Industry News

Please see below links to useful information for business.  These pages will be reviewed and updated regularly with the latest available information. SecureNT information for businesses  SecureNT information for employers  SecureNT information on mass gatherings  Australian Government support The Australian Government has announced an economic response totalling $17.6 billion. This includes the Boosting Cash Flow for Employers measure, providing up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses. Find out more information here .  Secure NT For the latest updates on the COVID-19 situation, follow SecureNT on Facebook  or visit www.securent.nt.gov.au  COVID-19 Resources A collection of resources for the general public, health professionals and industry about coronavirus (COVID-19), including translated resources, are available on the Australian Government website .  Latest health advice on COVID-19 Australian Government Department of Health - https://www.health.gov.au  The National Coronavirus Health Information Line - 1800 020 080 There is a dedicated COVID-19 hotline number for the NT - 1800 008 002 If you are in Darwin and need to arrange testing, please call the Public Health Unit on 8922 8044.

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THE second Timor-Leste breakfast which opened at the Australasian Oil and Gas Summit in Perth Friday followed by a rundown of the nation’s second-ever licensing round was well attended despite the shadows hanging over what could yet be the year’s last industry conference.

Petroleum and Minerals Authority (ANPM) head Dino Da Silva told the room it was the best attended event yet of the roadshow. 

Timor-Leste's oilmen have been on since October, with double the 40 or so who showed up at conferences in Houston and Abu Dhabi attendign the Perth event.  

Energy News understands Timor-Leste's stand, strategically located beside the Industry Supply Forum where Western Australian Premier Mark McGowan and Woodside Petroleum COO Meg O'Neill delivered keynote speeches Wednesday, was so busy staff missed lunch Thursday.  

Still, appetite for exploration seemed muted with most companies registered already holding assets in the nation, such as Woodside, Eni and Santos, once its buy of ConocoPhillips' assets completes.  

The offer, which has 11 offshore blocks and seven onshore, is the first in years and was launched at its inaugural oil and gas conference in capital Dili in October,  and is set to close this October.  

Companies can enter for pre-qualification now and the winners are announced next year.  

Energy News understands one company which already has assets in the nation has made an offer.  

Data available is reprocessed 2D seismic and other work by TGS and CGG.  

Given the power outages in the nation, the data room is kept on a server in London and companies which register via the ANPM's website will have 24 hour access. There is no limit to the amount of staff members one company can sign up to look over the data but all has been water marked and inbuilt software prevents screengrabs.  

An airborne gravity survey has also been completed. 

Source: Energy News Bulletin

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Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million with effect from 1 October 2019 with customary adjustments on completion.[1] Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 October 2019.

The sale is conditional on completion by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio as announced on 14 October 2019, third-party consents, regulatory approvals and a final investment decision on Barossa.

SK E&S already has a 37.5% interest in the Barossa project to backfill Darwin LNG. Santos’ sale of interests in Darwin LNG and Bayu-Undan to SK E&S advances partner alignment for the development of Barossa, which remains a key priority for both companies.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the agreement with SK E&S builds partner alignment and is another significant step towards bringing Barossa gas into production through the Darwin LNG facilities.

“We are delighted to have agreed terms with SK E&S to acquire interests in Darwin LNG and Bayu-Undan and look forward to continuing and building on the long-term relationship between our two companies.”

“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures through discussions with Darwin LNG participants and others to acquire equity in Barossa. We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”

“Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions,” Mr Gallagher said.

As announced on 14 October 2019, Santos’ net funding requirement for the ConocoPhillips acquisition is expected to be approximately US$775-825 million, net of the proceeds realised from the sell-down to SK E&S and post the benefit of cash flows generated from the acquired business from the ConocoPhillips acquisition effective date of 1 January 2019 to completion with customary adjustments.

Santos’ pro-forma gearing on completion of both the ConocoPhillips acquisition and SK E&S sell-down is expected to be approximately 33.5% (approximately 31% pre-AASB 16 lease liabilities) before any cash generated from the sell-down of equity in Barossa.

Credit Suisse (Australia) Limited and J.B. North & Co. are acting as financial advisers to Santos and Allens is acting as legal adviser to Santos. 

[1]  Santos will acquire the 25% interest in Darwin LNG and Bayu-Undan to be sold to SK E&S under the ConocoPhillips acquisition which has an effective date of 1 January 2019. Santos will have the benefit of cashflows from the 25% interests until 1 October 2019 being the effective date for the sale to SK E&S.

Source: Santos

AUSTRALIAN explorer Empire Energy has received approval from the Northern Territory government to drill its Carpentaria-1 exploration well in the Beetaloo Basin.

