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RCO, ROYALCO RESOURCES LIMITED
dr_dazmo
post Posted: Jun 6 2017, 10:03 AM
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I thought I'd seen just about everything!

http://www.theage.com.au/victoria/floating...605-gwkx67.html

Floating offshore gas hub proposed to tackle Victoria's energy supply crisis

Victoria is angling for a massive floating liquefied natural gas import facility to allow the state to buy gas from overseas to help tackle a serious supply crisis.

Despite the state's potentially enormous gas reserves in Bass Strait, and Australia's position as one of the world's largest exporters, the Andrews government is understood to be in active talks with energy giant AGL to build a floating LNG import terminal close to Melbourne, possibly in Western Port.

The terminal, which would supply the east-coast gas grid, would allow Victoria, NSW and South Australia to import lower cost gas, potentially from the US or Western Australia.Premier Daniel Andrews is expected to press the plan at a Council of Australian Government's meeting on Friday, along with a new proposal to help prevent local manufacturers and households from being denied access to cheaper gas because of big export contracts to Asia.

The state government is understood to have offered to "fast track" the environmental and planning approval process for the facility, which would be likely to cost $200 to $300 million, although the decision would ultimately lie with the Commonwealth.

Victoria is believed to be seen as a favourable option, partly because it is located between NSW and South Australia, which would lower pipeline costs, and partly because, unlike NSW, it already has significant storage capacity at the Iona plant, near Port Campbell in the state's south-west.

The idea of the new import facility was first floated by AGL chief executive Andy Vesey in November last year.

At the time, the idea that Australia, soon to be the world's largest LNG exporter, would need to import gas was dismissed.

But with some businesses in the southern states reportedly being quoted as much as $20 a gigajoule this year, up from as little as $4 a gigajoule in 2015, the idea is gaining traction.

Industrial gas users in Japan – which is the largest buyer of Australian LNG – pay much less, about $12 a gigajoule.

The global price is now even lower than the price that has been contracted by LNG producers to supply the Asian market, thanks to a significant oversupply.

The idea of the new terminal would be to buy LNG for south eastern Australia at the lower global price.

Energy Minister Lily D'Ambrosio said there was something "seriously wrong" when Australia gas was being sold in Japan for a lower price than businesses were being charged for it in Victoria.

University of Melbourne Climate and Energy College research fellow Dylan McConnell said releasing new gas supplies into the Victorian market was unlikely to influence short-term prices for industrial users because new supplies could take a long time to development.

Governments also needed to consider that some consumers were shifting away from gas due to new household technologies that relied on electricity, Mr McConnell said.

He argued that some households were withdrawing from gas in favour of new electric technologies, including induction cook tops, electric hot water and heating and rooftop solar.

The Australian Energy Market Operator has also raised doubts about whether new supplies would translate to lower prices, citing the increased cost of sourcing new gas and the "geological challenges of extraction".







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Always remember the Golden Rule - Those with the Gold make the Rules!

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dr_dazmo
post Posted: May 30 2017, 04:38 PM
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http://www.smh.com.au/business/gas-consume...529-gwfzqr.html

The warning came as prices in the wholesale gas market in Victoria hit $9 a gigajoule Tuesday, well above recent levels of around $6, in the wake of cool weather which also pushed the price in NSW to top $11 a gigajoule.



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
dr_dazmo
post Posted: May 30 2017, 07:40 AM
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http://www.theaustralian.com.au/business/m...8344be5678b0d9c

Oil giants ExxonMobil and BHP bid for delay on new Bass Strait gas

ExxonMobil and BHP have applied to delay development of one of the biggest Bass Strait gas discoveries of recent times for another five years, in an application that federal and Victorian resources ministers are considering whether to allow under their “use it or lose it” powers.

In a move that will further restrict potential new gas for tight east coast markets, it is understood the two resource giants, whose 50-50 Gippsland Basin joint venture in Bass Strait is the east coast’s biggest conventional gas producer, are arguing that the 2010 Southeast Remora discovery has too much carbon dioxide to run through the current gas plant set up at Longford.

The pair have applied for a retention lease extension renewal on the permit VIC/RL4 in which the discovery sits, rather than a production licence, after the previous retention lease expired.

