Industry News

Origin Energy Environment Management Plan approved for onshore gas drilling, stimulation and well testing in the Beetaloo Sub-basin

Minister for Environment and Natural Resources, Eva Lawler, has approved Origin Energy’s Environment Management Plan (EMP) for onshore gas drilling, hydraulic fracture stimulation and well testing for Exploration Permit 117 (EP117) N2 in the Beetaloo Sub-basin.

The approved EMP was prepared with reference to the NT Petroleum (Environment) Regulations 2016 and the Code of Practice: Onshore Petroleum Activities in the Northern Territory.

This is the first EMP to be approved for hydraulic fracturing activities since all 31 pre-exploration recommendations within the Hydraulic Fracturing Inquiry report were completed in July 2019.

The scope of the EMP covers the regulated activities required to enable Origin to drill, hydraulic fracture stimulate, test, maintain and decommission a horizontal petroleum exploration well at one location (N2-1) within the 2019-2024 period.

A total of 6,311 public submissions, including 275 from Territorians, were received and considered by the Minister in making her decision. The Minister also obtained advice from the independent Northern Territory Environment Protection Authority to inform her decision.

The approved EMP and the Minister’s statement of reasons can now be viewed at www.denr.nt.gov.au/onshore-gas

To read the Implementation Plan or access additional information, please visit hydraulicfracturing.nt.gov.au
To read the Inquiry report and recommendations, please visit frackinginquiry.nt.gov.au
Or you can contact the Hydraulic Fracturing Inquiry Implementation Taskforce at hydraulic.fracturing@nt.gov.au

FLOW control and general service provider Flowserve has been awarded a five-year maintenance contract for Shell Australia’s Prelude FLNG facility offshore Western Australia.

Flowserve will support Prelude from its recently refurbished Quick Response Centre in Darwin to provide the maintenance services, and said today it was looking to substantially increase its workforce from local pools to meet the contract.

"Flowserve values the successful projects and relationships we have developed with Shell through the years," Flowserve CEON Scott Rowe said.

"We look forward to helping maximize the uptime and productivity of the Prelude facility with highly responsive maintenance and repair services."

It said today it has expanded its capabilities to include repair services for centrifugal pumps and heat exchangers.

Flowserve did not reveal the financial value of the contract.

It will also expand its repair services to cater for fans and blowers and hydraulic power units.

Flowserve said it would look to increase its indigenous workforce and offer skills training to lead to permanent employment opportunities.

Shell Australia was not able to confirm the scope of the work, but reiterated the importance of using a local workforce.

Source: Energy News Bulletin

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Australia’s energy technology ecosystem is being supported with the announcement of $2 million in new funding to help drive the future of energy resources innovation.

The funding, which is being provided by NERA (National Energy Resources Australia), was announced today by Minister for Industry, Science and Technology, the Hon. Karen Andrews MP and Minister for Resources and Northern Australia, Matt Canavan.

NERA Chief Executive Miranda Taylor said the funding will support industry-led projects that can strengthen Australia's position as a global hub for excellence in energy resources innovation.

“We know collaborative partnerships between industry and innovators can produce truly transformational results, and NERA is committed to continuing to support our sector adopt and adapt to new technologies that generate competitive industry outcomes, efficiencies and deliver value and jobs across the nation,” Ms Taylor said.

“Through this new project funding announcement, we hope to work with local innovators to build their capacity and capability in fields of robotics and artificial intelligence, which are critical to improving the future productivity and safety of the energy resources sector, as well as developing transferable skills and technologies with benefits across the Australian economy,” Ms Taylor said.

“By continuing our sector-wide initiatives, we can unlock more than $10 billion in new value and achieve our vision of Australia as a global energy powerhouse, a sought-after destination for investment and the leading source of knowledge and solutions.”

NERA’s $2 million future technology project fund is open to all applicants who meet the Expression of Interest guidelines, and NERA is encouraging applicants with projects/initiatives that have one or more of the following focus areas impacting the energy resources sector:

·         Remote operations, robotics and Artificial Intelligence

·         Unconventional gas technologies

·         Hydrogen

·         Decommissioning

Project proponents who can demonstrate innovative approaches, clear commercialisation applications and clear project timeframes should consider applying.

