Page 16 - AsianOil Week 26

AsianOil NEWS IN BRIEF
AsianOil
AUSTRALASIA AGLhasselectedHoeghEsperanza
LNG exports sustaining
Australia’s economic
growth
e Resources and Energy Quarterly
June 2019 released today shows the key
role lique ed natural gas (LNG) exports
play in supporting Australia’s continued economic and jobs growth. According to
the Department of Industry, Innovation and Science, the value of Australia’s resources and energy exports are estimated to have totalled a record $275 billion in 2018-19 due in large part to growing LNG exports.
In 2018-19, Australia’s LNG export earnings are estimated at $49.7 billion, an $18.8 billion (61 per cent) increase over the previous year – the largest increase of any commodity. ese results follow on from last week’s ABS employment gures for the oil and gas industry which showed 3,800 new jobs have been created since February this year, equating to about a 17 per cent increase.
APPEA Chief Executive Andrew McConville said the data showed the signi cance of LNG exports to sustaining Australia’s economic growth, maintaining living standards and supporting employment.
McConville said: “ e oil and gas industry underpins around 80,000 direct and indirect jobs – and hundreds of thousands of Australian jobs rely on the reliable, a ordable and sustainable supply of oil and gas.
According to government estimates, Australian LNG exports are reducing carbon emissions by 148 million tonnes in customer nations, equivalent to more than a quarter of Australia’s emissions.
APPEA, July 1, 2019
Oil Search increases stake in Alaskan assets
Oil Search will double its stake in the Pikka Unit Nanushuk development, Horseshoe block and other exploration areas in Alaska. e company said on June 27 that it would buy the stakes from the US’ privately owned Armstrong Energy and GMT Exploration for $450mn.
e Australian independent will use its existing corporate debt facilities to fund the option. An additional $300mn credit line is being arranged to provide nancial exibility.
e Pikka Unit Nanushuk development, in which Spain’s Repsol is partner, is targeting rst production in 2022 through a 30,000 bpd early production system.
Barossa secures
exclusivity for Darwin LNG
backfill
Santos today announced that the Barossa Joint Venture has entered into exclusive negotiations with the Darwin LNG Joint Venture for the supply of back ll gas.
e arrangement gives the Barossa JV an exclusive commercial negotiation period to reach a processing services agreement as well as settle on a tari in anticipation of a Final Investment Decision early next year.
e Barossa project entered the front-end engineering and design (FEED) phase of development in April last year, and last month announced the contract to supply the Subsea Production System (SPS) and associated SPS installation support.
Santos Managing Director and Chief Executive O cer Kevin Gallagher said: “ is exclusivity con rms the con dence we had to commit to long-lead items last month and maintain project schedule to deliver gas to DLNG as early as possible.”
“Clearly, it also con rms Barossa’s status as the lead candidate for the supply of back ll gas to Darwin LNG.”
“Bids have also been received and are being evaluated for the FPSO, gas export pipeline and development drilling. We’re getting on with the job.”
e Barossa gas eld, 300 kilometres north of Darwin, sits within Santos’ Northern Australia portfolio, one of the company’s core long-life, natural gas asset regions.
e project area encompasses petroleum permit NT/RL5 and, with future phased- development in the Caldita eld to the south, petroleum permit NT/RL6.
Santos holds a 25% interest in the Barossa- Caldita joint venture along with partners ConocoPhillips (37.5% and operator) and SK E&S (37.5%).
Santos is also a joint venture partner in Darwin LNG with an 11.5% interest. SANTOS, June 27, 2019
AGL Selects Hoegh
Esperanza as FSRU for Crip
Point LNG project
Reference is made to the stock exchange notice published 21 December 2018 regarding the time charter party entered into with AGL Shipping, and statement led by AGL with the Australian Stock Exchange this morning.
as the FSRU for the Crib Point project in
Victoria Australia, as opposed to Hoegh Giant communicated by the charterer in December 2018.
Hoegh Esperanza has both a closed loop and an open loop system and is because of this considered by AGL to be a better t for the operational requirements arising from the Environment E ects Statement (EES) currently been undertaken by the Victorian Government. e EES is expected to be concluded no earlier than late H1 2020. Final investment decision (FID) will be taken subject to and following the EES.
As Hoegh Esperanza is currently on contract with CNOOC until June 2021. Taking into account the time needed for relocation, commissioning and start-up at Crip Point, this ts well with AGL’s planned commercial start-up in H1 2022.
e charter with AGL is for a period of 10 years and remains conditional on the board of directors of AGL Energy Ltd taking a FID for the project. Hoegh Esperanza is expected to generate an annual EBITDA of USD 31m. HOEGH LNG, June 28, 2019
NOPSEMA requests further
information from Equinor on
Bight drilling proposal
Today, the National O shore Petroleum Safety and Environmental Management Authority (NOPSEMA) requested further information from Equinor on its environment plan for their proposed petroleum exploration drilling activity in the Great Australian Bight.
e assessment will now pause and recommence when Equinor submits the additional information. Equinor has been provided with 60 days to submit the requested information to NOPSEMA.
e request for information was made
in order to clarify matters raised in the plan and to address information gaps identi ed by NOPSEMA’s specialist team assessing the plan.
Under Australia’s objective-based regulatory regime, a request for further information is a normal step in the assessment process.
To ensure a fair and unbiased process and to provide natural justice to all parties, NOPSEMA does not comment on the speci cs of environment plans under assessment.
NOPSEMA’s primary role is the prevention of major accident events o shore, to ensure the safety of the workforce and protection of the environment.
NOPSEMA, June 27, 2019
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Week 26 03•July•2019