ISSUE 50, NOVEMBER 2014 PP100007125

AUST�LIANTHE

OIL & GAS REVIEWU 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

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AUSTRALIA’S burgeoning gas export industry will deliver positive economic benefits despite the rising cost of household gas bills, according to a report by Grattan Institute.

The thinktank stated in its Gas at the crossroads: Australia’s hard choice report that reserving or subsidising gas for domestic use would add more costs than

benefits and do nothing to increase supply.It predicted the average household

bill in Melbourne could rise by more than $300 per annum, while customers in Sydney and Adelaide could see a jump of more than $100/a.

“Gas producers have been building LNG facilities, mostly in Queensland, since 2010 and will start exporting as early as this year,” the report stated.

“Despite the increases, the emerging export industry will deliver

overwhelmingly positive economic benefits for Australia,” Grattan Institute Energy program director Tony Wood said.

“By 2018, east coast gas, added to growing Western Australian supplies, could create the world’s biggest gas export industry, worth $60 billion a year.

However, with projects coming online and Australia’s gas export industry firing up, domestic gas prices are set to rise to compete with the prices other countries are prepared to pay for Australian gas.

“The economic benefits that will flow as a result represent an opportunity too good to miss.”

“Governments are already coming under pressure to protect Australian industry and consumers from the price rises.

“They should resist it.”Electricity and gas prices have had

respective price hikes of 61 per cent and 36 per cent in the last five years.

CIVMEC P42Woodside P22 Escapes P65

Rising prices better than gas reservation: report Courtney Pearson

(continued on page 3)

THE Victorian Government has granted a petroleum production licence in waters near the Great Ocean Road, in a first for the state’s offshore gas industry.

Origin Energy will produce natural gas for its Halladale project about 5km offshore Victoria’s southwest coast, in the Bass Strait near the Bay of Islands National Park, which will be processed at the Otway gas processing facility for electricity and domestic use.

Victoria grants maiden offshore petroleum production licence

(continued on page 3) the Victorian Government has approved the Halladale project in waters close to the famous Great ocean road.

2 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.auTHE AUST�LIAN OIL & GAS REVIEW

Contents

General 1

SpecialprofileS

NeWS

cSG&lNGinQueensland 34

TerritoryGeneration 48

apachecorporation 51

Woodsidepetroleum 22

ciVMec 42

2014QueenslandGasconference&exhibition 38

companiesGearingUp 52

Marinelifting 58

patentattorneys 63

instruments&instrumentation 62

ScaDaSystems 60

escapes 65

Splurge 64

aDayinthelife 66

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For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.auThe Australian Oil & Gas Review is a free publicationto all oil and gas operations and oil and gas companiesin Australia. Its value is $11 an issue (includes GST,postage and handling).The copyright is vested in the Proprietors of TheAustralian Oil & Gas Review; neither whole nor any partof this issue may be reproduced without permission.The views expressed in this publication are notnecessarily those of Publications & Exhibitions AustraliaPty Ltd and its staff, but are those of the respectiveauthor who accepts sole responsibility and liability forthem.

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(a) falsely represent that goods are of a particularstandard, quality, value, grade, composition, style ormodel or have had a particular history or particularprevious use; (b) falsely represent that goods are new;(c) represent that goods or services have sponsorship,approval, performance characteristics, accessories, usesor benefi ts they do not have; (d) represent that thecorporation has a sponsorship, approval or affiliationit does not have; (e) make a false or misleadingrepresentation with respect to the price of goods orservices; (f) make a false or misleading representationconcerning the need for any goods or services; or (g)make a false or misleading representation concerning theexistence, exclusion or effect of any condition, warranty,guarantee, right or remedy.

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oTHerSecTioNS

iNpeX 27

onslow:ThelNGHubofWa 46

22

Woodside

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GeneraL neWs

QUEENSLAND Premier Campbell Newman has promised voters his government will reduce the average household’s cost of electricity by $577 across five years by removing the cost of the solar bonus scheme.

If re-elected, the Coalition would introduce the $3.4 billion Strong Choices Cost of Living Fund to eliminate the solar usage feed-in tariff from power bills.

“If given a mandate to act on our Strong Choices lease plan, we will have the funds available to take 6 per cent off retail electricity prices in 2015-2016,” Mr Newman said.

The current Solar Bonus Scheme reimburses eligible customers for any surplus electricity generated from solar photovoltaic systems, which is fed into the Queensland electricity grid.

Treasurer Tim Nicholls said removing the cost of the solar bonus scheme would not affect solar customers.

“Put simply, instead of their feed-in payments coming from the price of electricity, it will come from the Strong Choices Cost of Living Fund.”

The fund would utilise proceeds from the lease of some assets to pay solar users the $0.44 per kilowatt hour feed-in tariff.

Under the Strong Choices Electricity Price Relief, the Government would remove the cost of paying the Solar Bonus Scheme from customers’ electricity bills,

starting from 1 July 2015.Shadow Treasurer Curtis Pitt said

the plan was an attempt to divert from its broken promise to cut power bills in 2012.

