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Victoria’s manufacturing base, and the local
jobs it generates, should continue to have
a source of viable supplies of domestically
produced gas for years to come.
APPEA, June 16, 2020
Santos signs new gas deal

with Gold Fields

Santos, Western Australia’s biggest domestic
gas supplier, is pleased to announce that it has
entered into a new gas supply agreement with
Gold Fields Limited for its three gold mines in
Western Australia.
Santos will supply nearly 5.5 petajoules of
natural gas from its Varanus Island gas plant
over three years, starting on 1 July 2020.
Santos Managing Director and Chief
Executive Officer, Kevin Gallagher said Santos
LNG Tanker for a period of eight years from US dollars, of which the refinancing amount continued to support Western Australian
FY2020 to FY2027. The agreement was made covered in the refinancing agreement is mining and industry through the delivery of
possible with the cooperation of Sakhalin approximately 8.3 billion US dollars. The competitively-priced domestic gas.
Energy Investment Company Ltd., a long term agreement involves seven ECAs and 28 “Santos supplies around 40 per cent of
supplier of Hiroshima Gas and Tokyo Gas. commercial banks. the State’s total domestic demand, and we are
Hiroshima Gas and Tokyo Gas will INPEX, June16, 2020 committed to ongoing investment in developing
continue to provide a stable supply of city gas new gas supplies in Western Australia.”
and aim to further the usage of natural gas Victorian legislation lifts SANTOS, June 16, 2020
thorough the realization of a stable supply
of energy that will be beneficial for the moratorium on conventional Warrego confirms rig
customers of both companies.
TOKYO GAS, June 15, 2020 gas selection
The passage of the Petroleum Legislation Warrego Energy confirms that the EP469 joint
OCEANIA Amendment Bill 2020 through the Victorian venture has secured the Ensign 970 drilling
State Parliament today sets the scene for a rig for the upcoming exploration/appraisal
Ichthys LNG Concludes Loan resumption of onshore gas exploration in the campaign at West Erregulla, onshore Perth
state, which should lead to more gas supply
Basin, Western Australia.
Refinancing Agreement flowing to Victoria’s homes and businesses. for the drilling of West Erregulla-3, located
The exploration/appraisal plan provides
Australia’s oil and gas industry
INPEX announced today that the INPEX- congratulated the State Government and in the northern area of the West Erregulla gas
operated Ichthys LNG Project (the Project) Opposition in supporting the lifting of the field, in the second half of 2020 (subject to
has concluded a loan refinancing agreement onshore conventional gas moratorium from permitting), followed by the West Erregulla-4
for a portion of the project finance loans June 2021. and potentially West Erregulla-5 in 20211.
arranged in 2012 with export credit agencies APPEA Chief Executive Andrew RISC Advisory Pty Ltd (“RISC”), which
(ECAs) and commercial banks. McConville said the legislation passed today recently completed the independent third-
The agreement includes loan conversions was a step in the right direction to help ensure party certification of the West Erregulla
and improved borrowing conditions. The that Victoria has ongoing secure supplies of resource for Warrego, agrees with the
loan refinancing agreement is the result of a natural gas. Company’s estimated geological probability of
refinancing bid formally issued by INPEX in The Australian Energy Market Operator success for the West Erregulla-3 well of 65%.
March 2020 with the objective of improving has forecast shortfalls in Victorian gas Warrego is supportive of the Operator’s
borrowing conditions, based on the Project supply as soon as 2024 if more supply is not view that material cost savings can be
achieving financial completion in December developed. Shortages could happen earlier if generated by incorporating West Erregulla-3
2019 and continuing to sustain stable winter demand is high. and 4, and potentially 5, into the current
production operations. “Victoria is a state that relies heavily on exploration/appraisal plan2.
The Project’s smooth progress despite the gas. Around 80 per cent of Victorian homes Warrego Energy Group CEO & Managing
impact of the decline in oil prices caused by are connected to natural gas, and an average Director, Dennis Donald, said: “With
the spread of COVID-19 and other factors household in Victoria uses nearly twice the regulatory approvals well advanced we
was evaluated favorably. Accordingly, INPEX amount of natural gas as a household in any can now proceed with drilling the wells
received commitments from financial other state in Australia,” McConville said. and potentially add to the 513 Bscf gross
institutions exceeding the amount expressed “Thousands of manufacturing jobs in the independently certified 2C Contingent
in the refinancing bid. Total project finance state also rely on a stable supply of gas. This Resource estimate3 advised by RISC.”
loans amount to approximately 15.6 billion legislation should give some comfort that WARREGO ENERGY, June 16, 2020

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