-Undan offshore gas production facility in Timor-Leste and Darwin LNG, has today announced entry into the front-end engineering and design (FEED) phase for the proposed Bayu-Undan carbon capture and storage (CCS) project.

The Bayu-Undan CCS project could potentially safely and permanently 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.

The project has the potential to be the largest CCS project in the world and one of the many that will be critical to help the world meet its climate goals. The IEA Roadmap to Net Zero by 2050 envisages carbon capture, utilisation and storage growing to 7.6 billion tonnes of CO2 per year by 2050 from around 40 million tonnes per year today.

The Bayu-Undan FEED work will include engineering and design for additional CO2 processing capacity at Darwin LNG plus repurposing of the Bayu-Undan facilities for carbon sequestration operations after gas production ceases.

Santos is working closely with the Timor-Leste regulator, ANPM, towards the necessary agreements and regulatory framework that will be required for the Bayu-Undan CCS project. The project will also need agreements between the governments of Timor-Leste and Australia, and some Australian regulatory arrangements.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said taking FEED builds on the growing momentum for the regional carbon reduction project.

“Located in Timor-Leste with potential CO2 sources from Australian gas projects and other industries in the Northern Territory, Bayu-Undan CCS could be the start of a valuable new carbon services industry for Timor-Leste. It would create new jobs and a new revenue stream for the nation once gas production from Bayu-Undan ceases,” Mr Gallagher said.

“Entry into the FEED phase has strong support from our five joint venture partners headquartered in Japan, Korea and Italy. And last month, a meeting of the Timor-Leste and Australian Prime Ministers included a commitment by Australia to establish an LNG Partnership Fund to deepen links between Australia and Timor-Leste in gas development and trade, including in the use of carbon capture and storage.

“With about 80 per cent of the world’s energy still coming from hydrocarbons, including natural gas, and new supply investment still required to meet the world’s ongoing demand for these products, it is essential that we decarbonise their production. CCS offers a large-scale, low-cost and permanent way to progressively make these fuels cleaner. CCS will also enable new clean fuels industries such as hydrogen which will dramatically reduce not only Scope 1 and 2 emissions, but Scope 3 emissions as well.”

Santos has a 43.4 per cent operated interest in Bayu-Undan and Darwin LNG. The remaining interest is held by SK E&S (25 per cent), INPEX (11.4 per cent), ENI (11 per cent), JERA (6.1 per cent) and Tokyo Gas (3.1 per cent).

Santos’ approved Barossa project is one of several potential CO2 sources for Bayu-Undan CCS, but importantly this project offers a whole of region carbon solution.

A final investment decision on Bayu-Undan CCS is targeted for 2023, subject to relevant regulatory frameworks and agreements being in place in both Timor-Leste and Australia.

To view the ASX announcement, click here

The Australian Government will provide the Northern Land Council (NLC) with $2.1 million to conduct on-country engagement with Traditional Owners and Native Title holders in the Northern Territory’s Beetaloo Sub-Basin.

The grant will ensure Traditional Owners and Native Title holders have the support they need to make informed and timely decisions regarding development activities in the Beetaloo. 

Minister for Resources and Water Keith Pitt said the funding will ensure that Traditional Owners are empowered to make informed decisions about development on their land.

“Our government is committed to ensuring that the social and economic benefits from Beetaloo gas development are maximised and realised locally, especially for Indigenous communities,” Minister Pitt said.

“The ongoing development in the Beetaloo Sub-Basin is increasing the demand for the NLC’s consultation and negotiation services.

“This grant means the NLC will have additional capacity to undertake its functions in regards to development activities in the Beetaloo.”

The grant will be put towards employing new staff, better meeting facilities and providing the equipment the NLC needs to work with communities in the basin.

The grant supports the Beetaloo Cooperative Drilling Program and helps accelerate the development of the Beetaloo through timely land access arrangement negotiations with onshore petroleum explorers and operators. 

The Hon Keith Pitt MP

Minister for Resources and Water

Media contact: Minister Pitt's office 02 6277 7180

The Coalition Government is helping to boost the development of the nation’s gas reserves with a $7.5 million grant to support exploration in the Northern Territory’s Beetaloo Sub-Basin.

The grant agreement with Sweetpea Petroleum Pty Ltd, a subsidiary of Tamboran Resources, will further assist gas operators in their efforts to prove up Beetaloo gas reserves. 

All regulatory approvals will need to be in place prior to any funding being provided under the grant.

Minister for Resources and Water Keith Pitt said the grant underlined the commitment of the Government to opening up Beetaloo.

“Beetaloo has the potential to provide a world-class gas resource and we are determined to support its development as part of our gas-led recovery,” Minister Pitt said.

“This grant under the Beetaloo Cooperative Drilling Program is expected to bring forward $52 million in private investment at Sweetpea Petroleum’s Maverick 1 well.

“Investment such as this will help accelerate gas development in the Beetaloo, which has the potential to create thousands of jobs. 