This means they are saying the field cannot be economically developed in the next five years, despite soaring east coast prices and demand as Gladstone’s three LNG export plants power up.

“Newer fields in the Gippsland Basin are expected to be more challenging to produce as they are smaller, deeper, may have higher impurities and will hold less liquids,” an Exxon spokesman said yesterday. “We continue to evaluate how Southeast Remora might contribute to meeting Australia’s future energy needs.”

It is now up to a joint committee of federal Resources Minister Matthew Canavan and his Victorian counterpart Wade Noonan to grant the lease renewal or threaten to revoke it.

“The application is presently under consideration by both governments and is working its way through the process,” a spokesman for Mr Noonan said.

A spokeswoman for Mr Canavan confirmed it was being considered by the “joint committee” of both ministers.

Southeast Remora’s five-year retention licence expired in February, just as concerns about east coast gas price increases and looming shortages were mounting ahead of March and April crisis meetings called by Malcolm Turnbull that resulted in a plan to curb LNG exports from Gladstone if a shortage emerges.

It is believed Exxon’s argument to delay development of Southeast Remora for another five years centres on a stated lack of capacity to process gas until the carbon-heavy Turrum field, which started last year, starts to decline and spare capacity emerges at a new carbon dioxide-stripping plant.

This month, Exxon Australia chairman Richard Owen officially opened the $US1 billion ($1.3bn) carbon dioxide stripping plant at Longford that is designed to process carbon dioxide rich gas from the $4.4bn Kipper Tuna Turrum development.

At the opening, he said the plant would pave the way for a “Bass Strait 2.0” phase of new investment.

He then took Mr Canavan on a helicopter ride to one of the Bass Strait platforms, where he no doubt argued Exxon’s case for delaying development of Southeast Remora.

Since its discovery in 2010, Exxon has been quiet on how much gas it believes is in Southeast Remora, 35km off the Victorian coast and just 3km away from the Marlin platform that is processing gas from Turrum.

Shortly after the discovery, Mr Owen’s predecessor John Dashwood said Southeast Remora was one of the bigger finds in recent times but was “very modest” compared to the discoveries that had made the fields world-class oil producers in the closing decades of the last century.

Wood Mackenzie estimates the field contains about 260 billion cubic feet of gas, which makes it about half the size of the Kipper field and a quarter the size of Turrum.

Another 2010 discovery, Southeast Longtom, is believed to hold about the same amount, while the size of another field — East Pilchard, discovered in 2001 — is unknown. Future gas production from the Exxon-operated Gippsland Basin joint venture with BHP is one of the many uncertainties in the east coast gas markets.

In a March report, the Australian Energy Market Operator forecast that record Bass Strait gas production hit last year, and guided to again this year by Exxon, will not be maintained, and will return to 2016 levels.

But earlier this month, Mr Owen told the Australian Petroleum and Production Association conference that the company’s goal was “to extend a plateau of gas into the 2020s”.





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Always remember the Golden Rule - Those with the Gold make the Rules!
 
dr_dazmo
post Posted: May 18 2017, 04:21 PM
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http://www.abc.net.au/news/rural/2017-05-1...oration/8532870

Government releases 21 new areas offshore for oil and gas exploration, including in the Bass Strait

As concerns over the supply and price of gas grow, the Federal Government has released new acreage for offshore oil and gas exploration.They include areas off the coast of Western Australia and the Northern Territory, as well as in the historic oil and gas producing region of Bass Strait.

The annual acreage release is based on nominations from oil and gas companies on areas they are interested in exploring, and consequent work by Geoscience Australia.

A total of 21 areas in Commonwealth waters of Northern Australia, Western Australia, Tasmania, Victoria and the Ashmore and Cartier Islands will be opened up for industry to put bids in to explore in the area.

Lisa Schofield, general manager of offshore resources for the Federal Department of Innovation and Science and said the areas were subject to a rigorous process before being released.

"We put all nominations through a rigorous consultation process right across government," she said.

"We talk to a lot of agencies across the Commonwealth to ensure that what we do complies with requirements for areas like marine reserves, the defence industry and shipping lanes.

"We then have a conversation with the states because although the offshore areas are in Commonwealth waters, we manage them in partnership with the states and territories."