The company is now finalising a well design and looking to contract a drill rig and service providers for the project located in onshore exploration permit EP187.

Carpentaria-1 is a vertical well scheduled to spud in the dry season this year. It will be drilled to a depth of approximately 2900 metres.

While Empire is yet to make a final investment decision on the big budget well, the company is optimistic about its future plans and is working closely with Brisbane-based engineering consultant InGuage Energy on well design.

InGuage and Empire have designed the well to include an extensive evaluation program consisting of coring which with give valuable insight into the geology of the target formations.

This data would then form the basis of the next phase work program and recoverable volumes of oil, gas and liquids.

Just over a month ago, Empire confirmed an extension of its permit in the Beetaloo Sub-basin giving the explorer confidence of a future oil and gas discovery.

Empire shot 2D seismic data across its acreage which confirmed two major shale targets, Velkerri and Kyalla, extending to the north of Santos' big budget Tamburini-1 appraisal well.

The Velkerri Shale sits around 2200m below surface and is estimated to be around 600m thick.

The shallower Kyalla shale is located at a depth of 1200m.

Both the Velkerri and Kyalla shales have attracted the attention of big plays including Origin Energy and Santos, which consider the underexplored region to be extremely commercial. In total Empire holds 14.5 million acres across the McArthur and Beetaloo Sub-basins.

Source: Energy News Bulletin

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Thanks to Liz Wilsen from Halikos Hospitality group who would also like to extend an offer to our Energy Club NT Members.

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To redeem these rates the bookings must be made directly using the contact details below: 

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PH 1300 6888 72

All offers are valid from 1 March to 1 May 2020. Please ensure you provide proof of membership to access these offers

2020 Energy Club NT Member Benefits

Throughout 2020, Energy Club NT will seek to work with local businesses to promote opportunities and member benefits to our extensive network.

It's exciting to announce our new local business partnership with Wharf One Food & Wine down at the Darwin Waterfront. Wharf One will be providing a significant contribution of prizes and vouchers to our very popular social events through out the year and also monthly specials for our members to use for business and pleasure.

Wharf One team have been working hard to transform their venue to provide a great spot for casual drinks, various dining options to share or a la carte and corporate events with an unbeatable view on the water providing a fantastic atmosphere to relax.

Thanks to Wharf One for supporting Energy Club NT and our members throughout 2020 with our first member benefit offers below and plenty more to come! 

Download the Energy Club NT Member App via WildApricot from the app store for iphone or android now!

On the membership app you can log in to the members vault using your email and also:

• Access a member card to receive member benefits - show this when using the member benefits provided by our partners
• View upcoming events
• View you registration history
• Find other members and contact them
• Update your details 

If you don't have the app on your device, show your members badge to access the member benefits from our partners.

Wharf One Offer One:

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Energy Club NT members receive 10% discount on beverages.

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Energy Club NT members receive a corporate booking special: $50pp

Canapes and 2 hour beverage package, plus a $50 door prize to give away at the event.

All offers are valid from 1 March to 1 May 2020. Please ensure you provide proof of membership to access these offers

Get on down and support Wharf One Food & Wine and take advantage of our exclusive new member benefits from our new local business partner. www.wharfone.com.au

Oil major joins a feasibility study that could lead to gigawatts of Dutch offshore wind being built purely for the manufacture of green hydrogen.

Oil major Shell has started feasibility work on what would be the largest green hydrogen project in the world.

The plans would see 3 to 4 gigawatts of offshore wind capacity established in the North Sea by 2030 purely for the manufacture of green hydrogen. Electrolyzers will be based in Eemshaven, along the northern coast of the Netherlands, and potentially offshore as well. 

The project could be expanded to 10 gigawatts of offshore wind by 2040 dedicated to green hydrogen production.

Shell Netherlands, Dutch gas grid operator Gasunie and the port of Groningen are the founding partners of the NortH2 project, with the trio looking for others to join the consortium during the one-year feasibility study. They hope to develop a “European Hydrogen Valley” cluster.

Gasunie will develop the network infrastructure required for the storage and distribution of hydrogen.

“This project offers opportunities throughout the entire hydrogen chain,” said Marjan van Loon, president-director of Shell Netherlands, in a statement.

“In order to realize this project, we will need several new partners," van Loon said. "Together we will have to pioneer and innovate to bring together all the available knowledge and skills that are required. The energy transition calls for guts, boldness and action."