“Gas from the basin can also make a significant contribution to maintaining Australia’s affordable and reliable energy supplies.

“We should take the energy crisis in Europe as a warning of what could happen in Australia if there is not enough investment in the gas sector.

“As uncertainty grips the world, our international partners will look to Australia for the resources they need to provide energy security.

“In an uncertain world, our reputation as a leading and reliable supplier of resources can provide stability and development of the Beetaloo will enhance that well-deserved reputation.”

The Beetaloo Cooperative Drilling Program is part of the Beetaloo Strategic Basin Plan and the Government’s $226 million commitment to the Beetaloo, which is supporting gas operators to speed up exploration and development of the basin.

The Hon Keith Pitt MP

Minister for Resources and Water

Media contact: Minister Pitt's office 02 6277 7180

Beetaloo Drilling Grant Agreements Executed

Empire Energy is pleased to provide an update regarding grants awarded under the Australian Government’s Beetaloo Cooperative Drilling Program.

Empire’s wholly owned subsidiary, Imperial Oil & Gas Pty Limited (“Imperial”), has executed grant agreements with the Australian Government totalling up to $19.4 million which will offset 25% of the cost of seismic acquisition and the drilling, fracture stimulation and flow testing of three horizontal appraisal wells in its 100% owned EP187 tenement, located in the Beetaloo Sub-basin, Northern Territory.

The new grant agreements replace previous grant agreements which became void as a result of a decision of the Federal Court of Australia which found, inter alia, that the instrument under which the Beetaloo Cooperative Drilling Program was formed and the decision to approve funding to Imperial (the “Approval Decision”) were valid.

The grant agreements are on materially similar terms to those entered into previously and reported to shareholders on 10 September 2021. Activities already carried out by Imperial in EP187 in accordance with the original approval decision including the Charlotte 2D seismic survey and the drilling of Carpentaria-2H are eligible for grant funding in accordance with the Approval Decision.

Access full announcement here

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

Australia’s LNG sector ready for the future: Report 

A new Government report encouraging trade and investment in Australia’s liquefied natural gas sector confirms our reputation as a reliable and responsible supplier of energy and resources.

The Liquefied Natural Gas (LNG) Commodity Report, part of Australia’s Global Resources Strategy, highlights Australia’s comparative trade and investment advantages between now and 2050.  

Minister for Resources and Water Keith Pitt said the Australian Government is committed to delivering the strongest and most business-friendly investment environment for the Australian resources sector.

“Australia offers a strong, stable and transparent regulatory environment as well as research and development incentives to support innovation,” Minister Pitt said.

“Our proximity to Asia and high quality resources have seen us become the supplier of choice in global supply chains.

“We will seek to consolidate and strengthen this position in the decades to come.”

Minister Pitt said the report found that Australia, one of the world’s largest LNG suppliers, is a secure and competitive destination for developing LNG projects.

“Investors can have confidence in Australia’s stable regulatory settings when making long-term investments,” Minister Pitt said.

The report identifies India and Bangladesh as major emerging LNG markets for Australia.

The Government is backing the LNG trade and investment potential between Australia, India and Bangladesh through a new South Asian LNG Partnership. Australia will invest $11.3 million over 10 years in the Partnership, which will build relationships across the LNG supply chain between participating countries.

The report is available on the Department of Industry, Science, Energy and Resources website.

ENDS

Media contacts: Matt Dunstan 0411 535 072

THE HON KEITH PITT MP

Minister for Resources and Water

Member for Hinkler

MEDIA RELEASE

23 February 2022

Minister for Resources and Water Keith Pitt has announced the Coalition Government has entered three grant agreements worth a combined $19.4 million to support gas exploration in the Northern Territory’s Beetaloo Sub-Basin.

Minister Pitt said under the Beetaloo Cooperative Drilling Program, the grants will support exploration company Imperial Oil & Gas to continue drilling three petroleum exploration wells.

Minister Pitt said this is an important step following the conclusion of the recent Federal Court action.

“The Government is committed to a gas-led recovery and we are now getting on with the job of opening up the Beetaloo as part of the Strategic Basins Plan and these grants will  assist in that important process,” Minister Pitt said.

“Australian gas is in high demand domestically and internationally and it’s important that we work to get new gas production online.”

“In an uncertain world, the reliability of Australian resources to our trading partners cannot be understated.

“As the ACCC confirmed recently, it is imperative, and to the benefit of all Australians, that new gas developments are opened up as soon as possible to ensure continuing domestic supply to homes and businesses across the country,” Minister Pitt said.

“Activists trying to stop or delay crucial gas projects threaten future energy security both here in Australia and in countries around the world that rely on our LNG exports.

“The Beetaloo Sub-basin has the potential to be a world class gas resource, that could create thousands of jobs and bolster domestic and international gas supply.

“Development and investment in the Beetaloo could be a game-changer for the Northern Territory, creating up to 6,000 jobs by 2040, supporting industrial diversification and providing stable tax and royalty streams for years to come,” Minister Pitt said.

