You are on page 1of 68

OIL & GAS REVIEW

THE AUSTRALIAN
U P S T R E A M D O W N S T R E A M P I P E L I N E S
PP643938/00183

ISSUE 39, DECEMBER 2013


AOG 2014 P25 Arrow Energy P36

Woodside P20

Australian absence from climate summit draws international criticism


Amy Mattes-Harris & Courtney Pearson
AUSTRALIAs national climate change dialogue continues to draw international comment, with the country criticised for failing to send ministerial representation to the UNs recent 19th annual climate change summit in Poland. It was the first time in 16 years that the Australian government was not represented by a minister at the event. The 19th session of the Conference of the Parties to the UNFCCC and the 9th session of the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol took place from 11 to 22 November at the National Stadium in Warsaw, Poland. It brought together members of the UN to continue negotiations surrounding a global climate agreement and address climate change. Preparations for a new climate deal are reportedly expected to be finalised in 2015 and exercised after 2020. However, Reuters reported that negotiators in Poland were unable to agree on developing new carbon markets and how best to link them together through accounting and transparency, and that representatives of developing countries maintained a stance of refusing to move forward until richer nations cut their own emissions. In previous years Australia has been represented by a government minister at the summit; this year, however, diplomat and climate change ambassador Justin Lee represented the country a move that reflected climate change sentiments expressed by Prime Minister Tony Abbott. Before the conference began, former UN climate chief Yvo de Boer said Australia should have sent Environment minister Greg Hunt to the talks. I cannot remember a previous occasion

The UN Climate Change Conference in Poland brought together delegates to address climate change and continue negotiations, but Australia did not send a minister to attend Photo - UNclimatechange

where a major player in this process has not been represented at ministerial level at the high level segment of the talks, Mr de Boer told The Guardian. Australia was criticised in ECO, a non-government newsletter available at the conference, for having a topsy-turvy climate change policy. Australia also received a number of Fossil

of the Day awards during the conference. The awards, handed out by the international Climate Action Network during the conference, recognised the country seen to most block progress throughout the days negotiations. Mr Abbott recently confirmed the Coalition would meet a 5 per cent emissions reduction target, backtracking on its longstanding policy to reduce emissions by between 5 and

25 per cent by 2020. Australia will meet our 5 per cent emissions reduction target, but this government has made no commitments to go further than that, Mr Abbott told journalists. We are certainly in no way looking to make further binding commitments
(continued on page 3)

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

CONTENTS NEWS
General 1 Repair & Maintenance Services Water Treatment 20 Fabrication 25 28 46 48 50 52 55 58 61 63 64 65 66

Special Profiles
Woodside AOG 2014

Offshore Containers Environmental Services Drug & Alcohol Testing Medical Services

ConocoPhillips Australia

BHP Billitons Macedon Gas Development 32 Oceanlinx 34 36 38

Arrow Energy APA Group

Gym & Fitness Equipment Splurge Escapes

OTHER SECTIONS
Companies Gearing Up Training & Development 41 45

A Day in the Life

64
For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au The Australian Oil & Gas Review is a free publication to all oil and gas operations and oil and gas companies in Australia. Its value is $11 an issue (includes GST, postage and handling). The copyright is vested in the Proprietors of The Australian Oil & Gas Review; neither whole nor any part of this issue may be reproduced without permission. The views expressed in this publication are not necessarily those of Publications & Exhibitions Australia Pty Ltd and its staff, but are those of the respective author who accepts sole responsibility and liability for them.
NOTICE TO ADVERTISERS: The Trade Practices Act, 1974 came into force on the 1st October 1974. All advertisers and advertising agents are directed to carefully study the provisions of the Act, which contain strict regulations on advertising. It can be an offence for anyone to engage, in trade or commerce, in conduct deemed misleading or deceptive. Specifi cally s53 of the Act contains prohibitions from doing any of the following in connection with the promotion, by any means, of the supply or use of goods or services: (a) falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; (b) falsely represent that goods are new; (c) represent that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefi ts they do not have; (d) represent that the corporation has a sponsorship, approval or affiliation it does not have; (e) make a false or misleading representation with respect to the price of goods or services; (f) make a false or misleading representation concerning the need for any goods or services; or (g) make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy. PENALTIES: For an individual $10,000 or six months imprisonment For a corporation $50,000. It is not possible for this company to ensure that advertisements published in this newspaper comply with the Act and the responsibility must, therefore, be on the person, company or advertising agency submitting the advertising for publication. In case of doubt, consult your lawyer.

PUBLISHED BY

GRAPHIC DESIGNERS Adam Carriero, Chris Wade


PTYLTD

SALES MANAGER David Tough SALES EXECUTIVES Benjamin Needham, Michelle Jasper, John Leskiewicz OFFICE MANAGER Nikki Retallack ACCOUNTS MANAGER Teresa Sabatino PRINTER Rural Press CONTACT US P: (08) 6314 0300 F: (08) 9481 7322 160 Beaufort Street, Perth, WA 6000 PO Box 8023, Perth BC, WA 6849. E-mail the editor at editorial@miningoilgas.com.au.

ABN 28 112 572 433 GENERAL MANAGER Brad Francis MANAGING EDITOR Amy Mattes-Harris JOURNALISTS Reuben Adams, Jaimee Conn, Rachel Dally-Watkins, Joshua del Pino, Jane Goldsmith, Courtney Pearson SUBEDITOR Louise Baxter RESEARCHERS Skye Fitzgerald, Carmen Buckley

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

GENERAL NEWS

Divestments to continue for global giant


Rachel Dally-Watkins
DESPITE increasing its quarterly dividend by 5.6 per cent, BP has announced its intention to divest more than US$10 billion in assets by the end of 2015. This follows on from a US$38 billion divestment program undertaken in the last three years. In the third quarter, BP had cash flow of US$6.3 billion and an underlying replacement cost profit of US$3.7 billion, compared to US$2.78 billion for the previous quarter. The divestment was part of the companys program of focussing its business portfolio around key assets and strategic strengths. BP stated that the proceeds would be predominantly used for additional distributions to shareholders, with a bias towards share buy-backs. Following the receipt of about US$12 billion earlier in the year from the divestment of its shares in TNK-BP, BP announced a US$8 billion share buy-back program. As of 25 October, it had spent US$3.8 billion repurchasing shares for cancellation. In 2011 we set a clear target for operating cash flow in 2014 and we are confident in its delivery, BP Group chief executive Bob Dudley said. The strong operational progress we are now seeing across the group, combined with our focus on disciplined investment, also underpins our confidence in growing long-term sustainable free cash flow and being able to increase shareholder distributions. [This] announcement is a further demonstration of this. Mr Dudley said the groups spending in 2014 was expected to remain at around the same level forecast for 2013, within the range of US$24 billion and US$25 billion. The company also faced a cumulative net charge to its accounts related to the Deepwater Horizon disaster of US$42.5 billion. The second phase of the trial in New Orleans was completed on 18 October. The next phase, in which the court will consider the penalty factors set out in the Clean Water Act, is expected to take place in 2014. BP stated that it did not know when the Court would present a ruling on the issues assessed in the first two phases of the trial.

State government secures land at James Price Point


THE WA Government has finalised the acquisition of 3414 hectares of land at James Price Point, designated for the development of nearby gas fields. Premier Colin Barnett said securing the land, 60km north of Broome, was an important step in ensuring the efficient development of offshore and onshore gas in the Kimberley despite there being no current plans for any business to use the land. The area was originally earmarked for use in the Woodside-operated Browse LNG project, however the project partners had since decided on a floating LNG (FLNG) option. It would now be managed by LandCorp and the Broome Port Authority. It has taken substantial effort to reach this point, with the support of traditional landholders, Mr Barnett said. I thank the indigenous community for their courage in working with the state government to secure this agreement and its associated social and economic benefits. The government secured a native title agreement with the Goolarabooloo Jabirr Jabirr native title claimant group in June 2011, with the land acquisition triggering a $10 million economic blasting. Despite this, development of the land at James Price Point is strongly opposed by indigenous and community groups. The government is committed to delivering a project-ready site for the development of the regions world-class gas resources, Mr Barnett said. He said he hoped the land would be used as a supply base, but that it would be up to oil and gas companies to develop it. Then companies using that site will lease the land off the government but the government will not be building infrastructure for the oil and gas industry; I think they've enough money to build their own infrastructure, he told ABC News. The agreement that's been put in place and backed up through Parliament is that it not be an industrial site with chemical industries and the like, it is simply a gas processing and supply base. A supply base is largely a marina, we're not talking about massive ocean vessels coming in there; these are supply boats that might be 60, 70, 80 metres long. They will simply take out suppliers' equipment.

Land acquired by the WA Government at James Price Point will be managed by LandCorp and the Broome Port Authority

development fund and $20 million for indigenous housing. The Traditional Owners would also remain involved in the environmental, social and heritage management of the precinct. The James Price Point location was selected by the state government in

2009 as the most suitable site from more than 40 potential gas development locations. The government claimed that its remoteness would minimise potential impacts on the community while access to deep water close to the shore would reduce the need for dredging and

Australia gives UN climate change conference a miss


(continued from page 1)

in the absence of very seriousbinding commitments from other countries, and there is no evidence of that. Mr Abbott has moved to repeal the carbon tax introduced by former Prime Minister Julia Gillard. The first piece of legislation to abolish the tax was introduced mid-November. Mr Abbott told the Nine Network that the Labor party should do the right thing by the workers and people of Australia and not stand in the way of scrapping the toxic tax.

The tax made it more difficult for domestic businesses to compete at home and harmed Australias competitiveness overseas, he said. If the Prime Ministers new legislation is passed the carbon tax will cease from July and governmental independent advisory body the Climate Change Authority will be shut down. Opposition Leader Bill Shorten told the House of Representatives that he could not support the Prime Ministers moves to repeal the carbon tax. We cannot today, or on any day

forward, support Tony Abbotts laws, which would leave Australia with no effective means of cutting carbon pollution, Mr Shorten said. In Australia, five industries account for 91 per cent of the emissions liable under the current carbon pricing scheme, with the power generation industry leading the pack by a large amount. The International Energy Agency (IEA) recently warned that the world was on track to become hotter than previously predicted by the UN, with greenhouse gas emissions expected to rise 20 per cent by 2035.

According to the IEA, the prediction would lead to a long-term average temperature rise of 3.6 degrees Celsius, nearly double the internationally agreed figure. In May this year the carbon dioxide levels in the atmosphere in fact exceeded 400ppm [parts per million] for the first time in human history, IEA executive director Maria van der Hoeven said. We all know that this trend cannot continue the world is seriously off track to meet the target agreed by government to limit the long-term rise in average temperature to 2 degrees Celsius.

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

North West Shelf project showcasing new seismic technology


Rachel Dally-Watkins
NEW seismic survey technology is set to debut at Woodsides North West Shelf project when the Fortuna 3D seismic survey begins in December. The survey will use Schlumbergers IsoMetrix technology which was launched in June 2012 following 10 years of research and development. The technology has already been used in the North Sea and off the coast of Canada, with this to be the eighth instance of its use. We have been monitoring developments in the industry and we believe this is the first technology that can give us the quality of subsurface data we need in this part of the North West Shelf, Woodside principal geophysicist Jeremy Fitzpatrick told Energy News. According to Western Geco (a business segment of Schlumberger), the IsoMetrix marine isometric technology offers a new dimension in measurement that introduces a new category of seismic imaging. [It] delivers high-fidelity isometric, point-receiver seismic data while overcoming spatial wavenumber bandwidth compromises that have limited all previous marine seismic acquisition methods, Western Geco stated. The result is a reliable, continuous measure of the full upgoing and downgoing notchless seismic wavefield sampled at 6.25m [by] 6.25m point-receiver surface grid. This fine isometric sampling in both crossline and inline directions makes the data suitable for use in a wide variety of interpretation and modelling applications, such as high-resolution near-surface imaging, deep reservoir characterisation and 4D reservoir monitoring. The difference between the new IsoMetrix technology and conventional 3D seismic surveys has been likened to the difference between x-rays and 3D magnetic resonance imaging in healthcare. Mr Fitzpatrick said the Fortuna 3D survey would collect 60 times more data than a conventional 3D survey covering the same size area. We will be collecting petabytes of data, he said. The volume of data is so large the survey vessel arriving here next month is also Schlumbergers third most powerful computing centre anywhere in the world, after Houston and London. Mr Fitzpatrick said one of the major objectives of the survey technology was to penetrate the carbonate rocks along the Madeleine Trend, which had defied seismic exploration efforts for the past 30 years. There is almost no penetration of signal through these carbonates, he said. The new survey will improve the subsurface data quality in those poor areas. The Fortuna survey will take about six months to cover 4000 square kilometres of North West Shelf acreage. Woodside coordinator geotechnical operations Mike Bowler said Woodside believed the technology was a step change in the exploration and appraisal of Australian offshore acreage for a number of reasons. An advantage is the wider range of signals or what is known as broadband technology, he said. The streamers used for the Fortuna survey have a number of adaptations from conventional technology that produce a wider range of signals. It uses conventional hydrophones to measure pressure waves. The streamers also have embedded geophones that are tri-axial they measure x, y and z energy. By having an extra component in the data you can expand the frequency range and you no longer have a ghost notch from the interference of the sea surface. This broadband signal will help us penetrate through the quite complex geology into the underlying reservoirs we want to image. A further advantage of the new technology is that it can be towed deeper than conventional streamers, reducing background noise from the sea surface and improving the noise-to-signal ratio. In this survey, we will have 12 streamers and in a conventional survey that would mean quite coarsely sampled. That would create an issue where you have complex

The Fortuna 3D seismic program at the North West Shelf project will collect petabytes of data

geology because you cant measure it properly, Mr Bowler said. By having embedded geophones you have cross-line energy you can interpolate and create fine data. We will have a really fine grid and a lot more sample points in the subsurface.

Woodside expected it would take several months to receive the full results from the Fortuna survey, with the data being integrated with that collated from the last major seismic survey of the North West Shelf project the Demeter 3D survey about 10 years ago.

Gas discovery offshore Northern Territory could bring huge benefits


Courtney Pearson
A new gas province in the Timor Sea could establish the Northern Territory as northern Australias gas processing and marine supply hub, the NT Government said. Recent drilling of Evans Shoal North-1 at the Evans Shoal gas field 300km northwest of Darwin, owned by operator Shell (32.5 per cent), Eni (32.5 per cent), PETRONAS (25 per cent) and Osaka Gas (10 per cent), revealed that the field contains at least 8 trillion cubic feet of gas with between 3tcf and 4tcf recoverable for processing. NT Chief Minister Adam Giles said the field had massive potential for development. To put the Evans Shoal find in context, (ConocoPhillips) Bayu Undan field, which currently feeds the Darwin LNG plant at Wickham Point, was developed on the basis of 3.4tcf of gas, he said. Evans Shoal is of a similar scale and could be the next big gas project for the Territory. The NT Chamber of Commerce chief executive Greg Bicknell told the ABC that the gas field could benefit the local economy if it was brought onshore. The Northern Territory economy has been very much riding on the back of large projects, then we have a gap between them where the economy does do it very tough, so anything that can help smooth that out is a great addition to our economy, he said. Mr Bicknell said the cost of building new infrastructure made it likely that the joint venture would expand existing facilities. An Eni spokesperson told the ABC that the gas would likely be exported and that Eni could not guarantee onshore developments. The joint venture is analysing the results and will now begin planning the fields development.

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

European authorities revise energy subsidies


Rachel Dally-Watkins
WITH two of the European Unions major utilities posting lower earnings on the back of the regions energy crisis, the European Commission has moved to slash costly energy subsidiaries. Germanys E.ON and Frances GDF Suez both placed part of the blame for their reduced earnings on governments and EU policies for prolonging an energy crisis that is leading to power plant closures and asset writedowns. E.ONs nine-month core profit declined by one fifth, leading it to reduce its full year earnings forecast from between EU9.2 billion and EU9.8 billion to between EU9.2 billion and EU9.3 billion; while GDF Suez posted a 6.5 percent drop in nine-month core earnings . Falling demand and overcapacity are being blamed for plunging wholesale power prices that have thrown Europe's utilities into an unprecedented crisis. Both firms complained about the boom in subsidised solar and wind energy, which they said led to overcapacity and put traditional thermal plants out of business. Our legacy generation business continues to suffer from the upheavals in the power market, which result in part from interventionist government policies, E.ON chief executive Johannes Teyssen said in a letter to shareholders. Compounding the crisis further, US production of shale gas has led to cheap exports to Europe, outcompeting modern gas-fired generators and forcing utilities such as E.ON and GDF Suez to abandon several modern gas turbines. E.ON had shut down about 7 gigawatts of plant capacity while GDF Suez had closed down 12GW, with another 2GW to be shut down in the third quarter and up to seven more plants under review. As a result, the European Commission has advised European governments to be stringent when it comes to the guidelines surrounding energy subsidies. Amid intense political debate and ongoing protests against rising energy prices, the European Commission was revising the rules guiding subsidies. The European Commission advised its intention to make the subsidies more flexible as it moved towards phasing them out completely. Instead of feed-in tariffs, which are fixed-rate incentives, it recommended a feed-in premium, which would rise or fall depending on market conditions. The ultimate aim of the market is to deliver secure and affordable energy for our citizens and business, EU Energy Commissioner Guenther Oettinger said in a statement. Public intervention must support these objectives. It needs to be cost-efficient and be adapted to changing circumstances. If public interventions are not carefully designed, they can severely distort the functioning of the market and lead to higher energy prices.

China increases Queensland presence through massive project


Courtney Pearson
CHINA has secured a bigger stake in Queensland oil and gas after one of its majors finalised a US$1.93 billion deal in the Queensland Curtis LNG (QCLNG) project. In an agreement with BG Group, the China National Offshore Oil Corporation (CNOOC) will be supplied with an extra 5 million tonnes per annum of LNG for 20 years starting in 2015. BG Group is developing a two-train 8.5mtpa LNG plant on Curtis Island that will be linked to the Surat Basin by a 540km pipeline network. CNOOC acquired a 40 per cent interest in QCLNGs train one, giving the company a 50 per cent stake. It also acquired a 20 per cent interest in the Walloons Fairway tenements in the Surat Basin, up from 5 per cent, and 25 per cent interest in other upstream tenements in the Surat and Bowen basins. Furthermore, the two companies will invest in the construction of two LNG ships in China and CNOOC will have an option to acquire a 25 per cent interest in one of the potential expansion trains for QCLNG. While today marks the completion of the agreements with CNOOC, it also signals the start of a new chapter in our partnership as we begin commissioning of the worlds first CSG to LNG project ahead of first commercial cargo in 2014, BG Group chief executive Chris Finlayson said at the completion ceremony in Brisbane. Our relationship with CNOOC has grown as they increase their investment in our QCLNG project and BG Group becomes the largest supplier of LNG to the worlds fastest growing energy market. The first phase scope of the project was about 64 per cent complete, according to the companys website.

The China National Offshore Oil Corporation now has a bigger stake in the Queensland Curtis LNG project

CSG activities banned in sensitive water catchment areas


Jaimee Conn
THE NSW Government implemented a ban on the exploration and extraction of CSG in 364,000 hectares of Sydneys drinking water catchment last month, citing community concerns. Resources and Energy minister Chris Hartcher said the state would support the restriction of activities within the Special Areas boundaries until there was a greater understanding of the potential impacts of CSG exploration and extraction. The Special Areas play a vital role in protecting the quality of drinking water for millions of residents. The NSW Government recognises community concern that accessing and performing drilling in these pristine areas may have an effect on the drinking water supplies to Sydney and the Illawarra, Mr Hartcher said. Designated Special Areas in the catchment are recognised due to their topography and importance in filtering surface waters that flow in to the catchments dams. Mr Hartcher said no activities should occur in these areas if they were detrimental to the quality and supply of water. Accordingly, the NSW Government has imposed an immediate hold which will stop any activities under the Petroleum Onshore Act related to the commercial exploration and extraction of natural gas from coal seams within the heavy metals. It involves methane leaks and industrial development that's incompatible with our drinking water catchments. Last month, NSW opposition leader John Robertson introduced a Bill to permanently outlaw CSG activities in the Sydney and Illawarra water catchments, stating that water was Australias most valuable asset. Some parts of our state are so precious and so important that they must be permanently ring-fenced without delay the core Sydney and Illawarra catchment areas are two such places, Mr Robertson said. Coal seam gas activity in those areas must be ruled out. The Bill sought to achieve two main goals. First, it cancels any exploration licence, assessment lease, production lease or special prospecting authority relating to CSG in any Sydney water catchment Special Area, Mr Robertson said. Secondly, it prevents the granting or renewal of any coal seam gas licence or leases in these areas. It also safeguards the state against being held liable for any compensation as a result of the proposed legislation. The Sydney Catchment Authority is opposed to the exploration and extraction of CSG within the Special Areas. In July, an application by Apex Energy to drill 16 CSG wells in the Woronora catchment Special Area (40km southwest of Sydney) was rejected.

Designated Special Areas in NSW protect water quality by providing buffer zones of pristine bushland around dams and immediate catchment areas

Special Areas. Mr Hartcher said the community had expectations that certain areas would remain off-limits until there was an evidence-based understanding of the impacts of activities on water quality and quantity. Although drilling has occurred under the consent of the previous government, there are currently no existing approvals in place for drilling in the Special Areas. The ban will be imposed pending an investigation by NSW chief scientist and engineer Professor Mary O'Kane into the impact of CSG activities on water in the

region. Stop CSG Illawarra spokesperson Jess Moore welcomed Mr Hartchers ban, stating that while it was a win for the campaign, the Barry OFarrell Government must keep its pre-election promise of a mining ban in water catchment areas. We want the land in NSW that supplies our drinking water protected, Ms Moore said. CSG exploration and mining always involves unearthing water that is high in salt and methane, and can contain toxic and radioactive compounds and

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Gorgon LNG stalled to fight further cost blowout


Courtney Pearson
GAS giant Chevron has told US investors that the $52 billion Gorgon LNG project expansion will be stalled until the joint venture can figure out the projects cost. Chevron chief financial officer Pat Yarrington told investors that although productivity was improving on all fronts there were some areas that still need to improve. Ms Yarrington said a fourth train for the three-train development may not go ahead due to cost pressures and the company would have to prioritise the project with other opportunities that we have got in our portfolio. We are all interested in seeing this continue to progress, she told investors. I think all of the JV [joint venture] partners are interested, though, in seeing Train 1 come up and seeing progress on two and three... Everybody wants to get an understanding of the cost structure. I also think that people want to get certainty around the fiscal and regulatory regime, and as you know, theres been a change of government in Australia. The Australian Financial Review stated that the initial project costs could reach $60 billion and a further increase was possible. The Gorgon Project will develop the Gorgon and Janz-Io fields in the Greater Gorgon area, 130km to 220km offshore northwest WA. Gorgon LNG comprises a 15.6 million tonne per annum LNG plant on Barrow Island and a domestic gas plant to supply 300 terajoules of gas per day to WA. The project is a joint venture between Chevron (47.3 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and Chubu Electric Power (0.42 per cent). It is more than 70 per cent complete and the first LNG unit was due for start-up in the first quarter of 2015.

