Page 13 - AsianOil Week 21 2021

AsianOil NEWS IN BRIEF AsianOil

The Group reported that its financial sales agreement with Oceania Glass, which Strike updates on Project
results had markedly improved compared will see the company continue supplying
to the previous financial quarter ended Gippsland gas to support Australian glass Haber
31 December 2020 (2Q FY2021), driven production until at least the mid-2020s.
by improving oil prices. Average realised Oceania Glass, Australia’s only Strike will look to sell and distribute its non-
oil prices had improved from USD39.91 manufacturer of architectural flat glass, locally consumed urea into both the east coast of
per barrel in 2Q FY2021 to USD60.46 per makes and distributes glass for use in Australia and potentially into the Asian markets
barrel in 3Q FY2021 for crude sales from Australian homes and buildings. Employees when seasonality requires. The use of the adjacent
its Malaysian North Sabah asset, with a at its Dandenong South operations rely on Geraldton Port, which currently imports significant
corresponding increase also seen for sales the supply of Gippsland gas to power the quantities of fertiliser products, will be critical in
conducted from its United Kingdom, furnace at the heart of its manufacturing ensuring Project Haber has a reliable and low-cost
North Sea asset with an improvement from process. supply chain for consistent urea deliveries to further
USD40.85 per barrel in 2Q FY2021 to Esso continues to work together with afield customers.
USD54.04 per barrel in 3Q FY2021. manufacturers across Australia to develop In pursuit of access to this vital
The Group also said that it expects to competitive supply agreements, contracting infrastructure, Strike has executed a
deliver a further three offtakes for the final over 60 petajoules (PJ) of natural gas in the Cooperation Agreement with the Mid
quarter of its financial year ending 30 June last two years alone. West Ports Authorities. Pursuant to this
2021, for a total of circa 3.7 million barrels ExxonMobil Australia Chairman, Mr agreement, the parties have agreed to work
sold in FY2021. Nathan Fay, said Esso continued to invest in together to investigate how the Project’s
For its 3Q FY2021 results, the Group delivering gas from the Gippsland Basin to non-locally consumed urea may be handled
announced revenue and PAT of RM216.0 Australian homes and businesses, supporting at and shipped from the Port of Geraldton,
million and RM32.0 million respectively with local jobs and the Australian economy. and subject to completion of that work, a
EBITDA for the period reported at RM122.4 “Our ongoing investment means that, framework for future negotiations for a Port
million. A strong EBITDA margin of 56.7% after more than 50 years, the Gippsland Basin Access and Services Agreement.
was achieved. remains the largest single source of gas supply Access to significant fresh water supplies is
The Group also reported an unrestricted to the east coast domestic market,” he said. critical to the industrial urea manufacturing
cash balance of RM105.5 million. Esso recently commissioned the West process. To secure Project Haber’s water
HIBISCUS PETROLEUM, May 24, 2021 Barracouta project, which is set to be the supply, Strike has entered into a non-binding
largest new source of domestic gas for the MOU with AGI Operations Pty Limited
Australian market this decade. (Australian Gas Infrastructure Group) for
OCEANIA “Investment in projects like West the provision of approximately 8GL of water
Barracouta, mean that Gippsland gas per annum from their proposed Mid-West
Local glass production continues to flow to the Australian market, desalination plant, with supply commencing
supporting local manufacturers, such
from 2025. Project Haber would be a
powered by Gippsland gas as Oceania Glass, and the thousands of foundation customer for water off-take and
the proposed supply would form a strong
Australians who rely on their products,” said
Esso Australia Resources (a subsidiary of Mr Fay. customer base to facilitate construction of the
ExxonMobil Australia) has extended its gas EXXONMOBIL, May 24, 2021 desalination project.

Week 21 27•May•2021 www. NEWSBASE .com P13