Read more here

AUSTRALIA’s second-largest gas producer, Santos (52.5%), and joint venture partner Inpex (47.5%) have made a final investment decision on the Van Gogh Phase Two project.

Santos said this morning its decision to go ahead with the second phase would involve extensive infill drilling to maximise field production, access additional reserves and lower unit production costs.

The Van Gogh field is one of three subsea oil field developments located in the Exmouth Basin, offshore Western Australia, which tie into the Ningaloo Vision FPSO.

Santos hit first oil from the Van Gogh infill project in January last year.

Under its phase two development plans Santos will drill three new horizontal production wells which will then be tied back to the Ningaloo Vision.

First oil from the second phase is targeted for late 2021.

Santos contracted the Valaris MS1 drilling rig for the project from early next year.

"It's little more than a year since the start-up of the Phase One, so I'm delighted to see FID being advanced on Phase Two in such a short timeframe," Santos CEO Kevin Gallagher said.

"Phase One proved to be a very successful project, with higher reserves delivered for lower cost, the value of which was enhanced by a strong premium to Brent realised for this crude."

Earlier this month the Santos noted it had been earning up to $30 above the Brent benchmark price for oil from the Van Gogh project. This was due to high demand from Asian refiners as the International Maritime Organisation implemented new laws enforcing a drop in sulfur content in shipping fuel.

Source: Energy News Bulletin

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QUEENSLAND’s Gladstone hasn’t been left entirely out in the cold after Labor’s May federal election loss, with the announcement today that a $4.2 million gas injection facility will be built to send hydrogen into the city’s gas network as part of the state’s $15 million Hydrogen Industry Development Fund. 

Labor had promised a total of $1.14 billion on hydrogen development with the Queensland town to become a hub based on its LNG experience with an initial investment of $3 million 

 "Due to existing LNG infrastructure and a proof of concept Hydrogen Plant, Gladstone has enormous potential as an export hub for hydrogen," it said.  

Today Queensland premier Annastacia Palaszczuk said the town will become the first entire city in Australia to use a blend of natural gas and hydrogen. Build will begin in November and the park will produce 20 kilos of hydrogen a day using certified green power from the local power grid and will be blended into the gas network at a level of 10%.   

Australia's chief scientist Dr Alan Finkel has suggested 10% is a fair rate for initial blending but after when practicable the networks should scale straight up to 100% rather than incrementally.  

The facility will include a 175 kilowatt Polymer Electrolyte Membrane electrolyser, water demineralisation system and process cooling equipment. As the facility modular it can be re scaled-up in the future to produce volumes beyond Gladstone's needs, for potential wider domestic and even export markets. 

"Using renewable hydrogen, Australian Gas Networks (AGN) will trial the blended hydrogen gas with a view to converting Gladstone's network to hydrogen in the future," the premier said.  

The Australian Gas Infrastructure Group's subsidiary Australian Gas Networks received $1.7 million via the fund to build the blending facility.   

"This project will be the first in Australia to blend renewable hydrogen into a gas network with residential, commercial and industrial customers," state development minister Cameron Dick said. 

"This project supports Gladstone's vision to be a key hub for Queensland's domestic and hydrogen export industry, just as it is for natural gas today," AGN CEO Ben Wilson said. 

Source: Energy News Bulletin

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FALCON Oil & Gas has reported successful drilling of the Kyalla 117 N2-1H ST2 well in the Northern Territory’s Beetaloo Sub-basin.

The Irish company shares the well with operator Origin Energy (70%) and said late last week it had been drilled to total measured depth of 3,809 metres including a 1579m lateral section in the Lower Kyalla Formation.  

It said preparation work, which will include drilling water impact monitoring bores as required by the Territory's Code of Practice, will begin next month ahead of the next stage of operations.  

The JV will continue its in-depth shale evaluation of the technical data gathered from the conventional cores, sidewall cores and extensive wireline logging to build an understanding of the Kyalla Formation.  

"We are delighted to have successfully completed the Kyalla horizontal well section and we now look forward to the next phase of operations with the fracture stimulation of Kyalla 117 N2-1H ST2," CEO Phillip O'Quigley said. 

"We will continue to update the market as results become available."  

In early December Falcon said vertical drilling was completed to a depth of 1800m. 

Initial evaluation of the vertical section found three source rock reservoir sections identified within the Kyalla Shale Formation, with a thickness measuring almost 900m.

The three sections are known as the Lower, Middle and Upper Kyalla reservoirs. Gross thickness of each interval is between 75m-125m. 

 According Origin all three sections exhibited "elevated gas shows with relatively high C3, C4, and C5".

Source: Energy News Bulletin

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