Expansion of the Chevron-operated Gorgon LNG project has been put on hold due to cost uncertainty

Oil and gas giant backs out of Philippines project


PERTH-based oil and gas explorer Otto Energy has revealed that BHP Billiton has pulled out of Service Contract 55 in the Philippines. The 9880 square kilometre SC55 area in the southwest Palawan Basin was a joint venture between BHP (60 per cent), Otto (33.2 per cent) and TransAsia (6.9 per cent) and comprises the Cinco and Hawyeye prospects. In a statement, Otto said BHP had verbally advised it would not proceed with the project, despite no prior warnings. In 2011 BHP announced it was farming into the project with Otto, becoming the operator and gaining a 60 per cent working interest. The company was planning to drill two offshore deepwater wells and reimburse the costs of the contract area. BHP received formal environmental clearance to drill the Cinco-1 prospect at the end of October and notified Otto that it was in talks with the Philippine Department of Energy about the timing of the drilling program. Otto is taking legal advice on BHP Billitons continuing obligations to fund Ottos working interest through the current sub-phase, the company stated. Otto will strenuously enforce its full legal rights under the relevant agreements.

Abbotts carbon tax repeal met with mixed reviews


Rachel Dally-Watkins
PRIME Minister Tony Abbott has taken steps to ensure he meets his pre-election deadline for abolishing the carbon tax, with the introduction of a package of bills to Parliament. The Liberal Government promised to abolish the carbon tax by 1 July 2014, to lower costs for Australian businesses and ease cost of living pressures for households. If passed, the package would not only axe the carbon tax but also the Climate Change Authority a governmental independent advisory body. Draft legislation for the repeal was made available on 15 October and the consultation period closed on 4 November; the documents are now with the House of Representatives. The Australian people have already voted upon this bill and now the Parliament gets its chance," Mr Abbott said. "The election was a referendum on the carbon tax, the people have spoken, now it's up to this Parliament to show that it's listened." According to the Department of Environment website, modelling by the Australian Treasury suggested that repealing the carbon tax and the Clean Energy Package in 2014 would leave average costs of living across all households $550 lower than they would otherwise be in the 2014 and 2015 financial years. It stated that the move would lower retail electricity and gas prices by about 9 per cent and 7 per cent respectively, and would boost Australias economic growth, increase jobs and enhance Australias international competitiveness by removing an unnecessary tax which hurts businesses and families. Despite the claims, power companies had indicated that electricity price reductions would not be as high as Mr Abbott promised. Those opposed to the repeal made sure their voices were heard in Parliament: Mr Abbott was forced to wait for more than an hour to present the package of bills as a result of tactics designed to stall the process, and protestors in the public gallery who interrupted the Prime Minister had to be quietened by Speaker Bronwyn Bishop. While the Liberal Government has the numbers to pass the legislation through Parliament's lower house, Labor and the Greens have the numbers in the Senate to block the bills and have already vowed to do so. They could also cause a delay in voting until well into next year by tying up proceedings with Senate inquiries into both the repeal bills and the coalition's replacement climate change policy. If Tony Abbott is committed to throwing out the baby with the bath water on climate change, it is reasonable for the parliament and the community to expect a reasonable level of detail about their alternative climate change policy, Opposition Climate Change spokesman Mark Butler said. Treasurer Joe Hockey also introduced to Parliament a bill to repeal the mining tax implemented by the previous Labor Government. "The bill ends a sordid history of poor taxation policy," Mr Hockey said. "Given that the mining tax has failed to deliver meaningful revenue, the government has had to borrow to pay for the expenditure associated with the mining tax." Mr Hockey said that axing the mining tax and associated expenditure would save the budget $13.4 billion. Canadian Prime Minister Stephen Harper, who rejected a similar carbon tax policy in 2008, was quick to praise Mr Abbotts move. A statement from his secretary Paul Calandra said Mr Abbott had set a strong example on how to reduce carbon emissions while protecting consumers. Mr Calandra said that greenhouse gas emissions in Canada were down on 2006 levels and 1 million jobs had been created since the recession, without introducing a carbon tax. "The Australian Prime Minister's decision will be noticed around the world and sends an important message," he said. "Our government knows that carbon taxes raise the price of everything, including gas, groceries, and electricity."

Carbon dioxide poses greatest risk as greenhouse gas concentrations rise


Jaimee Conn
GREENHOUSE gas volumes in the Earths atmosphere reached a new record high last year and are continuing to rise, according to the Geneva-based World Meteorological Organisation (WMO). According to the WMOs annual Greenhouse Gas Bulletin, there was a 32 per cent increase in radiative forcing the warming effect on Earths climate between 1990 and 2012 because of carbon dioxide and other heat-trapping long-lived gases such as methane and nitrous oxide. Carbon dioxide, mainly from fossil fuel-related emissions, accounted for 80 per cent of the increase, and had a higher-than-average atmospheric growth rate between 2011 and 2012 than in the past 10 years. Since the start of the industrial era in 1750, the global average concentration of carbon dioxide in the atmosphere had increased by 41 per cent, methane by 160 per cent, and nitrous oxide by 20 per cent, the WMO reported. However, its only one part of a much wider picture; only about half of the carbon dioxide emitted by human activities remains in the atmosphere, with the rest being absorbed in the biosphere and the oceans. WMO secretary-general Michel Jarraud said the observations from the organisations extensive Global Atmosphere Watch network highlighted, yet again, how heat-trapping gases from human activities had upset the natural balance of the atmosphere, and were a major contribution to climate change. The Intergovernmental Panel on Climate Change (IPCC) in its recent 5th Assessment Report stressed that atmospheric concentrations of carbon dioxide, methane, and nitrous oxide have increased to levels unprecedented in at least the last 800,000 years, Mr Jarraud said. As a result of this, our climate is changing, our weather is more extreme, ice sheets and glaciers are melting and sea levels are rising. According to the IPCC, if we continue with business as usual, global average temperatures may be 4.6 degrees higher by the end of the century than pre-industrial levels and even higher in some parts of the world. This would have devastating consequences. Mr Jarraud said limiting climate change would require large and sustained reductions of greenhouse gas emissions. We need to act now, otherwise we will jeopardise the future of our children, grandchildren and many future generations. Time is not on our side. The WMOs Greenhouse Gas Bulletin reports on atmospheric concentrations not emissions of greenhouse gases. Emissions represent what goes into the atmosphere, while concentrations represent what remains in the atmosphere after the complex system of interactions between the atmosphere, biosphere and the oceans. Carbon dioxide was counted as the single most important greenhouse gas emitted by human activities. It lingers in the atmosphere for hundreds if not thousands of years, and will determine global mean surface warming by the late 21st century and beyond. Even if carbon dioxide emissions were stopped immediately, most aspects of climate change would persist for centuries, according to the WMO.

10

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Toxic leak contained at Geelong refinery


A highly toxic unrefined petrol leak caused the Shell refinery near Geelong to temporarily close on 20 November. An alarm was sounded at 5am alerting staff to an issue with an operating unit. More than a dozen emergency services crews attended the site and the situation was brought under control by about 9:30am. Shell stated that no one was hurt during the incident. The refinery was continuing to operate and Shell didnt expect the incident to have any impact on the market. It would conduct an investigation into the cause of incident in line with standard procedures. Country Fire Authority operations officer Mick McGuinness told ABC News there had been no threat to local residents. They [Shell] have to reduce the amount of product that's being fed into [the refinery] which will in turn reduce the temperature and pressure inside the unit and naturally reduce the flow of product coming out, he said. There is no one switch that you can flick to shut down the refinery, everything has to be done in a controlled manner. Shell site general manager Mark Schubert told ABC News there was a very small residual amount of vapour at the site and that Shell was working through how we'll actually isolate this line and ultimately repair it.

Energy giant snaps up first site at Elizabeth Quay


Rachel Dally-Watkins
SPECULATION surrounding the first tenants at Perths Elizabeth Quay precinct has been confirmed, with WA Premier Colin Barnett announcing Chevron as the first major owner-occupier for the new waterfront site. Chevron will pay $64 million for a 6795 square metre site on the corner of Barrack Street and The Esplanade, where it will be able to build a tower of up to 36 storeys. It is estimated the build will cost up to $900 million. Construction is expected to begin on the site in 2016, following the completion of public spaces such as boardwalks, parks and cafes. Mr Barnett said land sales were expected to return a significant portion of the state governments $440 million initial investment in developing Elizabeth Quay. Chevrons decision is a significant milestone for the Elizabeth Quay project and a sign of confidence in both this waterfront precinct and the future of the state, Mr Barnett said. This first sale shows that there is strong demand for the land at Elizabeth Quay, which will be a premium location for business, as well as providing a new way for West Australians and their families to enjoy our waterfront. This is an important project in many ways. Overall, it is expected to attract more than $2 billion in private investment as well as create more than 1600 direct and indirect jobs during construction. Planning minister John Day said Chevrons decision to invest in the new precinct, as well as the value of the sale, would act as a catalyst for future investment and development opportunities. The Metropolitan Redevelopment Authority is finalising negotiations for a 5-star hotel and residential development on the eastern peninsula of Elizabeth Quay, adjacent to the soon to be revitalised Barrack Street Jetty precinct, Mr Day said. Together with the Chevron land sale, commencement of inlet construction works and the recent release of a mixed-use development opportunity on the northern edge of the inlet, the vision of Elizabeth Quay is fast becoming a reality for the people of Perth. Elizabeth Quay is on time and budget for completion in spring 2015. Two more sites from the first nine lots made available are due to be settled within two months. According to Business News, speculation that Chevron would stake a claim in the area was dampened earlier in the year when it renewed its lease at the QV1 building until 2023; Chevron said it would not comment on confidential lease matters or how the Elizabeth Quay plans would affect its QV1 lease.

Gulf States receive first funds for post-spill restoration


Jaimee Conn
FIVE states bordering the Gulf of Mexico have received first funds from the settlement of criminal charges against BP and Transocean, for a series of restoration projects following the Deepwater Horizon disaster. Held liable for their roles in the 2010 incident, which killed 11 people and spilled an estimated 4.9 million barrels of oil into the Gulf, BP and Transocean were ordered to pay a total of US$2.5 billion to the National Fish and Wildlife Foundation (NFWF) during a five-year period. The NFWF will award almost US$113 million from its Gulf Environmental Benefit Fund to Alabama, Florida, Louisiana, Mississippi and Texas for 22 projects designed to remedy harm and reduce the risk of future damage to natural resources affected by the oil spill. The restoration projects were developed in consultation with state and federal resource agencies. Of the initial payout, Louisiana will receive the most (US$67.9 million) and Mississippi the least (US$7.5 million). The NFWF created the Gulf Environmental Benefit Fund earlier this year as a vehicle to receive and administer funds resulting from remedial orders in the plea agreements between the US Department of Justice, and BP and Transocean. The plea agreements resolved certain criminal charges relating to the oil spill against both companies. NFWF chief executive and executive director Jeff Trandahl said it was a significant day for many Gulf communities directly affected by the oil spill, signalling the start of great things to come for restoration efforts in the region. The projects we are announcing today represent the first step in what will be a long partnership between the Gulf States, our federal agency partners and NFWF, Mr Trandahl said. Working together, there is much we can accomplish to remedy harm resulting from the Deepwater Horizon spill and reduce the risk of future harm to the vital natural resources of the Gulf of Mexico. US Fish and Wildlife Service director Dan Ashe applauded the NFWFs leadership and commitment to quickly sending resources where they were most needed. The Gulf of Mexico is a national treasure, vital to our countrys natural and economic well-being. Restoring the Gulf and its watershed is a long-term challenge for our nation and requires a national solution, he said. We are proud to work with NFWF and our Gulf partners to restore this critical watershed. The NFWF is a congressionally chartered non-profit corporation and one of the largest conservation funders in the US.

Significant commercial prospects for Spanish gas resource


A prospective gas resource of up to 3 trillion cubic feet has been identified at the Tesorillo project in southern Spain. ASX-listed Petrel Energy holds a 21.25 per cent interest in the project through its 25 per cent interest in Schuepbach Energy International (SEI), however it has the option to increase its SEI shareholding to 51 per cent and therefore its project holding to 43.35 per cent. The Cadiz province project comprises two licences covering 94,000 acres and contains the Almarchal-1 well that was drilled in 1956, intersecting a thick section of gas pay that flowed gas to surface. The well is 3km from the North African Maghreb gas pipeline, providing easy access to high priced European gas markets. Notwithstanding that these very large prospective gas resource numbers provide a significant insight into the upside potential of the Tesorillo project, they may nonetheless be conservative because they assume, (not unreasonably), a notably smaller gas column based on a 1956 data set than that more recently estimated by SEI and Petrel, Petrel managing director David Casey said. It is indeed possible that, should a larger gas column be confirmed, these preliminary estimates could ultimately be quite conservative. Regardless of the amount of gas, with the North African Maghreb gas pipeline located within very close proximity to the permit areas, and high European gas prices, any reasonable flow rate would be readily commercial. On the back of these results and early success in Uruguay, Petrel is likely to exercise its option this year to move to 51 per cent of SEI to increase its stake in both its Spanish and Uruguayan assets. SEI is currently seeking a partner to drill and test a twin of Almarchal-1 next year as well as participate in additional appraisal activities within both leases, he said.

The Almarchal-1 well within the Tesorillo project flowed gas to the surface in 1956

12

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Oil protestors on course for deep sea conflict


Josh del Pino
ENVIRONMENTAL protestors are threatening to halt deep sea drilling by Texan oil giant Anadarko off the coast of New Zealand, following recently approved plans for oil and gas exploration in the area. Seven boats are in the area to protest government-approved exploration of 434,000 square kilometres of acreage off the countrys west coast. One of the boats, Vega , is positioned directly above where Anadarko plans to drill 1.5km under the ocean surface. The companys drilling ship, the Noble Bob Douglas , is sitting several hundred metres away from the protesting ship. In anticipation of protests, the NZ Government passed a controversial law known as the Anadarko Amendment earlier this year, to create a non-inference zone around mining activities. Greenpeace New Zealand executive director Bunny McDiarmid said she hoped to give the drilling ship a protest flag made by children. The sailing vessel Vega will not be moving, she said. We will stay where we are in defence of our ocean, in defence of future generations, in defence of the climate. We have onboard a flag made by children that says I love my beach. These children dont want oil slopping onto their beaches, she said. Were here to deliver this childrens flag to Anadarkos massive, untested drilling ship. Anadarko have consistently ignored New Zealand. They, and the government,

The SV Vega stands up to the Noble Bob Douglas off the coast of New Zealand Photo - Greenpeace

have hidden vital information from the people of New Zealand. So lets see if theyll ignore our children. NZ Energy and Resources minister Simon Bridges said the tougher laws were required to protect everyone involved in an industry that could be worth up to NZ$3 billion a year to the local economy.

The benefits from oil and gas exploration could be very significant for New Zealand in terms of more schools, hospitals and better provision of social services in terms of higher paying jobs, he said. The risks are exceptionally low, and we have done things to make sure that they are even lower than that, in my view.

I certainly respect the right to protest, he said. My hope is that they won't act dangerously, they won't interfere with other's rights to go through a lawful process, given that those other people have really been put through the wringer to make sure that they are at world best practice.

Japans LNG pricing stance could stifle supply


RACHEL DALLY-WATKINS
JAPANESE energy major INPEX has voiced its opposition against the Tokyo Governments move to scrap the oil-linked LNG pricing formula. The operator and majority owner of Darwins Ichthys LNG development controversially spoke out against its home government after an industry expert warned Japan might trigger gas shortages by trying to end oil-linked pricing, as buyers in other countries were still willing to pay this price. The current oil-indexed formula is used largely in Japan, Korea, Taiwan and China and underpins many Australian projects. Japan is the worlds largest LNG importer and its government has repeatedly said it wants to abolish the oil-linked pricing formula in favour of a new method based on the historically cheaper Henry Hub (US domestic) gas prices. At the same time, it has put pressure on Japanese utilities to invest in US shale gas, in an attempt to force down prices in Asia and the Middle East. Former senior Shell executive in Asia Michael Williams said that Japan risked starving itself of LNG if it continued to push for Henry Hub linked pricing. Japan Inc, TEPCO [Tokyo Electric Power Company] in particular, is desperate to get away from oil price parity for LNG, Mr Williams said. Meanwhile, other countries such as China and Argentina are signing contracts to buy LNG at oil price parity prices. At the Henry Hub plus US$10 prices on offer in Argentina, it is going to be a better return to send LNG from the US to Argentina; forget about Japan, Mr Williams said. If Japan rigidly sticks to its position, it may well find itself short of LNG in coming years. But they are commissioning gas-fired power generation so they could find themselves in a real bind. Mr Williams said Japan would need to import an extra 10 per cent of LNG for its utilities to deliver the extra 24 gigawatts of power generation that has been commissioned. Meanwhile, INPEX managing executive officer and vice-president of corporate strategy and planning Kazuhiko Itano said he thought it was unlikely that changes to the pricing formula would result in lowered energy costs in Japan. The oil-linked formula, the product of many years of discussions between buyers and sellers, has provided stability, Mr Itano said. The oil price is high, consequently the gas price is high. It is not the fault of the formula itself. Buyers would like a lower price of gas, but what they are really concerned with is if a project can be completed on schedule, or if it can be completed at all. The people involved in these [shale gas] projects have many hurdles, first to secure finance and then to secure a stable supply of raw gas from the market. It's not simple to conclude agreements covering long periods of time. Mr Itano said that, if utilised, the Henry Hub price would be subject to fluctuation as a result of the transport and liquefaction costs associated with the production of LNG. Following media speculation that Japanese foreign investors believed project costs in Australia were too high, Mr Itano said the Ichthys development was being built as far as possible outside Australia in order to keep labour costs as low as possible. We must try to use, as much as possible, a higher ratio of modular, prefabrication methods, he said.

Waste-to-energy carbon capture deal signed for Australia and NZ


Jaimee Conn
ADVANCED biofuels company Algae.Tec is set to provide Phoenix Energy Australia with proprietary algae-to-biofuels technology for waste-to-energy (W2E) facilities proposed for Australia and New Zealand, following the signing of a binding agreement. Working with Mitsubishi Heavy Industries Environment and Chemical Co, and John Holland, Phoenix Energy is commercialising the worlds leading technology for recovering renewable energy from the combustion of municipal solid waste. According to Algae.Tec, W2E is a much cleaner and environmentally responsible process than the existing practice of burying waste in landfills. Traditional landfills take up valuable land space and have been criticised for their groundwater discharges and methane emissions. W2E plants could eliminate these problems by reducing the need for landfills by more than 90 per cent. Phoenix Energy managing director Peter Dyson said that when compared to the alternative of landfilling waste and the electrical energy generation derived from coal, W2E plants such as his companys already significantly contributed to a net abatement of carbon dioxide emissions. However, we are constantly looking to improve this even further and thats why we are very excited about the Algae.Tec deal, as we believe they have the best and most efficient carbon capture technology in the world, Mr Dyson said. The unique design of their engineered modules will allow it to be easily integrated into the W2E plant site without the need for the large ponds that are required by other algae type applications. Mr Dyson said this also meant the Algae.Tec process had the potential to be retrofitted to many of the 1000 existing international W2E plants; of which more than 400 were based on the same technology the company was deploying in Australia and New Zealand. Phoenix Energy is negotiating contracts to build and manage centralised W2E facilities. Algae.Tecs technology will capture the carbon dioxide produced by the plant and convert it to algae products, ensuring the W2E plant is as environmentally friendly as possible.

14

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Qatar shifts focus to Australian agriculture


Courtney Pearson
DESPITE its solid foundations as one of the worlds richest oil and gas nations, Qatar is positioning itself as one of Australias emerging foreign investors through continued acquisition of agricultural land. The Qatar Investment Authoritys Australian arm, Hassad Australia, is determined to lead the countrys foreign investment in agriculture and set new standards in environmental management, health and safety, animal welfare and corporate social responsibility. Hassad Foods has previously invested more than $60 million in sheep grazing land and has links to wheat, barley and other grain-producing farms to support food security in Qatar. Hassad has invested in 13 farms in WA, South Australia, NSW, Victoria and Queensland since 2010 including Bindana Downs at Bindi Bindi, WA; Yupiri at Esperance, WA; Kaladbro Estate in western Victoria; and Clover Downs in Queensland. Hassad Australia chief executive Tom McKeon said the company operated according to Australian laws and policies. We operate by Australian taxation and corporations law and governance, he said. Like other farmers, we pay levies on our commodities as they are handled through domestic logistics chains. While food security was the initiator for Hassads investment in agriculture, the business plan and investment has changed to a totally commercial outcome, focus and requirement. The investment companys plans include returning unproductive areas to their natural state; mandatory occupational health and safety training; banning the use of quad bikes to reduce workplace deaths, and submitting business plans to the Foreign Investment Review Board.

Qatar's 1.8 million residents will soon be reaping the rewards of the country's investment in Australian agriculture

Qatar owns enough Australian land to cover more than 20 per cent of its own country, and its population of 1.8 million relies on imports for almost all of its food supply. Mr McKeon told The West Australian that the company was in the business for the long haul. Weve only really been operating in the West for 18 months so its really a work in progress, he said. This year we have 27,000 hectares under crop and expect to harvest around

50,000t of barley and 13,000t of canola. Independent senator for South Australia Nick Xenophon told Adelaide Now he was concerned about the impact such investment could have on Australia. You cant blame the Qataris, the Saudis, the Chinese and the Americans for buying up these tracts of agricultural land because they can see the long-term strategic benefit of food security its just that we dont get it, he said. These state-backed funds are investing in Australian agriculture because they

can see that there will be a world food shortage. We are just selling away the national interest. Qatar is the worlds largest exporter of LNG and has brought some of its oil and gas expertise to Australia, inking a deal in June this year when Qatar-based Petroserv Group acquired a 49 per cent interest in Brisbane engineering company Bothar Boring and Tunnelling, which was then rebranded as Petroserv International.

