Archives for June 2020

June 2020

LNG industry facing ‘strong headwinds’ from all sides

30/06/2020 Posted by Dale

The Resources and Energy Quarterly June 2020 release has confirmed the critical role resources and energy exports play in supporting the Australian economy but points to challenges ahead.

According to the Department of Industry, Science, Energy and Resources, the value of Australia’s resources and energy exports set a record $293 billion in 2019-20, up from $281 billion in 2018-19. The resources sector, including oil and gas, accounted for more than a quarter (28 per cent) of Australia’s GDP growth in 2019.

Liquefied natural gas (LNG) exports have more than doubled over the last few years and are contributing significantly to this growth.

US LNG exports decline as buyers have all the flexibility

30/06/2020 Posted by Dale

Following the continued cancellation of US LNG cargoes, data and analytics company GlobalData, says buyers hold all the aces in the current COVID-19 inflicted climate which has impacted investment decisions on major LNG projects.

Adrian Lara, Senior Oil & Gas Analyst at GlobalData, said: “One of the reasons why the US is experiencing a high number of cargo cancellations has to do with the flexibility embedded in the selling of contracts, which is proving to be an advantage for LNG buyers.

The US tolling scheme establishes a penalty generally equal to agreed liquefaction fixed costs of US$2 to US$3 per million British Thermal Units (mmbtu), which is normally a lower penalty when compared to the penalty in traditional LNG take-or-pay contracts.

Knowledgette Partners with PESA to Promote Oil and Gas e-Learning

30/06/2020 Posted by Dale

Palo Alto, CA (June 19, 2020) -- Knowledgette, an online learning platform specializing in bite-sized video lectures for the oil and gas industry, and the Petroleum Exploration Society of Australia (PESA) have partnered to deliver even more learning resources to individuals in the oil and gas industry.

“Furthering our mission to deliver short, in-depth, and engaging content individuals at all stages of their career in the oil and gas industry, we are thrilled to add PESA to our partner network,” said Dr. Shipeng Fu, Knowledgette’s Founder and CEO.

PGS and ION Announce Global 2D Exploration Collaboration

30/06/2020 Posted by Dale

PGS and ION Geophysical Corporation have announced an agreement to collaborate globally on 2D exploration data.

Both companies have modern, high-quality MultiClient data libraries that together cover all the significant hydrocarbon provinces around the world. The new joint data library will comprise nearly one million line kilometres of uniquely complementary data, including many areas of genuine broadband seismic that have substantial opportunity for integration and reimaging.

Drawing on PGS broadband 2D GeoStreamer® offering and ION’s latest imaging technology, the companies will produce enhanced deliverables with higher resolution and greater spatial coverage, offering deeper insights and more reliable pre-stack attributes for exploration screening on a global basis.

Geoprocesados sambas with DUG McCloud as Brazilian P&I centre is opened

22/06/2020 Posted by Dale

Geoprocesados and DownUnder GeoSolutions have announced the opening of a new DUG McCloud-based seismic processing and imaging centre in Rio de Janeiro, Brazil.

Operating as Geoprocesados Serviços Sismicos, this new centre will offer clients a full suite of P&I services, for both onshore and offshore projects, including advanced least-squares imaging tools such as reverse time migration and high-frequency full-waveform inversion, DUG said in a media release.

Geoprocesados General Manager Javier Rubio said: “Geoprocesados has been operating successfully in Mexico, Argentina and Colombia for more than 20 years, providing advanced seismic P&I services.

“Brazil has become the largest oil-producing country in Latin America and we see a great opportunity to expand our operations into this very active market.

APPEA lauds Victorian bill set to lift moratorium on conventional gas exploration

22/06/2020 Posted by Dale

APPEA says the Petroleum Legislation Amendment Bill's 2020 passage through the Victorian State Parliament has set the scene for a resumption of onshore gas exploration in the state, which should lead to more gas supply flowing to Victoria’s homes and businesses.

Australia’s oil and gas industry congratulated the State Government and Opposition in supporting the lifting of the onshore conventional gas moratorium from June 2021.

APPEA Chief Executive Andrew McConville said the legislation passed was a step in the right direction to help ensure that Victoria has ongoing secure supplies of natural gas.

The Australian Energy Market Operator has forecast shortfalls in Victorian gas supply as soon as 2024 if more supply is not developed.

Sole delivers on gas promise as Orbost inches towards terajoule target

22/06/2020 Posted by Dale

Cooper Energy says 1.8 petajoules of gas from the Sole gas field has been processed and supplied into the Eastern Gas Pipeline from the APA-owned and operated Orbost Gas Processing Facility.

In a market update Cooper Energy, who are contracted to supply the gas to APA Group for customers in south-east Australia, said progress on commissioning activities since March 10 had demonstrated Orbost Gas Plant’s capability to produce sales specification gas from the Sole raw gas stream.

“A total of 1.

3D Oil gets green light from NOPSEMA for ConocoPhillips deal

22/06/2020 Posted by Dale

NOPSEMA has approved a farm-out agreement which will enable ConocoPhillips to earn up to 80% of 3D Oil’s T/49P exploration permit on the proviso that the latter spends the first $43.44 million in exploration funds on the project.

The deal makes provision for ConocoPhillips to front a $5million cash payment and complete a 1580km 3D seismic survey, in return for transfer of the title of the T49P exploration licence.

Following initial drilling, 3D Oil will retain a 20% stake in the permit and will then be liable for its share of payments for further drilling.

The permit is located in the eastern offshore Otway Basin, west of King Island, and covers an area of 4,960m² in water depths of 100m.

3D Oil gets green light from NOPSEMA for ConocoPhillips deal

16/06/2020 Posted by Dale

The deal makes provision for ConocoPhillips to front a $5million cash payment and complete a 1580km 3D seismic survey, in return for transfer of the title of the T49P exploration licence.

Following initial drilling, 3D Oil will retain a 20% stake in the permit and will be liable for its share of payments for further drilling.

The permit is located in the eastern offshore Otway Basin, west of King Island, and covers an area of 4,960m2 in water depths of 100m.

Sluggish LNG exports feel the effects of COVID-19

15/06/2020 Posted by Dale

Australian LNG shipments appear to be starting to see the impacts of the COVID-19 pandemic and the global oversupply of LNG, according to the EnergyQuest’s Australian LNG Report for May.

Australian LNG shipments in May were down by seven cargoes compared with April, primarily due to lower cargoes from APLNG and Ichthys, the report stated.

Elaborating on issues that affected exports, EnergyQuest said APLNG buyers had exercised downward contract flexibility and the project had extended planned maintenance, originally planned for 27-31 May, to 27 May to 18 June.

Ichthys has also undergone planned maintenance which affected cargoes.

In May Australian projects shipped 6.4 million tonnes (Mt) (93 cargoes), lower than 6.9 Mt (101 cargoes) in April.