Industry News

THE Chief Minister has launched a furious attack on anti-fracking campaigners for ‘spreading lies’ about FIFO workers and clogging government phone lines in the middle of the coronavirus crisis.

THE Chief Minister has launched a furious attack on anti-fracking campaigners for “spreading lies” about FIFO workers and clogging up government phone lines in the middle of the coronavirus crisis.

East-coast activist group GetUp! started a campaign this week claiming companies like Origin Energy were flouting quarantine measures in the NT and putting the lives of remote community residents at risk.

The campaign claimed fracking has been deemed “essential” in the Territory but the NT Government said this is not true.

Instead, a spokesman from Origin said they had temporarily paused fracking activities at Beetaloo Basin due to the pandemic and scaled back to only having 45 employees on site.

But a spokesman from GetUp! said its concerns about FIFO workers were legitimate.

“Northern Lands Council and Central Lands Council have stated that they are being approached by remote communities concerned about FIFO workers on their community,” he said.

“They’ve seen these workers coming in and out of their shops.”

The Chief Minister said it made him “sick” that GetUp! was trying to “exploit people’s fear in the middle of a national crisis” for political purposes.

“To deliberately lie and scare remote communities like this is despicable and unforgivable,” he said.

“I’ve got people working round the clock to help people who have been left on the scrapheap.

“I don’t need them distracted by these bullshit scare campaigns run by a bunch of Twitter trolls.

“Our phone lines are running off the hook with people worried about their business or their job.

“We’ve got people who don’t know where their next meal is coming from.

“And because of bloody GetUp, our phone lines are clogged up with something that is based on a lie.

“They sit in their fancy office in Sydney and come up with this crap, and they have no idea about the damage they are doing to people over here.

“My message is simple: Piss off. Stop diverting our resources away from saving lives to stopping your lies.”

Source: NT News - Read more here

Office Chief Minister Michael Gunner

The Territory Labor Government’s $50 million Small Business Survival Fund will help local Territory businesses survive the unprecedented economic impacts of COVID-19.

Coronavirus is hitting Territorians hard and this government is doing everything it can to soften the blow.

This fund is specifically targeted at supporting industries such as retail, hospitality, tourism, and entertainment businesses, including beauty parlours and gyms, who are bearing the brunt of this national crisis. 

More than 1000 Territory businesses will be supported through this fund who employed around 10,000 Territorians prior to the restrictions.

The fund will provide payments based on business size and full time equivalent (FTE) employee numbers.

From today, eligible businesses will be able to apply for two payments:

• An Immediate Survival Payment of between $2000 and $50,000 to help offset the immediate costs pressures on businesses
• A Rapid Adaption Payment of between $1000 and $5000 to assist businesses make the necessary changes it chooses to help adapt to the new operating environment 

Immediate Survival Payment

An initial lump sum payment directed to businesses to help offset immediate cost pressures and provide time to plan.

• $2000 for business with 1 FTE/sole traders
• $5000 for businesses with 2 to 5 FTE employees
• $20,000 for businesses with 6 to 19 FTE employees
• $50,000 for businesses with more than 20 FTE employees

Business will provide a certified financial/payroll statement identifying number of employees pre-shutdown.

Assessment of eligibility criteria includes demonstrating the impact of the restrictions on the business, including reduction in turnover, impact of fixed costs and employment reduction. 

Rapid Adaption Payment

• A payment of up to $1000 for sole traders and up to $5000 for other eligible businesses to offset costs incurred in adapting current business model to suit restrictions.
• Application based, paid direct to business.
• Paid on provision of appropriate invoice. Buy local provisions will be highlighted to businesses.
• Expenditure to occur post announcement and applications close 1 May 2020.
• After this time businesses have full access to Improvement and Immediate Works grants under the Jobs Rescue and Recovery package.

This is the first stage of the Small Business Survival Fund. The Business Advisory Group is continuing to meet and will provide advice for the next stage of the package.

