Page 10 - AsianOil Week 10

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NNPC has said that most of the volumes pumped through the AKK link will consist of associated gas from Nigerian oilfields – namely, from seven development projects that are already underway. The project aims to help the country reduce emissions by eliminating the perceived need to flare associated gas.
When finished, the AKK link will follow a 614-km route, running northward from the left bank of the Niger River in Kogi State to the cap- ital city of Kano State. It is meant to serve as the first section of the Trans-Nigeria Gas Pipeline (TNGP) and will deliver gas to domestic ther- mal power plants (TPPs). As a result, it will help
bring Nigeria’s total generating capacity above the 10,000-MW mark and make electricity available to a larger share of the population, the company said.
The pipeline has a design capacity of 3.5bn cubic feet (99.11mn cubic metres) per day, or about 36.175bn cubic metres per year. Its initial throughput will amount to 2 bcf (56.64 mcm) per day, or around 20.67 bcm per year.
NNPC hopes to begin building the AKK line before the end of 2020. It has already chosen a consortium formed by Chinese and local com- panies to act as its contractor for work on the pipe and compressor stations.™
OCEANIA
Senex bullish after Surat Basin results
PERFORMANCE
AUSTRALIAN independent Senex Energy has said it expects to enjoy “transformational” growth over the next few years, after its natural gas projects in Queensland’s Surat Basin outper- formed original expectations.
Senex said on March 11 that it had brought its Roma North gas plant up to an initial production capacity of 16 terajoules (417,000 cubic metres) per day, or 152.12mn cubic metres per year, more than a year ahead of schedule. Moreover, the company was able to achieve that result after drilling just 35 wells, compared with the 50 wells originally planned.
Senex said the results had encouraged it to reduce its drilling programme at Project Atlas from 60 wells to 50 wells. The campaign is slated for completion before June 30.
Senex anticipates its Surat Basin assets delivering their first full year of plateau pro- duction in 2021-2022, tripling the company’s overall production from 2018-2019 levels to more than 3.6mn barrels of oil equivalent (boe) at no extra cost.
The company expects its EBITDA in 2021- 2022 to reach AUD100-110mn ($64.6-71mn), with AUD70-90mn ($45.2-58.1mn) in free cash- flow. Senex said it enjoyed a free cashflow break- even Brent oil price of less than $30 per barrel.
With its capital expenditure programme having being paired back significantly, Senex is looking to invest AUD15mn (9.68mn) to build, own and operate water treatment infrastructure at Atlas. This, the company said, would remove ongoing water treatment tolls over the project’s lifecycle. Even after the water treatment infra- structure investment, Senex still expects net capex for its Surat Basin assets to fall by around AUD15mn.
The developer has entered front-end engi- Image: Senex Energy neering design (FEED) for an expansion of the
Roma North’s gas processing facility to 24 TJ
(625,000 cubic metres) per day, or 228.19 mcm
per year, with the design phase anticipated to be wrapped up by June 30.
“This expansion project promises to be low- risk with fast cash returns given the modular processing facility design, more than 20 years of 2P reserves coverage at 24TJ per day, and ready land access and other approvals,” managing director and CEO Ian Davies said.™
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w w w . N E W S B A S E . c o m Week 10 12•March•2020