Page 12 - AsianOil Week 28
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Scarborough plans move ahead
PROJECTS & COMPANIES
WOODSIDE Petroleum has submitted its o - shore project proposal (OPP) on its Scarborough gas eld, o shore Australia, which is to be devel- oped through a link to the Pluto LNG plant. e OPP is open to public comments from July 5 to August 30.
The company submitted the OPP to the National Offshore Petroleum Safety and Environment Management Authority (NOP- SEMA), in line with the O shore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009.
Scarborough is situated 375km o the Burrup Peninsula, in a cluster with the North Scarbor- ough, ebe and Jupiter gas elds. e area is covered by the WA-1-R, WA-62-R, WA-61-R and WA-63-R licences.
e plan is for a 430-km export pipeline to the onshore liquefaction plant, where a second train would also be built. Developing the eld would involve seven wells tied to a oating production unit (FPU), in around 900 metres of water.
A nal investment decision (FID) is targeted for 2020, with start-up in 2023. Drilling would begin in 2020, with the trunkline installed in 2020 and the FPU in 2023. e rst phase of
development would cover Scarborough and North Scarborough, with the second two elds having potential future tiebacks, perhaps in 2025. Decommissioning is projected to begin in 2055.
Woodside believes the Greater Scarborough area holds 260.5bn cubic metres of gas, of which 207bn cm lies in the Scarborough eld.
e company has not determined the pre- cise size of the second Pluto LNG train, but has suggested it may be 4-5mn tonnes per year. e existing train has 4.9mn tpy of capacity and started up in 2012. Woodside bought out Exxon- Mobil from the Scarborough area in 2018, also becoming the operator.
In April, Woodside struck a preliminary agreement on the supply of 1mn tpy to China’s ENN Group for 10 years, starting in 2025. is would be driven by the Scarborough and Pluto LNG projects.
Woodside announced the opening of a truck-loading facility at Pluto LNG in April. e Australian major is working on interim plans for Pluto, involving the development of the Pyxis and Pluto North in ll wells, which should reach FID by late 2019.
OGOG in takeover bid for NZOG
FINANCE & INVESTMENT
SINGAPORE-BASED OG Oil & Gas (OGOG) has o ered NZ$30.5mn ($20.5mn) to acquire the 30% of New Zealand Oil and Gas (NZOG) it does not already own. NZOG’s independent directors, Rosalind Archer and Rod Ritchie, have recommended that shareholders accept the o er as long as it is in line with an independ- ent valuation and no greater bid has been made. Archer and Ritchie said their recommendation was in uenced by the altered nature of New Zea- land’s upstream prospects following the govern- ment’s decision in 2018 to suspend inde nitely the award of new o shore exploration acreage.
“The attractive premium offered by OGOG comes despite an uncertain future for oil and gas investment in New Zealand,” the two directors said in an update to the NZX on July 10. “Departures by major international players continue, with recent decisions by international companies to surrender exploration acreage being the latest examples.”
They added: “All NZOG shareholders, including OGOG, have had to deal with an uncertain and changing environment. Never- theless, OGOG is willing to increase its invest- ment in NZOG and in doing so will allow other shareholders to realise signi cant value given the current market conditions, policy environment and share trading history.”
OZOG’s bid of NZ$0.62 ($0.42) per share rep- resents a 25.3% premium to the company’s clos- ing price on July 9, the last day of trading before the o er was announced. e deal is subject to shareholder and regulatory approvals. If these are secured, then NZOG expects the scheme to be implemented by the end of November.
NZOG has 4% of the producing Kupe gas field and 5% of the Maari oilfield. It owns 100% of the Toroa exploration permit, 50% of the Clipper permit and 25% of the Kohatukai acreage. In Australia, it holds stakes in WA-359-P, WA-389-P and WA-409-P. The company also has a minor stake in Indonesia’s Sampang PSC o shore East Java through sub- sidiary Cue Energy.
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w w w . N E W S B A S E . c o m Week 28 17•July•2019
