Australia NEWS

Chevron Corp yesterday informed about launching one of the world’s largest carbon capture and storage projects. The project involves infusing carbon dioxide into a deep reservoir under an island off Western Australia at Chevron’s Gorgon LNG project. Chevron said that approximately 3.4 to 4 million tonnes of CO2 will be buried every year after the facility reaches full capacity. Gases emitted from the Gorgon field contain at least 14% CO2.

Australian E&P firm, Woodside Petroleum registered lower revenue in the second-quarter earnings released yesterday. Woodside saw a 32% dip in revenues, the first decline in the last six quarters. Revenue dropped over the extension in the maintenance period at the Pluto liquefied natural gas (LNG) facility and weaker prices. Woodside recorded a lower production for the quarter at 17.3 million barrels of oil equivalent (mmboe).

Australian energy firm, Santos Ltd has registered record gas production in the second quarter, supported by stronger output across its gas assets. Santos recorded a jump from 14.2 mmboe last year to 18.6 mmboe. The production figure beat analysts’ expectation of 17.78 mmboe. Santos also saw a jump in sales for the three-month period to 22.4 mmboe from 19.1 mmboe in the previous year, producing $959 million in revenue.

As the world’s biggest LNG exporter struggles with a looming gas shortage, imports of liquefied natural gas to Australia now appear "highly realistic", says the U.S. energy giant Exxon Mobil. According to the experts, the industry needs at least $6.9 billion to meet longer term gas demand. Further, this would bring down high prices which are affecting many manufacturers.

EPC giant, TechnipFMC has secured a contract from ConocoPhillips for the provision of the subsea production system for the Barossa project, offshore Australia. The scope of the contract includes the engineering, design and fabrication of wellheads, manifolds and control system, apart from the installation and commissioning assistance. ConocoPhillips operates the Barossa Caldita project where Santos and SK E&S are partners.

Australia’s largest independent oil and gas company, Woodside has inked a Heads of Agreement (HOA) with China-based ENN Group. The agreement requires Woodside to supply 1 million tpy of LNG from its portfolio for a 10-year duration, starting in 2025. The agreement which was signed during the LNG 2019 conference in Shanghai, comes on the backdrop of the cooperation agreement signed in October 2018.

Aker Solutions has been awarded a master contract for subsea compression system. The contract is for the Chevron Australia-operated Jansz-Io field, offshore Australia. Under this master contract, the first service contract will be for front-end engineering and design of a subsea compression station in order to boost gas recovery from the field. The scope of this contract will also include an unmanned power and control floater, and field system engineering services.

Shell and PetroChina's joint venture Arrow Energy has won leases for a project worth $7.2 billion. The project aims at the development of Australia's biggest coal seam gas resource. In order to cut the project's cost, Arrow will use QCLNG's gas processing and pipeline infrastructure. According to the Queensland government, 14 leases have been granted to Arrow Energy for the Surat project.

Japanese offshore floating platform supplier, MODEC International has secured the FEED contract for Woodside Energy’s SNE Field Development Phase 1 floating production storage and offloading (FPSO) facility. The total capacity of the FPSO is estimated to be 100,000 bbl/day, with first oil expected in 2022. The design of FPSO will be carried out in a way that it allows the integration of subsequent SNE development phases.

Australian oil and gas giant, Santos has informed about producing first oil from the Van Gogh infill project, offshore Western Australia. The project, which commenced in September of 2018, involved drilling of two subsea wells and their completion. The wells were, then, connected into existing offshore infrastructure. Santos holds 52.5% stakes and the operatorship of the Van Gogh-Coniston-Novara project.

Australia-based UGL has received contract extensions from its clients to continue the maintenance and turnaround services. The CIMIC unit said that total revenue generation from these contracts will reach approximately AUS$200 million. MD, UGL said: “We are proud of our close working partnerships with leaders in the oil and gas sector in Australia. These contracts reflect UGL’s reputation for strong performance and safe delivery of maintenance and shutdown services.”

Australian oil and gas giant, Woodside has reported a significant jump in its 4Q18 earnings. Woodside generated AUS$1419 million in sales revenue, marking a 43% surge from 4Q2017. The fourth quarter seemed very fruitful for Woodside, where not only its production jumped by 10%, but it also achieved 99.7% reliability at Pluto LNG. Additionally, the production from Wheatstone LNG Train 1 and Train 2 continued to exceed expectations.

Maersk Supply Service has been given a contract by Chevron Australia. This contract is regarding the two newbuild anchor handling tug supply vessels of Maersk which will be used in Chevron’s Gorgon Stage Two drilling program. The services will start from the second-quarter of 2019. Towing, anchor handling, supply, and WROV services will be provided by Maersk Mariner and Maersk Master.

Australian energy major, Woodside Energy has informed about the successful commission of the Pluto domestic gas pipeline. Woodside used the Pluto pipeline by delivering first gas to the 1600 kms-long Dampier to Bunbury Natural Gas Pipeline (DBNGP) in Western Australia. The Pluto gas pipeline will add to Woodside’s domestic gas supply portfolio.

Total has decided to sell 4% stakes in its Australian Ichthys LNG project to Inpex. This procurement will be worth $1.6 billion following cost overruns. Total E&P President said “This transaction is part of our constant portfolio review to optimize our capital allocation,” He has also given assurance that Total will be committed to its Australian project and won’t give up its 26% stakes in the same.

Supermajor, ExxonMobil and its joint venture partner BHP have made a final investment decision (FID) on the development of the West Barracouta gas field, offshore Victoria, Australia. FEED work for the project has already been concluded and subsequently, contracts were awarded to Subsea 7 and OneSubsea. The project aims at boosting domestic gas supplies in Victoria. A report published by Australian Energy Market Operator dictates looming gas shortage in Victoria by 2022.

In another major divestment move, Royal Dutch Shell has farmed out its stakes in the Greater Sunrise fields for £235 million. Southeast Asian nation, Timor-Leste will buy Shell’s 26.56% interest in the Sunrise and Troubadour gas and condensate fields. Timor-Leste will gain ownership of Shell’s permits NT/RL2 and NT/RL4 within Australian waters and PSC 03-19 and PSC 03-20 within Timor-Leste waters and associated governance agreements.

Woodside Petroleum Ltd informed that it has inked a 20-year gas sale and purchase agreement (SPA) with Perdaman Chemicals and Fertilisers Pty Ltd. The agreement will lead to the pipeline supply of 125 TJ of gas per day for use in Perdaman’s proposed urea plant. Woodside will source the gas to Perdaman from its proposed Scarborough development.