Industry News

WOODSIDE Petroleum chief Peter Coleman attended the annual Australia-Japan Joint Business Conference this week, outlining the importance of continued LNG exports to Japan from Australia for both nations and the transition to a hydrogen economy.

Coleman stressed the significance of Japanese investment in making large-scale projects including the Pluto LNG plant expansion and future phases in the North West Shelf feasible.

Around 85% of Woodside's contracted LNG is currently sold to Japan.

Coleman told the conference that while the global energy market was continuing to evolve, key challenges faced by industry would be solved through our strong partnership with Japan.

"Our world faces a dual challenge - of providing extra energy, with fewer emissions," Coleman said.

In recent months the private and public sectors in Japan have committed to investing $10 billion into LNG infrastructure globally. This, according to Coleman underscored a "sign of confidence" in the future LNG market.

Longer term that LNG market provides the synergies needed to propel Japan's planned hydrogen economy.

"Just like the genesis of the LNG industry, this (developing hydrogen) is going to require enduring partnerships between buyers and sellers of energy."

Coleman believes that the hydrogen transition will be across two stages; first, ‘blue' hydrogen made from natural gas "with the emissions managed at that point," he said, but did not elaborate.

Source: Energy News Bulletin

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CONOCOPHILLIPS vice president of operations David Boyle said the company is planning ahead for decommissioning of its huge Bayu Undan gas and light oil field, which has been fully in Timor-Leste’s jurisdiction since August 30 when the maritime boundary between the nation and Australia was signed into place in Dili. 

Speaking at last week's Timor-Leste Oil and Gas Summit he explained the aquifer-driven reservoirs were already seeing water rates decline across the wells.  

Bayu Undan provides the lion's share of income to the small nation, but despite the drop in earnings Boyle is hopeful the decommissioning work will provide jobs and local content opportunities.  

"Working early and jointly (with the government) is critical for maximising opportunities for local content," he said.  

"We are in the final phase of Bayu Undan we have complex models to predict when production will end."  

He said the gas and water rates being recorded confirmed ConocoPhillips' predictions.  

"The most critical piece of data is the volume of water that will be produced from each well… we've seen a decrease in water production these past few years and therefore know it's time to start planning for the next phase. 

Source: Energy News Bulletin

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ORIGIN Energy and Irish joint venture partner Falcon Oil & Gas, have spud the Kyalla 117 N2 onshore appraisal in the Beetaloo Basin in the Northern Territory.

The big-budget Kyalla 117 N2 is the first of two wells the joint venture plan to have drilled by the end of this year, targeting the Kyalla shale liquids gas play in exploration permits EP117, EP76, and EP98.

The spudding of the well was met with cheers from both industry and the Northern Territory government, with both noting the symbolism of the well in marking a new era of investment for the Top End.  

"Origin successfully drilling in the Beetaloo is another significant milestone reached off the back of completion of all pre-exploration recommendations from the Pepper Inquiry in July, as part of their exploration program," NT minister for primary industry and resources Paul Kirby said.

Meanwhile industry lobby body the Australian Petroleum Production and Exploration Association said the resources being targeting would play a "vital role in revitalising the Territory's economy".

The horizontal well will be drilled to 1,750 metres depth into the Kyalla and Velkarri Formations before a horizontal section is drilled for approximately 1,000m. Once completed the well will be fracced and production tested.

In a statement yesterday Falcon said the principle objective of the well was to assess hydrocarbon maturity, saturation and reservoir quality of the formation as well as collect data for future drilling campaigns.

Source: Energy News Bulletin

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SANTOS and Total will have another month to decide whether or not to acquire a 40% interest each in the offshore Beehive prospect in WA-488-P off the coast of Western Australia.

Melbana Energy, which has a 100% stake in the license currently, has granted Santos and Total until November 4 to elect to acquire their interests.

In a statement today, Melbana noted that the two much larger operators had completed technical assessments of the Beehive prospect.

"The additional time requested is needed by the parties to finalise their commercial analysis and seek internal approvals," Melbana said.

Beehive has been assessed by independent experts McDaniel & Associates as holding a best estimate 388 million barrels of oil equivalent; however future exploration is  needed to determine the existence of a significant quantity of hydrocarbons.

Should Santos and Total take a combined 80% stake in the permit, a well will be drilled in the second half of next year at an estimated cost of US$40 million - US$60 million.

Source: Energy News Bulletin

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ASX-listed GR Engineering has flagged a hit to annual profits following news that Northern Oil & Gas Australia has gone into voluntary administration.

Nearly a fortnight ago administrators were appointed to Northern Oil and its associated subsidiaries TOGA Services and Timor Sea Oil & Gas Australia.

The company's administration came just months after its Northern Endeavour FPSO in the Timor Sea was shut down by the federal regulator over safety and environmental concerns.

GR's wholly owned subsidiary, Upstream Production Solutions, is the contracted operator of the Northern Endeavour FPSO.

Yesterday, GR told the market it had conducted "extensive discussions" with the administrators of Northern Oil and assessed its exposure at more than $17 million.

