Page 8 - AsianOil Week 09 2021

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Novatek strikes LNG

supply deal with Shenergy

PROJECTS & RUSSIAN LNG exporter Novatek has struck a
COMPANIES deal to supply over 3mn tonnes per year (tpy) of
the super-cooled gas to China’s Shenergy.
The gas will come from the Novatek-led Arc-
tic LNG-2 project, due to start up in 2023, and
will be sent to Chinese import terminals on a
delivered ex-ship basis. This marks the third contract signed by
Novatek CEO Leonid Mikhelson said the Novatek’s subsidiary Novatek Gas & Power Asia.
deal was part of its strategy “to diversify our It signed its first for 1mn tpy of supply to com-
client base and target end-consumers in the modities trader Vitol in 2019. The company is set
fast-growing Asia-Pacific region.” to provide a further 1mn tpy to Spain’s Repsol.
“The Chinese market is one of the key regions State-owned Shenergy buys and distrib-
in our LNG marketing strategy, and we plan to utes gas in China, handling around 10bn cubic
further increase our supplies of LNG to this metres of supply per year. The company also
country,” he said. signed a heads of agreement (HoA) with Malay-
Arctic LNG-2’s three trains are due online sia’s Petronas in January to receive 1.5mn tpy of
in 2023, 2024 and 2026, producing a total of supply.
19.8mn tpy of LNG at full capacity. Novatek Novatek’s other up and coming project is
operates the project with a 60% interest, while Obsk LNG, which is anticipated to come online
France’s Total has 10%, Chinese companies in 2024. A final investment decision (FID) is still
CNPC and CNOOC Ltd also each have 10% and pending, although Mikhelson recently suggested
a further 10% is divided between Japan’s Mitsui the project’s output could be 20-25% more than
and JOGMEC. the original plan of 5mn tpy.v

OCEANIA

Strike’s second WA appraisal

well encounters oil, gas shows

PROJECTS & AUSTRALIAN junior Strike Energy has been completed, Strike will case and cement
COMPANIES observed hydrocarbon shows at its second WE-4 before drilling to the well’s second-
appraisal well in the onshore West Erregulla nat- ary and primary targets, which are the Basal
ural gas field in Western Australia. Wagina and Kingia & High Cliff sandstones
Strike said on March 4 that it had drilled the respectively.
second intermediate hole section of its West Strike added that the bottom hole assem-
Erregulla 4 (WE-4) well 3,906 metres into the bly for this section would include several log-
Kockatea Shale, observing oil and gas shows ging-while-drilling tools for live data acquisition
throughout. The company said it now intended with real time feedback. The company intends
to run wireline logs through the section. to flow test the wells if various coring and log-
The company spudded WE-4 on January 25, ging operations prove successful, with a view to
following the successful suspension of the WE-3. completing each as a future producer across the
The two wells are part of a three-well appraisal Kingia/High Cliff sequences.
programme planned for the field, which is Strike operates EP469 with a 50% interest,
located in EP469. Each of the three wells will be while fellow Australian independent Warrego
drilled to a depth of around 5,000 metres, with Energy owns the remaining 50% stake.
WE-4 and WE-5 designed to appraise the reser- Elsewhere in the Perth Basin, Strike has
voir distribution in the central fault block. unveiled plans to acquire 2D seismic data over
Strike said the presence of hydrocarbons the South Erregulla play later this year, after the
supported its geological models and the results WA Department of Mines, Industry Regulation
were analogous to observations seen in WE-2. and Safety (DMIRS) granted exploration per-
Once the wireline logging operations have mits EP503 and 504 in January.v

P8 www. NEWSBASE .com Week 09 04•March•2021