EMPIRE Energy confirmed this morning it will spud its Carpentaria-1 well in the Beetaloo Sub-basin with the Schlumberger Land Rig 183 rig now onsite at EP187. 

 Speaking to Energy News, drilling managing director Alex Underwod said "I'm proud we're an Aussie company playing a key role in the development of the basin".  

It plans to drill the well to 2900 metres then log, case and suspend it. The team will evaluate unconventional targets the Velkerri and Kyalla shales, which have been independently certified by unconventional specialists Netherland, Sewell and Associates with a best estimate prospective resources of 2.4 trillion cubic feet of gas.  

Source: Energy News Bulletin

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WOODSIDE Petroleum CEO Peter Coleman declared yesterday that the market needed to start preparing for the future hydrogen economy, noting the cost competitiveness of green hydrogen was likely to be reached within the next decade.

Speaking about the future of energy at Business News's leadership breakfast at the Perth Convention Centre, Coleman noted despite the buzz around hydrogen, there was still no market for it yet, and even when it comes there will still be challenges in transporting it. 

However he said the company's trade partners, including Japan and Korea were rapidly creating the market for the gas, similarly to how the Japanese established the LNG market. 

He noted hydrogen produced using steam-methane reforming was well known and could be done at scale, while the potential for green hydrogen, produced via electrolysis, was great. 

"This is nirvana, it's making it from water," he said. 

"It's great but there's nothing at scale, everything is bespoke, every electrolyser is made for the application that it's put into, so there's no massive scale and so there's no cost reduction," he said. 

He referred to the EU's plans to build 6GW of green hydrogen electrolysers by 2024 which would help bring costs down, but said the true tipping point for electrolysers to be competitive would be when China starts to produce them at scale. 

"It's going to be ten years in the coming, and we need to start now," he said.

"The technology is there, we know what the cost curves are like, we know what we need to do in the market, and there's a solution there, but you've got to manage the energy input with the production, and then you've got to distribute the darn stuff" he said. 

Woodside has signed a memorandum of understanding with Korea Gas Corporation to study the feasibility of a green hydrogen export project, and is also on the Hydrogen Council's steering committee. 

The Korean government aims to build 100 hydrogen refuelling stations in the country over the next four years. 

Source: Energy News Bulletin

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ORIGIN Energy and its smaller Irish joint venture partner Falcon Oil and Gas have begun fraccing the Kyalla-

On Monday afternoon Falcon Oil and Gas, which holds a 22.5% stake in the Beetaloo project, told shareholders operator Origin Energy (77.5%) had commenced fraccing activities at the high-profile, high cost Kyalla-117 well. 

The venture had been forced to abandon fraccing plans and completion of the Kyalla-117 appraisal well earlier this year after the pandemic led to movement restrictions and hard border closures. 

The appraisal well has been labelled a "well to watch" by analysts and industry. The success of the well is seen as a litmus test of the prospectivity of the new frontier region and the challenges other operators, including Santos and Empire Energy may encounter.

Consultancy EnergyQuest put the well on its watch list last year, meanwhile the NT government has heralded it as a "new era" of domestic gas exploration. The peak body for the oil and gas sector, the Australian Petroleum Production Exploration Association has previously said the well would play a "vital role" in the future of the Beetaloo Sub-basin.

Kyalla-117 was drilled to a total depth of 3809 metres with a 1579 lateral section in February this year. Total costs of drilling and completing the well are expected to be in the range of $50 million. 

During drilling elevated gas shows with relatively high liquids were observed in all three of the target reservoirs encountered. 

It aims to test the extent of the Velkerri liquids-rich gas play. 

After fraccing the next phase of operations will be to production test the well. 

"Initial results from this are expected by the end of the year, with full results in the first quarter of 2021," Origin said on Monday.

Source: Energy News Bulletin

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DANISH drilling multinational Maersk Drilling has pledged to cut its carbon dioxide emissions in half by 2030 as it looks to boost efficiency from its fleet of deepwater rigs.

Maersk is a major player in the Australian offshore oil and gas industry, alongside Noble Corp and Diamond Offshore, and is currently supplying semisubmersibles for Inpex's upcoming work for the Ichthys field. 