Projects must have matched industry funding, be undertaken in Australia and address one or more of the Knowledge Priorities identified in the NERA Sector Competitiveness Plan — a strategic roadmap for Australia's oil, gas, coal and uranium industries and value chains.

Applications must be received by 30 September 2019. The funding is part of NERA’s collaborative $15.6 million Project Fund. For more information, visit www.nera.org.au.

INPEX chief outlines road ahead following meeting with Prime Minister Morrison and Darwin board

ENERGY News spoke with INPEX President and CEO Takayuki Ueda last week following his meeting with Prime Minister Scott Morrison to discuss the future of the company in Australia. This comes as the company's board held its annual meeting in Darwin, the first time it has been held outside of Japan.

"We are using this opportunity to showcase our achievements here to our directors, many of whom are visiting Australia for the first time, and to discuss opportunities to expand our business here," Mr Ueda said.

"Ichthys LNG is the crown jewel in our global portfolio of projects.

"Ichthys is vital to the future of INPEX. Australia is very important in this regard and Ichthys LNG is our pride and joy."

INPEX announced the final investment decision for the project in January 2012, with the first LNG cargo departing the Ichthys LNG onshore facilities at Bladin Point near Darwin on 22 October 2018.

Since that first cargo, more than 100 cargoes of all product types (LNG, LPG and condensate) have safely departed Australia - with each cargo supporting a brighter future for communities here in Australia and across the globe.

"We are currently focused on the smooth ramping up of our Ichthys LNG onshore facilities, but at the same time there is potential to expand production in Australia through onshore and offshore opportunities" he said.

 "We consider surrounding areas in the vicinity of the Ichthys Field to be highly prospective. In the future, offshore gas could be accessed through the five tie-in points that are strategically located along the Ichthys Gas Export Pipeline.

"We have room for up to four additional LNG processing trains in Darwin. For example, gas to feed an expansion train could come from the onshore Beetaloo Basin, or large gas fields in the offshore Bonaparte Basin.

"Of course, any new gas find would need to be commercially viable to support the development of a third train at Bladin Point."

Recently securing agreement from the Indonesian government for the Abadi LNG Project Plan of Development, INPEX is also looking to this huge development as a cornerstone of future expansion and production in the region.

Source: Energy News Bulletin

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CANBERRA has approved the Timor-Leste maritime border treaty, with the legislation to end the decades-long dispute finally passing both houses of parliament on Monday night after Dili signed it into effect last week.

The treaty was first signed in March last year by both nations' foreign ministers at United Nations headquarters in New York and apart from demarcating a final and agreed boundary also mandates how revenue from oil and gas fields, including the giant Sunrise gas field are carved up between the two.  

In passing the treaty parliament made way for Prime Minister Scott Morrison to officially sign it at his next visit to Timor-Leste next month.

 "This treaty is an historic achievement for Australia and Timor-Leste and its implementation is firmly in Australia's national interest," foreign minister Marise Payne said in parliament last night.

"Through this treaty, Australia and Timor-Leste have settled a long-running dispute over our maritime boundaries, agreed upon a pathway for the development of Greater Sunrise and laid the foundation for a new chapter in our bilateral relations."

Under the treaty Timor-Leste will hold the rights to the largest share or revenue from the Greater Sunrise field and will pocket 80% of the revenue from the field should the gas be processed in Australia and 70% if it is processed onshore Timor-Leste.

Morrison said the parliament's decision to approve the treaty would establish a "stable legal framework" for the development of oil and gas in the Timor Sea.

"It upholds Australia's commitment to international rules and the peaceful resolution of disputes, and reflects our full commitment to the independence, sovereignty and economic sustainability of Timor-Leste," Morrison said.

"With the passage of the treaty's implementing legislation today, Australia is now ready to partner with Timor-Leste to jointly develop the Greater Sunrise gas fields for the benefit of both countries."

The Timor-Leste government has been pushing to have the gas processed at an LNG plant on its southern coast.