Lack of support for UCG drives plant decommissioning


DIVERSIFIED energy company Linc Energy has claimed the Queensland Government did not provide enough certainty or confidence to the underground coal gasification (UCG) industry to support commercial investment in the state, forcing the company to decommission its Chinchilla facility after two continuous years of operation. Linc said that although UCG was first initiated by the Queensland Government as a technology for prospective monetisation of the states vast stranded coal resources, keeping Chinchilla operational would have been detrimental to the companys future. Instead, Linc would take its UCG business offshore to regions that are looking for long term energy security. The companys clean energy division is taking the technology to Asia, Africa, Russia and Poland. Linc had conducted UCG operations on the Chinchilla site since 1999 and tested five generations of designs. Across its two-year operational life, Gasifier 5 (G5) produced 48 million cubic metres of syngas from 19,300 metric tonnes of coal. Chinchilla was the first UCG to gas-to-liquids (GTL) facility in the world to operate for five years and produced the worlds first jet fuel from UCG-GTL, which was used to fly a jet across Australia. Due to the regulatory uncertainty over the last several years in particular, I do not believe that the developing UCG industry has been treated reasonably, Linc Energy chief executive Peter Bond said. I do not believe that we have been afforded a level playing field or offered a fair go with access to the basic right of statutory due process. In July, the Queensland Government released the recommendations of an independent study into the future of the states UCG industry. Queensland had two pilot projects at the time of the study: Lincs Chinchilla facility and Carbon Energys facility at Bloodwood Creek, near Emerald. Natural Resources and Mines minister Andrew Cripps said the states UCG pilot projects could not demonstrate successful decommissioning. Like all emerging industries, the UCG industry must demonstrate it can be conducted in a manner that is environmentally safe and that it can adequately co-exist with other resource activities, he said. Mr Bond said the decommissioning of Chinchilla was hard to watch. Obviously the decommissioning of Chinchilla is an emotional event for the company and for me personally, he said. We have spent many years and a lot of money and effort developing something unique and special in the form of UCG at Chinchilla.

Floating LNG project granted federal environmental approval


THE Federal Government has approved plans to build the worlds biggest floating LNG (FLNG) operation offshore WA. The Scarborough LNG project is jointly and equally owned by operator ExxonMobil and BHP Billiton, within WA-1-R about 220km northwest of Exmouth. The FLNG facility will process between 6 million and 7 million tonnes per annum of LNG from five processing trains. ExxonMobil stated it would be fitted with about 10 storage tanks and be able to store about 380,000 square metres of LNG. The environmental approval was signed by Environment minister Greg Hunt, who hinted to The West Australian the joint venture was planning for Exmouth to be the supply base for its FLNG operations. Scarborough is one of the most remote Carnarvon Basin gas resources and the FLNG facility would be permanently moored within the permit. According to ExxonMobil, the Scarborough gas field contains between 8 trillion and 10 trillion cubic feet of gas but very little condensate. The current plan involves two phases of development drilling with about seven wells to be drilled between 2018 and 2019. Five more wells are expected to be drilled within 15 years of project start-up. After Phase 1 is complete, offshore installation and commissioning will take place in 2019 or 2020, and start-up will occur within the following two years. A final investment decision is expected between 2014 and 2015.

16

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Offshore security back in the spotlight


WITH offshore oil and gas projects growing in importance to the Australian economy, the Royal Australian Navy (RAN) has increased its patrols of the area. Speaking at the Freedom of Entry Parade in Darwin, Australias Border Protection Commander Rear Admiral David Johnston said the RAN was increasing border security efforts. [It is] a significant investment in the offshore oil and gas industry, right across the northwest of Australia, he said. That is an important national resource for us and it is an important border role that the Navy performs in working around those areas, ensuring we understand what is occurring and where we need to provide security. Following the 11 September terrorist attacks, the Maritime Transport Security Act 2003 was introduced to protect Australias domestic and international sea trade, maritime assets and citizens. The Act placed the Australian Government in charge of regulating security arrangements for local ports, facilities and ships. It was amended in 2005 to incorporate offshore oil and gas facilities. At the time, the government stated that the offshore oil and gas industry is important to Australia's economy, and it is therefore necessary to safeguard Australia's offshore oil and gas supplies, by preventing any adverse impacts on this industry. Since then, the RAN has stepped up security patrols across the northwest of Australia. With $350 billion in resource assets in the region, all Navy ships transiting the region are ordered to divert to conduct close patrols of offshore oil and gas assets. According to the Department of Defence, the offshore assets are observed on an almost daily basis by either navy, air force or land-based army capabilities as well as Customs air surveillance and maritime patrols. In 2011, there were only five patrols of the area, compared with 11 in 2012. This years figures are expected to exceed the minimum of 11 patrols planned. Submarines are understood to regularly patrol the area, along with extra navy patrols from frigates and patrol boats.

Bright future for US solar thermal energy


Josh del Pino
SOLAR thermal energy capacity in the US is expected to more than double with the opening of several new power plants. The most significant are Abengoas 250 megawatt (MW) Solana plant in Arizona and BrightSources 391MW Ivanpah plant in Californias Mojave Desert. Solana was hailed as a game changer in renewables in the US by Abengoa, for its use of a parabolic trough system with integrated thermal storage. It went into commercial operation in October and is the countrys first large-scale solar plant with thermal energy storage able to generate electricity for six hours without needing the solar field. Construction of the plant started in 2010 and cost US$2 billion, with US$1.45 billion contributed through a federal government loan. At its peak, Solana will be able to power 70,000 homes and prevent more than 500,000t of carbon dioxide emissions. Jointly owned by NRG Energy, BrightSource Energy and Google, the Ivanpah project in California is expected to begin commercial operation by the end of this year. Ivanpah connects directly to the power grid and operates using power tower technology, including large heliostats that track the sun throughout the day. In September, Ivanpah produced its first energy when the Unit 1 station was synchronised to the power grid for the first time. BrightSource executive chairman David Ramm praised the completion of the critical first sync. This is yet another major milestone that we have successfully achieved as

At peak operation, Solana solar thermal plant will power 70,000 homes

Ivanpah approaches completion, he said. Ivanpah is the showcase project for BrightSources power tower technology and technical expertise.

Validation at this scale demonstrates the viability of our technology as BrightSource increases focus on international markets and applications for concentrating solar power.

Electricity generated by the project will be enough to power 140,000 homes in California and reduce greenhouse gas emissions by more than 400,000t per year.

Libyan economy takes a hit as protesters up the ante


Courtney Pearson
LIBYAs Economy minister has told reporters the country has lost more than $6 billion due to protests at oil fields and ports, causing exports to decline. Industry sources said that oil output had fallen to 1.25 million barrels per day since August, as tribes, militias and members of the Berber minority group seized the majority of oil fields and ports to demand more rights or pay. Economy minister Mustafa Abu Fanas said if the situation continued it could spell trouble for the embattled country. If these blockages continue, it will have a big negative impact, he said. The protests also affected Libyas electricity network. Workers abandoned Eni and National Oil Corporations (NOC) Mellitah oil and gas complex and cut off supplies after it was seized by armed protesters seeking more rights. The Berber minority group took over the complex about three weeks ago and stopped oil and gas exports. The plant, 100km west of Tripoli, stopped supplying gas to local power plants after the workers left and it was revealed that production at the El Feel field had fallen from 130,000 barrels per day to just 18,000bpd, as tanks connected to Mellitah were full. NOC spokesman Mohammed al-Harari told Reuters that gas supplies had ceased. The Mellitah complex is closed, he said. All the workers there are not able to work or not coming to work in this environment. Everything is shut down. Before the plant was abandoned NOC told Reuters that a halt in gas supplies used for power generation from the Mellitah oil and gas complex is reducing the capacity of the power network in the western region. Libyan citizens are reportedly fed up with the militias, as they often protest for higher pay. Some shut off water supply, others seize a port, an oil field, a school or road just for personal gains, Libyan student Abu Bakr Masoud told Reuters. Driver Omar Kashlaf said it seems that armed groups can just do what they want.

18

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

GENERAL NEWS

Report reveals significant opportunities offshore UK


Jaimee Conn
AN interim report by former Wood Group chairman Sir Ian Wood estimates that the full and rapid implementation of his recommendations would deliver at least 3 billion to 4 billion more barrels of oil equivalent than what would otherwise be recovered from the UKs waters in the next 20 years. According to Sir Ian Wood, who served as chief executive of the Aberdeen-based multinational oil and gas services company from 1967 to 2006 and then as chairman from 1982 until 2012, this would bring more than GBP200 billion of additional value to the UK economy. Commissioned by the government, the UKCS (UK Continental Shelf) Maximising Recovery Review revealed the economic and energy security opportunities still available from the UKs offshore oil and gas resources, and is the first report of its kind undertaken in more than 20 years. Sir Ians recommendations included implementing a new shared strategy for maximising the economic recovery of oil and gas, with commitment from the government and the oil and gas industry; and the creation of a new arms length regulatory body to oversee and develop the program of change and growth. The report was published five months into Sir Ians review, with a final report to be published early next year. Energy and Climate Change secretary of state Edward Davey said the UKs offshore oil and gas fields were one of Britains great natural assets, and he was determined they should stay that way. They are good for our energy security, because if we improve what were recovering domestically, we reduce our reliance on foreign imports. They are good for the economy, supporting jobs and thriving communities...and they are extremely good value for taxpayers. There are people who would try to talk down their untapped potential, but [the] report shows that with strong, co-ordinated stewardship by the UK Government, working in partnership with world-class operators, we can boost future returns by at least GBP200 billion and potentially much more. Mr Davey said the report had given government and industry plenty to think about, and that he was looking forward to setting out plans to make the most of the UKs offshore oil and gas fields in the new year. The UK oil and gas sector has been one of the major industrial success stories for decades, and a key contributor to growth, jobs and tax revenue. The industry paid GBP6.5 billion in corporate taxes on production in the 2012 to 2013 financial year (15 per cent of all corporate taxes in the UK), and supports the employment of 450,000 people. According to Sir Ian, 41 billion barrels of oil and gas have already been produced from the UKCS, and 20 billion barrels or more could still be produced.

Explorers strong quarter buoyed by reserve upgrades


Josh del Pino
BRISBANE based exploration company Blue Energy increased its proven and probable (2P) reserves by 10 per cent and possible reserves (3P) by 8 per cent in the three months to September, according to its latest quarterly report. A review by Netherland and Sewell and Associates upgraded 2P reserves in the companys Lancewood block to 5 billion cubic feet and raised 3P reserves to 14.6bcf. Blue Energy is also set to release upgrades for its Sapphire, Central and Monslatt sub-blocks in the next quarterly report. During the September quarter, Blue Energy entered a farm-out agreement with Singaporean based KIB Energy for a 20 per cent working interest at the Marburg oil prospect. KIB contributed $5 million working interest, to fund the first stage of exploration to take Marburg 1 well to a total of 700m in depth. Drilling has targeted the precipice sandstone over which mapping has delineated a structural closure, with up to 55m of vertical relief across 39 square kilometres. Blue Energy chief executive John Phillips said initial test drilling had so far failed to find a major deposit, but the company would continue to explore for oil in the area. I still think there is potential for a significant oil accumulation there, he said. Until we figure out whether the column there is alive or not, it's hard to tell what volume we would be talking about, but I still think it would be significant. We've encountered indications of oil in the well, in the main target [and] the precipice sandstone but we're just uncertain at this point as to whether that oil column is a live column or a residual column. Blue Energy also signed an agreement to farm into Australian Oil and Gass exploration blocks in the Northern Territory. The agreement involves nine exploration blocks which cover 111,887sqkm about the size of England. The three-stage farm-in agreement will see the company contribute 50 per cent equity on completion of the farm-in work program, with Blue Energy becoming the operator.

Blue Energy's proven and probable and possible reserves were increased during the September quarter

Australian remains imprisoned as other activists granted bail


Jaimee Conn
TWELVE activists in the Arctic 30 have so far been granted bail in Russia, and will be released from jail if they can provide financial surety of 2 million rubles (EU45,000), according to Greenpeace International. In a case that has attracted worldwide attention, 28 activists and two journalists onboard the Greenpeace ship Arctic Sunrise were arrested by Russian authorities on 19 September after two members tried to scale the Prirazlomnaya oil platform, owned by energy giant Gazprom in the Barents Sea. Greenpeace maintains that the group was staging a peaceful protest against Arctic drilling, and were merely trying to hang a banner from the rig. An Australian activist among the group, 59-year-old Tasmanian radio operator Colin Russell, was refused bail on 18 November despite nine of his peers being granted bail on the same day. Three Russian activists were already told they would be released from prison the day before. Addressing media during his detention hearing in St Petersburg, Mr Russell shed light on his ordeal. They forcefully took our vessel, and pointed guns at us, and forced us into one room on the vessel. They did not identify themselves at any time, they cut all our communications so we could not make a phone call to our lawyers. It was some 112 hours before we were accused of anything, so I say my human rights have been violated... Mr Russell said. I havent done anything wrong. Mr Russells wife Christine has called on Prime Minister Tony Abbott to assist with their plight, after he allegedly intervened in the freeing of two Australian businessmen detained in Dubai over charges relating to bribery and fraud. Mrs Russell said she would expect the same courtesy to be extended to her husband, who is set to remain in pre-trial imprisonment until 24 February. According to Greenpeace, the charge of hooliganism against the Arctic 30 who are from a range of countries including Argentina, Brazil, Canada, Finland, France, Italy, New Zealand and Poland carries a jail sentence of up to seven years. Despite some of the members being granted bail, Greenpeace representative Mads Christensen said they couldnt be at all confident the Arctic 30 were going home any time soon. None of them have passports, so as things stand at the very least they could be restricted to Russian territory, Mr Christensen said. They are still charged with at least one very serious offence which could see them jailed for many years. Nobody at Greenpeace is celebrating yet. Patti Stirling, sister of Canadian Paul Ruzycki, was also reluctant to celebrate prematurely. "It's a bittersweet day. We're very happy Paul is coming out of jail, but we know his first thoughts will be for the people he's leaving behind in prison. All of the Arctic 30, including Paul, are still facing very serious charges and we cant for a moment think this is a victory, Ms Stirling said. Rosangela Maciel, mother of Brazilian activist Ana Paula Alminhana Maciel, said it was the best news shed received in the last two months, but that justice would only be done when all of the absurd charges were dropped. A person who only does good for the planet, like my daughter, must be recognised by their actions, not unjustly accused. This is the only way we can keep the faith in the future." At the time of going to print, hearings were continuing.

20

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE Woodside

Productive year strengthens giants industry standing


Courtney Pearson
THROUGHOUT 2013, Woodside has successfully reinforced its industry stronghold as Australias biggest oil and gas explorer. Despite contentious project development throughout the year, the companys most recent quarterly report revealed a 9.5 per cent rise in production compared to the previous quarter, and outlined a number of milestones. Woodside chief executive Peter Coleman said the past three months were successful for a number of major projects. These milestones further demonstrate the progress we are making on our growth strategy, he said. The company produces about 900,000 barrels of oil equivalent per day across its large portfolio of oil and gas projects, and operates six of the countrys seven LNG processing trains. Woodsides prolific year has provided a light at the end of the tunnel for its controversial Browse LNG development. Browse LNG It was a symbolic end for onshore plans for the Browse LNG project when infrastructure was torn down at the original site at James Price Point near Broome, WA. Woodside decided in April to pursue the project as a floating LNG (FLNG) option due to rising costs, and would utilise Shells FLNG technology to realise the project sooner. In September Woodside officially declared that FLNG was the preferred option to develop Browse, arguing there was a compelling case for the technology. WA Premier Colin Barnett has staunchly opposed FLNG, stating it would divert benefits and jobs away from the state, and would bring no gas onshore. Mr Barnett told the ABC that the gas was ultimately owned by WA, not Woodside. In our estimation, 15 per cent of the gas belongs to Western Australia and we will use that leverage to either get a supply base and also get domestic gas into the West Australian economy, he said.

The Karratha gas plant processes gas from the North West Shelf

And that is not unreasonable, every other country around the world places conditions on the development of their natural resources. Mr Barnett plans to acquire the land at James Price Point to secure a supply base for the project. Part of the projects leases lie in Commonwealth waters, with the rest belonging to the state, and Mr Barnett has refused to change the retention leases on the states gas that requires the company to process the gas onshore. Woodside estimates the states share to be less than 5 per cent, vastly different from the figure proposed by Mr Barnett.

Its true if the Commonwealth agree to what the Browse joint venture want to do then they can develop the Commonwealth gas but they wont be able to go near the state gas, Mr Barnett said. While in South Korea for the World Energy Congress, Mr Coleman told Platts that state approvals are important (but) theyre not critical to our decision one way or the other. Although state approval was deemed non-essential, Mr Coleman said its not desirable to move ahead with Browse without the states blessing as there would be further communications with the state

in regards to supply bases and other project activities. The project is currently going through the basis of design phase and will determine the front end engineering and design in 2014. Browse LNG a joint venture between Woodside, Shell, BP, Japan Australia LNG and PetroChina aims to commercialise the Brecknock, Calliance and Torosa fields 425km offshore Broome. The fields are estimated to contain 15.9 trillion cubic feet of dry gas and 436 million barrels of condensate.
(continued on page 24)

An LNG tanker from the North West Shelf project

The North Rankin redevelopment project was completed in October

New multiphase pump system for less maintenance and more power
OPTIMISED for subsea boosting applications in harsh subsea environments, the powerful new multiphase pump system from global systems integrator FMC Technologies and partner Sulzer is challenging conventional solutions to put more energy on the mudline. The helico-axial pump system, rated at 3 megawatts and 5000 psi, combines FMC Technologies highspeed permanent magnet motor (PMM) technology with field-proven pump hydraulics from Sulzer Pumps. The PMM technology requires less maintenance and provides greater speed, efficiency and power attributes well suited to subsea high-boost multiphase pumps, FMC Technologies global subsea processing director Rob Perry said. A full-scale pump system engineered, constructed, and installed at a purpose-built test facility at Sulzer Pumps workshop in Leeds, the UK, has passed the 1000-hour running mark. In addition, the project team is already working to scale the unit up to 6MW and 15,000 psi at 350 degrees Fahrenheit. Product development is not static at FMC Technologies, it [always] evolves, Mr Perry said. Our customers face a variety of challenges, and by engineering innovative solutions we add genuine value. More information can be viewed on the Maximize Recovery website.

22

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE Woodside

Providing a local after-sales service


THE team at Tyco Fire & Integrated Solutions considers proper maintenance and support of its Spector Lumenex systems to be essential for optimum endurance of life safety standards at all times. Because of this, Tycos public address and general alarm (PAGA) systems are supported by comprehensive maintenance strategies, no matter where in the world they are installed. Tyco believes that maintenance is not simply a site visit to check the status of a system or fix any issues, but also a way for it to keep its customers informed about updates, being available to customers when needed, and providing a migratory path when its systems are enhanced. With a policy of providing through-life solutions and equipment for each project, Tyco ensures its customers are comfortable in the knowledge that its service supports their needs. Having this type of local resource, together with a factory-based back-up service, is very beneficial to customers when they are considering changes or planning new projects that have safety system considerations. To ensure availability of local support in places where it does not have operational bases, Tyco maintains a rigorous third party partner program that identifies suitable local partners to provide services on its behalf. Tyco was delighted to recently announce the appointment of CSE Comsource in Perth, WA, as its authorised distributor and service partner in Australia and New Zealand for Spector Lumenex PAGA systems and products. With more than 30 years of experience, CSE Comsource is an established leader in the delivery of tailored telecommunication solutions to clients across the mining, oil and gas, construction, transport, government and commercial sectors. CSE Comsource has a proven track record of implementing and supporting large-scale mission critical communications systems, and has the skills and resources to provide ongoing maintenance, support and spares holdings locally on behalf of Tyco. Training plays a key part in the partnership. The UK-based Tyco service team contains some of the industrys most experienced technical staff, and provides factory-based training for its partner businesses engineers and technicians who will fulfill maintenance programs on Tycos behalf. This includes training courses covering both hardware and software, with refresher training at periodic intervals. Tycos partners also have access to its support helpline that enables them to communicate directly with Tycos system experts and, where necessary, access remote system fault diagnostics. CSE Comsource general manager Richard Elderfield said the companys partnership with Tyco further enhanced its ability to provide customers with the choice of one partner who could supply, service and maintain their complete telecommunications package. Tyco Fire & Integrated Solutions Spector Lumenex sales manager Alan Weston said the company believed that any after-sales service strategy was just as important as the functionality of systems when clients were considering system choices and selecting vendors for projects. This is why we commit to and invest in our technical resources and services, Mr Weston said.

Air compression expert providing top notch services to major client


LONG-established oilfield equipment rental supplier Airpac Bukom has worked extensively with Woodside this year on a number of large projects. Airpac Bukom provided temporary air compression for the Pluto and Karratha gas plants fifth LNG train, working closely with Woodside to deliver project outcomes with impeccable service and expertise. The company provided operated high and low pressure air compressors for air blowing and pressure testing on the Pluto gas plant and a number of air compression services for the Karratha gas plant. Woodside Pluto fabrication manager Mark Potter said the level of experience the Airpac Bukom team offered was second to none. Airpac Bukom supplied, operated and maintained compressed air spreads that we required for pneumatic testing and line blowing of the Pluto LNG modules both in Thailand during fabrication and on site at the Pluto gas plant during construction and commissioning, he said. During the project the equipment supplied was operated without interruption to the process and to specification. The team worked professionally, safely and integrated seamlessly into our testing organisation. Airpac Bukom has provided air compression services for other major oil and gas projects including Inpexs Ichthys development, Santos GLNG project and QGCs Queensland Curtis LNG project. Airpac Bukom provides global air and steam solutions for well testing, maintenance, pipeline dewatering and drying, product transfer, underbalanced drilling, cuttings movement and LNG pipework testing.

Pile driving at Woodsides Pluto LNG project

24

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE Woodside

Productive year strengthens giants industry standing


(continued from page 20)

North West Shelf The $27 billion North West Shelf (NWS) joint venture is one of the worlds biggest LNG developments, just off the northwest coast of WA in the Carnarvon Basin. The NWS has provided WA with 65 per cent of its total domestic gas for more than 27 years and has exported LNG to the Asia-Pacific region for more than two decades. Australia-wide, the project accounts for more than 40 per cent of total oil and gas production. Equally owned by operator Woodside, BHP Billiton Petroleum, BP, Chevron, Japan Australia LNG and Shell, the NWS project produces gas from a number of fields including Perseus, North Rankin, Goodwyn A, Angel, Searipple and Echo/Yodel and is currently exploring for more opportunities within the area. Gas from the fields is transported to the 200-hectare Karratha gas plant which comprises five LNG processing trains, two domestic gas trains, three LPG fractionation units and storage and loading facilities. The Karratha gas plant, described by the joint venture as one of the most advanced integrated systems in the world, processes 12,000t of domestic gas per day, 52,000t/d of LNG, 4200t/d of LPG and 165,000 barrels per day of condensate. The massive development now has five platforms after the North Rankin redevelopment project was completed in October, achieving start-up after exporting its first gas to the Karratha gas plant. With the addition of the new platform, the project comprises North Rankin A and B, Goodwyn A, Angel and Okha. The $5 billion North Rankin redevelopment project involved the construction and installation of a second platform, North Rankin B, and upgrading the existing North Rankin A platform. The North Rankin B platform will enable the recovery of 5tcf of gas from the North Rankin and Perseus fields about 135km offshore Karratha. Mr Coleman said the timely and on-budget completion of the North Rankin project was an important achievement. Start-up is a major milestone given the complexities of integrating a new 65,000t facility next to an existing offshore production platform, he said. The redevelopment maximises the value of Australias largest operating oil and gas project by extending the resource life and supporting the North West Shelf projects onshore gas commitments. Furthermore, the Greater Western Flank project was sanctioned by the NWS joint venture in 2011 and is expected to start-up in early 2016. The Greater Western Flank comprises 16 fields southwest of the Goodwyn A platform

The Goodwyn A platform, part of the North West Shelf project, can produce 32,000 tonnes of gas per day

that are estimated to contain up to 3tcf of recoverable gas and 100MMbbls of recoverable condensate. The projects first phase involves developing the Goodwyn GH and Tidepole fields with a subsea tie-back to the Goodwyn A platform and represents the next major development for the North West Shelf project, according to Woodside. The first phase is expected to cost $2.5 billion. Pluto LNG The Pluto LNG project lies within the Carnarvon Basin about 190km northwest of Karratha, and was approved for development in 2007. Since then the project has secured 15-year sales agreements with Kansai Electric and Tokyo Gas, which each hold a 5 per cent interest in the Woodside-operated (90 per cent) development. The Pluto and Xena gas fields are estimated to contain 5tcf of dry gas and 250

billion cubic feet of contingent resources, and gas is piped 180km to an onshore facility between the NWS and Dampier Port. The projects single LNG processing train produces 4.3mt of LNG per year while the storage and loading facilities include two LNG tanks capable of storing 240,000 cubic metres, three smaller condensate tanks and an LNG and condensate export jetty. In its most recent quarterly report, Woodside announced that a final investment decision was reached on the tie-in of the Xena gas field. The Pluto joint venture partners approved the expenditure of Phase 1, which would involve a one-well tie back, costing about $370 million. Once complete the tie-in would have access to 250bcf of reserves. Pluto has produced for more than 12 months and, by the end of the year, the company expects output to range between 85 million barrels of oil equivalent and 89mmboe.