“The supposed average benefits under this latest LNP proposal do not even

meet the original $120 a year cut to bills the Premier said he would deliver but failed miserably to do,” Mr Pitt said.

Palmer United Party leader Clive Palmer stated on Twitter that the Premier’s claim was “just another broken promise in the making”.

Sectors such as gas and construction could face increased pressure from rising gas prices, with the report stating implications for manufacturing output and jobs in gas-intensive sectors were “bad indeed”.

“A shift away from gas means a shift back to coal. Such a trend is already being seen, and is bad news for the climate,” the report stated.

“Australia’s 2020 emissions target will be harder to meet.”

By 2021, gas price increases would reduce the manufacturing industry’s contribution to gross domestic product by $3.2 billion per annum, according to Deloitte Access Economics.

“However, as the same report shows, the contribution to the Australian economy from the gas sector will increase by more than $18.5 billion in 2021...In total, the Deloitte report found that in 2021, Australian GDP would be $15.5 billion

higher as a result of gas exports and higher prices,” Grattan Institute stated.

The Australian Petroleum Production and Exploration Association (APPEA) welcomed the report’s conclusion that governments should remove barriers to gas production and minimise regulatory

burdens on producers.“Leadership is urgently required to

allow for the responsible exploration and production of natural gas in NSW and Victoria to secure supply and put downward pressure on rising prices,” APPEA chief executive David Byers said.

It is the first licence of its kind to be granted in Victorian state waters.

Origin estimated the permit could contain up to 100 billion cubic feet of gas.

Energy and Resources minister Russell Northe said the project had the potential to assist in maintaining the security of the state’s gas supply.

“The Halladale project is a multi-million dollar project that will help provide natural gas for residences and businesses – essential for cleaner electricity generation and domestic gas supplies,” he said.

“"We anticipate around 70 jobs for the region.

"I know the company has worked very closely with landowners, with the local council, in ensuring that they're working very closely together on the outcome of this.”

The Otway gas project was designed to produce an average of 60 petajoules of natural gas per annum as well as 100,000 tonnes per annum of LPG and 800,000 barrels of condensate.

The approval came as Origin Energy managing director Grant King announced the company would look to wind back gas production and store gas for the future as projects come online.

Mr King said the Australia Pacific LNG project, which Origin Energy holds an interest in, will benefit from production at Queensland Curtis LNG (QCLNG). However, if production was delayed the benefit would be lessened in the 2015 financial year.

“This delay may however result in additional ramp gas in the market at temporarily lower prices which Origin can buy for its energy markets business and benefit accordingly,” he said at the company’s annual general meeting.

“In order to benefit from this opportunity Origin will reduce its call on production from its upstream business and bank contracted gas this year and call for that gas in the following years when it is more valuable.”

Despite a lower prediction for earnings in the 2015 financial year, they were expected to grow from the 2016 financial year.

the Queensland Curtis LnG project is one of the projects under construction in Queensland, operated by QGC.

Queensland electricity bills could be cut with the removal of the solar bonus scheme.

(continued from page 1)

(continued from page 1)

Rising prices better than gas reservation: report Victoria grants maiden offshore petroleum production licence

Courtney Pearson

Newman pledges to cut power costs

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Major project status for NT pipeline

THE Northern Territory Government has given major project status to a proposed 1000km, $1 billion gas pipeline that would link the Territory with the eastern states.

The Government has begun engaging with companies to make the project a reality and potentially change the face of the domestic gas market.

“I am pleased to announce the Northern Territory is about to start a formal process for potential investors to express their interest in building and operating the pipeline,” Northern Territory Chief Minister Adam Giles said.

“With an east coast gas crisis shortage looming, we need the pipeline in operation by 2018. There is no time to waste and the granting of major project status to the pipeline will help speed up this process.”

The proposed pipeline was recently endorsed by leaders at the Council of Australian Governments (COAG) meeting, who said the pipeline was the next step in developing a national gas grid that would contribute to the development of a more competitive domestic gas market and improve supply security.

Mr Giles said the Territory was working with the Federal Government to secure private investment for the project, which has already received interest from a number of key national and international industry players.

“The construction of this gas pipeline is an infrastructure project of national significance. It’s also a matter of urgency for the eastern states which are fast approaching an energy security crisis,” Mr Giles said.

“We have the gas and they have the demand but there is currently no economically viable way to get the gas from northern Australia to the eastern market.

“A pipeline is a win-win that would connect natural gas companies with potential buyers in the eastern states, while also creating economic opportunities for the Northern Territory.

“It’s exciting to see this project is really gaining momentum.”

The Government expected to work with Geoscience Australia to help identify the best route for the pipeline. Two potential routes include Tennant Creek to Mt Isa in Queensland, and Alice Springs to Moomba in South Australia.

emma BroWn

THE NSW Government has extended its freeze on natural gas exploration despite an impending gas shortage.

The initial six-month freeze on Petroleum Exploration Licence Applications (PELAs) and Petroleum Special Prospecting Authority applications will be extended to 26 September 2015.

NSW Resources and Energy minister Anthony Roberts said the additional 12-month ban would ensure the effective implementation of comprehensive regulations.

