Bright and early on a Sunday morning 20 intrepid PESA members met at the Boab tree in Kings park ready to embark on a tour of the Swan Valley, and an intellectual journey that allowed for the geography of our working lives to be mapped onto the geology, geography and scale of the city we live in. The morning began with an open air “powerpoint” presentation, by trip leaders Simon Lang and Neil Marshall.
Industry
APPEA calls out fake news on Australian wholesale gas prices
The latest international survey of wholesale gas prices confirms that Australian prices are amongst the lowest in the Asia region, according to the Association of Petroleum Production and Exploration Association (APPEA). This follows the International Gas Union’s Wholesale Gas Price Survey 2018 revealing that the average wholesale gas price in Australia last year ($US4.62/MMBTU[1]) was about 40 per cent less than the average wholesale price for the Asia‑Pacific region and around one-third less than the average wholesale price in Asia. Australia’s leading trade partners Japan, South Korea and China all paid average wholesale gas prices between $US7 and over $US8/MMBTU.
Bass Oil negotiates extension terms for acquisition of Indonesian oil field
Bass Oil Limited says it has negotiated an extension of its settlement terms with Cooper Energy for the acquisition of its 55% interest in the Tangai-Sukananti KSO in South Sumatra. Under the agreed new payback terms, the timetable for a third payment of $500,000, due 30 September this year, has been deferred until 31 March next year. The fourth and final payment of $770,000, due to be paid by Bass to Cooper Energy by 31 December this year, has now been deferred until 30 June 2019.
Australian Gas Infrastructure Group awarded $170 million N.T. natural gas pipeline contract
Australian Gas Infrastructure Group (AGIG) has been awarded the contract to build a new $170 million Northern Territory gas pipeline for Newmont Mining Corporation. The contract is for AGIG to build, own and operate the new 440-kilometre pipeline which will transport natural gas to Newmont’s Tanami mine sites, about 540km north-west of Alice Springs, in the Northern Territory. The pipeline – to be called the Tanami Gas Pipeline – will connect to the existing Amadeus Gas Pipeline, about 180km north-west of Alice Springs, and link up with supply of gas to Newmont’s Tanami facilities.
Oil demand tipped to top 2 million barrels a day extra in 2H
The worst kept secret in the oil world this week is how much Russia and Saudi Arabia plan to increase output to cool rising crude prices in the coming weeks, the popular estimation suggesting that the spigots could open up to about 700,000 barrels a day in the second half of 2018. Brent crude fell over 1.5% to US$74.21 at the start of this week and was 1.8% down on their last close, having initially risen on Friday after the OPEC agreement had failed to meet confirmed expectations of a 1 to 1.
New Harry Butler Science Centre opened on Barrow Island
The Harry Butler Science Centre, named in honour of the Australian environmental pioneer, was officially opened on Barrow Island last week by Chevron and Murdoch University as partners of the University’s Harry Butler Institute. Representatives from Murdoch University, Chevron and the Department of Biodiversity, Conservation and Attractions travelled to Barrow Island to launch the Centre and tour both Chevron’s oil and gas production facilities and the ‘Class A’ nature reserve of Bandicoot Bay.
Global LNG capacity is set to soar
Global liquefied natural gas (LNG) liquefaction capacity is expected grow 117% from 419 million tonnes per annum (mtpa) in 2018 to 907mtpa in 2022, according to data and analytics company, GlobalData. In regional terms, North America continues to lead in terms of planned and announced liquefaction capacity growth, contributing 82% of the total global growth. The region is expected to add 400 mtpa of liquefaction capacity by 2022. Africa and Oceania follow with expected capacity additions of 37 mtpa and 26 mtpa, respectively. From a country perspective, the US leads in terms of planned liquefaction capacity additions with 259 mtpa.
OPEC trio ready to red card Russia and Saudi Arabia
Saudi Arabia and Russia’s desire to open the spigots to cool the surging price of oil is heading for a World Cup style gang tackle from Iran, Venezuela and Iraq at the OPEC meeting in Vienna on Friday. According to Bloomberg, quoting Iran OPEC representative Hossein Kazempour Ardebili, any agreement to raise or cut output agreement requires unanimity from the Vienna meeting and any attempt at increased production will meet with resistance. Russian Energy Minister Alexander Novak has suggested a desired output of 1.
Geoscience study sees below the salt to solve exploration challenges in Southwest Africa
Surmounting the significant challenges of mapping deep structures below salt with seismic data alone, a new non-seismic study which includes the Gabon to Angola margin, encourages further interest in the largely under-explored Southwest Africa offshore region. The newly-released Southwest Africa Margin SEEBASE® multi-client Study and GIS from Frogtech Geoscience focuses on syn-rift basement evolution highlighting the pre-salt petroleum plays that constitute the main target following the recently discovered giant field accumulation in the South Atlantic-conjugate margin of the Santos basin in Brazil.
Oil and gas industry’s $27 billion boost to Australian business
The Australian Petroleum Production and Exploration Association has welcomed the release of data that highlights nation-wide benefits flowing from Australia’s oil and gas industry. This follows an APPEA member survey reflecting widespread economic benefits from the sector. “The economic footprint of the oil and gas industry goes far beyond its production wells and eight liquefied natural gas (LNG) plants. Oil and gas is not ‘just’ a resources industry – the industry supports a vast supply chain of businesses in manufacturing, services and construction, said APPEA Chief Executive Dr Malcolm Roberts.