Source: Energy News Bulletin

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THE Northern Territory finally approved the first environmental plan since lifting its fraccing moratorium early last year, giving Santos the greenlight for its two-well campaign in the Beetaloo Sub-basin for this year’s dry season.

It has cheered industry but those with unconventional NT acreage are watching especially closely, hoping to ramp up drilling campaigns of their own; however, much land is now designated reserved and off limits permanently to exploration the road isn't clear yet.

Yesterday in its quarterly Origin Energy said it expects drilling approval this month and to that end preparation work continues for its two planned horizontal appraisal wells this year, with a water extraction licence already in hand for its well to target the Kyalla liquids-rich gas play.

Water bores have been drilled and the access road and well pad construction are near built.

Meanwhile for its Velkerri play the water license is in place, while the water board and access roads have been approved, it is just waiting on well pad civils and drilling approval, but did not give an expected date.

Earlier week the Reg Nelson-led Vintage Energy told the market it expected some delays to its planned campaign in the Northern Territory thanks to conservation issues and may now have to wait until next year's dry season.

Nelson likes the distant onshore Bonaparte Basin acreage so much he bought it twice. Once, when heading up Beach Energy in 2014 and then from Beach this February.

Blue Energy, which has NT onshore holdings along with its Bowen and Galilee basin permits in Queensland, said yesterday in its quarterly said it is watching the space closely, especially since Santos was greenlit in July.

Blue has three exploration permits with work permits that have been suspended until February next year.

"The main Beetaloo Basin Operators, Santos and Origin are "road testing" the new Government approvals process for Environmental Management Plans plus the approvals process to drill, frac and test oil and gas wells, which now sit in two different Government Departments," it said,

"If Origin and Santos can successfully drill, frac and test their wells this dry season, it will go some-way to establish the new process as effective, and give the broader industry some confidence that the new legislation and approval process is navigable in a reasonable timeframe.

In its quarterly of yesterday Empire Energy it notes shortly after the end of the June quarter the NT Department of Environment and Natural Resources had accepted the company's 2D seismic environmental management plan for final assessment.

Empire is hoping to gain a better understanding of the same thing both Santos, and Origin Energy and joint venture partner Falcon Oil & Gas are targeting: the Velkerri shale and Empire too thinks approval of Santos' plan has opened the way for drilling this year.

It noted that earlier this year the Federal budget allocated A$8.4 million for feasibility studies of the Beetaloo

"The Federal government recognises that the Beetaloo and McArthur basins have the potential to be a major source of cost-effective gas supply fir the critically supply constrained east coast gas market in coming years," it said.

Empire too will see some of its former acreage potentially off-limits to exploration but has made submissions to the government,

Importantly its "key near term" blocks EP127 and EP(A)188, which target the Velkerri will not affected and it said yesterday its "continuing to progress its exploration programs according to schedule".

Consultancy EnergyQuest has will be watching Santos' and Origin's upcoming campaigns too. Several months ago it published a rundown of wells to watch this year, putting the Beetaloo spuds at the top of its list.

"These are no ordinary onshore wells. Falcon Oil & Gas disclosed last month as part of a US$9 million capital raising that the gross estimated capex for stages 2 and 3 (a total of four wells drilled and fracture stimulated) was US$130 million," it said.  

"The wells in 2019 will go a long way to establishing whether the hype about the Beetaloo is justified. There is plenty of scepticism, due in part to disappointments with unconventional exploration in other Australian onshore basins." 

Source: Energy News Bulletin

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MCDERMOTT International and Baker Hughes GE have been awarded contracts for development work on Inpex’s Ichthys LNG project off the coast of Western Australia.

The award includes a joint subsea umbilicals, risers and flowlines and subsea production systems, comprising a new subsea well gathering system, tied back to the existing central gathering systems.  

Water depths in the field range from 240 to 270 meters. 

Both companies will lead the project from offices in Perth while the fabrication of the URF equipment will be carried out at McDermott's fabrication facility in Batam, Indonesia.  

BHGE will deliver the SPS scope, including vertical christmas trees, associated production control systems, distribution equipment and topside controls as well as associated installation and commissioning support services.  

