Shell Seeks Okay for 2D Survey Offshore NW Australia

- Shell Seeks Okay for 2D Survey Offshore NW Australia

Monday, September 12, 2011
Shell Australia

Shell is seeking Federal Government environmental approval for a small 2D marine seismic survey off the North West Cape.

Subject to approvals the survey is planned to have a duration of around 12 days and to take place during the period from mid-November 2011 to the end of March 2012 avoiding the humpback whale migration.

At closest point the survey will be around 25km from Ningaloo Reef. As detailed in our environmental documentation Shell has elected that the 2D seismic survey will not come within a 10km buffer zone of the Ningaloo World Heritage Area.

The seismic survey is the final work commitment for permit WA-385-P in the current term.

In July 2011 Shell received environmental approval for the Palta-1 gas exploration well in adjacent permit WA-384-P.

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MEO Australia, Fugro Execute Zeus Survey Contract

- MEO Australia, Fugro Execute Zeus Survey Contract

Tuesday, August 30, 2011
MEO Australia Ltd.

MEO Australia Limited advises that a contract has been executed with Fugro Multi Client Services Pty Ltd for the acquisition and processing of a 323 km2 3D multi-client seismic survey (‘Zeus 3D survey’) in WA-361-P, in the Carnarvon Basin, offshore Western Australia. WA-361-P is located in close proximity to the existing North West Shelf Gas Project (16.3 Mtpa), the Pluto LNG project (4.3 Mtpa) under construction and the proposed Wheatstone LNG project (8.6 Mtpa).

The 3D survey is designed to enable improved mapping of Heracles and other leads which are potential candidates for drilling in 2014. The survey covers an area of poor seismic data quality and also fills some large gaps in the 3D seismic coverage for this area. In addition, the 3D survey is being acquired in an East - West direction which enables enhanced imaging via multi-azimuth reprocessing.

The 3D survey over WA-361-P is part of a 1,318 km2 multi-client survey to be acquired utilising the ‘M/V Seisquest’ commencing on or about 1st September. The survey will take approximately 7 weeks depending on weather and possible extensions to the planned program. The final processed volume is expected to be delivered during Q2-2012.

The 3D survey brings forward and fulfils the minimum Permit Year 2 (Jan 2012 – Jan 2013) work program commitment of 150 km2 new 3D seismic.

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Western Australia Advances Wheatstone LNG

- Western Australia Advances Wheatstone LNG

Tuesday, August 30, 2011
Government of Western Australia

Final environmental approval has been given for Onslow's Wheatstone LNG development.

Environment Minister Bill Marmion said approval was granted with 25 conditions protecting marine fauna, including whales, turtles and dugongs.

Approval followed the Minister's consultation with the ministers for State Development; Lands; Planning; and Indigenous Affairs, as required under the Environmental Protection Act 1986.

Significantly, the environmental conditions require:

• immediate suspension to dredging if coral outside defined zones is damaged
• no blasting at night during peak nesting and hatching seasons for marine turtles and no piling activity at night during the southern whale migration when humpbacks are travelling with their calves
• $13million in environmental offsets, including $3.5million over four years to improve management of critical habitats for humpback whales, dugongs and snubfin dolphins in Pilbara waters
• reductions in greenhouse gas emissions through offsetting approximately 2.6 million tonnes per year of reservoir carbon dioxide emissions.

"The State Government will continue to ensure the highest environmental standards are applied to protect the local community and its environment," Mr Marmion said.

"This is a huge development for Western Australia. At its peak, the construction workforce for Wheatstone is expected to reach 3,000 people, in addition to a further 3,500 indirect jobs and billions of dollars in locally purchased goods and services."

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Australia Pacific LNG Finalizes Subscription Agreement with Sinopec

- Australia Pacific LNG Finalizes Subscription Agreement with Sinopec

Tuesday, August 09, 2011
Origin Energy Ltd.

Origin Energy advised that the Subscription Agreement facilitating the acquisition by Sinopec of a 15% ownership interest in Australia Pacific LNG has been completed.

In addition, all conditions precedent have now been met for the sale of 4.31 million tonnes of LNG per annum by Australia Pacific LNG to Sinopec, commencing in 2015.

Australia Pacific LNG received US $1.765 billion for the 15% ownership interest. As a consequence, ConocoPhillips' and Origin Energy's ownership interest in Australia Pacific LNG has been diluted to 42.5% each.

This investment by Sinopec provides a net reduction in funding requirements of US $750 million to each of Origin and ConocoPhillips (being 42.5% of US $1.765 billion).

Origin Managing Director and Chairman of Australia Pacific LNG, Mr. Grant King said, "We officially welcome Sinopec to Australia Pacific LNG as a shareholder and foundation customer. We look forward to working alongside ConocoPhillips and Sinopec to deliver the Australia Pacific LNG project, drawing on the extensive experience and capabilities within the joint venture in CSG production, development and operation of LNG facilities."

