Industry News

Shell Australia’s Prelude floating liquefied natural gas (FLNG) facility left the Samsung Heavy Industries shipyard in Geoje, South Korea this morning, marking a significant milestone for the project. The facility, constructed by Technip Samsung Consortium, is being towed to North West Australia, where the next phase of the project will commence.

On arrival at the Prelude offshore gas field, 475 kilometres north-north east of Broome, Western Australia, pre-positioned mooring chains will be lifted from the seabed and secured to the facility. Once secure, the complex hook-up and commissioning process will begin.

The safe and reliable start-up of Prelude’s operations will be the project team’s focus through the next phase.

Follow this link to see footage of Prelude being towed out of the shipyard:

https://youtu.be/tFCY1MyDIDw

Maicon Engineering is pleased to announce its award of the Onshore and Offshore Spool Fabrication contract by Technip Oceania for the Shell Prelude Floating Liquefied Natural Gas (FLNG) project. 

The scope of work involves: 

▪ Fabrication of spools from exotic materials, including duplex and titanium 

▪ Fabrication of general items for connection of the Shell Prelude FLNG platform to the sub-sea risers on the sea floor. 

The works will be carried out in accordance with onshore fabrication and offshore installation schedule requirements. This contract will be managed and delivered out of our Darwin facility and builds on our track record as a quality and reliable contractor to the resource sector. 

View the full media release here.

The oil and gas industry welcomed the release today of the Northern Territory Economic Development Framework by Chief Minister Michael Gunner.

The Framework recognises the vital role that natural gas will play as one of the Northern Territory’s major growth sectors to maintain and grow living standards across the region.

APPEA’s Northern Territory Director, Matthew Doman said: “With almost 30 trillion cubic feet of offshore gas reserves, and potentially far greater resources onshore, the Northern Territory economy will benefit from the decades long development and production of natural gas for both domestic and export markets.”

The Framework highlights that the NT’s onshore basins are estimated to hold around 200 trillion feet of natural gas, enough to power Australia for 200 years.

“The oil and gas industry recognises that onshore gas development in the Territory must be done in an environmentally and socially responsible manner,” said Mr Doman.

View the full APPEA media release here.

Site Skills Training has moved its Northern Territory operations to 1 Campion Rd in East Arm.

The move increases Site Skills Training’s Territory operations from a 2,500sqm facility to an 8,000sqm facility.

Since commencing operations in the Northern Territory in 2012, Site Skills Training has delivered high risk licencing, health and safety and industry programs to over 15,000 Territorians and on behalf of over 400 companies operating in the Northern Territory.

The size increase and history of training represents Site Skills Training commitment to local jobs and increasing the training options available to Territorians.

Site have identified the increase as being part of a broader strategy to introduce programs and capability currently being run by Site and others elsewhere in Australia and Internationally, particularly to support development of local jobs for projects in the Oil and Gas, Mining, Construction, Energy and related industries. 

View the full SITE media release here

SITE NT Snapshot

Jamie Wills

General Manager Commercial and Corporate Affairs  

M. +61 409 490 554   T. +61 7 3114 5188 

World’s largest semi-submersible platform arrives in Australian waters The INPEX-led Ichthys LNG Project is celebrating the safe arrival of its central processing facility (CPF), the world’s largest semi-submersible platform, in the Australian waters of the Browse Basin today. 

The massive CPF (named the Ichthys Explorer) weighing 120,000 tonnes and with topsides measuring 130 metres by 120 metres, reached her final destination, 220 kilometres off the north coast of Western Australia, where she will be located for 40 years. 

“The safe completion of the 5,600 kilometre tow of the Ichthys Explorer from South Korea to the Ichthys Field, located 450 kilometres north of Broome, is another significant milestone for the Ichthys LNG Project,” Mr Louis Bon, Managing Director, Ichthys LNG Project stated. 

“The successful 34 day tow is a tribute to our world-class processes and the commitment of our personnel from around the globe” Mr Bon said. 

View the full media release here.

CPF Fact sheet

Last Sunday 80 Petroleum Club NT members and guests hit the water for the 2017 Bluewater Classic. Darwin turned on another perfect day as dry season has finally kicked in and 6 charter boats departed Cullen Bay at 6am to get the competition underway.

Individual winners:

!st: John Hogins (Northern Rise) - 125cm Jew Fish

2nd: Sally Dunn (INPEX) - 116cm Jew Fish

Overall winning boat: NT Ports and Marine, captained by Chris Litowchak

The presentation lunch was held at Yots Greek Taverna with plenty of prizes and encouragement awards.

The $8,000 Tiwi Islands Adventure package was won by Tracy Ryan after sponsor James Stokes conceded the prize by unluckily drawing his own ticket.