Businesses can complete an application form on business.nt.gov.au/recovery from 5pm today and will be assessed using the following criteria; that they:

• are a legal entity and hold a valid Australian Business Number (ABN) as at 23 March 2020, and
• are operating in the Northern Territory, and
• is a Territory Enterprise, and
• have a significant permanent presence in the Northern Territory, and
• employ Northern Territory residents (sole traders are included), and
• usually operate in one of the industry sectors affected by the social gathering restrictions announced on 22 March 2020 and 24 March 2020, and
• have been directly financially affected by the social gathering restrictions. 

The Department will also actively reach out to directly affected businesses to discuss their suitability for support from this Fund, as well as the other support that is now available from both the Territory Government and the Federal Government.

The Small Business Survival Fund is in addition to the Jobs Rescue and Recovery Package and the Tourism Resilience Package announced previously.

The Territory Government is investing nearly $120 million so far in response to the coronavirus. And we will continue to scale up to save jobs. 

Quotes from Chief Minister, Michael Gunner

“My only focus right now is saving lives and saving jobs. I’ll do whatever it takes to protect Territorians.

“The Territory Government is investing nearly $120 million so far in response to the deep economic impacts of the coronavirus crisis. And we will continue to scale up to save jobs.

“When you spend a dollar in the Territory, you save a Territory job – and in times like these we need our community to band together to keep our small, local businesses open, and as many locals as possible working.”

AUSTRALIA’s energy market operator (AEMO) has released its annual Gas Statement of Opportunities report for 2020, warning that pipeline capacity and maturing gas fields could pose a significant risk unless further action is taken to ensure energy security.

The country remains hungry for energy despite being the top exporter of LNG, and today's AEMO Gas Statement of Opportunities report found Australia already has enough gas to satisfy demand until 2025, but only if LNG cargoes are redirected as needed.

The GSOO only looks at the eastern states and does not take in Western Australia, which accounts for two thirds of Australian LNG exports and is well supplied with gas thanks to its 15% domestic gas reservation policy. 

Current production from existing and committed gas developments should be adequate between 2023 and 2025, the report states. 

However, the glaring problem is the sheer level of gas exported from Australia as LNG.

AEMO warned unless industry curtailed its exports of LNG and redirected some of it to the domestic market, the east coast energy sector could face a lack of supply as demand continued to grow. 

More concerning, however, is that after 2025 existing and committed gas production and projects in southern Australia would not be enough to meet east coast demand. Supply will fall by roughly 35% after 2023, according to the report. 

It comes as BHP announces the end of its Minerva gas field which reached the end of its life last year. Production from Minerva ceased in September. 

Otway Basin production will also hit east coast supply, unless field development of plant modification projects proceed. 

Several other Gippsland fields are also projected to reach their end of life between mid-2023 and mid-2024. 

There is also an added concern that there will not be enough pipeline capacity to deliver gas to market from northern states. 

The lack of supply could be so bad that during winter 2024 there could be supply gaps of between 13 terajoules and 374 TJ even at peak day production, according to the ‘Central Scenario' of the report. 

AEMO warned both government and industry had a role to play going forward, and one option on the table is redirecting LNG cargoes destined for the international spot market to domestic ports. 

Plans have been flagged for four terminals; however, they are very much in the early stages of development but analysis from S&P Platts yesterday found  import terminal developers are confident to have one up and running by 2022, despite Victoria recently lifting its conventional exploration moratorium. It's believed by most analysts supply will dwindle before new resources can be commercialised.  

Last year South Korean developer EPIK appointed ANZ as its financial advisor for its Newcastle GasDock LNG project in New South Wales.

Australian Industrial Energy, backed by Andrwe Forrest, also plans one and won ‘critical infrastructure' approval for its NSW Port Kembla terminal in 2018. 

The peak body representing the oil and gas sector, the Australian Petroleum Production Exploration Association acknowledged the responsibility of the gas industry but said it was doing all it could. 

"APPEA members are taking all steps necessary to ensure the production and delivery of gas supplies continues," APPEA chief Andrew McConville said. 

"With exploration at record low levels, low oil prices and COVID-19 pandemic meaning both gas demand and gas supply face challenges, the analysis reinforces how vital it is for all governments to support developing new gas supplies as quickly and as cheaply as possible."