It is the first of its kind to announce such major cuts to emissions. In an announcement on Friday it pledged to halve its emissions from current levels. 

"Climate change is one of the greatest challenges facing our society today, and we want to do our part in addressing this," Maersk chief executive Jørn Madsen said. 

"Expert consensus is that renewable energy will not be able to replace all traditional energy production within the foreseeable future. Therefore, the answer must be to provide affordable energy, including oil and gas, while keeping CO2 emissions under control." 

Maersk's emissions reduction target is in line with most oil and gas companies' 2030 targets and supports the ambitions of the Paris Agreement.

To date the company has managed to upgrade two of its largest jackups to become low-emission rigs with battery storage and energy emission efficient software as well as an emissions capturing system which uses ammonia to convert gas into water and nitrogen. 

Source: Energy News Bulletin

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AUSTRALIA’s prime minister Scott Morrison, alongside the minister for energy Angus Taylor, and minister for resources Keith Pitt, today confirmed a gas-fired recovery to drive Australia’s economic growth, post-pandemic. 

Today's release from the PM officially locks in the economic strategy the federal government will take to fend off a serious growing recession, and gas is at the heart of it, hoping to spur a manufacturing boom with low-priced feedstock.  

"We'll work with industry to deliver a gas hub for Australia that will ensure households and businesses enjoy the benefits of our abundant local gas while we hold our position as one of the top global LNG exporters," Prime Minister Scott Morrison said.

"This is about making Australia's gas work for all Australians. Gas is a critical enabler of Australia's economy.." 

Much of the plan is based on the recommendations of the National COVID Coordination Commission, headed by former mining executive Nev Power, but has not included a $4 per gigajoule price target, which received pushback from industry when a draft of the report was leaked earlier this year.  

However it is committed to cheaper supply, and transparency with hopes to turn Queensland's Wallumbilla into a Henry Hub-like development in the US with clear pricing signals to market, to be called the Australian Gas Hub. It is also developing a National Gas Infrastructure Plan.  

This will be done in part via a voluntary and industry-led code of conduct around pipeline use for producers and buyers to be developed  by February next year.  

It also wishes to "ensure Australians are paying the right price for their gas by working with the Australian Consumer and Competition Commission to review the calculation of the LNG netback price which provides a guide on the export parity prices and to use the  NGIP to develop customer hubs or a book-build program that will give gas customers a more transparent and competitive process for meeting their needs."  

It plans to essentially underwrite new pipeline development if industry does not step up to it, and ensure more gas supply into market to support lower prices and general price transparency via developing five key gas basins, beginning with frontier areas in the Beetaloo Sub-basin, North Bowen Basin and the Galilee.  

The government will spend A$10.9 million to identify priority pipelines and critical infrastructure under its new NGIP and says this new plan will "highlight where the government will step in if the private sector doesn't invest".  

"The government wants the private sector to step-up and make timely investments in the gas market. If the private sector fails to act, the government will step in - as it has done for electricity transmission - to back these nation building projects. This may include through streamlining approvals, underwriting projects or the establishment of a special purpose vehicle with a capped government contribution," it said this morning. 

Source: Energy News Bulletin

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THE HON SCOTT MORRISON MP 

PRIME MINISTER 

THE HON ANGUS TAYLOR MP 

MINISTER FOR ENERGY AND EMISSIONS REDUCTION 

SENATOR Dr SAM McMAHON 

SENATOR FOR THE NORTHERN TERRITORY  

MEDIA RELEASE 

The Morrison Government is taking action to secure Australia’s long-term fuel supply, keep prices low for consumers and create over 1000 new jobs through a new domestic fuel security package.   

As part of our 2020-21 Budget, the Government will deliver a $211 million investment in new domestic diesel storage facilities, reforms to create a minimum onshore stockholding, and measures to support local refineries.   

This will be delivered through a combined market and regulatory framework, with three key elements: 

·          Investing $200 million in a competitive grants program to build an additional 780ML of onshore diesel storage 

·          Creating a minimum stockholding obligation for key transport fuels; and 

·          Backing the refining sector by entering into a detailed market design process for a refinery production payment. 

