Page 14 - AsianOil Week 31 2021

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even in the market environment of 50-60 US Mongolia limits gasoline in 2022 would remove the need for a similar
dollars per barrel. Based on the recognition, condition in this authorisation, but has
our E&P projects have been striving to imports from Russia decided a condition is still appropriate.
improve their profitability by optimizing the ACCC, August 5, 2021
business portfolio, including the sale of the Mongolia has decided to temporarily suspend
assets. the import of unleaded AI-95 and AI-98 Comet Ridge acquires
The environment surrounding the E&P gasoline from Russia until September 1 due to
business is expected to become even more a sharp rise in gasoline prices, according to a APLNG’s stake in Mahalo
severe due to the prolonging effects of the Mongolian Mineral Resources and Petroleum
COVID-19 since early last year, including the Authority announcement made on July 30. gas project
structural changes by the new normal after The agency said Mongolia has 45 days
the COVID-19 and acceleration of the global of reserves of the fuel types. Therefore, Comet Ridge is pleased to advise that it has
decarbonization. In light of this situation, we the government has announced that it is entered into binding agreements to acquire
have decided to end our promotion of the preparing to import AI-95 and AI-98 fuel Australia Pacific LNG Pty Ltd’s (APLNG)
Project and to transfer all shares of JACOS, from China instead of Russia. 30% interest in the Mahalo Gas Project,
after considering the medium- to long-term BNE INTELLINEWS, July 30, 2021 taking Comet Ridge’s interest from 40% to
position of the Project as we continue to 70% on completion. Comet Ridge has also
strengthen our resilience to low oil prices and executed a funding and option agreement
a low-carbon environment. OCEANIA with the continuing Mahalo JV partner,
JAPEX, July 29, 2021 Santos Ltd.
The Mahalo Gas Project encompasses
Mitsubishi Shipbuilding, QLD LNG producers the “Shallows” strata from surface down to
reauthorised to coordinate
the base of the Lower Mantuan Coal. The
Namura Shipbuilding gas plant maintenance “Deeps” will continue to be held 50:50 by
Santos and APLNG. There has been no new
Conclude Agreement on LPG The ACCC has reauthorised Australia drilling activity in the Mahalo Deeps since the
Lowesby 1 well was drilled in 1991.
powered vessels Pacific LNG Pty Ltd, Gladstone LNG, to APLNG at completion of the Acquisition
Cash consideration of $12 million payable
and the Queensland Curtis LNG
Mitsubishi Shipbuilding Co., Ltd., a part of Project to coordinate their maintenance and $8 million post-completion payment in
Mitsubishi Heavy Industries (MHI) Group, schedules, providers, and techniques for deferred tranches.
has concluded a technical cooperation another five years. Comet Ridge has access to $13.15 million
agreement with Namura Shipbuilding Co., “The reauthorisation means that all three of debt funding from Santos Ltd to fully fund
Ltd. relating to LPG(liquefied petroleum gas) gas plants can coordinate when their facilities the upfront Acquisition consideration ($12
powered very large gas carriers (VLGCs) and will be taken offline for maintenance,” ACCC million) and stamp duty costs ($1.15 million),
are capable of transporting both LPG and Chair Rod Sims said. due late 2021.
ammonia. Based on this agreement, Namura “This will reduce the likelihood of major In exchange for receiving loan funding
Shipbuilding will construct a LPG powered disruptions to domestic gas markets, which for the Acquisition, Comet Ridge is
VLGCs on order from MOL Group. could occur if multiple maintenance events providing Santos with the following rights
Mitsubishi Shipbuilding has developed an cause more than one facility to be taken offline to acquire various interests in the Mahalo
all-new type of VLGC applying its knowledge at the same time.” Gas Hub area:
and expertise accumulated through the The LNG producers’ facilities convert Option 1 - Santos may elect (for a period
construction and delivery of more than 80 natural gas into LNG for export. Each LNG up to six months post completion of the
VLGCs and midsized LPG/ammonia carriers. facility is connected to gas wells in the Surat Acquisition) to purchase a 12.86% interest in
Operating performance has been improved and Bowen basins of Queensland. However, the Mahalo Gas Project from Comet Ridge
by increasing the holding capacity of the they also purchase gas from nearby wholesale at proportional Acquisition value ($8.57
cargo tank from the earlier 83,000m3 to markets. million); and
87,000m3, while engineering enhancements When any of the applicants’ LNG facilities Expansion option – Santos has an
have resulted in improved fuel efficiency. are offline, they may redirect their gas to exclusive right to negotiate an option, on
In addition, Mitsubishi Shipbuilding has wholesale markets for sale. The LNG plants commercial terms to be agreed, to purchase
applied its technologies in gas handling to use very large quantities of gas and their from Comet Ridge, an additional 7.14%
develop a new system capable of using LPG facilities going offline can have a significant interest in Mahalo Gas Project (equalising
in the cargo hold as fuel to propel the ship. effect on the market price. Santos and Comet Ridge interest at 50%
This ability to secure LPG fuel from the cargo The ACCC first authorised maintenance each) as well as 50% interests in Mahalo
tank has a benefit that adds flexibility for the schedule coordination in 2016, with a North and Mahalo East. The expansion
LPG terminal compatibility. Furthermore, condition requiring that applicants publicly option will be subject to Option 1 being
the newly developed VLGC features largest- disclose the information they share between exercised by Santos.
scale at present among all ships capable of themselves, to ensure that other market The Acquisition represents attractive
carrying ammonia, a point of advantage amid participants do not have an information deal metrics relative to other comparable
anticipated expansion of demand for large- disadvantage. acquisitions, with staged completion
scale ammonia transportation, which emits The ACCC considered whether payments favourable to Comet Ridge: $0.25/
zero CO2 during combustion. transparency measures expected to be GJ 2P Reserves; and $0.15/GJ 3P Reserves.
MITSUBISHI SHIPBUILDING, August 5, 2021 implemented under the National Gas Law COMET RIDGE, August 3, 2021

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