"GR Engineering's assessment of the group's exposure to the [Northern Oil] contract is circa $17.4 million representing receivables and work in progress ($15.9 million) and the finalisation of commitments to vendors and suppliers ($1.5 million)," GR said in a statement.

The administrators have agreed to pay GR costs for services from the date Northern Oil was placed into administration, subject to funding from a secured lender.

Source: Energy News Bulletin

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Empire also advised it has received ministerial consent for its 2D seismic program in the Northern Territory in permit EP187 and expects acquisition to begin soon. 

"We have established a solid foundation for growth in the McArthur and Beetaloo Basins," he said.

It expects final Territory approvals for its work program soon, it said this morning. It will be the first junior to recommence on the ground operations in the area, though unlike Santos and Origin is not close to spudding a well.

"Government approvals for drilling operations are proceeding well," it said.

"Empire anticipates it will have all necessary approvals to commence exploration drilling by the commencement of the 2020 dry season, or in the second quarter of next year."

Empire holds 14.5 million acres in the McArthur and Beetaloo Sub-basins

Source: Energy News Bulletin

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THE South Australian government has approved Australian Gas Infrastructure Group subsidiary  Australian Gas Networks’ development application for the construction and operation of a A$11.4 million renewable hydrogen production facility.  

he planned facility will be located at the Tonsley Innovation District to the south of capital Adelaide.  

The planned Hydrogen Park SA (HyP SA) will be producing from the middle of next year.  

"This is a significant milestone in South Australia's continuing transition to a cleaner energy future. It propels the State's status as a leader in renewable technology and a first mover in hydrogen," AGIG CEO Ben Wilson said.  

"At HyP SA we will be building a 1.25MW electrolyser as the first Australian demonstration project of its scale and size, with small quantities of renewable hydrogen produced and blended into the local gas distribution network next year."  

He said by next year residents in Adelaide's Mitchell Park would be using gas with 5% hydrogen added to the mix.  

The state government has thrown $4.9 million to the project via its Renewable Technology Fund. 

Source: Energy News Bulletin

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SANTOS and ConocoPhillips have awarded a major contract for the development of the Barossa gas field to Allseas Groups for the engineering, procurement, construction and installation of the 260 kilometre gas export pipeline. 

The project area encompasses petroleum permit NT/RL5 located in Commonwealth waters offshore Northern Territory.   

Barossa, which will go as backfill to the Darwin LNG once the Bayu Undan field depletes early next decade, is currently in its front-end engineering and development phase before final investment decision.  

Development will include a floating production storage and offloading vessel, subsea production system and a gas export pipeline, which will tie into the Bayu Undan-to-Darwin pipeline.  

"This is another big step towards Barossa FID and follows the award of the subsea production system and installation support contract in May," Santos managing director Kevin Gallagher said.  

"Evaluation of tenders for the FPSO and development drilling contracts is well progressed."

Source: Energy News Bulletin

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SINGAPORE-based junior Jadestone Energy has completed a major capital project, installing new subsea umbilical cables across the Montara oilfield, offshore Western Australia in the Timor Sea.

The AIM-listed midcap producer noted that the replacement umbilical installation project was identified by the previous operator of the Montara field as a "high priority."

The umbilicals are an integral part of the deepwater control system on the field, providing electrical power and control signals to the subsea well heads.

The project was conducted using the DOF Subsea Skandi Hercules vessel, which was mobilised from Singapore in August.

The installation project was previously identified by the former operator PTTEP as a "high priority," however work was deferred until Jadestone completed its acquisition of the field and formally became operator.

Jadestone was formally awarded operatorship for the Montara field in July, but had effectively operated the field since acquiring it from PTTEP last year. 

Jadestone CEO Paul Blakeley said the major project was completed on budget and without incident.

"Early on, we recognised the need to replace the control link to the Montara subsea wells, and this was done as soon as possible, following acceptance of Jadestone's safety case for Montara," Blakeley said.

"I think of this as a one-off maintenance project, and having it completed now will provide greater confidence in our ability to deliver guidance volumes from Montara."

Since acquiring the field last year, the Montara field has delivered record cash for Jadestone, turning the company from loss to profit in a 12 month period.

Source: Energy News Bulletin

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NEXT week marks Timor-Leste’s inaugural oil and gas conference, which Energy News will cover from Dili. 

The event comes just after the nation's independence 20th anniversary when Australian Prime Minister Scott Morrison travelled to capital Dili to sign the Marine Border Treaty into effect, effectively allowing development of both the Greater Sunrise and Buffalo fields.  

The summit runs October 3 and 4 and will be sponsored by SundaGas and hosted by petroleum authority ANPM.  

This is the first time the body will be sharing on- and offshore updates for the region's leading oilers and new opportunities for smaller producers.  

National oiler Timor Gap will discuss its plans for Timor-Leste and the wider industry. 

"With more exploration and production projects on the way, the need for

new partners is higher than ever," it said.  

The nation's most senior ministers and oil company executives will speak, as will Carnarvon Petroleum COO Phil Huizenga and Timor Resources Suellen Osborne. 

Source: Energy News Bulletin

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