According to the AEMO report, supply in the major consumer states of Victoria and New South Wales over the next few years will all but evaporate as legacy gas fields decline. 

Queensland and the Northern Territory will enjoy sufficient supply due to their shale and coal seam gas resources. 

Source: Energy News  Bulletin

Read more here

COVID-19 is already damaging our economy and now more than ever it is crucial to support local industry. We can start by promoting available business opportunities.

Energy Club NT is working with ICN NT and the Northern Territory Government to support business to business growth, promote local opportunities and the further localisation of supply chains during the COVID-19 crisis.

Through ICN’s online Gateway platform, a portal has been established to connect local Territory businesses to opportunities of all sizes.

We encourage our members to submit any business opportunities or problem statements to ICN for promotion to the local business community. We further encourage our members to express interest against the ‘Any opportunities’ package of work, to be notified of opportunities and also to promote these opportunities to the broader business community.

To list an opportunity on the portal businesses will need to:

• Download and complete the ‘Opportunity Listing Template’ available in the Project Documents on the page
• Email the completed form to ntopportunities@icnnt.org.au

Once assessed, your opportunity will be listed on the page and open for expressions of interest and/or direct business contact.

ICN NT is running this initiative free of charge to support local businesses during these challenging times.

Visit the Northern Territory Opportunites portal here:  ntopportunities.icn.org.au

"We are here to support our wide demographic of energy industry members and the local business community wherever we can. Please don't hesitate to reach out if there is anything I can do to assist you and your organisation."

Sonia Harvey

CEO - Energy Club NT

Media Contact: Kevin Peters  |  ICN NT  |  08 8922 9422

The Northern Territory’s resource sector As part of measures for controlling the transmission of COVID-19, the Northern Territory Government has implemented border controls,  effective from 4pm on Tuesday 24 March 2020. These controls, applied to all access points by road, rail, air and sea, apply to all people entering and leaving the Northern Territory (NT), including employers and employees operating across the NT’s resource sectors. These controls seek to protect the health of Territorians in reducing the spread of COVID-19.

What you need to know: Resource industry operations in the NT are considered ‘critical industries’. Specialists critical to maintenance of competitive operations of critical industries are considered ‘essential travellers’ and fall into exemption categories if they: are essential to operations must undertake time-critical work must be physically present, and cannot be temporarily replaced with workers sourced from within the NT. . Cross-border transit to work sites: Interstate employees and contractors will be assessed at border control points and should carry photo identification such as a drivers’ licence. Employers should provide transiting employees an authorisation letter stating their name, working dates, transit path and work location to show to border control staff. Workers who live in the NT and work interstate must satisfy the requirements of their destination jurisdiction. . Transport and freight: Non-residential transport and freight services are exempt from the border control arrangements and will continue to come in and out of the NT. This will not impact the delivery of essential goods and services. . Application for continued operations: Resource companies should submit an application for exemption to self-quarantine to the NT Chief Health Officer for merit assessment on the grounds that this class of persons, is governed by a COVID-19 management plan, imposed by the employer of the person or class of persons, to prevent the transmission of COVID-19 to the public. Applications should include:  company transmission prevention control measures in accordance with NT Department of Health advice and the Minerals Council of Australia/Australian Petroleum Production & Exploration Association Resources Sector National COVID-19 Response Protocols evidence of strategies to reduce staff movement to essential staff only evidence of measures to support isolation and contact tracing in the event it is necessary. Applications for exemption should be submitted to doh.pcc@nt.gov.au which are being reviewed with priority. Alister Trier Chief Executive

THIS week S&P Global Ratings said Santos has a “solid buffer” to withstand the low oil price thanks to its good work building the balance sheet these past three years while it also put Woodside Petroleum on a watchlist for a possible ratings downgrade.

Santos closed higher than its peers yesterday on the ASX, seeing a 20% rise in its share price compared to an overall energy sector rise of around 5%, helped along by S&P's afternoon release. 

"The company's recently announced measures to preserve cash should support the key ratio of funds from operations (FFO) to debt at between 20% and 25%" by the year's end," S&P said. 