Sunrise LNG The Sunrise project, a joint venture between operator Woodside (33.4 per cent), ConocoPhillips (30 per cent), Shell (26.6 per cent) and Osaka Gas (10 per cent), is focussed on an area that sits between two countries. The Greater Sunrise gas and condensate fields, Sunrise and Troubadour, are 150km southeast of Timor-Leste and 450km northwest of Darwin and are estimated to contain about 1.7tcf of dry gas and 75.6MMbbls of condensate. About 20 per cent of Greater Sunrise is within the Joint Development Petroleum Area in the Timor Sea and about 80 per cent in Australian waters. The section within the Joint Development Petroleum Area is behind the projects slow take-off. In 2010 the Sunrise LNG joint venture agreed to use FLNG technology to process gas from the Greater Sunrise fields. However, the decision is subject to final agreements, government approvals and a final investment decision. The facility would produce about 4 million tonnes per annum of LNG and condensate. Sunrise is a significant resource but is remote and technically challenging, so Shells FLNG technology provides the best technical and commercial development option, former Shell Australia chair Ann Pickard said. The Timorese Government prefers an onshore plant as opposed to an FLNG option and, according to Woodside, the Timor-Leste and Australian Governments remained engaged in a dispute resolution process in accordance with the Timor Sea Treaty during the third quarter of this year. Woodside stated on its website that it had participated with the Australian and Timor-Leste Governments earlier this year, alongside the Sunrise joint venture, to discuss the need for alignment of the two governments before the development can proceed. Woodside remains committed to developing the Greater Sunrise fields, the company said. Australian oil Woodside has a number of steady oil and gas projects across the country to complement its ever-growing portfolio of mammoth developments. The $1.48 billion Enfield project 50km northwest of Exmouth, WA, began production in 2006 and is a joint venture between operator Woodside (60 per cent) and Mitsui (40 per cent). Its five subsea wells are connected to the floating production storage and offtake (FPSO) vessel Nganhurra, which produces about 100,000bpd and can store 900,000bbls of oil. Production began at the nearby Vincent oil field in 2008 and it has produced 37mmbbls of oil from its 15 development wells. Woodside operates the Vincent project (60 per cent) in a joint venture with Mitsui (40 per cent). Oil is processed at the Ngujima-Yin FPSO, jointly purchased with Mitsui. Stybarrow, 65km northwest of Exmouth, is a 50/50 joint venture between Woodside and operator BHP Billiton, and has been producing since 2007. The developments FPSO vessel is capable of producing 80,000bpd of oil and can store 900,000bbls. The $1.37 billion Laminaria-Corallina project began in 1999 and is the oldest of Woodsides Australian oil assets. Oil is produced from eight wells connected to the Northern Endeavour FPSO, capable of producing up to 180,000bpd of oil and holding 1.4mmbbls. Laminaria-Corallina is a joint venture between operator Woodside and Talisman Oil and Gas.

The Pluto LNG plant processes gas from the Carnarvon Basin offshore WA

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

25

SPECIAL FEATURE AOG 2014

Conference merger will enhance delegate experience


Rachel Dally-Watkins
AUSTRALIAS largest oil and gas event, The Australasian Oil and Gas Exhibition and Conference (AOG), will provide an even better experience for delegates in 2014 after merging with the Subsea Australasia Conference, including a graduate career day and full networking opportunities. The new conference format will connect professionals with a greater range of experts sharing their knowledge and expertise than ever before, AOG event director Bill Hare said. Held at the Perth Convention Centre between 19 and 21 February, the event will provide delegates with access to the very latest subsea, asset management, flow control, safety and engineering insights from the worlds leading engineering, procurement and construction companies, operators and service suppliers. In the last few years, AOG has broken records with more than 500 exhibitors from 20 countries, making it the most valuable event in the Australian oil and gas industry. In 2013, more than 10,000 visitors attended the expo. Having attracted more than 150,000 influential oil and gas decision-makers in 2013, AOG received an international endorsement from UFI The Global Association of the Exhibition Industry. AOG underwent an audit of 2013 statistics to secure the accolade including visitors to the exhibition, the number of domestic and international exhibitors and the overall number of visitors which indicates the premium quality of the event. To be recognised by the The Global Association of the Exhibition Industry is a terrific honour and a testament to the high calibre of our exhibitors and speakers and the enormous efforts of our team to deliver a consistently innovative and topical event focussing on Australias fast-moving oil and gas industry, Mr Hare said. An exhibition identified as a UFI approved event is a proof of high quality, thus providing exhibitors and visitors alike with the assurance that they are making a sound business investment. Exhibition The exhibition space at AOG 2014 will be divided into four areas. The Subsea zone will be the largest, featuring more than 80 exhibitors. Displays will include remotely operated underwater vehicles, pipelines, offshore support, umbilicals and flowline, well completions, and production and processing equipment. The Australian Industry Zone is

Exhibitors from around the world will showcase some of the latest innovations in the oil and gas and subsea industries at AOG 2014

supported by both the WA and federal governments and is a new additional to AOG 2014. It will showcase Australian companies making strides towards leadership in the oil and gas industry. Project developers and operators no longer have to look overseas to find solutions for their technical challenges and productivity improvements, Federal Government energy supplier advocate Paul Johnson said. Australia has a vibrant sector of small to medium sized suppliers that are bringing new ideas to market in response to industry needs. The Australian Industry Zone is one of the ways we are supporting these suppliers to showcase their capability and grow their business. It will allow project decision-makers to interact with Australian firms in one convenient location on the main exhibition floor. The Health, Safety and Environment Zone will display products and services including safety equipment, environmental protection and monitoring, gas detection, fire prevention, medical services and hazardous area equipment. The Education, Research and Training Zone will be designed to inform tertiary

students and industry professionals about training services, educations programs, research opportunities and careers advice. AOG 2014 will include exhibitors from the UK, the US, Norway, Italy, the Netherlands and China. Conference The AOG conference will cover diverse topics from human capital and productivity to safety leadership and operations and maintenance. Following the successful introduction of the Australian Industry Participation topic at AOG 2013 when the viewpoints of operators, EPCMs and suppliers were presented, for AOG 2014 the focus of the session will be ensuring the competitiveness of Australian industry, the AOG 2014 conference program stated. Despite the high Australian dollar and other external factors that make it difficult for Australian firms, there is still plenty of scope for change and improvement in the way business is done. The session will examine three key areas receiving attention from the market: greater industry collaboration and co-operation, harnessing technology to drive productivity and standardised

accreditation and pre-qualification procedures. The session will feature distinguished and knowledgeable industry speakers providing insights and advice of relevance to Australian suppliers to the sector. The Subsea conference streams will include technology focussed presentations on design and construction, process and flow assurance, pipelines and umbilicals, and inspection and surveys. Other topics will cover floating LNG, the subsea market outlook, oceans and sediment, slug induced vibrations and field development challenges. There is no doubt offshore field developments are becoming more challenging as we look to exploit reserves in more remote, often deeper and harsher environments than ever before, the program stated. [The FLNG] session addresses a range of field development challenges, and offers some possible solutions for front end engineering to remote developments, advanced pipeline, flowline and riser design through to deepwater moorings and large offshore platforms.
(continued on page 26)

The Boost Juice bar will return to the AOG showroom floor in 2014

The expo offers plenty of opportunities for informal networking

26

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE AOG 2014

Conference merger will enhance delegate experience


(continued from page 25)

Careers day In 2013, more than 850 students and graduates attended the Graduate Careers Day, taking advantage of the opportunity to gain firsthand advice and direction, while having the chance to win one of the many prizes and giveaways on offer. The 2014 Graduate Careers Day will be held on 21 February, providing a forum for tertiary students to explore a wide range of oil and gas industry careers opportunities, including graduate programs and vacation work. Students are encouraged to meet with employees to find out what they can offer, what they are looking for in employees and how a prospective employee can get a head start in the industry. With the skills shortage an issue for a number of oil and gas companies in Australia, the AOG Graduate Careers Day is a way to foster interest in the local industry and allow employers to gauge the level of domestic talent available for future projects, the AOG website stated. Networking AOGs networking events offer the opportunity to develop and strengthen business relationships, providing an arena for peers to meet with visitors, conference delegates and exhibitors. Catching up with colleagues, work associates as well as meeting new people in [the] industry [is] just as important to many visitors who enjoy AOG so much each year
The AOG opening night party is a key Australian industry event

because of its networking opportunities, the event organisers stated. AOG 2014 will kick off with the Subsea Welcome Drinks on 18 February, followed by the AOG Opening Party on 19 February and the AOG Official Dinner on 20 February. These events will all be held within the Perth

Convention Centre. There will also be plenty of opportunities for informal networking throughout the expo, centring on the Subsea Bar, Bratwurst Bar, Oyster Bar, Juice Bar, restaurant and cafe, all with easy access to the showroom floor. AOG 2014 promises to be a memorable

event, and visitor registration is now open. We look forward to further developing the AOG brand to keep offering fresh and exciting content to an evolving industry that is hungry for innovation, Mr Hare said.

The case for joint integrity management solutions


IN recent years, the idea of keeping joints leak-free by correct assembly and maintenance has gained ground. On safety and environmental grounds, it is not acceptable for a joint to leak. Currently, there is no industry standard for tracking and cataloguing joint closure and maintenance; this brings major problems, particularly as assets age. Software-based integrity management systems are a way to mitigate risk on bolted flanges by providing full traceability across a joints lifespan they go beyond simple leak prevention to actively improve safety. Good joint integrity systems are a matter of partnership between contracting companies and asset operators, and it is with the operator that joint integrity begins, with acceptance that change is necessary. The first step is to appoint someone with expertise and experience. The second step is to set rules for joint tracking, assembly and testing from the outset in new constructions. In older assets, the most critical joints should be determined first, and incorporated into a database. In the third step, the final part of implementing a joint integrity system is assigning the people who undertake it. No money is spent more wisely than on training and skill assessment in this critical field. Data can then be examined for successes and failures, and provide pointers for future correction, as well as permit better scheduling and maintenance, and improve safety, performance, and ultimately, an assets bottom line.

Marine services provider maintains industry lead as 10th year looms


ALSO known as A.M.S. Tugs & Barges, Australia Marine Services (AMS) is focussed on the Australasian region and over the years has maintained a prominent position as a leading provider of a wide variety of marine-related services. Established in 2004 and based in Perth, A.M.S. Tugs & Barges owns and operates a modern fleet of vessels comprising harbour/ ocean-going workboats, offshore support/ supply vessels, anchor handling tug supply, deck cargo ballast tank barges and construction spud barges with an average age of 18 months. Accredited as an AS/NZS ISO 9001:2008 company, A.M.S. Tugs & Barges strives for continued service excellence in the provision of marine vessels to the coastal marine/ offshore industry in Australia and worldwide. The company was recently awarded contracts to supply its brand new 28m shallow draft workboat A.M.S. SHINE to Chevrons Wheatstone LNG project; supply 210ft deck cargo ballast tank (spud) barge A.M.S. GLADSTONE to the Brisbane Riverwalk project; and provide the Damen Stan Tug 1606 A.M.S. ORION to assist in Bechtels Australia Pacific LNG project in Gladstone. In line with the companys philosophy, A.M.S. Tugs & Barges goal is to provide esteemed clients with a level of quality service that is unparalleled to other similar vessel providers. As 2014 approaches the companys 10th year A.M.S. Tugs & Barges looks forward to providing continuous service excellence towards its growing Australian-based clientele for another decade.

The A.M.S. SHINE 28 metre 1500bhp shallow draft workboat

Containerised jacking packages tailored to individual projects


MULTIPLE 800t and 500t hydraulic jacks, and 30t air powered chain hoists are the latest additions to the fleet of specialised equipment offered by Jacks Winches. Responding to the needs of contractors delivering oil and gas and mining infrastructure throughout the Asia-Pacific, Jacks Winches commitment to delivering timely solutions to unusual and capital intensive challenges is as solid as the equipment the company provides. Responding to requests for higher capacity comprehensive hydraulic jacking packages for short-term work, Jacks Winches containerised jacking packages are customised to project requirements complete with pumps, manifolds, hoses and load cells, and ready to deploy literally anywhere the customer requires. Both our Australian and Singapore operations now have extensive jacking equipment available, Jacks Winches managing director Kevin Griffiths said. Good logistics services by air and sea between our bases enhances our ability to deliver complete jacking, winching and hoisting solutions quickly, priced competitively and often quicker than OEMs [original equipment manufacturers] can deliver new product. We have a great team at Jacks, our expertise and the trust our clients put in us underpins our ongoing investment in scarce, high-quality lifting and shifting equipment. We are very well known for our winches but there is more to us than that.

28

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE ConocoPhillips Australia

US multinational making its mark in Australia


Courtney Pearson
ALTHOUGH ConocoPhillips is an established corporation, its Australian operations are relatively young. The company began its extensive career in Australia nearly two decades ago and now operates some of the countrys biggest projects. Today ConocoPhillips has its hand in a number of well-known projects including Australia Pacific LNG, Darwin LNG, Athena and the Bayu-Undan field. In June the Texas-based company had US$55 billion in annualised revenue and US$117 billion of assets. In its third quarter report, ConocoPhillips announced business was on the right track. We have made significant progress toward positioning the company for 3 to 5 per cent growth in volumes and margins, ConocoPhillips chairman and chief executive Ryan Lance said. The companys production in the Asia Pacific and Middle East region was better than the same period last year; an 11 per cent improvement to 317 million barrels of oil equivalent per day. So far this year ConocoPhillips has produced about 1.5 billion barrels of oil equivalent per day. By the end of the fourth quarter the company expects to be producing between about 1.51bboe/d and 1.52bboe/d. ConocoPhillips explores for crude oil, natural gas, natural gas liquids, LNG

The Darwin LNG plant is operated by ConocoPhillips and receives gas from the Bayu-Undan project in the Timor Sea

ConocoPhillips is based in Houston, Texas

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

29

SPECIAL FEATURE ConocoPhillips Australia


and bitumen in 19 countries; produces hydrocarbons in 13 countries and has proven reserves in 15 countries. Australia Pacific LNG Given the go-ahead in 2011, the Australia Pacific LNG (APLNG) project is shaping up to be Australias biggest producing CSG-to-LNG project. It is already the largest producer of CSG in Australia, supplying gas to power stations to produce lower emissions electricity to major industrial customers, homes and businesses in South East Queensland, according to the project website. APLNG operated by Origin Energy (37.5 per cent) in a joint venture with ConocoPhillips (37.5 per cent) and Sinopec (25 per cent) will process gas from the Surat and Bowen basins in southwest and central Queensland. As reported in June, the project has 2P reserves of 13,382 petajoules and 3P reserves of 16,155PJ. A 530km gas transmission pipeline will connect the fields to an LNG facility on Curtis Island, which will be able to process up to 9 million tonnes per annum via two LNG trains. There are seven gas processing plants under construction across the Surat and Bowen basins, and the Condabri Central plant is nearly complete. In June the joint venture reported the upstream part of the project was 45.1 per cent complete; with 343 wells drilled, a number of compensation agreements signed and the unconditional approvals bank standing at 286 wells. At the end of August the first CSG well was turned on at the Condabri Central gas field near Miles. In October two leading Australian LNG projects signed an agreement to make gas transportation more efficient between their Surat Basin fields. The agreement between the Santos GLNG and APLNG projects will create a more efficient process of accessing and transporting their equity gas, as the two joint ventures are partners in permits within the Surat and Bowen basins. Two pipeline connection points will be built between Santos GLNG and APLNG infrastructure, and gas swap agreements will be arranged to minimise costs; the first connecting the Santos-operated Fairview gas field north of Roma to allow gas to flow between the two projects, and the second connecting the Santos GLNG Scotia field east of Roma to APLNGs main pipeline. Origin Energy chief executive David Baldwin said the agreement would save the companies from constructing 140km of pipelines and connection points. Australia Pacific LNG is pleased to have reached these agreements, which pave the way for more efficient development and transport of gas resources, while reducing the footprint of the industry by avoiding the need to build additional infrastructure such as pipelines, he said. The final shipment of pipe for the gas pipeline arrived in May, and by October more than 490km of gas and water pipelines had been laid. As part of the joint venture, ConocoPhillips is responsible for building and operating the Curtis Island facility,
(continued on page 30)

Complete welding engineering support for major oil and gas projects
WITH extensive international experience and qualifications in the provision of materials and welding engineering services to the oil and gas and mining industries, The WeldNet continues to have success working on a number of major developments. Currently, the company is providing its services to the Chevron-operated Gorgon and Wheatstone projects through onshore and offshore pipeline and subsea spools installations and upstream welding engineering support. The WeldNet also provides support to Woodsides North Rankin 2 and Greater Western Flank construction and subsea pipeline installations. Other major projects The WeldNet is working on include Transfield Worley/WEL brownfields support; Apache Energys Balnaves, Coniston, Varanus Island and Greater Eastern Spar; Julimars CRA subsea pipeline installation support; BHP Billitons Stybarrow, Pyrenees and Macedon projects; Technip, SKM, Rio Tinto, PTTEP and APA Group projects; and ongoing support for local construction and fabrication companies. The WeldNet team provides a complete scope of welding engineering and technology support to clients. As part of the wide range of services it offers to clients, The WeldNet has state-of-the-art weld monitoring, document management and database systems in place. This includes thermal analysis modelling software to determine safe welding parameter application for hot tap in service welding on live pipelines; and arc monitoring systems to accurately record welding parameters during weld procedure qualification, which can be easily downloaded directly to a palm top, laptop or PC. The WeldNets WPS/PQR/ WPQ database document management system is available for purchase or can be managed by the companys engineers on behalf of the client. The WeldNet team also has some new online services to be introduced to its clients in 2014, to offer online welder qualification and welding procedure document service support to industry.

30

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE ConocoPhillips Australia

US multinational making its mark in Australia


(continued from page 29)

which will cost $24.7 billion and is currently under construction. Once the facility is complete it will deliver 7.6mtpa to Sinopec for 20 years and 1mtpa to Kansai Electric for the same length of time. In October the joint venture revealed that the first LNG modules, refrigeration compressors and gas turbine generators were installed and accommodation for more than 2600 workers was up and running. The project reached its halfway point in June as the roof of one of the two LNG storage tanks was raised, and the first half of the year saw a number of achievements: completion of the material offloading facility, the arrival of the first modules and the start of work on both processing trains. The roof of the second storage tank was lifted in July. First LNG is expected to be exported from Train 1 in mid 2015, while Train 2 is expected to be up and running later that year. Bayu-Undan and Darwin Discovered in early 1995, the Bayu and Undan fields are just 10km apart and about 500km offshore Darwin in the Timor Sea. The Bayu-Undan project is operated by ConocoPhillips (57.2 per cent) with joint venture partners Santos (11.5 per cent), Inpex (11.3 per cent), Eni (11 per cent) and Tokyo Electric Power and Tokyo Gas (9.2 per cent). The 25km by 15km field needs about 26 wells across its estimated 25-year lifetime to produce its recoverable reserves of about 400mmbbls of hydrocarbon liquids and 3.4 trillion cubic feet of gas. Within the joint petroleum development area, gas from the Bayu-Undan project is piped from its natural gas recycle facility to the 3.24mtpa capacity LNG plant at Wickham Point, Darwin. The Darwin LNG facility was commissioned in 2006 and since then has

An aerial view of ConocoPhillips Darwin LNG facility

delivered more than 300 LNG shipments. Gas from the project is sold to Japanese energy companies under a 17-year contract. Exploration ConocoPhillips is undertaking an extensive exploration program onshore and offshore WA and in the Timor Sea north of Darwin. The company has a 60 per cent interest in WA-315-P and WA-398-P and a 10 per cent interest in WA-314-P, all about 480km north of Broome, WA. In 2009 a four well exploration program

began, and the first well Poseidon-1 was a success. Although its second well Kontiki-1 was unsuccessful, Poseidon-2 and Kronos-1 encountered hydrocarbons; a five to eight well exploration program is the companys next step for its Browse Basin permits. The Canning Basin in WAs central north is the site of another of the companys exploration programs. ConocoPhillips is funding up to US$109.5 million across four phases of the 48,000 square kilometre Goldwyer project. The first phase of drilling began in August last year and results from the

The Bayu-Undan project in the Timor Sea was discovered in 1995

Nicolay-1 well are yet to be announced. Operations have begun at the second well, Gibb Maitland-1. Under the funding agreement with partner New Standard Energy, the company can earn up to 75 per cent working interest in the project. Also onshore WA is the Athena project area, about 130km northwest of Dampier, which includes part of the North West Shelf Ventures Perseus gas field that straddles the boundary of an adjoining license area. ConocoPhillips has a 50 per cent interest in the WA-17-L permit in a joint venture with operator ExxonMobil. About 270km north-northwest of Darwin, ConocoPhillips operates the Caldita-Barossa exploration project (37.5 per cent) in a joint venture with SK Group (37.5 per cent) and Santos (25 per cent). Interested in the NT/P61 and NT/ P69 permits, ConocoPhillips plans to undertake an appraisal drilling program to test two or three hydrocarbon appraisal wells within NT/P69. Further north the company is involved in the Greater Sunrise project, comprising the Sunrise and Troubadour gas and condensate fields. About 20 per cent of the fields are within the Joint Development Petroleum Area while the remaining 80 per cent lies within Australian waters. The project is operated by Woodside (22.4 per cent) and is a joint venture between ConocoPhillips (30 per cent), Shell (26.6 per cent) and Osaka Gas (10 per cent). In April 2010 the joint venture decided floating LNG would be the projects best development option, but it has been stalled as discussions continue with the Timorese Government, which prefers an onshore plant. Halfway through this year, the joint venture participated with the Australian and Timor-Leste governments to discuss the need for alignment of the two governments before the development can proceed, according to Woodside.

