Page 14 - AsianOil Week 18 2021

AsianOil NEWS IN BRIEF AsianOil

Gas sales volumes decreased 27% on through Blacktip/Yelcherr gas plant facilities. venture partner SK E&S as a partner in Bayu-
the March 2020 quarter: 19% decrease in “As I said when I was in Darwin to Undan and Darwin LNG.
the business segment due to expiration of announce our FID decision for Barossa, “The sell-down to SK E&S is in-line
contracts and COVID-19 impacts; Retail we have approval for two more trains at with our strategy of disciplined growth
volumes were flat with higher customer DLNG and we are open to third party gas while maintaining a strong balance sheet
numbers offsetting lower small business opportunities,” Mr Gallagher said. by managing equity levels in our growth
usage. Gas used in generation fell 59% due to The non-binding agreement is a projects consistent with disciplined capital
lower electricity pool prices. demonstration of intent by both parties to management,” Mr Gallagher said.
ORIGIN, April 30, 2021 collaborate together and with other parties in Santos and SK E&S have also signed a
the region to use existing infrastructure more Memorandum of Understanding to jointly
Santos, Eni to collaborate in efficiently, unlock the wealth of regional gas investigate opportunities for carbon-neutral
resources, and create new low-carbon business LNG from Barossa, including collaboration
Australia, Timor-Leste opportunities for both northern Australia and relating to Santos’ Moomba CCS project,
bilateral arrangements for carbon credits
Timor-Leste.
Santos and Eni have signed a Memorandum SANTOS, May 3, 2021 and potential future development of zero-
of Understanding (MOU) to cooperate on emissions hydrogen.
opportunities in northern Australia and Santos completes asset Completion of the sell-down to SK
Timor-Leste. E&S sees Santos’ interest in Bayu-Undan
The areas of cooperation include sell-down to SK and Darwin LNG change to 43.4%, and
assessing the synergies of sharing possible Santos remains operator of both assets. The
infrastructures associated with gas field Santos today announced it had completed the remaining interests are held by SK E&S (25%),
developments around Barossa and Evans sell-down of 25% interests in Bayu-Undan INPEX (11.4%), Eni (11%), JERA (6.1%) and
Shoal, pipeline to Darwin and onshore and Darwin LNG to SK E&S, which is also a Tokyo Gas (3.1%).
associated gas processing leading to LNG partner in Barossa. Santos is also operator of the Barossa
expansion developments. The sell-down resulted in net funds to project and announced the final investment
This also includes investigating options Santos of US$186 million at completion, decision to proceed with the project in March
to re-purpose the Bayu-Undan facilities being the sale price of US$390 million less 2021. First gas from Barossa to backfill
to extend the life of the project, including the cashflows from the 25% interests from Darwin LNG is expected in the first half of
a carbon capture and storage project, the effective date of 1 October 2019 to 2025.
subject to the agreement of the Timor-Leste completion. Santos and JERA continue to progress
government. Santos Managing Director and Chief the binding sale and purchase agreement for
Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was JERA to acquire a 12.5% interest in Barossa.
Executive Officer Kevin Gallagher said delighted to formally welcome Barossa joint SANTOS, April 30, 2021
the MOU built on the momentum for
development of northern Australia following
Santos’ FID announcement of the Barossa gas
and condensate project and life extension for
Darwin LNG for the next 20 years.
“Eni are already a highly valued partner
in the Bayu-Undan project and this
MOU strengthens our collaboration and
cooperation,” Mr Gallagher said.
“CCS opportunities at Bayu-Undan are
extremely exciting for Santos and Eni and
today we are saying, we would like to be open
for business to take your CO2.
“In 2019 the London Convention was
amended to allow CO2 to be transported
across jurisdictions to enable the
establishment of storage hubs.
“A CCS project at Bayu-Undan could
provide a new job-creating and revenue-
generating industry for Timor-Leste with
quality carbon credits increasing in both
demand and value internationally.
“Capturing and storing CO2 from
industries in the Northern Territory will help
it meet its net-zero emissions by 2050 target.
That’s good for the environment, good for
local jobs, good for local investment and good
for regional development.”
Other areas of cooperation include the
possible development of Petrel and Tern

P14 www. NEWSBASE .com Week 18 06•May•2021