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Australia to Dominate Floating LNG Market through 2016

- Australia to Dominate Floating LNG Market through 2016

Wednesday, July 20, 2011
Rigzone Staff
by Karen Boman

Australia's proximity to growing liquefied natural gas (LNG) demand in Asia, its sizable conventional and unconventional gas resources, stable fiscal regime and accessibility to international oil and gas companies, are driving LNG development in the Land Down Under.

UK-based energy research and analysis firm Douglas-Westwood reported that Australia will dominate the floating LNG market between 2010 and 2016 with $5.3 billion in projects. Thirty-six million tones per annum (mtpa) of LNG is under construction in Australia, and more than 120 mtpa is being proposed or in the planning stages, a number that keeps growing as companies discover additional gas reserves, according to the International Gas Union (IGU) World LNG Report 2010.



Australia currently produces 20 mtpa of LNG, but this production level could rise to more than 60 mtpa by 2016 and by 2035, a third of all planned production from proposed and sanctioned LNG projects could come from Australia, said Peter Cleary, VP of Corporate Strategy and Development for Santos Ltd.

LNG development in Australia is being driven partly by development of conventional gas reserves and by coal-bed methane gas to LNG projects, IGU noted. LNG projects under construction include Shell's Prelude floating LNG project, Woodside's Pluto project and Chevron's Gorgon LNG project. These projects represent 25 mtpa.

In Australia, the rapid rise of coal seam gas exploration, development and production has resulted in new additions to its supply. The revolution in coal seam methane has resulted in 16 mtpa of LNG supply from coal seam gas being sanctioned in the past year; another project may be sanctioned later this year, said Cleary.

Shell's recently sanctioned Prelude FLNG project will be one of the biggest game changers the industry will see. FLNG will unlock stranded gas fields, making these reserves commercially viable. "At Santos we are confident our Bonaparte LNG venture with GDF Suez will be another pioneering project in this field," Cleary said.

Santos, Australia's largest domestic gas producer, has a unique LNG portfolio consisting of its Darwin conventional gas supply project, a stake in the ExxonMobil-operated LNG project in Papua New Guinea focused on the Hides gas/condensate field, the coal seam gas to LNG project at Gladstone, and the Bonaparte floating LNG project.

Looking forward to the future LNG market, Cleary sees LNG exporters becoming importers, the increasing importance of partnership with national oil companies, increased market liquidity and trade flow complexities, and new technologies enabling the development of coal seam gas, shale gas, floating LNG and regasification and storage.

Historically, Australian coal bed methane, or coal seam gas development, has typically been part of an integrated power generation effort and/or focused on local retail gas distribution. But more recently, the engine of growth for coal seam gas has shifted to Australia, where there are hopes and plans to link the country's well known and readily accessible reserves and resources to the expected strong demand growth for gas in Asian markets, according to a Ernst & Young report, Coal seam gas: broadening the energy mix.

However, expanded coal seam gas supplies in Australia will face intense gas-on-gas competition, not only from other Australia gas/LNG projects but from other Southeast Asia sources as well as from the Middle East and Russia, Ernst & Young noted.

Australia LNG Project Update

Australia currently is the fifth largest LNG exporter worldwide, and the Australian oil and gas industry is seeking to make Australia the world's first or second largest LNG exporter by 2020, the Australian Petroleum Production and Exploration Association (APPEA) said.

At present, Qatar is the largest LNG exporter with approximately 77 mpta, nearly four times that of Australia's LNG export capacity. While a number of projects are planned for Australia, the majority of these projects will have to move forward if Australia were to replace Qatar as the top LNG exporter. Australia-based LNG projects also face challenges from the isolation of prospective sites, which makes sourcing difficult, environmental issues, aboriginal land rights and political issues. Westwood noted that the Greater Sunrise LNG project is being held back because the Timor Leste government wants an onshore plant rather than FLNG.

Shell in May made the final investment decision for its plans to produce gas from the Prelude field via an FLNG facility. Prelude is located in the Browse Basin, northeast of Broome Western Australia, in water depths of approximately 820 feet. According to APPEA, the country currently has two producing LNG developments, including the North West Shelf and Darwin projects, with three projects under construction in northern Western Australia, Pluto, Gorgon and Prelude, and two in Queensland - Queensland Curtis and Gladstone LNG.

Woodside Energy in late June signed a Native Title Agreement that would establish the Browse LNG Precinct near James Price Point north of Broome in Western Australia. The agreement will allow Woodside to proceed with development of its Browse LNG project. Meanwhile, the first LNG cargo delivery from Woodside's Pluto LNG project will take place in March 2012; the scheduling delay has been attributed to slower than expected progress on the commissioning of the onshore gas plant, seven weeks of direct weather delays and an allowance for an increased contingency. The revised estimate is expected to result in an A$900 million increase in cost to a total of A$14.9 billion (100% project). This estimate includes arrangements with customers affected by the delay.