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

31

SPECIAL FEATURE ConocoPhillips Australia

Global leader in compression has entire range of technologies on hand


AN international market leader in the field of reciprocating compressors, Burckhardt Compression is the only manufacturer that covers a complete range of reciprocating compressor technologies. Its customised compressor systems are used in the upstream oil and gas, gas transport and storage, refinery, chemical, petrochemical and industrial gas sectors. Since 1844 the companys highly skilled workforce has crafted superior solutions and set the benchmark in the gas compression industry. Process gas compressors guarantee a safe and reliable operation in various applications in the upstream oil and gas industry. The fully balanced Laby-GI compressors are used on LNG/LPG carriers, floating storage regasification units and floating production storage and offloading vessels for fuel gas handling (DFDE/DFDM ME-GI), boil-off gas (BOG) handling, minimum send-out, process gas handling, gas lift and gas re-injection. No vibrations occur due to full balancing. The Laby compressors oil-free and contactless labyrinth sealing system has been used for decades for BOG handling in LNG receiving terminals and other cryogenic applications. To ensure utmost reliability, performance and maximum cost benefit, Burckhardt Compression and its local partner Industrial Plant and Service Australia assist ConocoPhillips through the entire life cycle of its reciprocating compressors regardless of brand.

Burckhardt Compressions Laby compressor for ConocoPhillips floating storage and offloading facility in the Timor Sea to be overhauled in Industrial Plant and Service Australias Sydney workshop

32

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE BHPs Macedon Gas Development

New gas project to aid long-term domestic gas security


Jaimee Conn
EXPECTED to supply domestic gas to WAs wholesale market until at least 2033, the Macedon gas development is BHP Billiton Petroleums largest operated gas project in Australia. It involves the onshore processing of gas from the offshore Macedon field about 75km west of the Pilbara town of Onslow for sale into the WA market. As operator, BHP Billiton Petroleum one of Australias largest gas producers has a 71.43 per cent interest in the project, with Apache Energy holding the remaining 28.57 per cent. The joint venture celebrated first gas from the project in August. As WA struggles to procure future energy supplies, the operation will prove to be a vital contribution, providing 20 percent of the states daily domestic gas consumption. According to gas affordability and security promoter the DomGas Alliance, WA has experienced a gas shortage since 2006. Wholesale prices per gigajoule have tripled since 2005. The DomGas Alliance maintains that jobs and investment are being lost interstate and overseas on account of the states gas shortage and high prices. While there is an abundance of gas reserves in WA, LNG producers continue to commit to long-term contracts to export the states gas to overseas customers. The Macedon project will help to ease domestic gas supply constraints. Macedon The Macedon field in production lease WA-42-L of the Exmouth Sub-Basin was discovered in 1992, but only recently became commercially viable to develop. With a two-year construction period, the Macedon gas project involved the installation of four subsea production wells; a 90km, 20-inch wet gas pipeline from the field to shore; a gas treatment plant at Ashburton North 17km southwest of Onslow; and a 67km, 20-inch sales gas pipeline to connect the plant to the Dampier to Bunbury Natural Gas Pipeline (DBNGP) WAs key gas transmission pipeline stretching about 1600km. The US$1.5 billion project was officially opened by WA Premier Colin Barnett in September. Almost 60 per cent of the project costs were invested locally. In a statement, BHP Billiton president for conventional assets Steve Pastor said the projects success reflected a deep

The Macedon gas plant at the Ashburton North Strategic Industrial Area officially opened in September

commitment to environmental protection, economic development and community engagement. BHP Billiton is playing an important role in securing a diverse and reliable energy supply for WA, Mr Pastor said. Gas from the single-train plant which has a production capacity of up to 200 terajoules per day and is WAs fourth domestic gas hub will be exported to the DBNGP for sale. The plants gas production could potentially double to 400TJ per day under an expansion. At the time of the projects approval in September 2010, BHP Billiton stated that recoverable reserves for the Macedon field were between 400 billion cubic feet of gas and 750bcf. BHP Billiton Petroleum chief executive J. Michael Yeager said Macedon would be a valuable asset, and would improve the security for domestic gas supplies in both the short and medium term for WA. It will be the first development in the important Ashburton North area and will make a strong contribution to the overall

growth of our petroleum operations in WA, Mr Yeager said. During the life of the asset, BHP Billiton stated it would invest in the future growth of the area through its State Development Agreement: a community engagement initiative to promote the health and wellbeing of residents. In February, Mr Yeager told The Australian Oil & Gas Review that 5000 people had worked on Macedons design and construction, and that once the project was operational, it would have a permanent workforce of 23. On behalf of the joint venture, BHP Billiton opened opportunities for local suppliers, and indigenous Australians, to work on the project. The local community has been a major focus of the project, Mr Yeager said. The Macedon Indigenous Land Use Agreement [ILUA] was signed in June 2010 between BHP Billiton Petroleum and the Buurabalayji Thalanyji Aboriginal Corporation [and] provided consent for the Macedon development.

The ILUA area covers about 11,000 square kilometres, and falls within the jurisdiction of the Ashburton and Exmouth shires. The project team worked with the Thalanyji people to identify and avoid areas of cultural significance, such as burial grounds, during the construction of the project. Mr Yeager said a number of local people were employed in the heritage service work, and that everyone on the project team went through Aboriginal heritage training to understand the significance of the heritage sites. After careful consideration by BHP Billiton, its environmental assessment for the project was approved by the Environment Protection Authority under the Environmental Protection Act 1986 and was subject to approval by six other state Acts. Construction was designed to avoid as much as reasonably possible environmental impacts, Mr Yeager said. Major reefs and islands were avoided by the selection of the pipeline route, which predominantly follows an existing

The Macedon gas plant was WAs fourth domestic gas hub. It has a production capacity of up to 200 terajoules per day

Gas from the offshore Macedon field will be piped to the onshore processing plant for sale into the WA market

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

33

SPECIAL FEATURE BHPs Macedon Gas Development


gas pipeline. The shore crossing was at least 2km from any mangroves, and construction work was timed to avoid any turtle nesting and hatching periods. A number of environmental groups had expressed concerns over the projects proximity to the Ningaloo Reef, a UNESCO World Heritage Site. At 260km long, it is Australia's largest fringing coral reef, and one of the longest near-shore reefs in the world. At its closest point, the Macedon pipeline is reported to be 3.9km from the World Heritage Site area, and 8.1km from the Ningaloo Marine Park Commonwealth Boundary. Acknowledging that the Ningaloo Marine Park had a high conservation value, BHP Billiton selected a development concept with no sea-surface facilities, eliminating or significantly reducing the risk of impacts to the area. Portfolio implications At the end of June this year, BHP Billiton had 1072 million barrels of oil equivalent of proved undeveloped reserves, compared to 1363MMboe at the same time last year. The company reported that the successful completion of development activities and the commissioning of the Macedon project, as well as its new North Rankin B compression platform, converted about 242MMboe of proved undeveloped reserves into developed, and was the primary reason for the reduction. BHP Billiton achieved a record petroleum production total for the September quarter of 62.7MMboe two per cent more than the same quarter in 2012. BHP Billitons petroleum production is forecast to increase to 250MMBoe in the current financial year. This includes 114MMboe from the companys activities onshore the US, underpinned by an anticipated 75 per cent increase in liquids production. Production from its conventional operations is expected to remain stable, with new volumes from Macedon as well as other projects offset by expected natural field decline and planned maintenance. Throughout fiscal year 2013, BHP Billiton had almost 129,000 employees and contractors working at locations across 26 countries.

Australia-wide pumps company brings expertise to big project


SINCE 1981 Dynapumps has offered complete pump, vacuum and air solutions featuring superior quality within engineered design. The company can also incorporate pressure and vacuum vessels, pumps, valves, controls and installation when required. Dynapumps has been involved in many oil and gas projects including BHP Billitons massive Macedon gas project. For Macedon, the company supplied three types of Netzsch progressing cavity pumps to BHP Billiton: one condensate re-run pump fitted with a 1.5 kilowatt Toshiba motor and rated for a flow of 0.5 cubic metres per hour and two HP and LP flare drum pumps both with a flow of 0.6cum/hr and 1.5kW Toshiba motor. Netzsch pumps were chosen for their reliability and quality, and the company has experience gained from more than 500,000 installed pumps which translates to pump reliability on site. All Dynapumps designs and servicing are geared towards maximising pump life and the company is continually implementing changes to systems and procedures to supply better quality products. Both Netzsch and Dynapumps are quality assured to ISO 9001:2008. Dynapumps has branches in Perth, Melbourne, Sydney and Brisbane to service the whole country and some international clients.
Dynapumps is providing Netzsch pumps for BHP Billitons Macedon gas project

34

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE Oceanlinx

Australian innovator making waves with clean energy


Jaimee Conn
A global pioneer in the field of wave energy, Oceanlinx has a fundamental role to play in the future of renewable power generation. Since its foundation in Australia 16 years ago, Oceanlinx has completed three prototypes of its groundbreaking technology in the open ocean, and is in the process of deploying its revolutionary 1 megawatt greenWAVE commercial wave energy demonstrator offshore Port MacDonnell in South Australia. The $7 million project will be the first of its kind to be commissioned in the world, and will generate enough electricity for 1000 homes once grid-connected. Named one of the top 10 renewable energy investment opportunities in the world by the United Nations Industrial Development Organisation, Oceanlinxs technology can create electricity from waves alongside an energy saving system to produce desalinated seawater, and also protect coastal areas from sea erosion. To date, the company has installed more than 750 kilowatts of prototype wave energy converters in Australia, generating 5000 hours of electricity into the national grid. Oceanlinx celebrated the official launch of its greenWAVE energy converter unit in October at Adelaides TechPort facility, attended by South Australian Resources and Energy minister Tom Koutsantonis. He called the project a fantastic innovation. Im very proud to be at this historic occasion and Im proud that South Australia is leading the nation in renewable energy technology, Mr Koutsantonis said. Not only are we innovative in coming up with viable, high-tech solutions to problems of global significance, but we are also translating these solutions into real production of clean energy which is being used by everyday households. Mr Koutsantonis said he hoped the wave energy converter would be the first of many in the state. The South Australian Government is committed to achieving 33 per cent electricity generation from renewable sources by 2020, with the wave energy sector a new investment target. The technology Founded as Energetech Australia in 1997, Oceanlinx has grown to become one of the most mature companies in its sector. Oceanlinx managing director and chief executive Ali Baghaei said during this time, the company had spent more than $86 million of private investment in developing its technology. In general, more than 95 per cent of the money has come from institutional investors, venture capitalists and private equity investors. Very little of it less than 5 per cent has come from government or other sources, Mr Baghaei said. These funds enabled Oceanlinx to develop, deploy and operate its three large-size test platforms: all precursors to its 1MW commercial wave energy demonstrator. Mr Baghaei said Oceanlinx had gathered a lot of valuable data which had been analysed in collaboration with various universities across Australia, Europe and the US. These included the Australian Maritime College, the University of Adelaide, the University College of Cork, Queens University Belfast, Swinburne University of Technology, the University of Wollongong

A world first, the 1MW commercial wave energy demonstrator is 100 per cent environmentally friendly

and the University of Hawaii. As a result, we have a huge data bank of information gathered throughout those 16 years and real experience in operating and testing three large-size test platforms, Mr Baghaei said. In 2010 we grid-connected our third test platform: a one-third scale floating device and the first one in the country to have ever been grid-connected and produce electricity for three months continuously. [From that], we learned a lot of good lessons, and some expensive lessons too; it was probably one of the top two or three in the world to achieve the kind of status it did. We fed all of those lessons into our most recent project which started last July: the 1MW commercial size demonstration platform. A $4.4 million grant from the Australian Renewable Energy Agency will cover about 55 per cent of the project costs, including one year of operation, maintenance expenses, and a rigorous test regime the unit will undergo next year. Weve made fantastic progress. We are on time and on target for grid-connection, Mr Baghaei said. He said that about 70 stakeholders present at the projects launch were able to see the unit firsthand. To the best of my knowledge, there isnt anybody thats got anything as big or as efficient as this unit its the largest of its kind in the world, Mr Baghaei said. The companys plan to grid-connect the unit before the end of the year is entirely dependent on weather conditions. The 3000t unit has to be towed about 400km from TechPort to its destination in Port MacDonnell, where it will be lowered into its position in a water depth of 10m. The L-shape concrete unit is designed to sit under its own weight on the seabed, with two thirds of it under water and one third above water to accommodate the power generation equipment. The greenWAVE device is a single oscillating water column made of prefabricated reinforced concrete, built to deliver 25 years of continuous operation.

Mr Baghaei said that from a few kilometres away on shore, it would be difficult to see much of the unit. It doesnt have a high visual impact at all, and because its got no moving parts under water, no contaminants and no hazardous material onboard, it is 100 per cent environmentally friendly. More importantly, we dont have to disturb the seabed as it doesnt have any anchors, mooring, or piling, and for that reason it is really environmentally friendly. We were able to get the required approvals for the project in less than five months: much faster than any of our colleagues and competitors in the country, where it normally take up to two years or more to get such permits. We are very proud of it. Hopefully we can grid-connect it soon and physically demonstrate to the world that the unit is exactly as we expected it to be. Once we demonstrate that for a year, we will be looking for opportunities to commercialise the company, hopefully within the next couple of years. The brainwave Mr Baghaei said the inspiration behind Oceanlinxs wave energy technology came from blowholes. If theres such an energy produced by blowholes that causes water to spray several metres high into the air, obviously there is a lot of energy potential there. [The question was], how could we capture it, he said. This osculating water philosophy came exactly from blowhole philosophy. [We set out to] create artificial blow holes, and hence the osculating water column: it mimics a blowhole the waves go through it, compress the air above the waterline inside the chamber, and at high velocity and high volume the air goes through the aperture which has a turbine, which spins and turns the generator and produces electricity. Its converting the force of the wave into electricity. Although the idea is quite simple, Mr Baghaei said there had been 16 years worth of mathematics and other work to bring the concept into reality.

Of course, putting anything in a harsh environment [such] as the sea takes a lot of concentration, calculations, modelling, testing and tank testing; millions have been spent trying to perfect this idea. As our fourth, full-size platform and the evolution of our technology, and because weve done it several times before and the results have been positive, we are quite confident that the results from this one will also be impressive. The benefits As Oceanlinxs wave energy technology is 100 per cent transferable, Mr Baghaei said the project could be built in any country or region, provided there were construction and manufacturing facilities available. Its quite impressive because its simple, and as a result of that transferability and flexibility it can create a lot of local jobs, and support the local community in terms of the production of energy and desalinated water. It can also support particularly remote areas where they dont have infrastructure for energy or water, and it can be very effective for both isolated and populated areas; either way, it doesnt matter, Mr Baghaei said. The units, which occupy a space of only 24m by 20m, can also be used as artificial reefs to attract mammals and fish. Peace of mind is a big issue. Because the unit doesnt present any of the same risks as other power generation methods, like coal-fire or nuclear, its almost a no brainer in the sense that people can get their energy needs from these units without worrying that something is going to contaminate the water, or blow [up] and cause catastrophic failures. So it is in that sense, providing that peace of mind and confidence in the community. The worst thing that could happen to one of these units is that, for whatever reason, the mechanical or electrical equipment fails. But thats it, thats the worst thing. There is no risk to exposure or contamination; its wonderful technology, Mr Baghaei said. Oceanlinx believes its technology is at

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

35

SPECIAL FEATURE Oceanlinx


least 300 per cent more cost-effective and efficient that the nearest competitor in the world. The applications Mr Baghaei said that during the day, the energy produced by the wave converter unit could be used for electricity consumption, and then at night, to produce desalinated water. But the possibilities dont stop there. Weve designed the unit, particularity a variant of this unit, for the application and connection with the oil and gas industry, he said. The units can actually sit either very close to an oil and gas platform, or be an integral part of the oil and gas structure, and provide a significant amount of energy demand consumption of those platforms out of wave energy. For an average oil and gas platform, [operators are currently required] to transport diesel out to the platform, as they use diesel engines to produce their electricity. Imagine if you put one or two units like this next to the platform; for most of their consumption, or at least a significant portion of it, they wouldnt need to produce energy using an expensive commodity like diesel by the time it is transported to the platform it can cost something like 70 cents to one dollar per kilowatt-hour however, using these units they can get it down to as little as a quarter of that cost. Mr Baghaei said the units could also work in connection with floating production, storage and offloading vessels. These are the applications I think the oil and industry has not yet latched on to many FPSO operators are unaware of the concept. For the LNG industry, Mr Baghaei said the units could double as a breakwater wall for harbours, jetties and LNG terminals against storms, all the while producing electricity or water. The units can replace current walls, or be built as a new breakwater wall in areas where protection is needed. The unit already competes with wind offshore even though its not as mature and we believe in the next couple of years it will easily compete with wind onshore. Provided Oceanlinx produces large quantities of its wave energy converter units, and in appropriate countries where the cost of manufacturing is low, the companys technology could rival fossil fuels. Thats very exciting news when you consider it doesnt pose any threat to the environment or [require] exclusion zones, Mr Baghaei said. We are a bunch of scientists and engineers who are extremely passionate we really believe in this technology.

Partnerships between industry and academia proving valuable for projects


A world leader in the field of ocean wave energy conversion, Oceanlinx has a strong, collaborative research relationship with the Australian Maritime College (AMC) which began in 2003. This work has directly led to the deployment of three prototype wave energy converters by Oceanlinx, and the worlds first 1 megawatt commercial-scale wave energy converter. The near-shore sea floor mounted device will be commissioned and connected to the electricity grid by early 2014. The AMCs alliance with Oceanlinx is an excellent practical example of how partnerships between industry and academic institutions can create an environment that accelerates the development of a companys technology, including the sharing and building of knowledge via multidisciplinary teams of academics, industry scientists and engineers. Integrating such world-class research projects with the AMCs educational programs provides a unique learning experience. With Australias largest programs in ocean engineering, marine and offshore engineering and naval architecture, the AMC offers specialist education with direct industry applications for the specific demands of the maritime industry. With a bachelors level degree, students can gain immediate employment or continue with the AMC through to a masters qualification by research or coursework, or on to PhD level research. The AMC is a specialist institute of the University of Tasmania. Written by towing tank and model test basin manager Dr Gregor Macfarlane and Maritime Engineering acting head Dr Jonathan Binns.

Scale model tests conducted on the Oceanlinx wave energy converter in the AMC wave basin using laser diagnostic techniques to quantify the flow field within the device

36

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE Arrow Energy

Queensland gas major shoots for success


Courtney Pearson
SMALL victories keep pushing Queenslands Arrow Energy ahead, with grand plans for projects and worldwide success. Its most recent win was in September when the company received state environmental approval for the Arrow LNG plant, a mammoth development that will cost $15 billion and be the fourth LNG facility on Curtis Island. Arrow has been producing gas in Queensland for more than a decade and provides about 20 per cent of the states total energy supply. The Arrow LNG project is a CSG development, which combines six projects: the Arrow Surat pipeline, the Arrow Surat header pipeline, the Arrow LNG plant, the Bowen gas project, the Surat gas project and the Arrow Bowen pipeline. The company is equally owned by Shell and PetroChina and has five CSG fields in the Surat and Bowen basins in central and southeast Queensland respectively. Arrows 1200 wells supply gas to the Townsville (234 megawatt), Daandine (33MW) and Braemar 2 (450MW) power stations and Townsville, Moranbah and Brisbane. Its 41,500 square kilometres of Queensland tenements are estimated to contain up to 70,000 petajoules of gas, or more than 12 billion barrels of oil equivalent. At present, the company is working to explore and develop the vast and largely untapped CSG resources in Queensland, according to its website. With each project making ground, Arrow is charging ahead towards the realisation of Arrow LNG. Arrow LNG The Arrow LNG project is the companys shining star, ready to ascend to the next level and become a major national and international producer. However, Arrow is waiting for the final go-ahead from its owners who have committed up to $8 billion for up to four trains on Curtis Island. The first phase includes the construction of two trains about 4 million tonnes per annum. The liquefaction facility will produce up to 16mtpa of LNG. Once complete, it will process CSG

Arrow Energy's gas processing facility at Moranbah has been selling gas since 2004

from the companys assets in the Surat and Bowen basins and comprise a 9km feed gas pipeline to Curtis Island; a facility where CSG is converted to LNG; marine facilities such as mainland jetties and offloading facilities and an LNG carrier terminal on Curtis Island. Arrow LNG was considered a significant project by the Queensland Government and would be developed in two stages. Queensland deputy Premier and State Development, Infrastructure and Planning minister Jeff Seeney said state approval was a big step forward.

While Arrow still has some work to do, with financial close and CSG supply components to be finalised, it certainly reinforces Curtis Island and Gladstone as the Pacific LNG hub, he said. Despite the states approval, the Federal Government has pushed back its decision deadline until mid-December to allow for further consideration. The Australian Marine Conservation Society (AMCS) is heavily opposed to the plant, stating it would require additional dredging that would result in more sediment in the water and increased risks to turtles, dugongs, coral and tourism.