That forecast takes in its price assumptions of $30/bbl oil for the rest of 2020, $50/bbl oil next year and $55/bbl oil in 2022. 

After the 2015-2016 price slump that sent the oiler into the red it "emerged with a more resilient business model," it said. 

"We believe Santos' production portfolio will outperform peers in a lower oil price environment, given that about 30% of Santos' production is domestic gas linked to the consumer price index."  

In addition, about 15% of the company's oil-linked liquefied natural gas portfolio will benefit from hedging at oil prices of below US$54/bbl over the next nine months." 

It helps that the company's LNG through 2020 is 95% contracted largely to South Korea and Malaysia. 

S&P also likes that the Adelaide company will reduce free-cash flow breakeven price to $25/bbl this year, part of a suite of moves announced by Santos Monday to survive low oil demand and even lower prices. It also committed to reducing capex by 38% this year. 

"In addition, some LNG price structures provide relief against a significant oil price drop, given the existence of LNG 'S' price curves, whereby oil price-linkage flattens at currently depressed prices," S&P said. 

While many contracts are up for price reviews the "scope for change is limited by contract terms," Santos chief Kevin Gallagher said some months ago. 

Santos also committed to delaying sanction for development of its Barossa gas field, which S&P sees as prudent. 

"We believe growth projects sanctioned in the current environment would indicate a heightened risk appetite, and would likely be negative for the company's credit profile," it said.  

Meanwhile this week it placed Woodside Petroleum on CreditWatch Negative suggesting "under our current oil price assumptions, including US$30 per barrel oil in 2020, we forecast that forecast funds from operation to debt could materially breach 30% in 2020 and thereafter, should the Scarborough-Pluto integrated project proceed. 

"We may lower the rating by at least one notch if Woodside is unwilling to take effective and timely actions to preserve its financial profile amid the significantly depressed oil and LNG markets and funding requirements associated with the Scarborough-Pluto LNG project."

Source: Energy News Bulletin

Read more here

CENTRAL Petroleum has been racing to reach a final investment decision for its Range project in the Queensland Surat Basin, but with the market suddenly sidelined by the outbreak of COVID-19 and the global and domestic economy struggling to stay afloat, has had to shelve its project for the time being.

Business growth has been the company's priority for the last year and has seen it accumulate a portfolio or operating assets and exploration tenements. 

However, the company told the share market today while there was no direct material impact to its current production from a low oil price and volatile market, it expected logistical challenges to hinder its growth projects. 

Central and its 50% joint venture partner, fertiliser manufacturer Incitec Pivot, had been targeting an FID for the Range coal seam gas project in Queensland for early 2021. Incitec had been progressing Range as a way to shore up much-needed domestic supply. 

Pre-FID activities and planning for a three-well appraisal pilot project were well under way. But now, due to a crashing market the venture has abruptly stopped work. Neither partner has a time frame for when work may recommence. 

Incitec told shareholders it "remained committed" to the domestic gas project, which has a 2C contingent gas resource of about 130 petajoules, and hoped to restart activities "as soon as possible." 

Central insisted it too was committed to the project and would accelerate operations "as soon as business conditions permit." 

The company had a cash balance at the end of February of $27.2 million and has no major exposure to the low oil price as about 90% of its production is gas, not oil. 

It also recently extended its debt facilities to September 2021 and only has a $5 million repayment due in the next 12 months, positioning the company in a relatively stable position. 

Other exploration and development projects, including Central's Northern Territory Amadeus Basin project has been put aside as they are "no longer feasible given the logistical constraints" imposed by travel and infrastructure restrictions imposed by the Territory government to isolate vulnerable remote communities from the virus. 

The company said it would revise its exploration schedule after market conditions stabilised. Again, there is no time frame on when this could occur. 

Source: Energy News Bulletin

Read more here

INPEX is just the latest major oiler to flag deep cuts to its operations and capital expenditure, today announcing at its annual general meeting it was reviewing investment and seeking cost saving measures.

Inpex today confirmed to shareholders it was considering its options and is looking to make cuts following a growing trend of other international oil and gas producers. No specific details were given however. 

