Lower revenue, lower costs and maintaining strong safety, reliability and service performance are thenfocus of proposed future plans announced recently for Western Australia's Dampier to Bunbury Natural Gas Pipeline (DBNGP) and its customers out to the year 2025. The pipeline - part of the Australian Gas Infrastructure Group (AGIG) - is the backbone of the WA economy, linking the gas fields in the State's north-west directly to mining, industrial, and commercial customers. AGIG's Chief Customer Officer, Andrew Staniford, said the Draft Plan released outlines DBNGPmactivities and expenditure proposed to be undertaken from 2021 through to 2025.
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APPEA welcomes Australian wholesale gas prices that are below Asian average
Australia’s average gas prices are amongst the lowest in Asia, according to the latest international survey of wholesale gas prices. The 2019 International Gas Union’s Wholesale Gas Price Survey shows the average wholesale gas price in Australia last year ($US4.54/MMBTU) was about 40 per cent less than the average wholesale price for the Asia‑Pacific region. The Australian price was also 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 over $US8 and in some cases approaching $US12/MMBTU.
Oil price spike boosts Bass Oil’s bottom line, despite shutdowns
Australian-based, Indonesian oil producer, Bass Oil has released a monthly operations update for April 2019 production from the Tangai-Sukananti field onshore Indonesia of 20,273 barrels of oil (11,150 barrels of oil net to Bass). Bass said monthly oil production and sales were down slightly during March with April production rates averaging 676 bopd. However, oil prices were up 8% during April. The average monthly realised oil price was US$67.39 compared with a monthly average oil price of US$62.49 per barrel recorded in March.
Anadarko signals imminent FID for giant Mozambique LNG gas project
Anadarko Petroleum is weeks away from an anticipated final investment decision for its Mozambique LNG project next month. Chevron exited takeover talks with Anadarko last week, but the company is still being wooed by Oxy and said that FID for the Mozambique offshore gas project would be made on June 18. Anadarko CEO Al Walker said: “With commitments for financing in place, off-take secured, and all other issues under negotiation successfully addressed, we are excited to take the next step with the expected announcement of a Final Investment Decision (FID) for the Mozambique LNG project on June 18.
Otto acquires available interest in Gulf of Mexico lease
West Perth-based Otto Energy has acquired the remaining 50% working interest in the VR 232 license located in the US Gulf of Mexico from Byron Energy. Otto announced that the lease is subject to a 12.5% Federal Government royalty and the lease rental is US$31,681 per annum. The lease expires in June 2023. VR 232 is adjacent to South Marsh Island Block 71 (SM 71) oil field and production platform, which is operated by Byron with partner Otto holding a 50% interest. The platform has capacity to produce up to 5,000 bopd from up to six wells.
APPEA applauds NT Budget for ‘vital role of gas investment’
The Association of Petroleum Production and Exploration Association (APPEA) has responded to the recently released Northern Territory Budget, saying the blueprint ‘highlighted the key role the oil and gas industry will play in the long-term growth of the Territory’s economy’. ‘Treasurer Nicole Manison recommitted to the Government’s Gas Strategy which outlines a five-point plan to develop the NT’s substantial offshore and onshore gas resources to create new jobs and opportunities for downstream gas-based manufacturing,’ APPEA said in a statement.
TGS acquires Spectrum in major merger deal
TGS will acquire Spectrum in a deal which has been announced as a merger set to create a “leading provider of 2D and 3D seismic data”. This follows an agreement of shareholders of both companies, triggering a transaction which is expected to be completed as a statutory merger pursuant to Norwegian corporate law between TGS and Spectrum. Under the terms of the agreement, Spectrum shareholders will received 0.28 shares for one Spectrum share in addition to a cash consideration of US$0.
Santos spuds appraisal well at Dorado
Santos has started drilling the Dorado-2 appraisal well in WA-437-P offshore Western Australia. Dorado is operated by Santos with Carnarvon Petroleum as a partner with a 20% interest. Carnarvon Petroleum said the Noble Tom Prosser jack-up drilling rig had been mobilized from the Corvus-2 well location to the Dorado-2 well on April 26. After arrival at the Dorado-2 location, located 2.2 km from the original Dorado-1 well, the rig had concluded the ready to operate process and had drilled the surface hole and installed the surface casing.
Shearwater set to shoot seismic at SNE field
Shearwater has won a contract to conduct a 3D seismic survey over the SNE field offshore Senegal. This was revealed in a first quarter update recently by FAR, which said the high-definition 3D marine seismic survey contract was awarded to improve reservoir definition supporting SNE well positioning and optimization. FAR said the survey was scheduled to begin in June as part of the SNE field development encompassing the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture, which is operated by Woodside and includes JV-partners Cairn Energy, FAR Limited, and Petrosen.
EMEA leads oil and gas contract awards with 569 contracts in Q1 2019
In Q1 2019, the oil and gas industry reported 1242 contracts, of which 1178 were awarded contracts, according to data and analytics company, GlobalData. EMEA (Europe, Middle East and Africa) recorded the most contracts with 569 contracts, representing around 48% of the total awarded contracts in Q1 2019, followed by the Americas region with 366 contracts, accounting for 31% of the total awarded contracts. The company’s latest report states that the upstream sector reported 73% of the total awarded contracts, with 862 contracts.