Industry News

PRIME MINISTER Scott Morrison has announced that one of the solutions to climate change and emissions reductions in Australia is to unlock the gas supplies beneath the ground in the eastern states, suggesting more gas from Victoria and New South Wales will help the nation transition to renewables and meet its Paris commitments. 

"We need to get the gas from under our feet. There is no credible energy transition plan for an economy like Australia, in particular, that does not involve the greater use of gas as an important transition fuel," he said.  

The speech has, predictably, been championed by industry and lobby body APPEA and slammed by activists and others horrified at his pro-fossil fuel stance as the nation battles enormous bushfires across the east coast they see as linked to Australia's fossil fuel industry.  

 "There are plenty of other medium or long-term fuel arrangements and prospects, but they will not be commercially scalable available for at least a decade is our advice," Morrison said.  

The head of the Australasian Centre for Corporate Responsibility Brynn O'Brien called Morrison's speech "sickening, chilling" in a tweet.  

"It's important for Australia's oil and gas industry to be recognised for the positive role it is and can play in the broader energy and emissions reduction debate. Natural gas is the perfect complement to the growing use of renewables and will continue to be so for decades come," APPEA CEO Andrew McConville said. 

Source: Energy News Bulletin

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Download the full media release from Empire Energy Group here.

Highlights

• New EP187 2D seismic processing and interpretation confirms that Empire holds a material Beetaloo SubBasin acreage position within its 100% owned and operated tenement

• Large EP187 area identified containing thick continuous Velkerri and Kyalla Shales, clearly undisturbed by faulting and adjoining EP161 where Santos’ Tanumbirini-1 is flowing gas after recent fracture stimulation

• Empire’s EP187 Velkerri and Kyalla Shales exist at shallower depths than adjoining blocks while maintaining equivalent thickness offering reduced drilling and development costs and increasing the potential for the presence of both gas and liquid hydrocarbons

• Kyalla Shale identified at greater depth and thickness than previously anticipated thereby opening up a new secondary exploration target in EP1871

• Well location de-risked ahead of drilling scheduled for mid-2020 

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record annual production and revenues in 2019, and lower unit production costs, clearly demonstrating the effectiveness of our disciplined, cash generative operating model.

“The year was highlighted by highest ever free cash flow of more than $1.1 billion, record onshore drilling performance, lower unit production costs and significant progress on our diversified portfolio of growth projects.”

“The acquisition of ConocoPhillips’ natural gas assets in northern Australia and Timor-Leste announced in October is fully aligned with our growth strategy to build on existing infrastructure positions and delivers operatorship and control of strategic LNG infrastructure at Darwin.”

“Also in the Northern Territory, better than expected gas flow rates from the ongoing Tanumbirini-1 vertical well test are very encouraging and an important step in Santos’ appraisal of the significant resource potential of the McArthur Basin.”

“Natural gas is forecast to supply a quarter of the world’s total energy demand by 2040 and Santos, with its portfolio of long-life natural gas assets, is well positioned to benefit as we seek to deliver 120 mmboe of production by 2025.”

“We are also investing in projects to lower emissions and assessing the significant potential for carbon capture and storage in the Cooper Basin,” Mr Gallagher said.

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Energy Club NT are proud to be a supporting partner for the 2020 AGES Conference in Alice Spring 24-25 March with other sponsors Origin Energy, Empire Energy Group, Core Lithium Ltd and TLD Titeline Drilling. The AGES conference, organised by NT DPIR, has been successfully attracting significant stakeholders year on year profiling prospective opportunities for minerals and oil & gas explorers. This is an exciting time to be exploring the Northern Territory and a great conference to be updated on the development of our resources. Be sure to come and grab a coffee at the Energy Club NT coffee cart throughout the conference! Registration open online.

http://www.cvent.com/events/ages-2020/event-summary-7253ba31962b4387b81ee47a3a81e3f4.aspx?RefID=Event%20Summary

TOTAL will develop Qatar’s first large scale solar farm 80 kilometres south of capital Doha, in a major move for the multinational oil and gas company as it turns its attention to renewable opportunities in the Middle East.