Ms Schofield said the acreage plans were then released for public consultation for around two months.

"The responses we get were mostly from fishing organisations or other interested parties that have a potential use, or question or concern, about the area being considered."


Focus on Bass Strait to find more gas
The release of acreage for oil and gas exploration in the Bass Strait could boost the nation's oldest offshore oil and gas production area.

The existing resources in the region, which takes in the Otway and Gippsland Basins, have been steadily declining for years.

However a recent report from global industry and management consultants McKinsey and Co found that reinvigorating production there was one way to keep a lid on spiralling gas prices on the east coast.

Ms Schofield said there was definitely interest and she thought some companies were really committed to doing further exploration there.

"There are lots of facilities and existing infrastructure and some part of the basins have been more or less explored than others.

"The acreage there is for the underexplored areas, and there's a number of titles that already existing in the Otway Basin, in that area between Victoria and Tasmania.

"There are already lots of titles and lots of facilities like pipelines that provide gas up to Victoria to feed that supply market," she said.





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Always remember the Golden Rule - Those with the Gold make the Rules!
 
nipper
post Posted: May 8 2017, 12:46 PM
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In Reply To: dr_dazmo's post @ May 8 2017, 12:25 PM

anything good for the economy now seems to be Snowy Scheme V2.0 !!

That said, the remarkable longevity of Bass Strait hydrocarbon extraction continues - amazing what a bit of price signalling achieves.



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"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
dr_dazmo
post Posted: May 8 2017, 12:25 PM
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Sounds positive for RCO moving forward.

Dr_Dazmo


http://www.theaustralian.com.au/business/m...6a51cb51f8f9479

Exxon Mobil to invest in Bass Strait gasfieldsExxonMobil has flagged a major phase of new investment in the big offshore Victorian gasfields it owns with BHP Billiton, saying that completion of the $5.5 billion Kipper Tuna Turrum project paves the way for “Bass Strait 2.0” amid surging domestic gas demand.

The strong language from Exxon Australia chairman Richard Owen about potential future investment in the nation’s most prolific and profitable oil and gas fields is likely to ease concerns about a coming east coast shortage and forecast Bass Strait decline. It comes as Macquarie eyes boosted Bass Strait free cash flow for Exxon and BHP by a combined $US400m a year because of rising east coast gas prices.

New investment would help Bass Strait’s Longford plant — the nation’s biggest domestic gas supplier, which can produce at about the same level as each of Queensland’s three export plants — maintain production, and potentially marginally increase it.

Mr Owen made the comments yesterday at Longford, where the completion of a $US1bn carbon dioxide-stripping plant and gas production from the Kipper fields has marked the final completion of Kipper Tuna Turrum, which was started in 2007 as three separate projects.

“This is the largest single investment, ever, in Australia’s domestic gas market,” he said.

“It could not have come at a better time and I doubt there has ever been a period in history when gas supplies have been in greater need.”

He said the development, which also includes equipment to remove mercury belatedly discovered in the gas, represents a turning point in efforts to develop the remaining gasfields in Bass Strait. The fields are smaller, deeper, more geologically complex and contain more carbon dioxide.

“We’re hoping this is only the start of actually being able to develop further resources in Bass Strait and, hopefully, essentially create Bass Strait 2.0,” Mr Owen said. “It allows us to develop these more complex fields that have different chemical complexity and we are hopeful this will allow us to then look at another phase of drilling and development in Bass Strait over the coming years.”

The Exxon-operated Gippsland Basin joint venture between Exxon and BHP in Bass Strait started in the 1960s and has produced 4.7 billion barrels of oil and 8 trillion cubic feet of gas. Mr Owen said the Bass Strait fields had produced 2.5 per cent of commonwealth government tax receipts since 1967.

Illustrating the slump that will come without new investment, Macquarie estimates that, based on current reserves, Bass Strait gas production could fall more from about 22 million barrels of oil equivalent in 2016-17 to less than 5 million barrels by 2024-25.

“There remains significant contingent resources that could be developed to extend the life of the project beyond our current end date of 2027, but we note that progressing these options is likely to require significant capital,” the bank said.