Prime Minister Scott Morrison said Australia’s fuel security was essential for our national security and that we had been fortunate to not have experienced a significant fuel supply shock in over 40 years.   

“Our positive changes to the fuel market will ensure Australian families and businesses can access the fuel they need, when they need it, for the lowest possible price,” the Prime Minister said.   

“Fuel security underpins our entire economy. Not only does it keep Australia moving, the industry supports thousands of people across the country and this plan is also about helping keep them in work.   

“Like all sectors of the economy, the COVID-19 pandemic is having an impact on Australia’s fuel industry. The events of 2020 have reminded us that we cannot be complacent. We need a sovereign fuel supply to shield us from potential shocks in the future.”   

Minister for Energy and Emissions Reduction Angus Taylor said the Government recognised that Australian refineries are under significant financial pressure and is committed to working with the sector to ensure it has a long-term future.   

“Almost all Australians are reliant on fuel and it is the lifeblood of so many sectors in our economy. Our farmers and miners rely heavily on diesel to do their jobs and provide services, while the transport sector sources 98 per cent of its energy from liquid fuels,” Minister Taylor said.   

“That’s why it is critical that Australia has control over its fuel security arrangements and the Government is making sure of that.”   

CLP Senator for the Northern Territory, Dr Sam McMahon said the construction of additional diesel storage will not only secure our diesel supplies but will support up to 950 jobs, along with 75 new ongoing jobs, many in regional areas.  

“Supporting our refineries will ensure Australia has the sovereign capability it needs for any event, protect families and businesses from higher prices and support thousands of jobs across the economy as we recover from COVID-19,” Senator McMahon said.   

A minimum stockholding obligation will act as a safety net for petrol and jet fuel stocks, and increasing diesel stockholdings by 40 per cent.   

The Government will work with industry over the next six months on the legislative and regulatory design of the package.   

Refineries play an important role in securing Australia’s fuel security and putting downward pressure on fuel prices for consumers. Modelling has shown that a domestic refinery capability is worth around $4.9 billion (over 10 years) in value to Australian consumers in the form of price suppression.    

The Government is committed to a sovereign on-shore refinery capacity. We will design a market system for a production payment that recognises the fuel security benefits Australia’s refinery sector provides. It will protect Australian families and businesses from the around 1 cent per litre increase that modelling shows will hit fuel if all refineries close in Australia. For refineries to receive support, they will be required to commit to stay operating in Australia.   

The Government recognises that the future refining sector in Australia will not look like the past. However, this framework will protect Australian families and businesses from higher prices and will secure jobs in the fuel sector and in fuel-dependent industries, such as our farmers, truckers, miners and tradies.   

Additional measures will also be introduced to reduce the burden on industry and improve fuel market information.   

This includes modernising the online fuel reporting system to make it easier for industry to report stock levels to Government and improve the timeliness of data. The Government will also remove the application fees for fuel standard variation requests.   

This domestically-focused package builds on Government action to purchase up to $94 million of crude oil at record low global prices to be stored in the US Strategic Petroleum Reserve for access during a global emergency.  

ENDS  

Media contacts:

Minister Taylor’s Office: Liam O’Neil, 0428 113 617

Senator McMahon’s Office: 08 8948 3555

EMPIRE Energy has mobilised its Schlumberger drill rig to its Beetaloo Sub-basin site to spud well Carpentaria-1.

It plans to drill the well to 2900 metres then log, case and suspend it.  

The work will represent "a major step forward in Empire's assessment of the eastern Beetaloo Sub-basin and the further appraisal of the known productive horizons within the thick Kyalla Shale and Velkerri Shale sequences," the company said today. 

Santos and Origin Energy have found them to be productive in their respective wells, to the west of where Empire will drill.  

The Schlumberger Land Rigs 183 will start drilling in the second half of the month. 

Civil works including water bore drilling, upgrading the access track and preparing the well pad are ongoing. All work is being done by Northern Territory-based companies.  

