Page 11 - AsianOil Week 04 2021
P. 11

AsianOil                                        OCEANIA                                             AsianOil


       ExxonMobil to bring West




       Barracouta onstream this year




        PROJECTS &       US super-major ExxonMobil has said it is nearing  be required to supply Australians with ongoing,
        COMPANIES        completion of its West Barracouta project offshore  reliable access to the affordable natural gas to
                         Australia’s southern state of Victoria and aims to  which they’ve grown accustomed.”
                         deliver first gas to the local market this year.  He added: “Investment in Australia’s energy
                           The company is preparing to construct the  future will rely on governments and regulators
                         project’s final subsea infrastructure, following the  continuing to deliver a supportive policy envi-
                         arrival of the Subsea 7 Seven Eagle diving support  ronment that incentivises businesses to develop
                         vessel (DSV) in Victoria earlier this month.  Australia’s energy resources.”
                           ExxonMobil said the project, which is part   ExxonMobil shelved plans in November 2020
                         of the Gippsland Basin Joint Venture’s (GBJV)  to sell its stake in the GBJV following an “exten-
                         operations in the Bass Strait, would be tied back  sive market evaluation”. However, Credit Suisse
                         to existing infrastructure nearby. ExxonMobil  suggested that looming decommissioning liabil-
                         has a 50% stake in GBJV, while BHP Billiton  ities and heightened federal scrutiny of offshore
                         owns the remainder. The super-major high-  deals were likely deterrents.
                         lighted the more than AUD5.5bn ($4.22bn) the   The Australian government has been increas-
                         venture had invested in other recent projects to  ing its scrutiny of the offshore decommissioning
                         increase gas supply for Australia, including the  segment following the liquidation of Northern Oil
                         Kipper-Tuna-Turrum (KTT) offshore project  and Gas Australia (NOGA) in February 2020. One
                         and the Longford Gas Conditioning Plant.  of NOGA’s subsidiaries had bought into petroleum
                           Esso Australia chairman Nathan Fay said:  titles in the Timor Sea, which it exploited through
                         “With production from the Gippsland Basin’s  the Northern Endeavour floating production stor-
                         legacy fields now in decline after more than 50  age and offtake (FPSO) vessel. The situation forced
                         years of production, additional investment will  the state to take control of the facility’s operations.™




       Strike spuds second West




       Erregulla appraisal well




        PROJECTS &       AUSTRALIAN junior Strike Energy has spud-  Strike operates EP469 with a 50% interest,
        COMPANIES        ded its second appraisal well in the onshore West  while fellow Australian independent Warrego
                         Erregulla natural gas field in Western Australia.  Energy holds the remaining 50% stake.
                           The company said on January 25 that fol-  The company is using its experiences in West
                         lowing the successful suspension of the West  Erregulla to help direct its wider development
                         Erregulla 3 (WE-3) well it had relocated Ensign  goals in the Perth Basin, with Strike revealing last
                         Rig 970 to the West Erregulla 4 (WE-4) well site.  week that it planned to launch exploration efforts
                         Strike said it would drill the 26-inch (660-mm)  later this year over the South Erregulla play.
                         surface hole section from the pre-installed con-  Strike said on January 22 that the WA Depart-
                         ductor to a nominal depth of 1,200 metres.  ment of Mines, Industry Regulation and Safety
                           WE-3 and WE-4 are part of three well apprais-  (DMIRS) had granted it exploration permits
                         als planned for the field, which is located in EP469.  EP503 and 504, following the conversion of
                         Each of the three wells will be drilled to a depth of  EPA82 and EPA98. Strike intends to begin
                         around 5,000 metres, with WE-4 and West Erreg-  acquiring data over South Erregulla, starting
                         ulla 5 (WE-5) designed to appraise the reservoir  with the Maior 2D seismic survey in the first half
                         distribution in the central fault block.  of this year. Strike has awarded the roughly 140-
                           Strike said if the wells proved to be successful  line km seismic survey to Velseis Seismic.
                         then they would be flow tested and completed   Moreover, having secured an additional three
                         as future producers across the Kingia and High  rig slot options on Rig 970 following West Erreg-
                         Cliff sequences for the proposed first phase of  ulla’s appraisal campaign, Strike said it consid-
                         production operations. The Wagina gas discov-  ered South Erregulla-1 to be a “potential high
                         ery made by West Erregulla 2 (WE-2) will be  value candidate” for one of the slots subject to
                         appraised by WE-4 and WE-5.          final internal approvals.™



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