Page 17 - AsianOil Week 08 2023

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Chevron invests $26mn in Standing Agreement that was entered into half of FY2023, as higher wholesale costs
Origin is optimistic about the second
by Chevron Australia Pty Ltd and the Joint
Australian CCS research Authority for the Commonwealth/South begin to be reflected in customer tariffs.
The company recently upgraded its
Australia offshore area with respect to
Chevron Australia, which is a subsidiary Exploration Permits EPP44 and EPP45 in FY2023 energy market guidance due to
of Chevron, a US-based energy company, the Great Australian Bight. expected improvements in natural gas and
has announced that it will be contributing electricity gross profit. Origin is in ongoing
a total of A$38 million (about US$26.5 discussions with Brookfield consortium,
million) to support carbon capture and HMM spends $1.12bn on 9 its suitor, regarding its takeover proposal,
storage (CCS) research projects in Western against a backdrop of major regulatory
Australia and Victoria. The aim of this methanol-fuelled containerships changes, including a price cap on gas prices
funding is to further the understanding and announced by the Australian government.
advancement of CCS technology, which HMM, a South Korean shipping company, Brookfield, in partnership with
is seen as a key tool in reducing carbon has signed a newbuilding contract with MidOcean Energy, plans to acquire all of
emissions in the future. The contribution Hyundai Samho Heavy Industries (HSHI) Origin's issued shares at a price of A$9/
has been made in response to a call by and HJ Shipbuilding and Construction share, with Brookfield acquiring the energy
the Australian Petroleum Production & (HJSC) for nine 9,000 TEU containerships markets business and MidOcean acquiring
Exploration Association (APPEA) for the that will be powered by methanol dual-fuel the integrated gas business, including
government to invest in new gas supply engines. The deal, which costs $1.12 billion, a 27.5% interest in APLNG based in
and emissions reduction measures in includes the construction of seven ships Queensland. Last month, Origin granted
the upcoming Federal Budget, as well by HSHI and two by HJSC. The vessels are the consortium more time to complete the
as to establish a national carbon capture expected to be delivered from 2025 to 2026 A$18.4bn acquisition deal.
utilisation and storage (CCUS) roadmap. and deployed on the Asia-North/Latin
Out of the total sum, A$22 million America and Asia-India trade routes. HMM
(US$15.38 million) will be allocated to plans to increase its eco-friendly shipping Inpex set to receive two blocks
the Barrow Dampier CCS Regional Study, capacity from the current 820,000 TEU to
which is being led by global technology 1.2 million TEU by 2026. Methanol is one offshore Malaysia
company SLB. This study will conduct of the several sustainable energy sources
a 3D seismic and storage assessment to the company is exploring to achieve its According to a statement made by Inpex on
identify potential CCS opportunities in the target of net-zero carbon emissions by 2050. February 15, the company has been awarded
Carnarvon basin, located offshore Western To secure the supply of methanol for the two offshore exploration licenses as part of
Australia. The remaining A$16 million newly-ordered ships, HMM has signed a the Malaysia Bid Round 2022. Inpex has
(US$11.18 million) will be used to support Memorandum of Understanding (MoU) entered into production sharing contracts
the development of new infrastructure at with five fuel suppliers, including Proman, with Petronas, Petronas Carigali (PCSB),
the Otway International Test Centre in PTTEP, European Energy, and Hyundai and Petroleum Sarawak Exploration &
Victoria, managed by Australian carbon Corporation, and will collaborate with each Production (PSEP) through its subsidiaries
capture and storage research organisation, partner to develop carbon-neutral fuels. Inpex Malaysia E&P 4E and Inpex Malaysia
CO2CRC. This project will enable the The company is also studying the feasibility E&P SK418. The newly awarded exploration
testing of carbon dioxide migration and of green shipping corridors between Busan licenses, Block 4E and Block SK418, are
validation of new modelling techniques that in Korea and key ports in the US and located off the coast of Sarawak in Malaysia
could improve storage processes in future exploring the potential of nuclear power and are expected to contribute to Inpex's
CCS projects. and hydrogen for ships. move towards natural gas, as outlined in its
Michelle LaPoint, Chevron Australia’s Inpex Vision @2022 announced in February
General Manager of Asset Development, 2022, as well as to expand the company's
has stated that the company is committed Origin returns to profit in 2022 operations in Southeast Asia. Inpex will
to promoting the use of CCS technology in operate Block 4E with a 52.5% interest,
Australia, and that the company has decades On February 16, Origin, an Australian while PCSB and PSEP will hold a 40% and
of experience in the area, including the company, announced a net profit of 7.5% interest, respectively. The ownership
deployment of CCS technologies in various A$399mn ($276.5mn) during H1FY2023, structure of Block SK418 is the same as that
locations around the world. She added that up from a loss of A$131mn in the previous of Block 4E. These exploration licenses are
Chevron’s support for the Barrow Dampier year, due to an increase in LNG prices. the first awarded to Inpex in Malaysia since
CCS Regional Study and the Otway However, the company's underlying profit, its successful bid for two licenses off the
International Test Centre projects reflects excluding extraordinary items, decreased coast of Sabah in 2012. ™
the company’s confidence in the potential by 84% year over year to A$44mn due to
of CCS for reducing emissions. These two higher fuel and electricity procurement
projects are expected to meet Chevron’s costs that were not fully reflected in
expenditure commitments under a Good customer tariffs.

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