It will re-enter Carpentaria-1 after the wet season to carry out vertical fraccing and an extended production test.  

The company raised $10 million via a placement last month.  

The placement to institutional and sophisticated investors was offered at 30 cents per share, doubling its cash in the bank to A$20 million. 

Independent certifiers Netherland Sewell and Associates gave its permit EP187 a best estimate prospective resource of 13.6 trillion cubic feet of gas, with 2.3Tcf in the Velkerri Shale and 14 million barrels of oil equivalent in the Kyalla shale.

Source: Energy News Bulletin

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CNC Project Management has been awarded a contract to plan out the route for a vital pipeline that will connect the Beetaloo Basin to Darwin.

The pipeline will be the "missing piece" of the puzzle in developing the massive onshore Beetaloo Sub-Basin. 

According to tender documents, the Northern Territory government has given a contract worth $327,140, to CNC to carry out scoping and pipeline route planning. 

The proposed pipeline will be 100-metres wide and run through a corridor near the Stuart Highway, through Katherine and Pine Creek, to Darwin's industrial area. 

Under the pre-feasibility study scope, CNC will be required to consider landowner arrangements where the pipeline will be laid. CNC will also consider engineering, geotechnical, environmental, and financial considerations. 

"This is aimed to provide clarity to the Gas Taskforce and Government for future decisions regarding acquisition of a corridor to transport gas from onshore reserves to existing and planned gas industry infrastructure," the tender documents state. 

The award comes as the Northern Territory government looks to fast-track onshore oil and gas exploration in an effort to support a potential manufacturing industry in the Top End. 

Currently Origin Energy, Falcon Oil & Gas, Santos, Armour, and Empire Energy are exploring vast potential liquids rich gas resources across the Beetaloo and broader McArthur basins.

Source: Energy News Bulletin

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Chief Minister Michael Gunner has today announced the members of the new Northern Territory Government’s Ministry.

The new Cabinet’s task is to keep steering the Territory through the coronavirus crisis and make the Territory Australia’s comeback capital.

This is a jobs-first Cabinet. The economic recovery team is spearheaded by the Chief Minister who will also be Treasurer, Minister for Major Projects and Territory Economic Reconstruction, and Minister for Strategic Defence relations.

Deputy Chief Minister Nicole Manison will lead a major jobs-focused ministry as Minister for Mining and Industry, Minister for Northern Australia and Trade, Minister for Defence Industries, Minister for Agribusiness and Aquaculture, and Minister for International Education.

These portfolios represent many of the Territory’s most important industries and our biggest job-creating opportunities for the future. They are integral to making the Territory the comeback capital.

Minister Manison will also continue to serve as Minister for Police, Fire and Emergency Services.

Natasha Fyles will continue as Leader of Government Business in the Legislative Assembly. She will also continue her excellent work as Health Minister, to help keep the Territory the safest place in Australia.

In continuing as Police Minister and Health Minister, Ms Manison and Ms Fyles will also keep serving on the Security and Emergency Management Sub-Committee of Cabinet, ensuring certainty and continuity during this public health emergency.

Minister Fyles has been tasked with working with the federal government to pursue opportunities for the Howard Springs facility to be a centre for national resilience, recognising the important role it has played during this crisis, as Minister for National Resilience.

In addition to these tasks, Minister Fyles will also take on a senior role in our economic team as Minister for Tourism and Hospitality, Minister for Major Events, and Minister for Racing, Gaming and Licencing.

The Territory’s tourism and hospitality industry is a fundamental pillar of the Territory’s economy and a massive job creator. It has been hit hard by the coronavirus crisis, and the Territory cannot have a strong economic recovery without a strong tourism sector. Minister Fyles is in charge of making sure our tourism industry helps lead our comeback.

Minister Fyles will also continue as Minister for Alcohol Policy, entrenching the ground-breaking reforms the Government has delivered in this area.

Eva Lawler will take on a super-portfolio as Minister for Infrastructure, Planning and Logistics, Minister for Renewables and Energy, Minister for Environment, Climate Change and Water Security, and Minister for Essential Services.