The Arabian country is the largest LNG exporter after Australia but is now like regional peers harnessing the power of its fierce desert sun to produce domestic power too.

The project, named Al Kharsaah Solar after the town it will be built near, is estimated to cost 1.7 billion riyals (A$728 million).

Partnering with Japan's Marubeni Corporation, Total will build the 800-megawatt solar plant and have it fully connected to the Qatari grid by next year.

Total will have a 49% stake in the project, and Marubeni will hold the rest.

This is a major move for the company which has not embarked on a renewable venture of this size, nor in the region, before. Up until now, its presence in Qatar has largely been in upstream oil and gas, and petroleum refining.

Total has been present in Qatar since the mid-1930s and currently holds a 20% stake in the upstream Qatargas business as well as a 40% interest in the massive Al-Khalij offshore oilfield. The company's production last financial year averaged 211,000 barrels of oil equivalent per day.

However, this is all set to change as it looks to a future solar and hydrogen economy in the country. In a statement overnight Total said it was looking to renewable energy as part of a broader strategy in the energy transition.

Source: Energy News Bulletin

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OIL and gas must adjust to new conditions and begin to seriously invest more in emissions-free technology and longer term make the transition from ‘oil and gas’ to ‘energy’ if companies hope to survive, a report from the International Energy Agency released at the World Economic Forum today says.

Most important to the transition will be companies cutting emissions from their own operations.  

Worldwide oil and gas production makes up 15% of energy-related emissions.

Combatting fugitive methane leaks and ceasing flaring and venting will be important, as will electrification of some processes at LNG plants.  

"Minimising emissions from core oil and gas operations should be a first-order priority for all," the report said.  

"Reducing methane leaks to the atmosphere is the single most important and cost-effective way for the industry to bring down these emissions." 

In US shale basins the US Energy Information Administration suggests flaring and venting of gas associated with oil production that does not have a path to market is being flared and vented at a rate of up to 1.1 billion cubic feet per day.  

In the middle of last year Rystad Energy released research that found flaring and venting across the Permian Basin alone hit 650 million cubic feet per day.  

But overall the transition will be easier for some than others. Many national oil companies will struggle to adapt.  

The attention is usually focussed on the world's seven majors which account for 12% of oil and gas reserves, 15% of production and 10% of "estimated" emissions from industry operations. However, NOCs account for half the world's production and more reserves again.  

"There are some high-performing NOCs, but many are poorly positioned to adapt to changes in global energy dynamics," it said.  

Economies reliant on oil money will also struggle.  

Across the entire industry investment in non-core areas is around 1% of capital and "there are few signs of a major change in company investment spending".  

That average rises among what the IEA calls ‘leading individual companies' which may spend as much as 5%, largely on solar then wind. Others have bought battery tech, or EV charging tech and some are moving to electricity distribution (think Shell's plans for ‘molecules and electrons'). 

Source: Energy News Bulletin

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THE summer bushfires have done nothing but stoke the flames of activist and environmental groups Extinction Rebellion, Lock the Gate Alliance, The Socialist Alternative, and Frack Free WA, with campaigners vowing to continue to oppose oil and gas majors Chevron and Woodside in Western Australia.

This afternoon a large number of activists blocked off entrances to the QV1 building which houses Chevron and ConocoPhillips in Perth's business district.

The activist groups, dressed as Grim Reapers with scythes and Chevron badges locked down QV1 for approximately one hour before police intervened.

A spokesperson from Extinction Rebellion told Energy News Chevron and Woodside were in "lock step… marching WA off the climate cliff edge."

More than 20 protesters were issued move on notices.

It comes after Woodside was targeted by protesters at the opening of the Perth Fringeworld Festival on Thursday.

Activists took over the stage at the formal opening of Fringe, one of the largest arts festivals in Australia, calling on the festival to dump Woodside as a major sponsor of the event.

The charity which runs Fringeworld, Artrage, said in its last annual report that corporate sponsorship of Fringe was worth A$6 million per annum.

Woodside has been a principle sponsor of the festival since 2012 and last year signed a three-year sponsorship agreement with Artrage which will finish in 2021.