Over the last fortnight, as the oil price plunged below $30 a barrel and fears of a global recession ramped up, international oil and gas companies have taken the axe to capital expenditure and operational expenditure budgets. 

Shell plans to lop US$9 billion from its spending plans as it seeks to weather out the collapse in oil prices, cutting operating costs by $3 billion and capex by $5 billion. 

Shell has also suspended its buy-back share program, saying its "decisive action" would protect cash flow and guarantee dividends. 

French oil producer Total said it would slash operating costs by $500 million and suspend its $2 billion buyback program having already repurchased about $550 million of shares.  

BP has said it is "making interventions" and has flexibility to cut its spending by 20%. BP is yet to make any specific spending figure for 2020 public. 

Equinor said just this week it would follow suit reducing capex by US$3 billion to ride out the oil price and COVID-19 pandemic. It had already suspended a $5 billion share buyback program. 

Equinor is postponing all its US shale drilling and expects to be cash flow neutral at an average oil price of $25/bbl.

Overnight Eni, joined its fellow European-based multinationals, revising its planned activities and reducing its capex by around US$3 billion. This equates to 35% of its planned capex. 

Chevron has also made big cuts this week in the face of oil price woes too, outlining measures which include cutting capex by US$4 billion, or 20% and also suspending its annual share repurchase program. 

Chevron's biggest cut will target upstream unconventionals, primarily in the US Permian Basin, where the company will slash more than $2 billion in spending. 

A further $1.2 billion will be hacked from upstream projects and exploration both across its US assets and internationally. 

Around $800 million will be shaved from its downstream and chemicals business. 

ConocoPhillips has committed to US$2.2 billion worth of spending cuts. 

The Houston-based oil business released a statement last week saying it would reduce its forecast operational capex by $700 million, or 10% and cancelling $500 million worth of planned 2020 share repurchases. 

On a combined basis, the capital and share repurchase cuts represent a reduction in 2020 cash uses of $2.2 billion, according to the company. 

"Our industry is clearly experiencing an unprecedented event brought about by simultaneous supply and demand shocks," ConocoPhillips CEO Ryan Lance said. 

Source: Energy News Bulletin

Read more here

Protecting our health is imperative and should be everyone's priority... Maintaining livelihood for business is next. Stay safe everyone and support each other through trying times!

UPDATE: Factsheets now available to assist industry

Fact sheets are now available from the Northern Territory government in regard to how industry might apply for exemptions to support their operations and workforce requirements.

• How to apply for an exemption 
• How to self quarantine 
• Border checkpoint information 
• Conditions for exempt persons 
• NT Border arrival form 
• NT Exemption application 

Northern Territory border restrictions 

The Chief Health Officer has granted further directions under the Public and Environmental Health Act 2011 which allow Police to exercise their ability to control the entry of persons into the Territory to minimise the risk of spreading coronavirus and keep Territorians safe.

The NT has secured its borders by introducing a two-week quarantine period for anyone arriving in the Territory, with an exception for those providing goods and essential services during the coronavirus pandemic.

This will not affect lawful trade or commerce, essential activities will not be impacted, and we will continue the supply chain.

From 4:00 pm Tuesday 24 March, all non-essential travellers arriving at the Territory borders will be required to go through a police control checkpoint to verify their medical status and purpose of their travel into the Territory.

They will also be required to self-isolate for 14 days upon arrival, with penalties for those who do not comply.

All arrivals including Territory residents will be screened and, if deemed a non-essential visitor, would be told to quarantine themselves. Territory Police and the Public Health Unit will ensure compliance and help people access support where needed.

This includes directing people to self-isolate for 14-days once they arrive. 

Complete up to date information: https://coronavirus.nt.gov.au/ 

Source: NT News

THE NT’s borders will close at 4pm today, Tuesday March 24, meaning everyone who arrives in the Territory must be quarantined for 14 days to prevent the spread of coronavirus, unless for special exemptions.

Q1: What if I see someone out who I know is supposed to be self-isolating after just arriving from interstate? What should I do?

Call the NT Public Health hotline on 1800 008 002 and report them.

Q2. What if someone gets caught failing to follow the self-isolation rules? What will happen to them?

