OGV Energy's Australia Energy Review – December 2020

“The View from Down Under”

Spring is in the air with positive news from several companies on their respective vaccine developments. Internal borders continue to open up between States in Australia, the most recent outbreak of the virus in Adelaide appears to have been contained by prompt action from the South Australian authorities.

Latest from New Zealand is that the Government department (MBIE) with responsibility for the Tui Field, has reached agreement with BW Offshore, the owners of the FPSO Umuroa, whereby the MBIE will cover the operating costs of the FPSO while it awaits disconnection from the wells. This will result in the local entity of BW Offshore now ceasing the voluntary liquidation process they had started last month. BW report that subject to ongoing pandemic restrictions they expect the FPSO to be disconnected over the first half of 2021.

The tender for decommissioning of the Tui Field is eagerly awaited, following on from the RFI which was issued by the MBIE in June this year.

Other news from New Zealand is that Beach Energy and their JV partners, OG&G and Discover Exploration, have decided not to drill the Wherry Exploration well in the Canterbury Basin in Q3 2021. Prior to this there had been some urgency as the licence is due to expire in November 2021. It is not known if JV will apply for a license extension.

Offshore activity in 2021 looks to be sufficient to keep 6 MODUs active on an intermittent basis off the coasts of ANZ in 2021.

Santos are planning to use a semi for infill drilling on Van Gogh from mid Q1 2021, subject to FID. They are also planning to use a jackup to drill 3 wells on the Bayu Undan Field in Timor Leste waters starting early in Q2 2021. This reverses the decision taken by the previous field owners, ConocoPhillips, to decommission the field over 2021 / 2022. Subject to the wells coming in as planned, this should extend the life of the field to 2024.

Inpex are commencing the 3+2-year contract for Phase 2 development of the Ichthys Field off NW Australia with the Maersk Deliverer Semi MODU.

The Ocean Apex semi started drilling on the Ironbark Prospect for BP and partners in October, the results from this well are eagerly awaited, it is expected to reach TD early in Q1 2021. The rig is believed to have some idle time after Ironbark before recommencing operations for Woodside later in 2021 off the NW coast.

Jadestone and SapuraOMV are believed to be planning to start their delayed 2020 drilling campaigns with the Valaris 107 jackup in Q2 2021.

Beach Energy are preparing to start drilling in their Otway licenses early next year with the Diamond Ocean Onyx.

Carnarvon continue to plan to re-develop the Buffalo field in 26 meters of water and will likely seek a rig of opportunity.

Read the latest issue of the OGV Energy magazine HERE.