Curtis Island is within the [Great Barrier] Reefs World Heritage Area, yet its mangroves and beaches are being destroyed to build gas processing plants, AMCS Great Barrier Reef campaign director Felicity Wishart said. The three gas hubs already under construction are suffering from major cost overruns and there are questions about whether there is enough supply of gas to make all these processing plants viable. The last thing that Queensland needs is a fourth gas plant that damages the reef and fails to deliver economic benefits

An Arrow Energy wellhead among cotton on Surat Basin farmland

The proposed Arrow LNG plant will require central gas processing facilities in the Bowen and Surat Basins to feed CSG into two 500km pipelines

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

37

SPECIAL FEATURE Arrow Energy


to the state. State approvals for the plant and the projects two pipelines are three parts of the five-part development plan. The final two parts, the Bowen gas project and the Surat gas project, are awaiting approval. Shell has previously stated it would make a decision on the plant before the end of this year. Bowen gas Arrow is expanding nearly all of its CSG operations, and the Bowen gas project is on the companys list. The proposed Bowen gas project is part of the Arrow LNG project and will cover an area of about 8000sqkm in Central Queensland, from Glenden south to Blackwater in the Bowen Basin. Gas from the project would supply yet-to-be-established domestic customers and feed into the proposed Arrow Bowen pipeline, which would supply the Arrow LNG plant in Gladstone. The company plans to drill up to 6625 production wells during the projects 40-year life, with the first stage expected to involve the development of up to four areas that will come online in 2017. About 600 wells are expected to be drilled within the first two years. The projects environmental impact statement was released for public review and comment between March and April this year. Arrow will carry out its Bowen gas operations within ATP 1103, ATP 1031, ATP 1025, ATP 759, ATPA 742 and ATPA 749. Surat gas Due to the growing demand for gas and the rise in LNG export markets, Arrow is expanding its operations in the Surat Basin through the Surat gas project. The company already supplies gas from its Daandine and Tipton West gas fields near Dalby in the Surat Basin, to the Daandine, Braemar 1 and 2 and Swanbank E power stations however once complete, the Surat gas project will be the companys biggest exploration, development and production project in the basin and will provide gas for the domestic and export markets. The Surat gas project, about 160km west of Brisbane, would cover about 8600sqkm and involve five resource areas near Wandoan, Chinchilla, Dalby, Millmerran and Goondiwindi, which will each include continuing exploration and, eventually, about 1500 production wells and five production facilities. Across the entire life of the project about 7500 wells will be drilled at a rate of 400 per year and 18 production facilities will be constructed. At present there are about 400 gas production wells and three production facilities. Arrow expects the Surat gas project development will be staged and conducted progressively across the resource areas, the company stated. Arrow plans to deliver gas to the Arrow Surat pipeline, which will supply Queensland with domestic gas as well as feeding into the Arrow LNG plant. According to the environmental impact statement, the project would have a peak gas production of about 1050 terajoules per day and would have a 35-year life. Next year the company plans to start ramping up to peak production, which will take between four and five years to complete. Moranbah gas An equal joint venture between Arrow and AGL Energy, the Moranbah gas project is one of Australias biggest CSG fields; about 400km south of Townsville and 170km west of Mackay, in the Bowen Basin. Moranbahs first gas was sold in 2004 and has 1P, 2P and 3P gross reserves of 292PJ, 882PJ and 1940PJ respectively. The projects own gas processing facility has inlet gas conditioning, four 2.6MW reciprocating gas engine compressor units, a gas dehydration unit and export gas metering and monitoring. The Moranbah gas processing facility supplies gas for the Moranbah and Townsville power stations, northern Queensland mineral refining facilities and ammonium nitrate plants owned by Incitec Pivot and Dyno Nobel.

Logistics and transport solutions tailored for jobs of any size


THE Seymour family has been at the forefront of the transport industry for more than 80 years, since company founder Wilfred Seymour was awarded an International Harvester agency in 1929. Seymours Transport has steadily grown into a thriving transport and logistics business, with an office in Toogoolawah and depots in Brisbane, Toowoomba and Taroom. Under the guidance of Don and Carl Seymours father-son management team, Seymours Transport services a variety of clients spread throughout northern Queensland, NSW, and as far south as Melbourne. The company operates more than 206 plant items and provides logistics solutions to a number of major infrastructure projects, working with clients in industries such as pipelines, drilling, manufacturing, forestry, mining and coal seam gas. During its many years in operation Seymours has expanded its capabilities to offer specialised freight solutions for clients in the oil and gas industry, offering equipment for both on and off-road tasks. The companys services include the transport of drill supplies to drill sites; oil country and tubular goods transport and logistics; hot shot freight deliveries and rig shifts; pipe stringing and pipe transport; and in-field drill site storage. A number of major oil and gas companies already rely on the expert services that Seymours supplies, including Queensland Curtis LNG, Australia Pacific LNG, Neumann Petroleum, Murphy Pipe and Civil and Arrow Energy. Seymours is equipped to travel from wharf to store and store to drill site, and no location is too remote nor job too large for the family-owned and operated business.

38

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE APA Group

Plenty in the pipeline for Australian gas giant


LOUISE BAXTER
THE recent financial year included a series of milestones for Australias largest natural gas infrastructure company APA Group: solid performance for the year to 30 June contributed toward the companys long-term growth platform which is focussed on the expansion of projects and the diversification of its asset portfolio with a 27.4 per cent increase in net profit after tax and minorities before significant items to $179 million. In its 2013 financial statement, APA said its acquisition of Hastings Diversified Utilities Fund (HDF) and integration of the South West Queensland Pipeline and Pilbara Pipeline System had made significant contributions to the growth and development of the business. This was another busy year and one which delivered pleasing results, APA managing director Mick McCormack said. We completed expansion projects on a number of our assets and the integration of the HDF pipelines. We are benefiting from our strategic HDF acquisition. The addition of the South West Queensland and Pilbara pipelines to our portfolio has strengthened our business with additional revenue and opportunities. APA now has a 7000km integrated pipeline grid on the east coast of Australia, providing customers with the flexibility to move gas between over a hundred receipt and delivery points across four states. The flexibility of the grid offers is unprecedented in this country, and positions APA to respond to geographic changes in gas supply and demand. APA currently owns or operates a total $12 billion of energy assets, including gas transmission pipelines spanning every state and territory of mainland Australia that deliver about half of the countrys gas usage. On 16 July, APA proposed an all-share merger with Envestra, of which it owns 33 per cent, however the companys

APA owns and operates $12 billion worth of energy assets across Australia

independent board committee rejected the proposal on 5 August. Later that month, APA announced the ACCC would not oppose an all-share merger between the

two companies, and stated that it remained open to engagement with Envestra regarding a possible merger.

National grid plans At the Australian Pipeline Industry Association (APIA)s annual dinner in July, Mr McCormack discussed APAs vision

Sustainability initiatives

APA has a relatively small carbon footprint and regularly monitors its carbon exposure, complying with National Greenhouse and Energy Reporting System obligations for reporting emissions data. The company has interests in wind energy and low emission gas-fired generation, which are expected to save significantly on carbon emissions across the next 25 years: the 132MW North Brown Hill wind farm (anticipated total savings of 8.875 million tonnes); the Emu Downs wind farm (total savings of 5.8mt); and the 242MW Diamantina power station (total savings of 21mt).

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

39

SPECIAL FEATURE APA Group


for a national gas network connecting the burgeoning Top End gas industry with the east coast grid via a 700km pipeline, joining existing infrastructure in Queensland with the Northern Territory. According to The Australian, Mr McCormack said he would be disappointed if the network was not developed in the next decade. This has been discussed for some time... APAs engineering and transmission teams are already looking at how this link can be created cost-effectively, he said. From a security-of-supply perspective it is an important connection. The NTs current gas supply from the Bonaparte and Amadeus basins is sufficient to meet existing demand, but new supply will be required post-2020 to support market demand. The Australian reported that according to APIA, such a connection would increase energy security for both markets and enable access to shale gas basins in Northern Australia. Projects like this have the potential to unlock the development of Australias unconventional gas reserves and increase the supply of gas to our largest local markets, APIA chief executive Cheryl Cartwright said. In the Northern Territory APA owns and operates the 1629km Amadeus Gas Pipeline, which transports gas from the offshore Blacktips gas field to Darwin, Alice Springs and regional centres. Expansions Victoria and NSW In November APA announced it would proceed with a further expansion of the Victorian-NSW interconnect following an extension to its gas transportation agreement with Lumo Energy. The five-and-a-half year arrangement would provide a revised series of services from Victoria to Sydney using APAs Victorian Transmission System (VTS) and the Moomba to Sydney Pipeline (MSP). It was the third agreement signed in two
(continued on page 40)

APA's Mondarra gas storage facility in WA

Major clients and reliable service create excellent reputation


MANUFACTURING and fabrication specialist Eastcoast Development Engineering (EDE) is relied on to provide resources for installation projects throughout regional and remote Australia, particularly within the oil and gas and petrochemical industries. Since 2000 the company has successfully provided distinct competitive advantages to its clients and through its main operation centre in Murarrie, Queensland, EDE provides local, national and international fabrication capability to major energy and resource projects. The Murarrie centre features secure facilities, transport links, a 16,000 cubic metre site and workshop capacity for 50t of structural material and 7000 diameter inches of pipe spools every week. More than 350 people comprise the company team, which provides the expertise and enterprise to deliver engineering excellence in manufacturing and the fabrication of medium to large structures including piping, vessels, skids, tanks, pipelines, stations and equipment. EDE uses highly specialised equipment in the fabrication, welding and testing of carbon, low alloy, alloy steels, stainless steel and duplex components. The company has worked with a number of major clients including QGC, Shell and Caltex. EDEs solid reputation was built on forming reliable relationships with customers and working collaboratively to achieve unique, cost-effective results while maintaining quality and safety.

40

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

SPECIAL FEATURE APA Group

Plenty in the pipeline for Australian gas giant


(continued from page 39)

months by APA for transportation of Victorian gas into NSW. The $25 million expansion would involve an increase in compression at Culcairn, NSW, as well as additional looping on the VTS which along with two other expansions announced this year would increase the systems firm peak winter gas flow capacity by 145 per cent. The 2029km MSP links gas fields in South Australias Cooper Basin to distribution networks in Sydney and regional NSW, with a number of laterals branching into Canberra and rural NSW. Two additional pipelines interconnect with the MSP in NSW the Central West Pipeline, Marsden to Dubbo; and the Central Ranges Pipeline, Dubbo to Tamworth. Victorias Dandenong LNG Storage Facility provides peak shaving and security of supply services for the VTS, with a capacity of about 12,000t (or 0.7 petajoules) per year. Queensland APA and AGL Energy are jointly developing the Diamantina and Leichardt power stations at Mount Isa, with the $570 million project expected to reach completion in the first half of 2014. According to APA, Diamantina will have the capacity to provide enough natural gas-fired electricity to meet the needs of North West Queensland, through the use of a 242 megawatt combined cycle gas turbine. The adjacent Leichardt station

will deliver 60MW of open cycle gas turbine power generation to the region, the company stated. APA owns and operates four gas transmission pipelines in Queensland: the Roma Brisbane pipeline, Carpentaria Gas Pipeline, South West Queensland Pipeline and Berwyndale Wallumbilla Pipeline. An expansion of the Roma Brisbane pipeline was completed last year, increasing capacity by 10 per cent. Planned expansion of Wallumbilla compression facilities are underway and expected to provide services by 2015, the company stated. WA and South Australia In WA, APA owns and operates the Goldfields Gas Pipeline, Kalgoorlie Kambalda Pipeline, Parmelia Gas Pipeline, Mid West Pipeline and Pilbara Pipeline System, as well as the Mondarra gas storage facility and Emu Downs wind farm. Expansion of Mondarra was completed in July, increasing its storage capacity by five times to 15PJ. Works continued on the Goldfields Gas Pipeline expansion through 2013, in two projects that are expected to reach completion in the second and third quarters of the 2014 financial year and will increase capacity by 28 per cent. The company operates and has an interest in two pipelines in South Australia: the 45km South East South Australia (SESA) Pipeline and the SEA Gas Pipeline, between Port Campbell (Victoria) and Adelaide.

An APA Group transmission officer on site in Victoria

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

41

COMPANIES GEARING UP

Unique gas detection manager brings greater visibility to exposure and usage
GAS detection company Industrial Scientific has announced that more than 100,000 gas monitors are now operating a software-based service known as iNet. The unique gas detection as a service solution helps companies around the world to keep workers safer by providing visibility into gas detector alarms, exposure and usage. Industrial Scientifics iNet also improves productivity by solving common challenges associated with owning gas monitors such as maintaining equipment, managing calibration gas and keeping records. With an iNet subscription, customers utilise a reliable gas detector fleet leased by the company and, additionally, they access an in-the-cloud dashboard to gain a complete view of their gas detection program and generate reports using critical instrument data. The program also provides customers with an automated maintenance solution with proactive servicing when it detects a problem with an instrument. Since its inception, iNet has continuously grown as organisations from a wide range of industries took notice of a better way to do gas detection, Industrial Scientific global director of product knowledge and iNet product manager Dave Wagner said. We are glad to have served so many customers with iNet over the last 10 years, enabling them to put greater focus on the things that are core to their business, and look forward to the continued growth of the service.

A worker using an instrument in a refinery that is operated on iNet

42

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

COMPANIES GEARING UP

Correct storage of dangerous goods essential for safety


THERE are many different types of dangerous goods; each type has specific storage requirements and must be stored in accordance with relevant Australian Standards. Storemasta Products Australia specialises in the design and manufacture of tailored storage solutions that provide dangerous goods solutions that are compliant with all regulations and improve operational efficiency in every situation. Compliance is a pertinent consideration when it comes to storage of dangerous goods, and there are many substances that can cause severe injury or death if strict handling and storage procedures are not adhered to. Shipping containers and generic storage products can be a quick fix, but the inefficiencies and hazards they can create may have long-lasting repercussions that could impact workplace health and safety (WHS) records and company bottom lines. Storemasta provides a full assessment of storage situations and supplies solutions that will not only exceed requirements, but also greatly increase operational efficiencies and safe handling of specific products. The benefits of a fully compliant Storemasta solution include fast deployment for an immediate safe storage solution; cost effectiveness; increased handling and storage efficiencies by up to 50 per cent; efficient stock control; maximising site storage space; a tailored solution; and improved WHS standards. Storemasta provides free and confidential assessment of dangerous goods storage situations to provide prospective clients with the correct product for their storage needs.

New Perth base gives industry-leading manufacturer a local edge


THE regional supply hub for the LoneStar Group, LoneStar Australia provides an extensive range of safety-critical fasteners, sealing components, specialist coatings, precision machined parts and raw material to the Australian oil and gas, mining, heavy engineering and power generation industries. From its new base in Belmont, which opened in May, the companys Australian team offers a range of ASTM/DIN/AS bolting and API sealing components from stock for immediate dispatch. The team can also arrange for the manufacture of semi-finished product to client requirements on short lead times, and provides a local presence for the LoneStar Group when parts are to be manufactured in its Singapore, Dubai, UK or North American facilities. LoneStar Group companies have established themselves as market leaders in the supply of special nuts, bolts, machined components, gaskets and seals to the energy sector and heavy engineering industries across the globe. Employing more than 1000 people across its manufacturing and stockholding facilities worldwide, the group offers a logistics supply and product management service to industries that require quality and safety-critical products with full traceability. The groups companies are committed to continual investment in their manufacturing capability and technical and computer support, in addition to offering customers quality products as an e-commerce partner in the product supply chain. LoneStar Australia provides a diverse range of products, from fully certified carbon steels, including ceramic and PTFE coatings, to duplex, super-duplex and exotic alloy materials. The companys local facility offers a unique presence to trading, original equipment manufacturer, engineering procurement and construction and end user organisations, while providing unparalleled levels of service and support to the Australasian energy sector, from single-item purchases to the execution of complete project supply.

A small selection of components the LoneStar Group manufactures and supplies

LoneStar Group Middle East, North Africa and Asia Pacific business development director Mark Jennings said the new facility in Belmont was a step in the right direction. This is a major step forward in the groups presence in the Asia Pacific

region, he said. Couple this with the groups extensive expansion of its Singaporean manufacturing facilities and we hope to become a class-leading supplier and service provider, as we are in the Middle East, Americas and Europe, whilst

ensuring our global contract customers have the best possible local service as they operate within Australia and the surrounding countries. All LoneStar Group companies operate quality systems in line with BS EN ISO 9001:2008 standards.

Calibration expert has commitment to a high quality service


WITH a commitment to customer satisfaction as its number one priority, HK Calibrations offers expert instrument calibration and repair services for all instrument types, including test and measurement instruments. HK Calibrations recently moved its Perth premises to a new facility in Bibra Lake, allowing it to provide a single, centralised point of contact for its WA customers who can now have their instruments calibrated in one place rather than sending them to the eastern states. Along with promoting the WA economy, the enhanced facility in Bibra Lake has assisted HK Calibrations in maintaining its commitment to unmatched service turnaround times. HK Calibrations offers a full spectrum of calibration services for a range of equipment including electronic and electrical; pressure gauges; hard gauges; flow measurement; telecommunication; weighing and temperature; gas monitoring; dumpy levels; surveying equipment; and occupational health and safety equipment. All work performed by HK Calibrations conforms with ISO/IEC 17025 2005 standards the premier ISO standard governing the operation of all certified laboratories, inclusive of the reporting of uncertainties of measurement for each calibration undertaken. This certification provides HK Calibrations customers with the assurance that they always receive the required traceability to Australian National Standards in compliance with their certifications. HK Calibrations business management system is maintained to SAI Global ISO 9001:2000 standards, for an added assurance that the company is focussed on delivering the best level of quality service every time it performs an instrument calibration.

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

43

COMPANIES GEARING UP

Mass transit vehicles for harsh Australian conditions


AS one of the largest suppliers of mass transit vehicles to the Australian resources sector, Iveco designs, manufactures and markets a broad range of small, medium and large buses and coaches. The company has extensive experience providing vehicles for remote operations Australia-wide, including the Gorgon Project on Barrow Island in WA and Newmont's Tanami gold mine in the Northern Territory. Iveco is the only original equipment manufacturer producing bus chassis in Australia, with its own manufacturing base in Dandenong, Victoria, where it designs and manufactures two types of bus chassis specifically for harsh Australian operating conditions. The company also imports a further three chassis models from Iveco Europe, covering rear engine and front engine configurations. Adding to its range, Iveco recently released two new vehicles; a 4WD bus and a three-axle, high-capacity mine bus for efficient site transport operations. Besides Australia, Iveco also operates in Europe, China, Russia, Argentina, Brazil and South Africa. With more than 4600 service outlets in over 100 countries, Iveco is committed to ensuring that technical support is available wherever its vehicles are at work.

Leading oil and gas drilling company offers wealth of experience


AUSTRALIAN-owned Silver City Drilling has a rich history in the drilling industry. In early 2013, SCDs expertise in this area was greatly enhanced with the appointment of Danny Horne as general manager. Ive come to SCD with 25 years of industry experience, drilling in Australia, Africa, the US and New Caledonia, Mr Horne said. I am very excited to be part of such an innovative company and look forward to the challenges ahead. SCD is establishing itself as a leader in oil and gas drilling and had recently completed projects in Queensland and NSW. We have upgraded our fleet of rigs and support equipment to ensure high level of utilisation, while minimising non-productive time. We value the safety of our people, and we believe that a highly skilled workforce with dedicated employees is the most effective way to provide safe and cost effective drilling solutions for our customers, Mr Horne said. We can offer our customers a high level of experience, through our dedicated staff who have had long and successful careers within the industry. Further information is available on the companys website.

Partnership offers Australian-first cordless pendant on air hoists


LONG-time partners and market leaders, Kennards Hire Lift & Shift and Pacific Hoists are set to offer the Australian materials handling industry a groundbreaking and innovative new technology. Available through Kennards Hire Lift & Shift, the German-made J.D. Neuhaus Air Hoist now features an optional cordless pendant control, custom made by Pacific Hoists for Kennards Hire Lift & Shift. Cordless technology eliminates issues concerning air hose length on standard pneumatic pendants and rope lengths on cord control models, making procedures simpler and more time efficient. It also improves reaction times to less than 150 milliseconds, and increases operating range to a 100m line of sight. The cordless pendant remote is also available as a multi-system, which means up to four hoists can be operated using one handset. Cord control, pendant control and remote control are all easily interchangeable, allowing for more dynamic application. The remote system exceeds Australian standards, and is the first example of its technology type to be seen in the Australian market. Kennards Hire Lift & Shift and Pacific Hoists have a strong, 11 year partnership history that is a perfect combination of experience and innovation. The latest example of these qualities, the cordless pendant control has facilitated vast improvements in productivity and execution across projects ranging from mining to construction and everything in between. The J.D. Neuhaus Air Hoist with cordless control can be viewed on YouTube, and further information can be found on the Kennards Hire Lift & Shift or Pacific Hoists websites.

44

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

COMPANIES GEARING UP

Ensuring workers safety with enhanced personnel on board system


ACROSS the world, oil and gas operations face an array of health, safety and environmental concerns. In the face of increasing regulatory pressure and increased public scrutiny, oil and gas operations must implement effective safety management systems to ensure the safety of workers, the general public and the environment. The Work Health & Safety Bill was implemented across most Australian states from 1 January 2012 and will take effect in WA from 2014. The legislations implementation saw the responsibility for safety shift from workers to organisations, and even to individual managers. It proposes fines of up to $600,000 or a term of up to five years imprisonment for failure by management to uphold a duty of care; this makes it essential for any business operating fleets, including oil and gas operations, to implement solid practices to ensure compliance, keep workers safe, and limit liability. While safety training remains a key component of any safety management system, experience has shown that training alone is not enough to protect workers: todays oil and gas companies must combine safety training programs with the correct technology to significantly improve safety levels. Navman Wireless is the markets leading provider of GPS fleet management solutions; it recently partnered with Collabro Group, an exclusive provider of Vantage POB systems for the oil and gas industry, to aid companies in utilising the technology to improve safety. Vantage POB is the oil and gas industrys leading personnel logistics management and POB system, enabling users to efficiently track the movements of workers to and from offshore facilities and at onshore sites such as processing plants. The partnership between Navman Wireless and Collabro Group allows oil and gas operations to extend Vantage POBs movement monitoring system to include 24/7 onshore vehicle and asset tracking. This allows managers to track workers and vehicles at all times, both on land and offshore an added feature that is set to improve worker safety, accountability and emergency response times. Navman Wireless OnlineAVL2 collects the data, giving Vantage POB users access to invaluable information including real time GPS locations, registration numbers, scheduled destinations, travel distances and times, as well as information about who is on each boat or vehicle equipped with Navman Wireless GPS tracking units. This information enables oil and gas operators to optimise their employee and fleet tracking and journey management

Navman Wireless OnlineAVL2 system displayed on a modern monitor

capabilities, and allows for collected data to be used to populate system reports, ensuring accurate accountability of employees at all times. In a typical work day, workers in the oil and gas industry spend a lot of time travelling. Previously this couldnt be monitored, so if a worker had a serious

accident while en-route, it could take operators hours, if not days, to learn that an employee was in danger. With the new OnlineAVL2 feature offered by Navman Wireless and Collabro Group, Vantage POB users can monitor all workers regardless of whether they are travelling between onshore facilities,

driving to get supplies, or are on duty and using a company vehicle. Vantage POB technology enhanced by Navman Wireless gives oil and gas operators complete visibility across their workforce, ensuring worker safety and allowing safety compliance requirements to be met easily.

