Page 12 - AsianOil Week 33 2022

AsianOil NEWS IN BRIEF AsianOil

Shell's Prelude FLNG to stay the Zawitka offshore gas field in Myanmar, can feed our current infrastructure. That's
following a halt caused by an onshore gas
probably priority number one," Engelbrecht
shut for longer amid pay leak earlier this month. said.
PTTEP had said that there had been a
"If it's producing that's a plus, but we're
dispute leakage at the Zawtika’s onshore pipeline, not focused on anything in particular
in terms of whether it's greenfields,
resulting in the gas pressure drop.
Unions at Shell Plc's Prelude floating To ensure operational safety, PTTEP had brownfields or producing."
liquefied natural gas (FLNG) site off isolated the gas pipeline and temporarily
Australia have extended industrial action suspended gas delivery from the Zawtika
to September 1 over a long-running pay Project to Thailand. Jadestone closes Montara
dispute, the company said on Thursday. In a statement, PTTEP said it had
Shell shut down the 3.6mn-tonne-per- completed the onshore pipeline repair of the FPSO to fix tank issues
year site in July and told customers it would Zawtika Project and resumed the normalcy
be unable to supply LNG cargoes for the of gas delivery to Thailand on August 14, Asia Pacific-focused oil and gas company
duration of work stoppages approved by 2022. The Zawtika project is located in the Jadestone has decided to shut production
Australia's Fair Work Commission, or Gulf of Moattama in Myanmar. from its Montara field FPSO in the Timor
Protected Industrial Action (PIA). Sea, off Australia, to allow for repairs on a
"We can confirm it's been renewed until tank that leaked oil back in June through a
September 1," a Shell spokesperson said of Beach Energy weaker 30-millimeter crack.
the protected industrial action, according While the incident had led Jadestone to
to Reuters. The work stoppages began on profits, but vows shut down production from the Montara
June 10 and no cargoes have been shipped Venture FPSO, production resumed in July
from the site in about five weeks, worsening acquisitions following a temporary repair of the leak
a global LNG supply crunch amid the point in the 2C tank, and Jadestone at the
Ukraine conflict. Beach Energy Ltd is shoring up its war time said it was working on a permanent
The Offshore Alliance, which represents chest for acquisitions in Australia and New solution.
workers from the Australian Workers' Zealand, Chief Executive Officer Morne In a statement, Jadestone said that, while
Union and the Maritime Union of Australia, Engelbrecht said, after reporting a weaker- preparing for the repair, it found a defect in
said on its Facebook site it would extend than-expected annual profit and production water ballast tank 4S, which will now also
industrial action for as long as it took to outlook, according to Reuters. be included in the work scope of repairs,
reach a new enterprise bargain agreement Shares in gas and oil producer Beach, and that it would need to shut production
with Shell. owned 30% by Seven Group Holding, from the FPSO again.
"Our Prelude members have drawn a line slumped 13% on August 15 in a flat broader "Over the past several weeks, the
in the sand on job security and have this market. permanent repair to tank 2C has been
week supported the extension of Protected Beach reported underlying profit of developed, though delayed due to weather,
Industrial Action until our bargaining A$504mn ($358mn) for the year to June manpower and logistics issues, further
claims are resolved," the Offshore Alliance 2022, up 39% from a year earlier, but complicated while the facility remains in
said in a posting. well short of analysts' forecasts around production operations. This has resulted in
One of the main outstanding issues is the A$591mn, according to Refinitiv estimates. an inability to simultaneously accommodate
unions' demand that Shell ensure that it will Analysts at RBC and UBS said the the increased number of inspection
not outsource jobs to contractors at lower miss was due to increased provisions for and repair crews alongside production
rates than they pay their own staff for the restoration costs at mature assets and operations.
same jobs, the alliance said. higher-than-expected royalty payments. As a result, the company has taken the
Unions are using an April pay deal with Its outlook for the 2023 financial year decision to temporarily shut-in production
Japan's Inpex Corp at its Ichthys LNG for output of between 20.0mn and 22.5mn from Montara and reorganise offshore
operation as a benchmark for talks with barrels of oil equivalent was below analysts' manpower on the FPSO, enabling priority
other oil and gas majors. Prelude is co- forecasts of around 23.2mn boe, with new and focus on maintenance and inspection
owned by Shell, Inpex, Korea Gas Corp production offsetting declines at its older crews. This is the most practical and
(KOGAS) and Taiwan's state-run Chinese gas assets. efficient way to complete tank repairs
Petroleum Corp. UBS analyst Tom Allen said in a note whilst progressing ongoing inspection and
that "reserves and production guidance remediation to other tanks in the FPSO
point to slower growth." and to complete key remaining scheduled
On its earnings call, analysts asked inspection and repair activities planned for
PTTEP relaunches Zawtika why Beach wanted to maintain a net cash this year," the company said.
position this year instead of beefing up

gas supplies to Thailand returns to shareholders. CEO Engelbrecht
said the company was holding on to capital
after fixing pipeline to fund acquisitions and internal growth.
Beach was focused on acquiring assets in
Thai oil and gas company PTTEP has Australia and New Zealand, he said.
restarted gas deliveries to Thailand from "We are looking at if potential assets

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