Offshore installation of the URF and SPS equipment will commence in 2020 and be completed in 2023.  

The field development will be carried out using state-of-the-art assets, including McDermott's derrick lay vessel, DLV 2000. 

"McDermott's majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects," McDermott senior vice president for Asia Pacific Ian Prescott said.  

"Our experience will ensure delivery during the next phase of this key gas field development." 

"We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG," BHGE regional OFE vice president Graham Gillies said. 

Source: Energy News Bulletin

Read more here

TOKYO, JAPAN - INPEX CORPORATION (INPEX) announced today that it held a meeting of the Board of Directors in Darwin in the Northern Territory of Australia to highlight its long-term commitment to Australia.

Darwin is the location of the INPEX-operated Ichthys LNG onshore gas liquefaction facilities. INPEX is also engaged in various other oil and natural gas development operations in Australia.

The Meeting of the Board of Directors held at the INPEX-operated Ichthys LNG onshore gas liquefaction facilities near Darwin in the Northern Territory This marks the first time that INPEX has held a meeting of the Board of Directors outside of Japan.

The meeting focused on the steady ramp-up in production at Ichthys LNG and the pursuit of exploration and development initiatives surrounding the offshore Ichthys Field and at INPEX’s onshore acreage in the Northern Territory.

The Board of Directors also discussed future expansion opportunities in Australia, additional investments and contributions to the local communities, and applying the knowledge and capabilities nurtured through operating the Ichthys LNG facilities to various projects to be implemented around the world including the Abadi LNG Project in Indonesia.

Ichthys LNG has, as of the end of July 2019, shipped a total of 65 LNG cargoes, 14 LPG cargoes and 30 condensate cargoes since shipments began in October 2018.

INPEX will continue to work toward the creation of a brighter future for society through its efforts to develop, produce and deliver energy in a sustainable way.

This will be done with the understanding and cooperation of all its Australian stakeholders including project partners, the local communities, the Australian federal government and the governments of the Northern Territory and Western Australia.

About INPEX INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and a mid-tier E&P player just behind the world’s oil majors.

INPEX is currently involved in approximately 70 projects across more than 20 countries, including the Ichthys LNG Project in Australia as Operator. Through sustainably growing its oil and gas development business, developing a global gas value chain business and reinforcing its renewable energy initiatives, INPEX aims to become a leading energy company and continue providing a stable and efficient supply of energy to its customers.

For more information, visit https://www.inpex.co.jp/english/index.html. Media Contact: INPEX Tokyo Office, Public Relations Group, Tel) +81-3-5572-0233

Ichthys LNG ramping up – focusing on future opportunities Darwin, Australia – INPEX Corporation has strengthened its commitment to the Northern Territory highlighting a series of announcements to benefit local students and Aboriginal communities.

The announcements come as the INPEX Corporation Board of Directors visits Darwin for the first time, signalling the importance of the NT and Australia to the company’s global operations and long-term ‘Vision 2040’ growth strategy.

INPEX strengthens its NT commitments:

• Six new scholarships for students studying at Charles Darwin University (CDU)

• $24 million Larrakia Ichthys LNG Foundation Trust

• More than $3.4 million invested in NT community organisations and initiatives since 2012.

INPEX Corporation President and CEO, Mr Takayuki Ueda said it was an honour to be in Darwin and that many INPEX Board members were visiting the Top End and Australia for the first time.

“We take our commitment to the Northern Territory very seriously and we are delighted to be in Darwin for our first ever Board meeting held outside of Japan,” said Mr Ueda.

“We are using this opportunity to re-inforce our support for local people and communities, visit our state-of-the-art Ichthys LNG onshore processing facilities and to discuss opportunities for further expansion of our business in Australia.”

The INPEX scholarships, totalling $90,000, will be for Northern Territory students at the university who are enrolled in full-time undergraduate courses relevant to the oil and gas industry. The courses are Bachelor of Engineering Science, Engineering Honours, Science, Environmental Science, Accounting, Business, Computer Science or Information Technology. The scholarships will support two new students commencing studies in each of the following years – 2020, 2021 and 2022.