Achieving real-time management of assets in the most remote locations


AS organisations seek better visibility and control of their remote assets, the demand for satellite machine-to-machine (M2M) technology grows. With satellite M2M technology, users can send and receive data from any device to any location however remote in real time, delivering new levels of efficiency, flexibility and security. Todays satellite terminals can be easily integrated with other applications and operate on very low power, enabling them to run for long periods with minimal attention required. Remote management applications such as those that monitor sensors on pipelines, power grids and weather stations can reach further via satellite. Hybrid satellite-cellular solutions ensure constant visibility of assets on the move, including shipping containers and the trains or trucks that move them; infrastructure monitoring and control can protect vital services such as power lines, wind turbines or railway tracks. Nixon Communications offers a complete end-to-end solution to support remote management and communication for fixed and mobile assets in extremely rugged and harsh environments via two satellite M2M services: Simple Meter (IsatData Pro) and BGAN M2M. Operating via Inmarsats global satellite and ground network with 99.9 per cent availability, the services enable a range of capabilities, from basic data collection to full IP networking. Both services are accessed through terminals designed for long-term, unmanned deployment in remote locations and offer high availability in all weather. Nixon Communications tailors its solutions to each customers specific needs, providing integration with sensors and transducers of their choice, together with a satellite modem and service. Advanced visualisation tools can be included to enable effective decision-making and assist in better management of operational costs. Both the Simple Meter and BGAN solutions are quick and easy to install, utilising low cost terminals with low power consumption and offering affordable price plans with no network overheads. For effective, reliable and technologically advanced communications solutions, Nixon Communications is the clear choice.

www.miningoilgas.com.au

Training & Development

Robust tailored management process solutions offering outstanding training results


ESTABLISHED in 2006 to cater to the needs of the mining, oil and gas and civil construction industries, AIA Training (Associated Intelligence Analysts) is focussed on providing quality training and assessment to enhance the skills and safety of workers. In achieving this goal, it ensures employers are able to hire expertly trained, capable and confident workers. AIAs team of qualified trainers and assessors cover areas including: oil and gas drilling (onshore), well servicing and maintenance, civil and general construction (pipe laying, plant operation, road and bridge construction and foundation work), project management, frontline management, TAE (teaching and education) and workplace health and safety. The team has many years of experience in each of these areas. AIA is dedicated to ensuring best practice and places a high value on industry contributions to the development of resources used for training and assessment. AIA makes sure that workers receive the most up-to-date training, ensuring the best possible outcomes for both employee and employers. AIA also actively participates in industry consultation with skills centres such as Energy Skills Queensland and E-Oz Energy Skills Australia. AIA delivers outstanding quality training services to clients, through the engagement of skilled trainers and the application of robust yet personalised management processes.

AIA Training actively participates in industry consultation with skill centres

46

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Repair & Maintenance Services

Engineered heavy logistics optimising productivity


A world leader in heavy-lifting and multimodal transport solutions, Mammoet has been operating in the Asia Pacific for more than 30 years. Mammoets business philosophy is to optimise construction schedules and reduce plant downtime with solutions and services the company refers to as engineered heavy logistics. This not only pertains to the heavy lifting, transportation, installation and decommissioning aspects of a project, but also to engineering, planning and safety in delivery. Ultimately, the main concern of Mammoets customers is the productivity of their installations regarding uptime, turnaround time and time-to-market. Therefore, the company believes the engineered heavy logistics element of construction and shutdown projects offers many opportunities to move deadlines forward; the earlier Mammoet is involved in the design stages of a project, the more the company is able to achieve in devising creative approaches that save time in a safe manner, and contribute to cost-effectiveness. Mammoet has a global team of engineers, project specialists and operators with long-standing expertise in many heavy industries, particularly offshore, petrochemical, power and mining. The company possesses the largest and most modern fleet of equipment in the world, subject to stringent maintenance programs to ensure its safety and reliability at all times. In the offshore industry, there is a growing need for new construction and load-out methods in construction yards: their utilisation must be optimised to handle increasing

Mammoet believes the engineered heavy logistics element of construction and shutdown projects offers many opportunities to move deadlines forward

demand and bigger structures, such as jackets and platforms. For this purpose, Mammoet engineers and executes construction lifts, yard moves and load-outs for a range of applications. Smart construction and load-out approaches, such as the onsite joining of multiple components,

achieve time and safety benefits. By drawing on the knowledge of experienced Mammoet professionals and utilising its large pool of specialised equipment, Mammoet continually devises new approaches for safely, and quickly loading and transporting jackets and platforms to offshore destinations.

New construction approaches are made possible by the companys well-tested push-up system and gantry lifting systems. This expertise allows Mammoet to optimise construction schedules and yard logistics and execute efficient load-outs in any situation.

Demolition specialist first in industry to reach award finals twice in a row


LEADING industrial demolition contractor Liberty Industrial recently became the first Australian company to reach the finals of the World Demolition Awards for two consecutive years. Liberty Industrial provides innovative solutions for unique and technically challenging demolition projects throughout Australia and the Asia Pacific region. The company has extensive experience working for major clients within the mining, power generation and heavy industrial sectors; through the use of advanced technology it delivers innovative, cost-effective solutions from concept development to completion. Liberty Industrial specialises in demolition contracting, deconstruction of infrastructure for re-use, asbestos abatement, mine and plant closure consultancy studies and budgeting. As one of the few demolition companies to achieve ISO 9001 quality certification, ISO 14001 environmental certification and AS/NZS 4801 health and safety accreditation, Liberty Industrial offers its clients complete assurance that their projects will be completed to the highest standards. The Liberty Industrial teams expert knowledge of heavy industrial demolition translates into the delivery of safe, effective results on time and on budget; the team is also highly experienced in mobilising crews and machinery in remote locations. As part of the Liberty Group of companies, Eastern Contracting has extensive experience and skills required to assess, engineer and deliver civil earthworks projects including power station pads, transmission line earthworks, roads, pavements and rail infrastructure. The company also has a formidable fleet of plant and equipment able to be wet or dry hired on projects throughout the country.

Solving tomorrows corrosion problems today


PROVIDING humidity and temperature control solutions for multiple industries, Dehumidification Technologies uses the highest quality equipment for every job. The company has some of the most experienced and highly trained technical staff in its field. Under its industrial services division, Dehumidification Technologies has used portable dehumidifiers and temperature control equipment in the petrochemical, municipal, marine and power industries for more than 20 years. Dehumidification is essential for corrosion prevention on a range of equipment. It also presents many benefits, from creating ideal conditions for coating applications to providing worker comfort and meeting Occupational Safety and Health Administration safety regulations, giving projects the greatest opportunity for success. More information about equipment and services is available on the Dehumidification Technologies website.

48

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Water Treatment

Specialised external flow measurement solutions


DYNAMIC Australian company Flowservices offers flow measurement and surveying services and, with more than 15 years experience with ultrasonic flowmeters, it is dedicated to providing external flow measurement solutions. Ultrasonic flowmetering has gained worldwide acceptance to measure flow accurately from the outside of a pipe without shutting the plant down, dismantling pipe work or cutting the pipe. The meters can measure flow of gas and liquids, including sewage in a closed pipe by simply clamping on flow sensors to the outside of the pipe. These flowmeters have been proven worldwide and offer precise flow measurement with high operational reliability and outstanding long term stability. Ultrasonic flowmeters are one size fits all with the meters working on any size pipe from 6mm to 6m. They are able to perform under the most extreme conditions without being limited by density, viscosity, composition and pressure, pipe wall thickness or material. Suitable for hazardous areas, they are ATEX, IECEx and Exd approved and virtually no maintenance is needed due to permanent coupling and optimal device protection. Flowservices offers the ideal non-invasive flowmeter solution for even the most demanding flow conditions. The companys services include flowmeter verification, rental, installation and servicing of flowmeters.

Flowservices has more than 15 years of experience working with ultrasonic flowmeters

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

49

Water Treatment

Complete and innovative solutions to air and odour problems


WITH regional offices throughout Asia, Aromatrix Australia is able to provide innovative solutions to air quality and odour related problems. It provides complete engineering services for the design and construction of state-of-the-art air treatment and odour control technologies such as the award-winning AroBIOS biotrickling filters, AroCHEM chemical scrubbers and AroCARB activated carbon filters. The company also supplies fibreglass ductwork, cover systems, ventilation stacks and high-efficiency sealing dampers. In addition to the delivery of turn-key treatment facilities, Aromatrix provides consultancy services dealing with odour reduction strategies, implementation of sampling programs, liquid phase sulphide modelling (as the precursor to emission of gaseous pollutants) and atmospheric dispersion modelling. Aromatrixs experience is demonstrated through its extensive track record, with numerous projects delivered within Australia, Singapore, Hong Kong, China, South Korea, the Middle East, Philippines, Turkey and the US. Aromatrix recently completed a 67,000 cubic metre per hour chemical scrubbing facility for Unitywaters Murrumba Downs wastewater treatment plant in Queensland which comprised the configuration of a first stage venturi scrubber followed by a packed tower chemical scrubber. This system utilised

Aromatrix provides air quality solutions for the Murrumba Downs wastewater treatment plant

waste chlorine from the second stage scrubber to feed the first stage thereby lowering chemical demand and operating

costs. The range of products available from Aromatrix means that solutions can be

tailored to the specific needs of the air related problem.

50

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Fabrication

State-of-the-art technology gives group of companies leading edge


OFFERING the latest technology in automated machinery and tracking systems, the group of companies comprising Fremantle Steel Fabrication, Park Engineers and Interstate Crane and Transport Hire provide project solutions in the fabrication, transport and installation of structural and mechanical steelwork. With more than 100 years of combined experience in fabrication, the companies have earned reputations as leading Australian suppliers of high quality steelwork for oil and gas, power generation, mineral resource, commercial and industrial projects throughout Australia in addition to exporting to various countries. Workshops in Jandakot and Welshpool, WA, are modern facilities that utilise state-of-the-art CNC equipment including sophisticated laser-cutting machinery in a combined covered workshop space of 36,000 square metres. Together, the workshops can produce more than 40,000t of fabricated steel and plate work each year including modules; support structures; platforms; walkways; piperacks; conveyor trusses; trestles; chutes; hoppers; stackers; reclaimers; shiploaders; and bridge beams. The group is reinforced as having a leading edge in equipment technology with equipment such as a beam manufacturing plant where special welded beams can be manufactured with sizes up to 4m web depth and state-of-the-art pipe processing equipment.

Efficient and committed provider maintains high industry standards


SINCE 1998, Profabs Batam Island facility in Indonesia has successfully supplied equipment to meet the oil and gas industrys demanding international standards. The companys 15 hectare waterfront facility with nine modern workshops, totalling 27,000 square metres, is equipped to provide efficient competitive manufacture of well head platforms, modules and other heavy equipment. Profab also manufactures a diverse range of products including plate girders, box beams and rolled plate products, carbon, alloy and exotic pipe spools, anchor and suction piles and pressure vessels from its vessel fabrication shop. The company is a major supplier of mooring systems and associated equipment to the offshore industry, including calm buoys, submerged and external turrets, mid-water arches, pipeline end manifolds and gravity bases. Profab has a very proactive health, safety and environment department that is committed to ensuring the safety of its workers and the protection of the environment it works in while meeting the stringent expectations of the oil and gas industry. The companys competitive pricing and efficiency in Batam is a result of investment in the latest CNC fabrication equipment, auto-blast lines, welding equipment and continual training of the skilled local workforce. Profab employs up to 650 AWS and ASME certified welders in the Batam facility, and managements continual push to optimise fabrication processes proves the company to be a primary solution provider.

Complete one-stop-shop service and fleet meeting every steel need


ENGINEERING and construction company Dwyer Engineering offers a wide range of services to the mining and oil and gas industries, including steel fabrication, detailing, surface treatment, civil works, maintenance, site installation and labour hire. Dwyer Engineering has one of the largest surface treatment facilities in the states southwest: its workshop at Harvey, south of Perth, is fully equipped with modern CNC automatic beamline and angle processing machines and can fabricate about 100t of structural steel each week. Dwyer Engineering also has a 10,000 square metre pre-assembly area close to sites such as Worsley, Pinjarra and Wagerup, and offers pre-assembly of all structural steel to enable clients to reduce site construction and labour costs. Dwyer Engineering owns a fleet of trucks that enable it to deliver fabricated steel in a fast and cost effective manner to its clients premises. It can also pick up steel from a clients yard, paint it at the Dwyer Engineering workshop and deliver it anywhere in WA. Offering a complete one-stop-shop experience, Dwyer Engineering assists clients with everything from detailed drawings, fabrication, painting, delivery and site installation.

52

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Offshore Containers

Shipping containers specifically catering to oil and gas needs


CATERING to the specific needs of clients in the oil and gas sector, BTF Services Container Sales & Hire can cover all client container sales needs. With 90 per cent of the worlds non-bulk cargo movements occurring in shipping containers, BTF Services saw the need within Australia to seek clients who were looking for a high level of customer service and reliability. Customer service is the companys first priority. It is committed to providing clients with the right solution at a competitive price. Whatever the sector a client is in, getting timely information and a quick response to pricing queries is a big advantage in this fast paced environment. BTF Services currently assists various suppliers in the LNG market within Australia and Papua New Guinea. BTF Services has 10ft NON and ISO approved, 20ft general purpose (GP), 40ft GP and high cube (HC), flat racks, open tops and non-operating refrigeration (NOR) containers. Container modifications can also be made according to client requirements. Australia-wide delivery is available.

High quality shipping equipment at competitive prices


A well established Australian company, ANL Container Hire & Sales has been supplying standard 20ft and 40ft containers and related equipment such as refrigerated units, flat-racks and open-top containers to retail and wholesale customers for the best part of 10 years. In early 2012, ANL partnered with manufacturing company BSL to form a joint venture ANL-BSL Offshore Containers solely to supply DNV 2.7-1 rated containers and baskets to the offshore oil and gas industry. By using ANLs existing nationwide depots and workshops, overhead expenses are kept low, allowing ANL-BSL Offshore to remain competitively priced while still offering the highest quality product built, tested and designed to the stringent DNV 2.7-1 standard. ANL-BSL Offshore is proud to have serviced and supplied major projects including Gorgon and Wheatstone in WA, and the INPEX development in Darwin and has built a local and loyal customer base among servicing companies. Products from ANL-BSL Offshore are based around cargo-carrying equipment such as 6ft, 8ft, 10ft and 20ft dry goods, cargo and bottle-rack containers, however recent additions include 10ft and 20ft refrigerated offshore containers as well as portable rigging sheds and workshops; all certified to DNV 2.7-1.

Nationally accredited safety training for company and employee confidence


WA-based safety consultancy and management company Alegra Safety has provided clients in the mining and resources sectors with safety, risk and emergency management advice for a number of years. Capitalising on its strong safety management background, as well as its commitment to creating safe and healthy workplaces, Alegra Safety recently became a Registered Training Organisation (RTO). Alegra Safety owner Stephen McPherson said he believed Alegra Safety was ideally placed to continue to offer its clients exceptional consultancy advice, and that offering nationally accredited safety training would enhance that service. We are currently an RTO and all of our training is based on practical hands-on scenarios, Mr McPherson said. We can offer our clients in the mining and resources sectors health and safety courses designed specifically to suit their individual needs. Mr McPherson said Alegra Safety would initially offer a limited number of workplace health and safety training courses, including Certificate IV in Occupational Health and Safety (OHS); Safety for Managers and Supervisors; an Introductory Safety and Health Representatives Course; Risk Management; Hazard Management; and Incident and Advanced Incident Investigation. Alegra Safety has worked with its clients to create workplace safety courses that assist with managing onsite incidents as well as ensuring businesses continue to meet their changing OHS responsibilities and obligations. All employees, no matter what position they hold, need to be aware of their safety obligations and businesses can be confident that their people have been properly trained, Mr McPherson said.

54

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Offshore Containers

Highly regarded award for offshore cargo solutions company founder


THE founder and chairman of Irish firm Suretank, a global leader in cargo carrying units for the offshore oil and gas industry, has been recognised with a highly coveted award. Patrick Joy received the Ernst and Young Entrepreneur of the Year 2013 award, which is considered the worlds most prestigious business award and is held in more than 140 cities and 50 countries worldwide. Recognised as one of the companies that has significantly contributed to the creation of jobs and opportunities in todays challenging market, Suretank is the worlds largest manufacturer of cargo-carrying units for the offshore oil and gas industry, with a customer base comprised of leaders in service, rental, exploration and production companies. Mr Joy said the company had come a long way since its inception less than 20 years ago. I am extremely proud to have won such a highly acclaimed award it really is a reflection of the hard work and commitment of all Suretanks employees, he said. Without them, the business would not be where it is today. Mr Joy will represent Ireland in the World Entrepreneur of the Year awards in Monte Carlo next year. Suretankss products are found worldwide including the North Sea, the Gulf of Mexico, Canada, Australia and the Middle East, and its range includes chemical and acid tanks, offshore containers and cryogenic tanks.

Suretank founder and chairman Patrick Joy (centre) won the Ernst and Young Entrepreneur of the Year award

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

55

Environmental Services

Providing health, safety and environmental management solutions


AUSTRALIAN-owned consulting company Environmental Risk Solutions (ERS) tailors health, safety and environmental (HSE) management solutions for clients based on a central philosophy of contributing to the economic growth of projects and ongoing operations by enhancing HSE and quality performance. With an extensive national and international client base from small family-owned firms to multinational companies ERS operates across a variety of industry sectors, including onshore and offshore oil and gas, and mining. Having delivered HSE solutions for more than 20 years for oil and gas operators (including Woodside, INPEX, Chevron, ConocoPhillips, BHP Petroleum, the Gladstone LNG joint venture, and Australia Pacific LNG), ERS is familiar with activities in sensitive areas and optimising solutions throughout the project lifecycle. The company does similar work for mining clients. ERS provides a range of HSE services including major hazard facility (MHF) safety reports/audits; safety and risk assessments; safety studies (e.g. quantitative risk assessments); dispersion modelling; emergency planning; HAZID/HAZOP facilitation and technical scribing; and training courses (including HAZOP participation/ facilitation and dangerous goods (DG). ERS is accredited by the WA Department of Mines and Petroleum as a DG consultant. The companys environmental capabilities include planning (environmental impact assessments and statements, permits and approvals); performance management (management system development, gap analysis and system integration to ISO 9001, ISO 14001, and AS 4801 standards); and due diligence reviews and audits. Recently, ERS partnered with an operator of an LNG facility to prepare the Safety Case. As a result, the operator was the first to be issued with an MHF licence in Queenslands emerging LNG industry. In times of cost-cutting, ERS urges operators in any industry to not let their hard-earned HSE performances falter; this is where ERS can be relied upon.

Social and environment teams integrate to enhance expertise


FOR 20 years Umwelt has worked with some of the largest companies in the world, completing more than 3000 projects in the resources, infrastructure and industrial sectors. Already well regarded for providing effective environmental solutions, Umwelts recent merger with respected social impact firm Coakes Consulting strengthens its expertise in stakeholder strategy, community consultation, social impact assessment, corporate responsibility and social infrastructure analysis. The new team is led by former Coakes Consulting director Sheridan Coakes who, with more than 15 years of experience and clients including Chevron, BHP Billiton, Woodside and Glencore, is no stranger to the challenges often facing a large infrastructure project. Reputations take years to build, but seconds to destroy, Ms Coakes said. So often, great projects fail or face delays by not taking the time to get things right up front. Good stakeholder communication and identification of social impacts, at the right time in the project cycle, can make a big difference, not only to the quality of relationships, but also to improved project design and outcomes. Umwelt director Barbara Crossley agreed. Umwelt has always been a leader in delivering quality risk assessed environmental programs, Ms Crossley said. The merge with Coakes enhances our core services and strengthens our capacity to provide integrated solutions for clients developing resource projects. Based in NSW, the Australian Capital Territory and WA, Umwelts services cover the majority required for major resource projects, including approvals, ongoing environment and community management, ecology, cultural heritage, water, greenhouse and rehabilitation.

56

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Environmental Services

Specialist in design and implementation of remote environmental monitoring


EVENTS in recent years have highlighted the importance of independence and technical competence in environmental monitoring. To ensure compliance with regulations and approvals, companies require air, emissions, water, soil and sediment monitoring performed to accepted best practice so they understand exactly how their operations are interacting with the natural environment. Compliance Monitoring was established in 2002 by a technically experienced team to specialise in the design and implementation of remote environmental monitoring programs. Significant growth has encouraged the development, system engineering, installation, operation, servicing and maintenance of monitoring stations, both onshore and offshore. Compliance Monitoring is accredited by NATA to ISO 17025, which means its particulate and gas analysers, automatic weather stations and water monitoring programs are also NATA accredited. Compliance Monitoring is passionate about innovation. In 2013 it commissioned a web interfaced groundwater remote area monitoring station network and is currently establishing an atmospheric mercury monitoring program which will include measuring elemental and reactive mercury down to parts per trillion levels with live data available via a website.

A remote solar ambient air monitoring station in the Pilbara, engineered by Compliance Monitoring

For innovative environmental monitoring solutions, including NATA

accredited sampling and measurements, Compliance Monitoring has the skills

and expertise to ensure requirements are met.

regulatory

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

57

Environmental Services

Joining forces to provide state-of-the-art air pollution control services


TWO leading suppliers in the air pollution control industry are partnering up to meet the needs of Australian companies with emission control requirements. Australias single largest air pollution control company, Total Air Pollution Control (TAPC), has teamed up with Anguil Environmental Systems, a global provider of oxidation and vapor combustion technologies. Both TAPC and Anguil specialise in technologies, products and services that destroy volatile organic compounds and hazardous air pollutants from a broad range of applications. With access to the Anguil thermal and catalytic oxidiser technologies, TAPC now offers a control technology increasingly used in the region to meet the more stringent environmental regulations. TAPC will incorporate Anguils oxidizer designs and heat recovery systems with its existing gas cleaning technologies for facilities throughout the region. This partnership provides a local Anguil presence for sales, installation, fabrication and service needs. Customers in Australia can expect state-of-the-art air pollution control equipment, dependable service and responsive support from two of the most reputable companies in the industry. More details about the technology can be found on the Anguil website.

Anguils regenerative thermal oxidiser destroys hazardous air pollutants, volatile organic compounds and odorous emissions that are often discharged from industrial or manufacturing processes

58

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Drug & Alcohol Testing

Workplace safety and education top priority for training and testing company
A registered training organisation with specific knowledge and experience within the drug and alcohol testing industry including NATA accreditation Medvet is able to assist with educating employees in drug and alcohol awareness, as well as supervisor training and testing compliant with Australian standards. According to Medvet, there are five ways to educate employees and keep them safe at work. Alcohol and other drug awareness sessions are a crucial first step to an effective program, informing employees about the risks, impacts and effects of alcohol and other drugs on the body. Medvet encourages discussion about workplace drug and alcohol policy in awareness sessions, including what happens when there is a confirmed positive test, and the treatment or counselling services available. Whether employers choose to use oral fluid or urine for tests, education about the testing procedure allows staff to understand the process, their rights and responsibilities in relation to testing and an understanding of the devices used. Medvets reasonable suspicion training course is targeted towards managers and supervisors that may be required to identify employees at risk from the effects of drugs and alcohol, and the right way to go about it. Furthermore, a course in workplace drug testing trains participants to collect to Australian standards for oral fluid, urine and breath alcohol tests. The course explains the logistics of drug testing, chain of custody requirements and how to comply with the standards.

