Exclusives

With Australia on its way to becoming a LNG force, Peter Coleman said the challenge for Australian LNG was the ability to shift from a project constructor and builder to a LNG “trader, marketer and producer.”

AWE could commercialize new sources of gas in Western Australia’s Perth Basin by mid next year after discovering an estimated 149 billion cubic feet of gas at the Irwin and Synaphea structures.

The Isosceles-1 exploration discovery well encountered about 134 m (440 ft) of net gas pay in the Triassic Mungaroo Sands in 968 m (3,176 ft) of water.

Santos drilled 16 wells in the GLNG acreage during the first quarter, which included 15 development wells in Roma and one appraisal well in Fairview, while 39 wells were completed as producers.

As a result of this decision, all Chevron equity interests in the joint ventures will return to Beach Energy for nil consideration.

Deepwater International

Santos has been awarded two exploration permits close to its existing acreage in the vicinity of the giant ongoing Ichthys LNG development in the Browse Basin offshore Western Australia.

The giant Inpex-operated Ichthys LNG Project has hit a couple of significant milestones, with the start of deepwater pipelay work on the 889-km gas export pipeline and the start of the development drilling program.

Browse FLNG development operator Woodside has pushed back its schedule for the large project to focus further on reducing costs, according to CEO Peter Coleman.

Plans for a newbuild semisubmersible production facility off North Western Australia look to be back on the development path. 

A production test is to get underway on an oil discovery offshore Brazil that is expanding nicely in terms of its size and scope as operator Karoon Gas Australia continues to firm up more reserves.

Exploration

Beach Energy Ltd. might sell Egyptian oil and gas holdings and focus on Cooper Basin, Gippsland Basin and Otway Basin acquisitions. Australian east coast gas demand drives effort, Bloomberg said.  

Australia has the seventh-biggest potential shale gas resources and sixth-biggest shale oil resources, EIA said, according to Bloomberg. Chevron’s recent pullout from Nappamerri Trough signals the country’s overall shale challenges. 

Offshore geosciences company Benthic received a contract to conduct a geotechnical investigation in the Sea Lion Field in the Bass Strait offshore southeastern Australia from Carnarvon Hibiscus Pty Ltd.  

Orca said the sale to Senex is “prudent” while oil prices are low, and will allow Orca to focus on its Seabiscuit project in Matagorda County, Texas.

The acquisition was made in cooperation with BGP Explorer.

Production

BP Plc plans to drill Great Australian Bight, home to several endangered species, in about a year, Bloomberg said. Environmentalists say full emergency spill response plans aren’t yet disclosed. 

BP Plc expects to drill in the Great Australian Bight offshore southern Australia later than expected, Bloomberg said. Delivery of  Diamond Offshore Drilling/Hyundai Heavy Industries rig could be delayed.

Subsea 7 has won a contract from Woodside Petroleum for the Persephone development.

Origin Energy’s Speculant-1 exploration well has discovered potentially commercial quantities of gas in Waarre Formation reservoirs in Australia’s Otway Basin, offshore Victoria within the Origin-operated VIC/L1(v) permit.

Senex Energy Ltd. has started production from the recently discovered Martlet oil field in the Western flank of the Cooper Basin.

Subsea Engineering

Statoil’s latest gas discovery in Block 2, offshore Tanzania, has given a further boost to plans for a major subsea-to-beach LNG project in the newest East Africa play. 

The government of Timor Lesté wants gas from the Greater Sunrise fields in the Timor Gap processed onshore and is willing to buy out operator Woodside Petroleum and any other partner who wants to sell.

The EPA of Western Australia has approved plans for expansion of the Greater Gorgon subsea gas-to-LNG project on Barrow Island into a fourth train. 

The Inpex group has begun development drilling at the Ichthys gas/condensate field in the Browse Basin, 200 km offshore northwest Western Australia.

The Western Australian Parliament has approved legislation to increase its share of Browse Basin gas fields following reclassification of the state’s  offshore boundaries. 

Technology

The company gets about 73% of its revenue from oil and gas and just over 50% of its sales are in Canada and the Americas.

The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary post-closing adjustments.

Woodside Petroleum and Apache Corp. closed the Australian Wheatstone LNG and Balnaves oil component transaction on April 2 for a total cost of US$2.817 billion, including a closing adjustment of US$567 million, according to a news release.

In a short statement to the market this morning, Woodside advised it took the precautionary measure after a drilling rig, which had been contracted to another party, became loose and drifted near gas flowlines at Pluto LNG.

With hydrocarbons plentiful, the region is a sleeping giant for the oil and gas industry.