The self-isolation rules are enforceable by law, and a fine of up to $62,800 applies.

Q3. Further to Q2, what will happen to someone caught failing to self-isolate who then turns out to be coronavirus positive? Will extra action be taken against them?

As above, you can be fined $62,800. There are no specific actions for people who turn out to have the virus at this stage.

Q4: I’m a FIFO worker working in the Territory but who lives interstate? Do I have to self-isolate for 14 days every time I return to my job in the Territory after I go home from my swing?

The NT Government held industry meetings on Monday to consult on implementation and exemptions. There will be an exemption that FIFOs can apply for. Those who get exemptions will still be required to follow certain protocols, i.e. social distancing. More information and the application process will be published today.

Q5: I’m a Territorian and have a home here. But I mainly work interstate because that’s where my job takes me. How will these changes affect me?

It depends on what your job is. Unless you fall into one of the categories described in question 12, you will have to self-isolate each time you return home to the Territory.

Q6: I live in the Territory but travel interstate regularly for medical treatment. How will these changes affect me?

You can apply for an exemption to the self-isolation rules to the Chief Health Officer if you are travelling interstate for essential medical treatment.

Q7: I live in the NT just inside the border with WA. I go into Kununurra every couple of days for supplies. How will these changes affect me?

South Australia’s Premier Steven Marshall yesterday assured people who lived in border communities they would still be allowed to cross into South Australia, so long as there were no outbreaks of coronavirus in those towns.

The NT is planning to make similar exemptions for border communities here and the people who will be able to apply for exemptions if they go to school or shop over the border (for example).

More information on who can apply for exemptions will be available in the coming days.

Q8: What if someone returns to Darwin from interstate after today and goes back to living with their family or housemates? Are the others able to come and go although they have had contact with someone who has been interstate and is now in isolation? Or do all household members now need to self-quarantine as well?

According to advice from the Australian Government, your housemates or other family members should live somewhere else if possible. If it’s not possible, the person who is in isolation should have their own bedroom and bathroom and wear a mask when home with other people.

The NT Government has also opened a drive-through testing clinic at the Manigurr-Ma Village in Howard Springs, and Territorians who aren’t sick but need to self-isolate can stay there if they need to.

Q9: What about the remote border points, such as the Tanami Highway? How will they be policed?

Police and Australian Defence Force personnel will be deployed at checkpoints on the major roads into the NT from 4pm today.

NT Police Commissioner Jamie Chalker warned people on Saturday that for anyone attempting to sneak into the Territory using more remote roads, that NT Police would also be using technology to monitor travellers’ comings and goings.

Q10: Is there a hotline I can call to get more information on how these changes will affect my circumstances?

Yes, you can call the NT hotline on 1800 008 002 or the national hotline on 1800 020 080.

Q11: How long will the NT’s new border restrictions apply for?

According to the Chief Minister and Police Commissioner, at least six months.

Q12: Who is exempt from having to self-isolate?

1. People involved in national and state security and governance.
2. Active military personnel required to be on duty in the Territory while in the Territory.
3. A member of the Commonwealth parliament who is ordinarily resident in the Territory.
4. Health service providers and personnel.
5. Some transport, freight and logistics workers.
6. Specialist skills critical to maintaining key industries or businesses or infrastructure.
7. Emergency services.
8. Other individuals or groups will be able to apply for an exemption to the Chief Health Officer, for instance visiting a terminally ill relative, or medical grounds, or interstate travel for essential medical treatment.

Q13. It sounds like there are going to be many people who will be exempt from the new restrictions. Will they all be checked for any signs of coronavirus when they enter the Territory though? If not, couldn’t any of them just as easily bring it into our community unknowingly?

Yes. All arrivals including Territory residents will be screened at the border.

Q14. What if I have to travel to another state with the same border restrictions for work or other reasons? Say I travel from NT to SA for two days work. It seems I’ll have to self-isolate for 14 days in SA before I spend two days working. When I’m finished do I have to self-isolate for another 14 days when I return home to the NT?

Unless your job falls into one of the exemption categories, yes you would.

Source: NT News