Japan-based Inpex has received environmental approval from the Australian government for its Ichthys LNG project, paving the way for a final investment decision in this year's fourth quarter. The proposed project includes a subsea production system, semisubmersible central processing facility, a floating production, storage and offtake vessel located in the Ichthys field in the Browse Basin, approximately 124 miles offshore the northwest coast of Western Australia. Onshore gas processing facilities will be located at Blaydin Point, near Darwin. A 549-mile subsea gas pipeline will link the offshore and onshore facilities. Ichthys is expected to product 8.4 million tones of LNG and 1.6 million tones of LPG (liquefied petroleum gas) per year.

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Chevron, Apache, PTTEP Awarded Australia Exploration Permits

- Chevron, Apache, PTTEP Awarded Australia Exploration Permits

by Ross Kelly
Friday, July 08, 2011
Dow Jones Newswires
SYDNEY

Chevron, Apache and Thailand's PTT Exploration & Production (PTTEP) are among six companies that have been awarded new offshore oil and gas exploration permits by Australia's government.

Resources and Energy Minister Martin Ferguson on Friday estimated that exploration work on the six permits in waters off Western Australia and South Australia states will have a combined value of nearly A$137 million over three years, with further investment possible depending on exploration success.

Special conditions have been placed on PTTEP, which was responsible for the Montara oil spill offshore northern Australia in 2009. These include lodging governance processes with the regulator prior to drilling, preparing a spill mitigation report, and being open to a peer review of drilling operations at the regulator's discretion.

Other companies to win permits include MEO Australia and little-known Australian firms Flow Energy Ltd. and Bight Petroleum Corp.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Rolling Strikes to Begin At BHP Billiton Mine Tonight

- Rolling Strikes to Begin At BHP Billiton Mine Tonight



Jun 24, 2011

Rolling strikes will begin hitting BHP Billiton Ltd (NYSE:BHP) late Friday, beginning in its Blackwater coking coal mine in northeastern Australia, which it co-owns with Mitsubishi Corp.

The strikes are then planned move on to six other mines over the weekend and into next week, a union official said.

The strikes are being conducted by the Construction, Forestry, Mining and Energy Union, which is one of three unions representing more than 3,000 workers involved in contract talks with the BHP-Mitsubishi Alliance.

Earlier this month a series of six-hour strikers was conducted by workers at six mines in Queensland. The workers are demanding equal pay for contract workers and employees and a say by union reps in recruitment, among other things.

BHP Billiton has a potential upside of 22.5% based on a current price of $88.38 and an average consensus analyst price target of $108.3.

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Rodinia Spuds Well in South Australia

- Rodinia Spuds Well in South Australia

Thursday, June 09, 2011
Rodinia Oil Corp.

Rodinia has spudded its first well, Mulyawara 1, in the Officer Basin of South Australia.

Rodinia began drilling Mulyawara 1 on the morning of Thursday June 9, 2011, Australian Central Standard Time. Rodinia has an 80% working interest in this well and prospect, and is the operator. Drilling of Mulyawara 1 is expected to take approximately six to eight weeks to reach total depth after which prospective hydrocarbon shows will be tested.

Mulyawara 1 is located in the northwest corner of PEL 253 in the Officer Basin on a structure of approximately 36.3 square kilometers (per horizon) in size as identified on seven separate 2-D seismic lines. It will be drilled vertically to an estimated total drilling depth of 2,700 metres to test five prospective reservoir horizons: Murnaroo, Talina, Mundallio, Emeroo and Pindyin, the deepest of which is the aeolian Pindyin sandstone (also called the sub-salt unit).

Rodinia's drilling contract with Ensign International Energy Services includes four firm wells with the option for up to four additional wells in the Officer Basin. Rodinia's second drilling location, Kutjara 1, has recently been hi-graded and re-confirmed by additional 2-D seismic lines. Kutjara 1 is located in the west-central portion of PEL 253 approximately 35 kilometers southeast of Mulyawara 1.

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ConocoPhillips to Drill Off Australia to Evaluate Natural Gas Discovery

- ConocoPhillips to Drill Off Australia to Evaluate Natural Gas Discovery



May 17, 2011

Shares of ConocoPhillips (COP) are down on a Bloomberg report that the oil giant plans to begin drilling in the Browse Basin off Australia's northwest coast.

The move will come in the second or third quarter in an effort to judge the potential of discovering natural gas in the area.

ConocoPhillips shares are down 0.76%, or $0.54, to $70.89.