The prospect of investment has been helped by rising east coast gas prices. After a detailed review of the tight east coast gas market, Macquarie raised its Bass Strait gas price assumption from $5 a gigajoule to between $7 and $9, resulting in a forecast $US200m per year free cashflow boost for 50 per cent owner BHP.

Exxon has given limited visibility on its reserves and resources in Bass Strait, which may be part of the reason for downbeat forecasts on the region’s sustainability. But it has for a long time, even before gas prices surged in response to east coast prices, said it believes it can produce another 7 trillion cubic feet of gas. Exxon has three main discoveries in Bass Strait it has been considering developing for more than a decade: South East Remora, South-East Longtom and East Pilchard.

Last year, the joint venture had record production of 312 petajoules of gas as it sold more on to east coast markets that have seen demand rapidly triple, as $80 billion of LNG plants at Gladstone ramp up. “This year looks likely to follow suit,” Mr Owen said.

Resources Minister Matt Canavanapplauded Mr Owen’s announcement. “It’s great to hear Richard talk about a Bass Strait 2.0 because we’ll need continuing investment,” Mr Canavan said. “For our oil and gas sector in our history, this project has been a Snowy Hydro. .”





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dr_dazmo
post Posted: May 3 2017, 03:06 PM
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Hi All,
FOund this which seems a positive report on BHP / Bass Strait Gas.
I suspect RCO's royalty income should also be "inflated" if you'll pardon the pun!

I've only pasted sections I thought relevant.

Dr_Dazmo

https://www.macrobusiness.com.au/2017/05/bh...eams-gas-gouge/

Macquarie’s detailed review of the Australian East Coast Gas market has revealed that while the market appears to have sufficient gas at least until 2030, prices will rise closer to export parity. We materially upgrade our earnings for BHP’s Bass Strait project on the back of the improved pricing outlook.

Bass Strait earnings get a boost: We have lifted our domestic gas price assumption for Bass Strait from A$5/GJ flat to a more aggressive profile which assumes prices rise from A$7/GJ to A$9/GJ by the end of the decade. The improved pricing outlook drives 25-30% increases in EBITDA for the project over the next five years.

Life extension possible: We have not changed our production forecasts for Bass Strait at this stage, which only include current 1P and 2P reserves. There remains significant contingent resources that could be developed to extend the life of the project beyond our current end date of 2027 but we note progressing these options is likely to require significant capital.



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Always remember the Golden Rule - Those with the Gold make the Rules!

Said 'Thanks' for this post: nipper  
 
dr_dazmo
post Posted: May 1 2017, 10:51 AM
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http://www.theaustralian.com.au/business/m...20568c425418d7b

Cheers
Dr_Dazmo

Santos feeling the heat as PM turns up the gas in east coast energy crisis

“We’re still crunching the numbers but we are looking to release something in mid to late May.” ExxonMobil, which operates the east coast’s biggest domestic supplier, the Gippsland Basin joint venture, has committed to maintaining record production levels this year.“We recognise the concerns raised with respect to gas supply and, accordingly, 2016 was the highest gas production year ever from the Longford Plants, with similar production levels expected in 2017,” an Exxon spokesman said.

Exxon has not said whether production will be maintained beyond 2017, but BHP’s head of conventional oil and gas, Geraldine Slattery, in October said there was potential for flat Bass Strait production well into the 2020s.





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Always remember the Golden Rule - Those with the Gold make the Rules!

Said 'Thanks' for this post: nipper  
 
dr_dazmo
post Posted: Apr 26 2017, 09:53 AM
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In Reply To: dr_dazmo's post @ Apr 21 2017, 01:32 PM

Confirmation in BHP's Operational Review for the 9 months ended 31/3/17:

"The Bass Strait Longford Gas Conditioning Plant was fully commissioned during the March 2017 quarter and is now running at design capacity, enabling full production from the Turrum and Kipper fields."

Cheers
Dr_Dazmo



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
dr_dazmo
post Posted: Apr 21 2017, 01:32 PM
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Hi All,
March Qtr results out.
Nothing spectacular, but looks like gas from Kipper is starting to flow..

"Recent speculation suggests that gas production has commenced from the Kipper field as part of the Kipper/Tuna/Turrum multi-billion dollar development."

Cheers
Dr_Dazmo



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Always remember the Golden Rule - Those with the Gold make the Rules!
 
 


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