The scholarships build on the $3 million investment made by INPEX and its Ichthys LNG joint venture participants in the North Australian Centre for Oil and Gas. The centre is a training hub for the oil and gas industry and was opened at CDU in 2012.

“We are excited to partner with Charles Darwin University for the INPEX scholarships that will directly benefit students in the Northern Territory,” said Mr Ueda.

“The education of our next generation and building the capability of our future workforce locally in the Northern Territory is very important to us – it’s one way that we can create shared value for the community and our industry.”

INPEX AUSTRALIA MEDIA RELEASE 31 July 2019 Page 2 of 3 The INPEX scholarships form part of a broader commitment to the NT that encompasses substantial economic and community benefits including the $24 million Larrakia Ichthys LNG Foundation Trust.

Launched in November 2018 with a $3 million payment, the Package (part of an historic agreement between INPEX, its Ichthys LNG joint venture participants and the Larrakia People) is considered to be the most significant long-term package of benefits and opportunities provided outside of native title obligations.

The Larrakia Development Corporation is now providing benefits from the Package to the Larrakia People through the Larrakia Scholarship and School Participation programs.

The recently released INPEX 2019-2022 Stretch Reconciliation Action Plan represents INPEX’s commitment towards reconciliation and builds on INPEX’s solid engagement with the Aboriginal and Torres Strait Islander communities where it operates.

INPEX President Director Australia, Mr Hitoshi Okawa said Aboriginal and Torres Strait Islander-owned businesses have shared in the success of Ichthys LNG.

“We are also committed to delivering on our Solid Pathways program which ensures employment opportunities for Aboriginal and/or Torres Strait Islander people while also encouraging subcontractor employment and business opportunities,” said Mr Okawa.

“We are very proud that through Ichthys LNG and other projects we will be delivering economic and community benefits for decades to come in the communities in which we operate.

“That’s why we are pleased to support organisations, initiatives and events that deliver positive outcomes and opportunities for Territorians. We have invested more than $3.4 million into community programs in the Northern Territory since 2012.

“We particularly focus on young Territorians, health and wellbeing and local business capability. Some of the programs we support include the Volunteer Coastguard, Darwin Festival, the Girls Academy and Volunteering NT.”

Mr Okawa said the focus in Australia was to continue to ramp-up Ichthys LNG towards full production levels, while looking for future expansion opportunities.

Since October 2018, Ichthys LNG has safely produced 65 LNG, 14 LPG and 30 condensate cargoes.

Media Contact: Ms Susie Pantall, Communications Manager, INPEX Australia Office: +61 (0) 862136634 Mobile: +61 (0) 403330020 Email: susie.pantall@inpex.com.au

INPEX announced today it is funding six students at Charles Darwin University (CDU) to support their studies in courses relating to the oil and gas industry.

Through a five-year partnership, the students will each receive $5000 a year, for three years of their course. The scholarships will directly support

Territory students and enable them to pursue their studies at CDU and go on to build their careers in the Northern Territory.

The Territory’s onshore gas reserves alone contain an estimated 200 trillion cubic feet of reserves and contain enough gas to power Australia for 200 years.

Recent Deloitte Access Economics research found developing these resources could create up to 6300 new long-term jobs.

CDU Acting Vice-Chancellor Professor Sue Carthew said CDU was ideally positioned to help Territorians to equip themselves with the skills to take advantage of the emerging opportunities in the oil and gas sector.

“The oil and gas industry is playing an increasingly important role in the economic development of the Territory and CDU. With the generous support of INPEX, these scholarships will ensure Territorians can access these opportunities and the industry has a strong supply of suitably skilled new employees,” Professor Carthew said.

INPEX Corporation Representative Director, President and CEO Takayuki Ueda said INPEX was committed to supporting education and employment opportunities for young people.

“We are excited to partner with Charles Darwin University for the INPEX scholarships that will directly benefit students in the Northern Territory,” said Mr Ueda.

“The scholarships will help students to complete their studies and go on to build careers in the Northern Territory.”

The $90,000 commitment to scholarships builds on the $3 million investment made by INPEXoperated Ichthys LNG to support the establishment of the North Australian Centre for Oil and Gas.