Eva will continue to oversee our unprecedented infrastructure program which has supported thousands of jobs in hard times, while also driving the jobs of the future in renewables.

Paul Kirby completes the Cabinet’s economic recovery team as Minister for Small Business, Minister for Jobs and Training, and Minister for Public Employment.

Minister Kirby will also serve as Minister for Corporate and Digital Development, Minister for Veterans Affairs and Minister for Recreational Fishing. 

Lauren Moss will be appointed Minister for Education, Minister for Women, Minister for Youth, Minster for Seniors, and Minster for Children.

As part of their new responsibilities, Minister Moss and Minister Kirby have been tasked with ensuring there are training and job pathways for our young Territorians who are close to completing their education and entering an uncertain employment market in the middle of a global recession.

Selena Uibo will serve as Attorney-General and Minister for Justice, Minister for Aboriginal Affairs, Minister for Treaty and Local Decision Making, and Minister for Parks and Rangers.

While we made huge strides in our first term on delivering housing, jobs and justice for First Nations Territorians, there is still much more to do, and Minister Uibo will lead our work on Aboriginal advancement.

There are two new appointments to the Cabinet, selected by the Labor caucus today.

Kate Worden joins Cabinet as Minister for Territory Families and Urban Housing. Combining these two critical portfolios will help ensure information is shared more efficiently, and the teams can work closely together. This will deliver better outcomes for vulnerable Territorians and help make sure families don’t fall between the gaps.

Ms Worden will also serve as Minister for Disabilities, Minister for Sport, and Minister for Multicultural Affairs.

Chansey Paech joins Cabinet as Minister for Local Government, Minister for Remote Housing and Town Camps, Minister for Indigenous Essential Services, Minister for Central Australia Economic Reconstruction, and Minister for Arts and Culture.

Mr Paech will be a strong voice for Central Australia and remote communities in the Cabinet, and ensure the whole Territory is part of the comeback. He takes on responsibility our massive remote housing program – one of the Government’s most important commitments.

The Machinery of Government changes that will be effected as part of the new Cabinet reduces the number of agencies from 15 to 11. The combination of portfolios will ensure government works more efficiently and effectively for Territorians through swifter action and decision making, and delivers an estimated budget saving of $5 million.

Quotes attributable to Chief Minister Michael Gunner:

"Territorians have asked us to keep working for them and that’s exactly what we will do.

"This is the comeback capital Cabinet. Our job is to turn this once-in-a-century crisis into a once-in-a-century opportunity, and make the Territory Australia’s comeback capital.

"Our team has the right mix of energy and experience to keep controlling the virus, keep the Territory safe, and to put us onto the road to recovery.

"Putting the Territory first means putting jobs first. Our economic team are all focused on jobs.

"We will come out of this crisis with a jobs-led recovery. My team and I will keep doing whatever it takes to protect jobs and create jobs for Territorians."

GUNNER MINISTRY.pdf (pdf 86 kb)

 From: Chief Minister of the Northern Territory

SUPERMAJOR Shell has begun the process of re-starting production from its fields connected to the Prelude Floating LNG vessel offshore Western Australia, however is facing difficulties eight months after the facility was shut down over engineering problems.

Shell Australia confirmed to Energy News that it had begun the process to produce gas from its Browse Basin fields 475 kilometres offshore Broome on Friday afternoon. 

"The process for hydrocarbon restart of Shell's FLNG facility has commenced," a Shell Australia spokesperson told Energy News on Friday. 

"Once we have safely started up, we will be in a stronger position to talk about timing of production and cargo." 

However, according to one source on board the vessel the restart had some issues with "multiple trips" of the plant and two swivels inside the turret that moors the giant LNG facility in place. 

Engineering sources said it was unlikely that the vessel would be back online until next year. 

Prelude has now been offline for about eight months. The US$12 billion LNG facility was an engineering feat when it was initially brought into production in mid-2019. 

In January 2020 the 6000-tonne facility hit engineering problems and was shuttered in early February.

Prelude has a production capacity of 5.3 million tonnes a year of liquids and condensate, including 3.6 million tonnes per year of LNG. 

Source: Energy News Bulletin

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