Employee education plays an important part in a companys health and safety record

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

59

Drug & Alcohol Testing

Exploring the importance of using a NATA accredited facility


facilities accredited by the National Association of Testing Authorities, Australia (NATA) have undergone NATAs rigorous assessment of their technical competence and capabilities, therefore providing confidence that the testing laboratories methodologies are reliable and can stand up to scrutiny, including from the legal system. This statement from the NATA website bears testament to the philosophy the association maintains. NATA provides independent assurance of technical competence through a proven network of best practice industry experts for customers who require confidence in the delivery of their products and services, the website states. NATA formally recognises that these facilities produce reliable technical results which make the world a safer and more certain place". CMM Technology has been assessed and granted accreditation by NATA against the ISO/IEC 17025 standard for the calibration of instruments, specifically to calibrate breathalysers. As the first and only non-government facility in the country approved to recalibrate hand-held and wall mount breathalysers, CMM Technology is understandably proud of its achievements. Mediscreen has attained the highly respected NATA accreditation for onsite collection, storage and dispatch of both urine and saliva samples, and for onsite screening for urine. CMM Technology and Mediscreen can help customers determine if their current provider meets and complies with the relevant standards, and also offer clients the peace-of-mind that comes with using a NATA accredited company.
NATA facilities provide quality services, time after time

Instant synthetic cannabinoid test kits for rapid results


WITH a motivated team of qualified doctors, nurses and practice staff, Rapid Medical is dedicated to providing resources industry employees with the best possible care. When conducting onsite drug and alcohol testing, instant synthetic cannabinoid test kits can prove to be highly beneficial. Available from Australian-owned importer, distributor and manufacturer Rapid Test, the test kits are available in a single cup or a multi cup, with a simple, one-step test procedure. Despite being banned in most states, synthetic cannabinoids which mimic the effects of cannabis are widely available throughout Australia. It is important for operators to test for synthetic cannabinoids as they can prove hazardous to worker safety, and cannot be detected by traditional cannabis drug testing. Synthetic cannabinoids pass undetected in standard urine or oral fluid testing for drugs such as cocaine, marijuana, heroin and amphetamines. Some of the adverse effects caused by synthetic cannabinoids include a rapid heart rate, confusion, dizziness and nausea. Rapid Tests contracted laboratory is a full service, independent drug and alcohol testing facility. The company utilises state-of-the-art screening and confirmation methodologies for oral fluid and urine drug testing. The team at Rapid Medical are on hand to discuss any onsite testing requirements or queries.

60

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Drug & Alcohol Testing

Keeping workers safe during the silly season


THE holiday season is nearly here, bringing with it a host of pre-holiday festivities. According to Medibank Health Solutions, November and December are peak times for alcohol and drug related injuries. Employee alcohol use contributes to around 5 per cent of Australian workplace deaths and up to 11 per cent of non-fatal workplace injuries, while 2.5 per cent of the workforce reported working under the influence of illicit drugs, according to figures from Prevalence and patterns of alcohol use in the Australian workforce: findings from the 2001 National Drug Strategy Household Survey. A report by the Australian Department of Health and Ageing, The costs of tobacco, alcohol and illicit drug abuse to Australian Society in 2004/05, found that alcohol and other drug use (excluding tobacco) accounted for $5.2 billion in lost productivity costs in the 2004 to 2005 financial year. Choosing Medibank Health Solutions as a drug and alcohol screening partner will ensure quality results. Medibank Health Solutions is one of the largest direct employers of accredited collectors and medical review officers in Australia. It is NATA accredited for urine drug screening to AS/NZS4308:2008 and ISO 9001 Certified. Medibank Health Services offers

Medibank Health Solutions provides quality drug and alcohol screening services

tailored reporting. Medical review officers specialising in the interpretation of drug and alcohol tests can also

interpret the screening results against a clients organisational drug and alcohol policy to help the client manage the risk

of employees affected by illicit or other drugs (by request, incurs an additional fee).

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

61

Medical Services

Protecting people, business and assets


DYNAMIC specialist protection organisation Corporate Protection Australia Group (CPA Group) provides premium corporate (human and asset) protection services to the oil and gas, mining, energy, maritime and critical infrastructure industries. Innovation, experience and education underpin CPA Groups approach to protecting life and property, representing the hallmarks of the organisations commitment to excellence. In particular, CPA Groups Fire & Rescue and Health & Medical divisions provide a range of emergency protection services to the oil and gas industry, including emergency fire rescue response, incident management, first aid and emergency medical services and equipment, remote primary care medical services, aero medical retrieval, and hyperbaric treatment. CPA Groups emergency response capability extends to specialist medical staff that understand the requirements of the oil and gas industry. They ensure each clients site is well protected for the optimum safety and care of their workforce. The organisations first responders and health care professionals come from a diverse range of emergency response agencies, both interstate and internationally.

CPA Groups specialist medical staff understand the requirements of the oil and gas industry

CPA Group has implemented numerous health and wellbeing initiatives throughout its sites,

including skin checks, nutritional planning, vaccination programs, and pre-employment medicals including

auditory, drug and alcohol testing. These services are available both on site and at CPA Groups specialist clinic.

62

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Medical Services

Prevention the best strategy for a healthy workforce


WHEN it comes to health, Anodyne Services Australia (ASA) believes an ounce of prevention will always beat a tonne of cure. In remote regions, without the health support services normally relied on, the health of a team is vital to business success. If a staff member cant operate because of illness or injury, the business will also suffer. ASA has been recognised for its professionalism and expertise by some of the largest resource companies and governments in the world. Its highly skilled staff have been deployed to the Highlands of Papua New Guinea in support of gold mining operations, provided health management and services to the copper industry in Kazakhstan, established health clinics and provided services in Afghanistan and Asia, as well as undertaken support projects in eastern Australia in support of the CSG industry. With ASA supporting your team, you can be assured of a healthy workforce and a healthy workforce gives you the best chance of a healthy bottom line, ASA stated. ASA provides health care in challenging locations and is a specialist in regional and remote medical support. ASA has extensive experience in managing the health of its clients in some of the worlds most inhospitable regions. Its services include resource sector medical support; remote and regional medical support; shut down and maintenance medical support hazardous regions medical support; aero medical evacuation services; and equipment and vehicle sourcing.

Medical services in remote locations demanding but rewarding


BEYOND Australias northern beaches medical dramas still exist and require expert teams to carry out emergency retrievals. During the past year LINK HEALTHs critical care flight paramedics have taken care of a number of medical emergencies, aeromedical retrievals and Australian Maritime search and rescue missions from Truscott Airbase. LINK HEALTH provided the medical care of two illegal boat people who were found ill by the navy and needed aeromedical retrieval; a cardiac patient from an oil and gas installation requiring aeromedical retrieval; a fisherman that was severely stung by an Irukandji jellyfish; a patient with swelling on the brain that needed urgent offshore retrieval; and a man that fell overboard while on a cruise ship. Mungalalu Truscott Airbase in the remote Kimberley region of WA, 520km west-southwest of Darwin, was constructed in 1944 as a Royal Australia Air Force (RAAF) base used during World War II. The location was chosen because of its proximity to Java where Japanese forces were focussed, the airbase known only as Truscott was named after Australian Air Force Squadron leader Keith Bluey Truscott who was killed in an air crash in the Gulf of Exmouth in 1943. During the war, RAAF and United States Army Air Forces would often use Truscott during Japanese bombing missions as a rearming and refuelling station. The airbases construction and operations were conducted under concealment and its existence was not officially acknowledged until after the war. Today, Truscott is registered with the Civil Aviation Safety Authority as a commercial airbase and falls under the traditional ownership of the Wunambal Gaambera people whom have an agreement with Shoreair to manage the airbase until 2022. The airbase acts as a thoroughfare for workers in nearby offshore oil and gas fields as they are flown by fixed wing aircraft into Truscott, then transfer to helicopters for the final leg of their journey to rigs and vessels in and around the Timor Sea: the furthest platform is 210 nautical miles or about two hours flight from Truscott. The base is run extremely well and is a wonderful place to work, LINK HEALTH senior critical care flight paramedic Bruce Slinn said. With the extreme remote location and the large distances, medical support is of the upmost importance. LINK HEALTH deploys highly trained and qualified critical care flight paramedics to maintain the air base medical centre and respond to calls for aeromedical retrieval and search and rescue operations, from offshore oil and gas clients and government authorities. LINK HEALTHs paramedics are able to tackle the most challenging aeromedical retrieval missions with confidence, responding with state-of-the-art medical equipment. The companys paramedics must undergo annual advanced health care training to maintain a certificate to practice. Helicopter winching operations and recovery of patients via winch are completed every 90 days to maintain certification. It is a demanding role, and with the weather conditions during the wet season taking its toll, a high level of fitness and mental stamina is required.

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

63

gym & fitness equipment

Gym equipment and maintenance services for remote locations


STARTING in 2002 as a provider of gym equipment warranty, service and installation for several importers, Fitness Equipment Services (F-E-S) now offers a number of services for small and large clients including cruise ship operators, homeowners, and mining companies in remote locations. Some of F-E-S areas of expertise include the diagnosis and repair of electrical and mechanical faults, preventative maintenance, installations and relocations, test and tag, weight cabling, and new and secondhand fitness equipment sales. The company also provides helpful advice for clients looking for an easy repair, or assistance in deciding what equipment is right for them. F-E-S director Aaron Terry has a background in electronics and is a trade qualified auto electrician and air-conditioning technician. While working as an auto electrician, Mr Terry was called on to help the family business, which was the importer and agent for Precor fitness equipment at the time. He now has more than 15 years of experience as a service technician in the fitness industry. F-E-S recently completed work on Curtis Island for the Australia Pacific LNG, Queensland Curtis LNG, and Gladstone LNG projects. The company has also installed new gym equipment into several gas field sites in the Chinchilla/Dalby area. F-E-S personnel can fly to remote mining

Fitness Equipment Services specialises in servicing and maintaining fitness equipment at remote mining sites

destinations to service and maintain equipment. The company is looking to

expand further into the mining industry to help operators reduce costs, and provide

excellent service and advice on their fitness equipment needs.

64

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

Splurge
Lifestyle & Products

Make someone very happy this Christmas with these extravagant gifts, writes Courtney Pearson

For the fitness buff A steady gym routine can become quite boring, and creating the right workout can take more time than the training itself. The Nexersys is a unique piece of training equipment that specialises in high intensity interval training (HIIT), providing fast four-minute circuits to challenge the body and offer a full workout. The clever system provides the motivation of a personal trainer with mixed martial arts workout programs. The in-built interactive trainer teaches and tracks fitness programs, making it a good option for the entire family, with beginner, intermediate and advanced levels. The Nexersys combines video training

that incorporates cardio, technique, strike and core workouts with Avatar Follow Me and exergaming, which is gaming that involves exercise. Each round comprises 30 seconds of instruction, three minutes of high-intensity exercise and 30 seconds of cool down. The machine has more than 100 professional training videos and unlimited four-minute sparring rounds, and can be personalised with unique rounds. Up to five different users can keep track of their progress and workout history and receive feedback from the strike pads on power, accuracy and the strike count. The Nexersys is available in the Home and Pro models at US$2495 and US$6995, respectively.

Seeing stars A step up from buying someone a star to call their own, a flight into space is a sure-fire way to give loved ones an out-of-this-world gift this Christmas. Virgin Galactic, the worlds first commercial spaceline, has offered aspiring astronauts (and those with plenty of cash) the opportunity to reserve a seat on SpaceShipTwo since 2005. Hundreds of people have taken up the offer to ascend to 50,000 feet and travel at a whopping 2500 miles per hour; more than three times the speed of sound. WhiteKnightTwo, the spaceships mothership, carries SpaceShipTwo into space and then releases it to glide back to Earth. The ship has its own hybrid rocket

which can be shut down at any time during operation, as feathers help to guide it back to solid ground with ease much like a shuttlecock. Once the spaceship is released the rockets motor will be switched off so passengers can experience zero gravity and the complete silence of being in space, and each of the six passenger seats has overhead and side windows to ensure a perfect view of Earth. Three days of training, preparation and bonding are required before the flight, to ensure passengers get the most out of their space experience and are mentally and physically ready. Securing a seat on the once-in-a-lifetime journey would set customers back US$250,000. Commercial flights are expected to begin mid-2014.

Clients enjoy ultimate luxury at each step of the Forevermark diamond journey

From ground to gorgeous Its common knowledge that theyre a girls best friend, but few know the unique journey of a diamond. As part of this years Neiman Marcus Christmas Book, Forevermark is offering an opportunity to trace the history of a 25-carat rough diamond. The two-person adventure begins with a trip to the De Beers headquarters in London where the buyer will receive their rough, uncut diamond, name it and meet the craftsman that will cut and polish it. Afterwards, the clients will enjoy a private dinner with the heads of De Beers and

Forevermark in the Tower of London. The adventure truly begins on a boat off the coast of Namibia, where the diamond was discovered, and then continues onshore to explore rough-diamond sorting houses and a childrens community project supported by the industry. Once the buyers are flown back to the US they will meet New York jewellery designer Maria Canale to design an exclusive ring. Each step of the 11-day journey is supported with luxury accommodation and a hardcover book is presented to commemorate the once-in-a-lifetime experience; the only catch is that it costs $1.85 million.

Pop-up garage Just like something out of a Batman film, the Cardok is a clever way to double parking space and feel like a superhero at the same time. With the click of a button, a section of designer pavement rises within 30 seconds to reveal a car hidden beneath the ground level. According to Cardok, the secret garage is virtually impregnable because its flush with the ground and has a solid metal lid that prevents unwanted access. The Cardok is run by hydraulic power which is quiet and energy smart.

However, it isnt limited to two cars; the Cardok Multi model is able to accommodate as many cars as needed. The car tower is a good solution for large storage. The Cardok takes about three days to fully install and is designed to lift 10t. The company also manufactures the CarLift, which enables customers to access basement garages instead of using a ramp, and the CarTurn platform, which allows for manoeuvring a car in a difficult space. The Cardok costs EUR35,000 for its entry-level model not including installation, authorisation, transportation and add-ons.

www.miningoilgas.com.au

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

65

Escapes
HOME to Mozart, The Sound of Music, and one of the best preserved medieval fortresses in all of Europe, the Austrian city of Salzburg is truly remarkable. The citys charismatic Old Town a UNESCO World Heritage Site is a showcase of world-class Baroque architecture. From the teal onion dome of St Peters Abbey (the oldest monastery among German-speaking countries) to the magnificent two-tower facade of Salzburg Cathedral, there is something to admire at the turn of every cobbled street. The city emanates a timeless, Disneyesque charm. Salzburg meaning Salt Castle in German was once ruled by prince-archbishops as part of the Holy Roman Empire, and was made wealthy by the states salt or white gold trade. The fourth largest city in Austria, Salzburg has a comfortable population of about 150,000 people, of which a significant portion is made up of students attending Salzburgs esteemed universities. Highlights Overlooking the Old Town atop Festungsberg Mountain, Hohensalzburg Fortress is an eye-catching landmark; its white walls visible from almost anywhere in the city. It was erected more than 900 years ago at the behest of Salzburgs prince-archbishops. From Festungsberg Mountains 500m summit, Hohensalzburg Fortress offers breathtaking views of the meandering Salzach River and surrounding countryside. With audio guides, visitors can explore the castle at their own pace; the inner rooms, torture chamber and lookout tower all shed light on Salzburgs medieval history. The castle also contains three museums, and a Fortress Restaurant and Fortress Tavern for anyone who fancies a drink or meal while admiring the snow-capped Alps in the distance. Visitors can choose to ascend the mountain by funicular railway or on foot, with entry into the castle about $15. Beneath Festungsberg Mountain on one of the citys oldest and most lively streets, Getreidegasse (Grain Lane), visitors can see the building where Wolfgang Amadeus Mozart was born on 27 January 1756, and lived until he was a young man. Showing significant musical ability as a child, Mozart composed more than 600 works before he died, 35, at his home in Vienna. At the beginning of each year, Salzburg pays homage to the classical music icon with Mozart Week, whereupon the city is abuzz with opera performances and orchestral, chamber and soloist concerts. The events host, the Mozarteum Foundation, invites visitors from around the world to rediscover Mozarts works from ever-changing perspectives. Salzburgs second major melodic drawcard is The Sound of Music, which was based on a true story and almost entirely filmed in Salzburg. At the time of its release in 1965, it was the highest grossing film ever made. While replicating the iconic scene of a young Julie Andrews swirling around in a meadow of flowers singing The Hills Are Alive may not be on everyones bucket-list, visiting some of the films most notable shooting locations is still a leisurely way to see the city and learn some of its history. One of the best ways to do this is by booking a spot on Fraulein Marias Bicycle Tour: an inexpensive (about $35 per adult), fun, and interpersonal sightseeing experience in which riders also get to learn about points of difference between the movie and the real-life events. Movie fans will recognise such locations as the glass-enclosed pavilion where the eldest Von Trapp sibling Liesl sang a duet with her love interest; the Schloss Leopoldskron palace which was used as the exterior of the Von Trapp mansion, and the vibrant Mirabell Gardens where Maria and the children sang Do Re Mi. Tours depart daily at 9.30am during May to September (and also in the afternoon from June to August) and last for about three-and-a-half hours. Interestingly, The Sound of Music isnt nearly as popular in Austria as in other parts of the world. In fact, most Salzburg locals have never seen the film. After a busy day of sightseeing, the Augustiner brewery and beer hall is the perfect place to spend a relaxing afternoon, either inside one of its massive rooms, or in the beer garden under the trees. After selecting a ceramic mug off the shelf and washing it themselves, patrons can sample locally brewed beer in a choice of either 1L or half-litre sizes. Vendors selling pub grub are on hand to satisfy any cravings, with selections including meats, sausages, salted radishes, sauerkraut, strudel, potatos, olives and cheese. Although not for the claustrophobic, a trip to one of the worlds oldest salt mines at Hallein, about 30km away from Salzburg, is a unique experience. After entering the mine by train, visitors enjoy a boat ride across the underground Mirror Lake, and descend to the lower levels of the mine by two wooden slides, the longest of which is 42m. Although the mines fascinating history is well worth the trip, it is much cheaper to arrange for private transport rather than going on a tour bus. Getting there At the northern edge of the European Alps, Salzburg has simmering summers and icy winters. Nevertheless, Salzburg is a great destination to visit any time of the year. The annual Easter Festival takes place around April, while the Salzburg Festival begins at the end of July for a period of five weeks; both are celebrations of music and drama. However, for travellers wanting to miss the crowds, September and October are better months to go. During winter, Salzburg is a top ski holiday destination, and Christmas is a magical time. The Christmas Markets, beginning at the end of November until late December, are a much-loved tradition. Decorations, sweets, mulled wine, textiles, jewellery, crafts and toys are just some of the goods on offer for locals and tourists to enjoy. As there are no direct flights to Salzburg outside of Europe, people travelling from Australia will have to catch connecting flights from other cities. From the nearby cities of Vienna and Munich, Salzburg is less than a three-hour train ride away.

Visiting the birthplace of one of the worlds greatest composers evokes a certain feeling of expectation. Jaimee Conn reveals what makes Salt Castle so inspiring

The majes tic Schlo ss Leopo ldskro n palac e is a natio nal

histor ic monument

Visiting famous filming locations from The Sound of Music by bicycle is a popular tourist activity

The Old Town is best viewe d from the top of Festu ngsbe

rg Moun tain

66

THE AUSTRALIAN OIL & GAS REVIEW

DECEMBER 2013

www.miningoilgas.com.au

A day in the life


Q.
What does your role entail?

For Geo Oceans director and principal consultant Ade Lambo, the diversity of his role and its projects is a major winning point. Jaimee Conn learns why marine science consulting is imperative to offshore developments.

A. My primary role as a marine environmental consultant is to undertake diverless marine habitat mapping and monitoring surveys for oil and gas or infrastructure development projects. Due to the fact we have a relatively small team, I am generally involved in all aspects of our project delivery; from business development and tender submissions to fieldwork, data analysis and reporting. A typical day in the field would involve getting up early and setting up our towed camera or ROV [remotely operated vehicle] equipment on the survey vessel. We then generally undertake 8 to 10 hours of field operations, collecting benthic habitat data. Then we ensure the data is fully backed-up, pack away the equipment and do it all again the next day. It can be tiring but it is generally a lot of fun, with good camaraderie amongst the team. A typical day in the office may entail some report writing or map production, as well as a couple of internal meetings. We are lucky to have a very high performing team, however, we have a pretty relaxed atmosphere in the office and so we quite often bounce ideas off each other. I have a secondary role as a director in the business, which along with my fellow board members entails guiding the strategic growth of the company and ensuring that our structures and corporate governance systems are robust and in place. Q. What made you want to work in marine science consulting, and how did you begin your career? A. I started my career in marine science conservation and research, investigating the impacts of coral reefs in East Africa and South East Asia. I then had the opportunity for further postgraduate study and started my PhD in 2003, investigating the recovery of degraded coral reefs in Kenya. Having finished my studies in 2007, I was recently married and my wife was pregnant with our first child and so I needed to start earning a stable income. I was lucky enough to be referred to URS Corporation by a friend and so I started my career in the consulting industry. I havent looked back since. Q. Why is marine science consulting so important in the offshore oil and gas industry? A. I think that environmental consulting in general, and specifically marine science consulting, plays a vital role in allowing proponents of projects and the general public to understand the potential impacts associated with their projects. Through the process of environmental studies and approvals,

companies can often effectively mitigate for any environmental impacts that their projects may cause, allowing for sustainable development in such a vital industry. Marine studies are particularly important as the habitats and fauna are often not immediately obvious and as they say out of sight, out of mind. Therefore it is our role to objectively report on what benthic habitats may be within a projects footprint, allowing the proponents and government regulators to determine the most appropriate way to proceed.

Q. What are the challenges of your profession? A. Like most jobs in the industry, we have a number of common challenges including winning enough work to keep us busy, working with ambitious timelines and balancing the need for growth with available resources. A key area of focus for us is staying on top of the innovation and technical developments in our niche area of expertise. Technological development in the industry is very fast and we pride ourselves on being at the forefront of that push, so it requires quite a lot of work to stay on top of that progress. Q. What do you like best about your role? A. I love the diversity of my role and the projects that we work on. I could be working on a dredging project in Darwin one month and then a port development in remote tropical islands in Indonesia the next. It is the diversity of our projects that keeps me fresh and interested. We get to go to some pretty amazing places and see the things that many people would pay a lot of money to see. I feel very lucky. Q. What sort of projects have you worked on primarily? A. I have been lucky to work on lots of different projects all round the world, including port developments in the Middle East, LNG development projects in Darwin and the Kimberley, research studies in Pakistan and the Philippines and pipeline surveys in WA. Q. What type of qualifications or training would someone need to work in marine science consulting? A. I think that a good undergraduate degree in marine or environmental science is essential. I dont feel that postgraduate qualifications are necessary to be a good consultant; in fact they are often a hindrance. Depending on the role it may be necessary to have specialist commercial diving training, however, we see the industry moving away from using divers on most projects,

From Australia to the Middle East, Ade Lambos work in marine science consulting has taken him around the world

with a preference for diverless methods (i.e. ROVs or towed cameras) becoming more evident. so far?

Q.

What is your career highlight

A. A recent highlight would be the opportunity that I had last year to be a part of a comprehensive survey of the coral

reef communities of Seringapatam Reef, about 480km north of Broome. I was a part of an Australian Institute of Marine Science (AIMS) survey of the reef for the baseline environmental studies being undertaken by ConocoPhillips for their Poseidon project. The remoteness of the atoll coupled with the incredibly diverse marine communities was a real highlight and reminded me why I love my job.

Do you know someone who could be profiled in this section? Send suggestions to editorial@miningoilgas.com.au