Australia Key Project and Business Highlights
In 2012, Australia popped up as center of universe for the liquefied natural gas (LNG) industry with the number of LNG projects pilling up, the costs of these projects spiraling up by 80%, the new discoveries leading to strategic changes.
With a second wave of LNG projects representing $156 billion capital expenditure, Australia is in position to overtake Qatar as world largest LNG exporter.
So far Australia is in the lead to capture the biggest share of the 90 million t/y of uncontracted LNG demand in Asia.
To keep this market leadership in front of the competition coming from North America, East Africa, Indonesia and Russia, Australia will need to invent a new model to reduce costs, for example in sharing onshore LNG plants, developing subsea and introducing floating LNG.
With PetroChina (CNPC) buying stake in Browse and China National Offshore Oil Corporation (CNOOC) taking part of Queensland Curtis LNG, the Chinese national oil companies secure their supply in the same time as Australia LNG export.
In 2012, Australia LNG market was highlighted by the major events below.
BG and CNOOC close deal on Queensland Curtis LNG
BG Group from UK and China National Offshore Oil Corporation (CNOOC) signed Heads of Agreement (HOA) about the Queensland Curtis Liquefied Natural Gas (QCLNG) project.
Both companies were already partnering in the QCLNG project, but with the agreed Heads of Agreement, BG Group and CNOOC manage to take a bigger role and to increase their cooperation.
Theses Heads of Agreement cover two aspects:
Subsea 7 wins Apache Julimar in Carnarvon Basin
In 2007, Apache Corporation (Apache) and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) discovered the Julimar and Brunello natural gas fields in the Carnarvon basin offshore Western Australia.
Attached to the WA-356-P block, the Julimar and Brunello are estimated to contain 2.1 trillion cubic feet (tcf) of recoverable reserves of natural gas.
Located 180 kilometers northwestern offshore Dampier in Western Autralia, Apache and KUFPEC decided
Chevron makes new discoveries in Greater Gorgon
On September 2012, Chevron Corporation (Chevron) made a new gas find in the Greater Gorgon Area offshore Australia.
Exploring the WA-374-P blockof the prolific Carnarvon basin, Chevron performed the exploratory wellSatyr-2 about 120 kilometers northwest of theBarrow island, offshore the Western Australia coast.
The interests in the WA-374-P block are shared between:
ConocoPhillips moves on its first Floating LNG vessel
ConocoPhillips to merge Offshore experience and Cascade LNG know-how into its first Floating LNGIn 1969 the ConocoPhillips Company (ConocoPhillips) pioneered liquefaction of natural gas (LNG) with its first LNG facility in Kenai LNG, Alaska, USA.
Hess progresses on deep offshore Equus LNG project
Since 2007, Hess holds the 100% working interest of the WA-390-P Block offshore Western Australia to develop the Equus project.
Equus is part of the $6.8 billion Hess’s capital expenditure budget for 2012 where $1.8 billion are to be allocated to conventional oil and gad fields development including the WA-390-P Block.
This WA-390-P Block covers 780,000 acres in the natural gas rich Carnarvon basin in 1,200 meters water depth, 180 kilometers north of North West Cape, 300 kilometers west of Karratha on the Burrup Peninsula, Western Australia.
Woodside to speed up Laverda in Exmouth sub-basin
Woodside Petroleum (Woodside) from Australia and Mitsui Oil Exploration Co, Ltd (Mitsui) have decided to move ahead in the development of the Laverda oil field in respect with the promising conclusions of the last appraisal drilling operations.In Laverda the both partners share working interests so that:
– Woodside 60% and is the operator
– Mitsui 40%
The Laverda oil field is located in block WA-36-R offshore the North West Cape, at 50 kilometer distancefrom Exmouth, Western Australia.
Laverda reserves lies by 800 meters depth of water and total 2300 meters deep in the Exmouth sub-basin.