Under the agreement Woodside was granted naming rights for The Woodside Pleasure Garden.

In a statement provided to Energy News today, Artrage CEO Sharon Burgess said the charity was not going to dump Woodside as a sponsor, saying without corporate sponsorship it would not be able to "present an annual platform for artists to perform and for the community to enjoy."

"Alongside supporting the Festival overall, the partnership with Woodside enables us to deliver a number of artist support initiatives together including regional touring of artists, the review platform Fringefeed.com.au, the Woodside Homegrown Heroes program that shines a light on our local artists and of course The Woodside Pleasure Garden, which is our biggest and best Fringe Hub," Burgess said.

Source: Energy News Bulletin

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ESCO Pacific and Shell have announced today that they have formed a strategic partnership, combining ESCO Pacific’s solar development and asset management expertise together with Shell’s global scale and energy capabilities.

ESCO Pacific is a successful and experienced Australian focused utility scale solar developer, having delivered to market nearly 500MW of projects since 2017, with a further 350MW of solar assets under long term management.

Shell’s investment will enable ESCO Pacific to further accelerate development of its project pipeline as well as opening up significant opportunities with a wider range of corporate off-takers looking to procure renewable power. ESCO Pacific will continue to operate under its existing management and brand. The business will be expanding its project pipeline both organically and by acquisition, while continuing to deliver projects to market in the coming years. In addition ESCO Pacific
will be growing its asset management portfolio.

ESCO Pacific’s Founder and Managing Director Steve Rademaker said, “ESCO Pacific has been one of the fastest-growing independent solar developers in Australia. We’d like to build on that growth and continue our rapid scaling by leveraging the resources that the Shell investment makes available to us. This partnership is a testament to the success of our strategy, our business and our team”.

Shell Australia Country Chair, Zoe Yujnovich added, “…Shell’s investment in ESCO Pacific, coupled with the recent acquisition of ERM Power, supports a pathway for Shell to supply more and cleaner energy to utility, commercial and industrial customers in Australia.”

“This investment in ESCO Pacific brings us into the rapidly growing solar market in Australia,” said Marc van Gerven, Vice President, Onshore Renewable Power at Shell New Energies.

“With their proven track record of developing projects, we will accelerate the delivery of renewable electricity to utility, commercial and industrial customers.”

ESCO Pacific Chairman, Darryl Flukes said: “We’re excited by what this agreement means for our company’s ambitions. This partnership with Shell recognises the strong capabilities of the ESCO Pacific Team. We are delighted to partner with Shell.”

Source: Brighter

Energy Club NT are proud to be a supporting partner for the Australasian Oil & Gas Exhibition & Conference again in 2020. The conference is free to register with some great networking events too. Members have access to 10% discount when booking for the networking events. Contact the office to find out more!

https://aogexpo.com.au/

JADESTONE Energy, which operates the Montara, Skua, and Stag oilfields offshore Western Australia in Commonwealth waters, has revealed its new drilling and development plans for the second half of this year.

The company, based in Singapore and listed on the Toronto Stock Exchange and London Stock Exchange, recently applied to the national regulator, the National Offshore Petroleum Safety and Environmental Management Authority, to drill two development wells.

The first well, H6 will be drilled in the AC/L7 production permit on the Montara Field.

A second development well, Skua-12 will be drilled in the adjacent AC/L8 license on the Skua Field.

Jadestone also proposes to conduct workovers of the H3 and Skua-10 wells across the two respective permits.

First spud is expected in the second quarter of this year.

The total drilling and workover activities will likely take 150 days, however this is subject to weather conditions, drillrig availability and operational efficiency.

Drilling of the Montara H6 well is estimated to take 80 days and drilling of SKUA 12 is estimated to take 50 days.

The wells will be drilled from the existing unmanned wellhead platform on the Montara field.

The H3 and Skua 10 workover is estimated to take 20 days each.

Skua field is located approximately 20km from the Montara platform.

Babcock has been contracted to provide helicopter services.

Jadestone is yet to choose a jack-up rig contractor and confirm support vessel subcontractors.

Source: Energy News Bulletin

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