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Australia Players Still Pursuing Cooper Basin Shale Gas Potential

Australia Players Still Pursuing Cooper Basin Shale Gas Potential

Tuesday, March 29, 2011
Rigzone Staff
by  Karen Boman

Despite once-in-a-generation rainfall and flooding that disrupted exploration and production activity last year, Australia-based oil and gas producers are forging ahead this year with plans this year to drill for and develop the Cooper Basin's conventional and unconventional oil and gas resources.

Santos Ltd., noted that reports of the death of Australia's onshore Cooper Basin, which stretches across the northeast corner of South Australia into southwestern Queensland, are "greatly exaggerated" as the basin contains unconventional gas resource potential of more than 39,000 petajoules (PJ) and booked contingent resources of about 5,000 pj. Santos reports that undeveloped unconventional shale gas resources lay beneath the developed conventional resource Moomba basin, while tight gas and deep coal exist below shale gas. Gross gas thickness in the Cooper is approximately 1,600 feet.

Another Australia-based oil and gas company, Beach Energy, reports it has an aggressive exploration and development program planned for this year in its Cooper Basin holdings, and better land access for these activities following the Cooper Basin floods of last year, which washed out roads and prevented companies from accessing work sites.

The company currently operates 19 oil fields in the Cooper-Eromanga with five gas discoveries awaiting development and owns an approximate 21% interest in the Cooper Basin project operated by Santos. Since late 2006, Beach has participated in more than 100 oil wells operated by Santos, delivering net reserves of 4 million barrels. Beach Energy is in discussions with Santos, to supply its Gladstone liquefied natural gas (LNG) project.

Cooper Basin

 

Beach said its Cooper Basin position will allow it to tap the growing eastern Australian gas markets while also feeding the growing LNG demand in Asia. Beach noted that current Australian gas demand is approximately 700 pj per year, with around 100 pj to come from the Cooper Basin. Demand for more Cooper Basin gas is anticipated as domestic gas demand for use in power generation is expected to grow to around 1,100 pj by 2025.

The company estimates the Nappamerri Trough, which runs beneath its PEL 218 license, holds potential gas in place of more 200 Tcf, and holds properties similar to the best U.S. shale plays. Beach has drilled off-structure to determine the trough's deep basin gas potential, and found the target section thicker than anticipated at 1,289 feet and the target section gas saturated and over-pressured. Beach noted that no water bearing permeable sections were intersected in the target zone and immediately above and below target; the lack of water in these zones will assist in fracture stimulation.

The company has drilled two wells in PEL 218, which contains the Nappamerri Trough. The shale and sandstone target area for Beach's Encounter-1 well was 30 percent thicker than expected; Beach also spudded the Holdfast-1 well in January of this year.

Beach notes it has had encouraging results to date and expects material resource booking to take place this year. Results will assist in the design of future activities, including fracture stimulation in this year's second quarter and a pilot well program in the third or fourth quarter.

The company also sees near-term growth opportunities for oil in the Western Flank of the Cooper Basin. Beach began an operated 16-well development program here last month to accelerate production and will drill 12 exploration/appraisal wells with prospects ranging from .5 million barrels to 5.5 million barrel (gross).

The Cooper/Eromanga Basin

 

Drillsearch, which holds significant interests in the Cooper Basin, will began a five-well drilling program next month at its PEL91 license in Cooper's Basin's Western Flank. The five prospects, whose primary targets are the Namur and Birkhead channel, have estimated recoverable mean barrels of between 430,000 and 1.1 million. These prospects were defined using 3D seismic analysis; historically, Drillsearch has had 50 percent success rates using 3D seismic. Multiple commercial discoveries have been made on adjacent permits, and Drillsearch anticipates a short development cycle for the wells.

The company anticipates a formal award at mid-year for nine blocks in southwest Queensland, which will expand its Cooper Basin holdings. Drillsearch expects potential farm-outs of select areas starting in this year's second quarter.
Drillsearch is planning a significant drilling program for its estimated wet gas resources of 11.5 million BOE in the Cooper Basin. The company has made 10 gas/condensate discoveries in the area, including four declared commercial, and will pursue potential pilot development of the Middleton, Brownlow and Canunda discoveries. In the near term, the company plans a five well appraisal, development and near-field exploration program in PEL106B and PEL107.

Bengal Energy reports it has defined numerous leads and prospects on the Tookoonooka exploration permit ATP 732P, which the Queensland government announced a final grant of title to for Bengal effective April 1. Bengal will begin gather seismic data on the block and plans to drill between five and eight wells over the next 18 months. The company said the large block is offset by producing oil and gas fields, and features seven different play types, including four conventional light oil plays, two conventional gas and gas liquid plays, and one unconventional gas play.

The company also reports finding new potential fairway for oil-bearing Cretaceous Murta sandstones in its Cuisinier 1 discovery well, which began production in May 2010. Three wells are awaiting completion and testing either this month or in April, with the Cuisinier 3 cased as a potential oil well.