Article by Ashley Manicaros

TERRITORIANS have been left with $50 million of gas they will not use after the Power and Water Corporation was outsmarted in a supply deal.

Central Petroleum has won a deal to supply 9.85PJ of gas over five years to the Northern Territory Pine Creek Power Station operated by Energy Development.

Under the supply agreement, Central Petroleum has the right to supply gas from its central Australian fields of Mereenie, Dingo or Palm Valley, in a fixed-price gas contract which may increase subject to CPI.

In a further twist, Central Petroleum on Tuesday announced a gas transportation deal to move the gas along the Amadeus pipeline after negotiating directly with APA Group, owners of the pipeline.

The total deal, estimated at $50 million, has caught many gas analysts and Power and Water by surprise given the volume of excess gas available to the government-owned entity from Blacktip and its effective monopoly of gas transportation through both the Amadeus and Bonaparte pipelines.

Read the full article here. Article by Ashley Manicaros, NT News

Monadelphous Group Limited today announced it has been awarded a major, long-term offshore maintenance services contract for INPEX Operations Australia associated with the Ichthys LNG Project.

The contract is for an initial period of six years with a further two 2-year extension option and is located in the Browse Basin, approximately 450 kilometres from Broome, Western Australia. Monadelphous has been engaged to deliver operational, campaign and shutdown maintenance services and brownfield projects implementation associated with the Ichthys Central Processing Facility ‘Ichthys Explorer’ (CPF) and Floating Production Storage and Offloading facility ‘Ichthys Venturer’ (FPSO). 

The Ichthys LNG Project is ranked among the most significant oil and gas projects in the world, involving some of the largest offshore facilities in the industry, including the ‘Ichthys Explorer’, the world’s largest semi-submersible central processing facility. Commenting on the new contract, Monadelphous Managing Director Rob Velletri said “We are delighted to be awarded such a significant maintenance contract by INPEX Operations Australia for the world-class Ichthys LNG Project. The contract continues to strengthen our position as a major service provider of offshore maintenance services.” “We look forward to further strengthening our relationship with INPEX Operations Australia and working together to create sustainable economic and social development opportunities for local people, businesses and communities.”

Origin Energy Limited (Origin) today announced it had increased to 70 per cent its share in the Beetaloo Joint Venture* after acquiring Sasol Petroleum Australia Limited’s (Sasol) 35 per cent share. 

Origin CEO, Frank Calabria said, “Having recently announced the discovery of a material shale gas resource in the Beetaloo Basin, Origin has seized the opportunity to increase its interest in the Beetaloo Joint Venture by acquiring Sasol’s 35 per cent share.

“Origin would like to recognise Sasol’s contribution to the Beetaloo Joint Venture to date, as it departs the Joint Venture to focus its capital investment on its African and North American footprint.

“The Beetaloo Basin is the Northern Territory’s most prospective onshore basin for shale gas and our test results estimate the joint venture’s contingent resource at a substantial 6.6 TCF of natural gas.

“Along with joint venture partner Falcon Oil & Gas Australia, we look forward to progressing our understanding of the play and maturing the contingent resources to reserves over time, subject to the outcome of the Northern Territory’s inquiry into hydraulic fracturing.

“Recent events have demonstrated how crucial it is for Australia to continue to develop its abundant natural gas resources, in order to provide access to sufficient, affordable gas supply for businesses and homes across the nation.

“As one of the largest natural gas producers on the east coast, Origin will continue to look at opportunities to invest in the safe and responsible development of natural gas resources, such as those in the Beetaloo Basin. Gas will play an important role in the transition to a secure, affordable and cleaner supply of energy for Australia,” Mr Calabria said.

The transaction is subject to the satisfaction of certain conditions. It is not expected to impact on Origin’s short term focus on debt reduction as there are no immediate capital requirements in the Beetaloo.

Located about 500 kilometres south-east of Darwin, the three Beetaloo Joint Venture permits cover an area of more than 18,500 km2 within the Beetaloo Basin.

* BEETALOO JOINT VENTURE

Origin Energy Limited (Operator) **: 70%

Falcon Oil & Gas Australia Limited:    30%

** Via a wholly owned subsidiary

www.originenergy.com.au

JKC Australia LNG, the EPC contractor for the Inpex-led Ichthys LNG project’s onshore facilities, awarded the first commissioning subcontract to EnerMech.

The scope of work will include nitrogen/helium leak testing of the piping systems, cooling water system passivation and degreasing of the acid gas removal units.

EnerMech was selected as the preferred tenderer for the multi-million dollar specialist commissioning activities package.