Page 13 - AsianOil Week 43 2021

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The eastern strategy, meanwhile, includes from the first test’s average flow rates. Empire’s
development of a greenfield pipeline between technical team believes the uplift in produc-
the Amadeus and Carpentaria gas pipelines at tion rates may have been caused by a diffusion
Mount Isa. This will allow gas to be pumped of water into the Middle Velkerri shales during
to southern markets, helping to address pre- the shutdown period, which provided enhanced
dicted future shortfalls in both domestic mar- pathways for gas production through induced
ket and LNG export capacity at Gladstone. fractures.
This pipeline has been touted as the most cap- The company added that sampling of gas and
ital-efficient model for delivering Beetaloo flowback fluid at the surface has also continued
production to market. and that the returned hydrocarbons would be
Empire is one of a number of companies to used to determine the best shale to target with
have returned promising drilling results from the Carpentaria-2H lateral.
exploration efforts in the basin. With development picking up in the basin,
The company revealed on October 19 that APA finds itself in a race with two other pipe-
its second extended production test (EPT) at line companies to build infrastructure nec-
the fracture-stimulated Carpentaria-1 vertical essary to unlock the potential of a basin that
well in EP187 had seen a marked increase in has been likened to the US’ prolific Marcellus
flow rates compared to its first test, which had shale play.
to be suspended in July because of coronavirus Australian Gas Infrastructure Group
(COVID-19) related travel restrictions. (AGIG) has proposed building a pipeline from
Empire said flow rates in the first 10 days of the Amadeus Basin to the Moomba gas plant
the second EPT – which commenced on Sep- in South Australia. Jemena, meanwhile, wants
tember 28 – had averaged 364,000 cubic feet to expand its northern gas grid in Queensland
(10,300 cubic metres) per day, up around 45% and the NT.™

Origin sells 10% stake in APLNG to EIG

PIPELINES & AUSTRALIAN developer and utility Origin He added that the funds would afford the com-
TRANSPORT Energy has agreed to sell a 10% stake in the Aus- pany “further flexibility to deliver returns to share-
tralia Pacific LNG (APLNG) project to global holders and pay down debt, while allowing Origin
energy investor EIG. to accelerate investment in growth opportunities.”
Origin said on October 25 that the EIG’s CEO, Blair Thomas, told Reuters on
AUD2.12bn ($1.59bn) deal would lower its stake October 25 that his company had approached
in the 9mn tonne per year (tpy) facility to 27.5%, Origin two years ago over a potential investment,
but that it would continue to operate APLNG’s describing it as part of a strategy of chasing LNG
upstream interests. investments ahead of the global energy transition.
Both ConocoPhillips and Sinopec, whose This would have been right around the time
stakes remain unchanged at 37.5% and 25% that EIG offloaded its 131.8mn shares in Austral-
respectively, have the right to pre-empt the sale. ian junior Senex Energy. It would also have been
Origin will retain its existing seats on the around a year after EIG-backed Harbour Ener-
APLNG board, EIG will gain a singular seat with gy’s takeover bid for Santos was rejected.
voting rights in line with its new stake. “We’ve been around this East Coast gas story
The Australian developer said it expected to for a while and are constantly on the lookout for
complete the sale by the end of the year, noting opportunities. And that continues,” EIG’s CEO,
that net proceeds were expected to be around Blair Thomas, told Reuters.
AUD2bn ($1.5bn) after adjustments and trans- Origin has agreed to guarantee EIG’s obli-
action costs. Origin does not expect to pay any gations to satisfy any future cash calls made by
tax on the transaction. APLNG, while an EIG unit will indemnify Ori-
Origin CEO Frank Calabria said: “Divest- gin in respect of the guarantee.
ing a 10% interest allows Origin to crystallise The deal is also subject to ConocoPhillips
some of the significant value we have created being reasonably satisfied that EIG is capable
in APLNG, while retaining upside to further of satisfying its obligations under the APLNG
value creation through a continuing substan- Shareholders’ Agreement with the benefit of
tial shareholding. Origin’s supporting guarantee.™

Week 43 28•October•2021 www. NEWSBASE .com P13