“Our resources and energy sector is vitally important to the Australian economy and is forecast to generate a record $379 billion in exports this financial year.

“The taxes and royalties that are generated from the resources sector allow state and federal governments to provide the health, education and other essential services all Australians rely on."

ENDS

Media contact: Matt Dunstan 0411 535 072

Altrad Services has been awarded a contract from INPEX to perform coating and insulation work at Ichthys LNG onshore processing facilities at Bladin Point in Darwin.

The scope of services under the contract includes work pack preparation, planning, coordination, supervision, provision of access and execution of coating and insulation works.

The contract is four four years and provides the opportunity for local employment for more than 150 persons.

“Altrad Services is proud to have supported Ichthys LNG since 2019 and this contract award reinforces its strong relationship with INPEX and testament to Altrad’s high quality, safety and execution capabilities,” a spokesperson for Altrad said.

Altrad chief executive for Asia Pacific Neil Sadler said the company was delighted to support safe operations and local employment at Ichthys LNG through the painting and insulation contract.

“This important award highlights Altrad’s performance, people and market-leading capability,” Sadler said.

“We value and embrace the collaborative approach of INPEX’s management, their prioritisation of safety, innovation, diversity and their determination to provide sustainable opportunities for the local community.

“This approach has fostered an amazing team culture on-site over the past two years and we look forward to continuing our support of INPEX-led Ichthys LNG to benefit both parties and the local Darwin community.”

Source: Oil & Gas Today

Community Bulletin #49

Social, Cultural and Economic SREBA Studies Scope of Works approved by Minister for Environment

The Strategic Regional Environmental and Baseline Assessment (SREBA) Social, Cultural and Economic Study (SCE Study) was a key recommendation from the Hydraulic Fracturing Independent Inquiry. It is an important piece of work that continues to be a priority for Government as implementation of remaining recommendations progresses.

During 2021, The University of Queensland (UQ) met with local organisations in Darwin and Katherine to develop a Scope of Works (SoW) for the SCE Study. The design of the SoW was then approved by UQs accredited Human Research Ethics Committee to ensure that the project is conducted properly and remains independent.

Approximately 40 key stakeholder groups, including land councils, Aboriginal Areas Protection Authority, NT Government departments, regional councils, industry and business organisations, Native Title holders, pastoralists, interest and environment groups were engaged in the development of the SoW regarding boundaries, draft indicators and themes, data collection and engagement preferences.

The SoW has been approved by the Minister for the Environment.

As outlined in the SoW, the SCE Studies will incorporate on-country engagement and appropriate participatory methods informed by stakeholder engagement to establish baseline data and then bring together information from the baseline studies to inform the strategic regional assessment.

UQ will now formally commence engagement as part of Stage 2 of this project in the Beetaloo region. Engagement will take place where possible, noting this will require a flexible approach due to COVID-19 restrictions and with the wishes and safety of the communities in mind. Where it is not possible to meet with people and organisations in person, meetings will be held online or once it is safe to travel.

Upon finalisation, the SCE Study will complete ten recommendations from the Hydraulic Fracturing Inquiry.

Find the SCE Study SoW and a summarised fact sheet about the Study 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

The situation around coronavirus (COVID-19) continues to evolve and this information is correct as at 4.30pm, Friday 18 February 2022.

The NT Chief Health Officer has today removed the requirement for Interstate arrivals to the Territory to complete a Border Entry Form.

The change is effective immediately and brings the Territory into line with all mainland jurisdictions outside of Western Australia.

As the Territory transitions to living with COVID it is important its resources continue to be directed where they are of most use. 

With high vaccination rates in the Territory and across the country it has become an unnecessary use of resources to require all travellers to complete a border entry form to enter the Territory.

To slow the spread of COVID-19 in our community and reduce the rate of transmission, a number of public health measures remain in place across the NT:

• A Territory-wide indoor mask mandate
• It is highly recommended that all people aged 12 years and over wear a mask outdoors when physical distancing cannot be applied
• The Territory Vaccine Pass
• The Australian Government has introduced biosecurity zones to restrict movement between remote communities in the Territory.

Read more about biosecurity zones https://coronavirus.nt.gov.au/travel

Source: NT Government, Department of Industry, Tourism and Trade

Announcing Desert Spring Octopus

The World’s Largest Indigenous Owned Renewable Energy Company

Today, 17 February 2022, Northern Territory Indigenous Business Network (NTIBN), together with Octopus Australia, an Australian domiciled and part Australian owned member of the Octopus Group UK and Desert Springs Renewables, a 100% owned Indigenous company, is proud to announce the formation of the world’s largest majority Indigenous-owned renewable energy company, known as Desert Springs Octopus.

Through Desert Springs Octopus, we will open up renewable energy and other infrastructure opportunities for First Nations Australians specifically targeting Northern Australia.

Desert Springs Octopus, which is majority owned and led by Indigenous Australians, will lean on the global expertise of Octopus in renewable investments and development to stimulate significant economic growth in First Nations Australia.

Excerpt from NTIBN media release