Woodside has flagged potential first Browse basin gas from the mid-2020s. However, it remains unlikely that the Perth-headquartered oil and gas producer intends to deploy floating LNG or construct a new onshore plant, as was the initial plan near Broome, if and once the suspended project does receive FID. At Woodside’s annual general meeting on Friday, CEO Peter Coleman gave a hint of where Woodside was heading with Browse, saying: “As you know, we have worked for some years to find the right development concept for the world class Browse resources. I’m very excited about where we are headed.
Industry
Arrow enters FEED for Surat expansion
“Arrow’s planned expansion of its Tipton operations may involve up to 90 wells in the initial phase and up to another 180 wells over the next 25 years,” Mr Turner said.
“This initiative – coupled with the recent announcement by QGC, a Shell joint venture, that it will soon start drilling up to 161 additional wells as part of Project Ruby – shows the industry in Queensland is getting on with the job.
Mr Turner said that all parties know that the only way to meet gas demands for exports, domestic manufacturing, and energy generation in a sustainable manner is to increase supply, which is exactly what Queensland operators are going.
Oil feels the squeeze
Oil discoveries declined to 2.4 billion barrels in 2016, compared with an average of nine billion barrels per year over the past 15 years, the International Energy Association (IEA) has reported. The IEA added that the volume of conventional resources sanctioned for development last year fell to 4.7 billion barrels, 30% lower than the previous year as the number of projects that received final investment decisions dropped to the lowest level since the 1940s.
McKINSEY sees upside in oil prices
McKinsey Energy Insights has released its latest Global Oil Supply and Demand Outlook predicting that oil prices will range within $60–70/bbl over the next three years. That is if the market trades ad MEI expects, in which case oil prices would increase to $65-75 by 2030. In the shorter term, MEI said that subject to OPEC continuing to fulfil its share of production cuts, having achieved 90% of its target in January, then the rebalancing process was likely to proceed relatively smoothly over the coming months.
APPEA warns against sovereign risk threat to Australia
The gas industry is disappointed to see the Australian Industry Group advocate half-baked policies that would definitely shred the incentive for investing in new gas projects, and that even AiGroup concedes these policies may not be feasible. “Calling for retrospective policy changes is a huge step for any business group,” APPEA Chief Executive Dr Malcolm Roberts said. “Suggesting government intervention to overturn contracts is almost unprecedented in Australia. “There is no doubt that we are facing a tight east coast gas market. There is no doubt that the market needs more gas supply.
Energy crisis SOS is in the pipeline
The oil and gas industry has welcomed the “constructive approach” proposed by the Queensland Minister for Natural Resources and Mines Dr Anthony Lynham which would see the state and commonwealth governments working with gas producers to boost supply. APPEA Queensland Director Rhys Turner said Dr Lynham's willingness to engage with the Commonwealth, including to develop new pipeline infrastructure, echoes what the industry has been saying for some time. "Developing new fields to bring more gas to market is the most important part of the equation right now," Mr Turner said. "Exploration is at a 30-year low.
Po Valley gets Bezzecca first gas go-ahead
Australian gas producer, Po Valley Energy, (ASX: “PVE”) is pleased to announce its 65% owned AIM-listed subsidiary, Saffron Energy (AIM:SRON) has received final approval from the Italian Ministry of Economic Development (UNMIG) for gas production at the Bezzecca gas field. Commissioning and gas production is scheduled to commence on the coming days. Bezzecca is located east of Milan within the established prolific, gas producing Po Valley region in northern Italy. Gas from Bezzecca1 is processed at the Vitalba processing plant and directly connected by the national grid.
APPEA applauds Queensland effort to boost gas supply
The announcement by QGC, a Shell Australia joint venture, that it has signed two new gas sales agreements with domestic customers is a clear demonstration that the Queensland gas industry is doing its bit to address concerns about domestic supply. This was said by APPEA Queensland Director Rhys Turner, who added that QGC’s announcement that it would be supplying gas for power generation in South Australia and manufacturing in Queensland should be a wakeup call to other state governments to act to bring on additional supply.
Polarcus announces Asia Pacific 3D contract.
Marine seismic acquisition company Polarcus has received a contract award for a broadband 3D marine seismic project in the Asia Pacific region. The marine seismic acquisition company announced the deal on April 7, but declined to reveal who the client was or any financial terms of the contract. Polarcus said the project was scheduled for the current quarter and would run for approximately two months.
CGG launches Sentinel for shallow target applications
CGG has announced that Sercel has launched Sentinel® HR, a high-resolution solid streamer designed to meet specific imaging needs of shallow-target applications, such as oceanology, civil engineering and reservoir characterization, as well as high-resolution 3D (HR3D) seismic surveys for detailed mapping of geological features. CGG said the latest member of the Sentinel streamer family has been developed with a close channel separation of 3.125 m to achieve reliable and cost-effective high-resolution surveys.