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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.

Senex completes $400 million Surat Basin gas development project

15/06/2020 Posted by Dale

Senex Energy has completed its 100% owned Surat Basin natural gas development project, establishing the Brisbane-based independent exploration and production company as an important supplier of gas to the domestic market.

Senex also revealed in a market update that it has completed its 80 well Surat Basin drilling campaign, down from approximately 110 wells originally planned due to continued production outperformance.

In conjunction with infrastructure partner Jemena, Senex has also successfully built and commissioned natural gas facilities at Roma North and Atlas, which is set to deliver greenfield gas processing infrastructure capacity of more than 20 petajoules (PJ) a year.

IPC referral a ‘step closer’ for domestic gas supply in NSW

15/06/2020 Posted by Dale

APPEA has welcomed confirmation that the NSW Independent Planning Commission (IPC) has received a referral for the Narrabri Gas Project.

APPEA Chief Executive Andrew McConville said the referral was a critical step in assessing the project for NSW and providing new gas supply for the state.

“This is an important project for the NSW economy and will play an important role in its economic recovery”, Mr McConville said.

“NSW relies on interstate gas for 96 per cent of its needs and the Narrabri Gas Project could supply up to half of NSW’s gas needs.

“More than one...

US oil production shows signs of recovery

09/06/2020 Posted by Dale

United States crude oil production is showing signs of coming back to life, according to data and analytics company, GlobalData.

This follows the release of data by the Energy Information Administration (EIA) tracking weekly petroleum activity supplemented with information on refined products supplied and weekly crude oil stocks.

“Production cuts in US shale over the last two months have started to have an impact on the US oil market. Refinery utilization is still lower than normal but it seems stable, seeing a small increase over last month.

Rystad Energy predicts imminent crude oil deficit

09/06/2020 Posted by Dale

The forced oil production shutdowns and the extension of the generous OPEC+ voluntary cuts into July will not only balance the Covid-19-hit global crude and condensate demand, but are deep enough to create a monthly deficit starting from June 2020 and continuing uninterrupted until at least the end of next year, a Rystad Energy analysis says.

The energy research and business intelligent company said the oversupply, which sent WTI oil prices into the negative earlier this year, is a thing of the past “as long as OPEC+ compliance stays strong and the oil demand recovery trajectory isn’t radically altered.

PGS tightens the reins to ride out COVID-19 storm

09/06/2020 Posted by Dale

PGS says it will implement further cost reductions to bring annual gross cash cost run-rate to approximately $400 million through staff reductions, re-organization, consolidation of offices, re-negotiation of service agreements and other cost measures.

The Norway-based marine geophysics company said the Covid-19 pandemic and related disruption in the oil market had caused unprecedented challenges for the seismic industry and would temporarily cause a significant reduction of activity levels. PGS is responding to this challenge by further adjusting its cost base to the lower activity level while retaining its core global capabilities and ability to scale up when demand resumes.

Earlier PGS had announced the stacking of three out of the eight 3D vessels operated at the start of the year, and several other cost measures.