Page 11 - AsianOil Week 46 2022

AsianOil SOUTHEAST ASIA AsianOil

Petronas, Vopak pen deal on CCS study

ENERGY MALAYSIA’S Petronas has struck an initial deal emitters across southeast Asia will also be part
TRANSITION with Dutch bulk liquid and gas storage operator of the plan.
Vopak to explore the development of a value The two companies also intend to invest in
chain for carbon capture and storage (CCS) in developing CCS value chains.
southeast Asia. Petronas has been working with foreign part-
The pair have agreed on joint studies for ners on assessing the feasibility of using depleted
developing a CCS value chain that covers the oil and gas fields in Malaysia to store CO2. The
transport of CO2 from a Vopak terminal and its company has some 1.3 trillion cubic metres of
potential injection into regional offshore storage capacity at only depleted gas reservoirs. It wants
hubs that Petronas is looking to develop. The CCS to serve as a means of monetising these
study will assets by providing storage options to others.
Both firms agreed to jointly study the devel- The Malaysian company signed an agree-
opment of a CCS value chain, which includes ment in August with five South Korean firms to
transporting carbon dioxide (CO2) from a develop a cross-border CCS project, and it has
Vopak terminal and potentially injecting it into also teamed up with Japan’s Mitsui to explore the
regional storage hubs being developed by Pet- development of a CCS value chain.
ronas. The main focus of the study will be on These efforts align with Malaysia’s ambition to
mitigating CO2 emitted by industries in Singa- become a carbon neutral country as soon as the
pore. Aggregating CO2 emissions from various middle of the decade. ™

OCEANIA

Australia’s Beach Energy to acquire

Warrego for AUD250mn

INVESTMENT AUSTRALIAN independent energy compa- a better proposal and subject to a decision made
nies Beach Energy and Warrego Energy have by a team on independent experts that the deal
Beach will acquired announced a AUD250mn ($169mn) agree- with Beach is in the best interest of Warrego
all issued stock for ment whereby the former will acquire the latter shareholders.
AUD0.20 per share. through a scheme implementation deed. The Beach will fully fund the transaction with its
deal supplants a recent proposal made by Strike existing debt facilities and cash reserves. The tar-
Energy that it merge with Warrego. get date from completion is 8 March, 2023.
A statement issued by Beach on 14 Novem- Beach operates gas fields in South Australia
ber said the company will acquire all the issued and Victoria. Warrego is in a 50:50 partnership
shares in Warrego for AUD0.20 cash per share, with Strike in the West Erregulla gas project
plus any net proceeds from the sale of Warrego’s in Western Australia’s Perth Basin. Strike had
Spanish assets by way of a members’ scheme planned to use gas from the West Erregulla
arrangement. and its wholly-owned South Erregulla gas
“The proposed acquisition is strategically field to supply its nearby 1.4mn tonne per year
compelling and provides a unique opportunity (tpy) Haber urea project. It is unclear if Strike
to complement Beach’s growth strategy in the will still have access to West Erregulla gas or
Perth Basin,” the Beach statement said. “It adds whether the Beach-Warrego deal will jeopard-
an additional development opportunity for new ise that project. Beach may choose to route gas
gas supply beyond Beach’s Waitsia Stage 2 LNG from West Erregulla to a blue hydrogen project
volumes and gas exploration drilling, which is supported by Warrego in Western Australia or
soon to commence.” make it available for domestic supply or for LNG
Beach said its strong balance sheet and export.
proven development expertise “provides further West Erregulla is slated to begin production
support not only for the transaction but future in 2024. Warrego had partnered with other
gas developments in the Perth Basin.” firms in a project that would produce 40,000
Warrego’s board of directors has unani- tpy of ammonia from blue hydrogen produced
mously recommended that company share- through carbon capture and storage (CCS) at the
holders accept the offer made by Beach, short of field. ™

Week 46 21•November•2022 www. NEWSBASE .com P11