“The former Labor Government handed out 39 Petroleum Exploration Licences in a careless and clumsy fashion with little oversight. NSW deserved better,” Mr Roberts said.

“The NSW Liberals and Nationals Government have put in place the most

comprehensive regulations for the CSG industry in the country.

“These regulations ensure gas extraction from coal seams is done in a way that is safe and has minimal impacts on the environment and other industries.”

The Office of Coal Seam Gas would use the additional time to complete its examination of the current PELAs, which would allow the government to further assess the application for petroleum titles.

The announcement came just days after the Federal Government released its draft Energy White Paper that identified the need for NSW to increase its gas production.

Australian Petroleum Production & Exploration Association (APPEA) stated it was perplexed by the government’s decision.

“New production depends upon successful exploration activity. Without

new exploration and production in NSW, it will be very difficult to put downward pressure on NSW gas prices,” APPEA chief operating officer of eastern Australia Paul Fennelly said.

“NSW consumes around a quarter of the gas used in the eastern Australia gas market, yet supplies only about one per cent of the gas production for that market.

“The state’s 1.3 million gas customers rely on interstate products for 95 per cent of their supply, despite the state possessing very significant reserves and experienced gas companies willing and able to produce local gas for local consumers.”

However, Mr Roberts said the government was committed to increasing domestic supply of gas and was working to ensure only safe and sustainable gas supply projects proceeded.

Ten PELAs have been refused since March.

emma BroWn

NSW extends exploration freeze

WA’s economic watchdog has rejected a revised access plan from the owner of the state’s biggest gas network, in favour of pricing that would cut $70 from southwest household gas bills next year.

The Economic Regulation Authority’s (ERA’s) draft decision would see Canadian-owned ATCO lose nearly $400 million of potential revenue in the next five years, dropping 31 per cent of its revenue from 1.2 billion to about $836 million.

ATCO’s proposal had intended to increase revenue from fixed-access charges to compensate for falling gas usage.

Its current network access charges, which are equal to about one third of the consumer’s bill, are incorporated into the prices charged by the retailers – Alinta Energy and Kleenheat Gas.

“The decision means that gas users can see a reduction in their gas bills whilst still allowing ATCO sufficient revenue to grow and maintain the gas network,” ERA member Stephen King said.

The regulator also detailed a return of 5.94 per cent on assets instead of ATCO’s proposed 8.53 per cent; a lower allowance for capital expenditure; and a lower allowance for operating expenditure.

“ATCO’s proposal departed from the Rate of Return Guidelines published by the ERA last year without providing sufficient reason to do so,” Mr King said.

“The ERA has reviewed ATCO’s proposal and assessed the return that ATCO receives on its regulated assets

taking into account relevant new information about the guidelines.

“Also, the ERA has significantly reduced ATCO’s proposed capital and operating expenditure because ATCO failed to demonstrate that it was justified.”

ATCO has six weeks to respond to the draft decision.

The Canadian-owned company owns and manages more than 13,500km of gas distribution pipelines in WA, servicing the Perth greater metropolitan area and regional centres including Geraldton, Kalgoorlie, Bunbury and Albany.

It currently services about 679,000 customers in the South West.

the economic regulation authority has rejected atCo’s proposed network management changes in Wa, meaning customers could save on their annual gas bills.

ERA rejects network access reformsCourtney Pearson

http://www.draeger.com

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Central Queensland jobs in the pipelineMORE than 2000 jobs will be created in Central Queensland now that the Arrow Bowen Pipeline has received federal environmental approval.

Queensland Resources Council chief executive Michael Roche said the Arrow Energy project would create more than 1500 construction jobs and 600 permanent jobs for Queenslanders.

“This is welcome news for the people of central Queensland who have felt the impact of job losses in the coal sector,” Mr Roche said.

“The 500km long pipeline is a fundamental part of the project, which will see coal seam gas transported from Arrow Energy’s Bowen Basin gas fields to Gladstone, to supply local and export markets.”

Arrow chief executive Andrew Faulkner said the final environmental approval followed state environmental approval of Arrow’s Bowen Basin gas field development, as well as its announcement of front-end engineering design for the Bowen Gas Project.

“The proposed pipeline is a key piece of infrastructure in our plans to bring to market our significant gas reserves in the Bowen Basin,” Mr Faulkner said.

The pipeline will be buried and its

proposed route would begin in the southern part of the Whitsunday Region and run south through the Isaac, Rockhampton and Gladstone local governments.

Arrow stated this route would minimise impacts on communities, environmentally sensitive areas and native vegetation.

Arrow currently provides about 20 per cent of Queensland’s gas supply, which is mostly used to generate electricity.

arrow energy’s Bowen pipeline will create more than 2000 jobs in Central Queensland.

emma BroWn

THE resources and energy sectors continue to drive economic growth, totalling export earnings of $195 billion between 2013 and 2014, according to the Bureau of Resources and Energy Economics (BREE).

A recent bureau report stated that Australia’s resources and energy commodity export earnings increased by 12 per cent in the 12-month period.

Despite a forecast 1.4 per cent drop in mineral and energy export earnings for the coming year, export volumes are expected to grow, the report stated.

Exports are projected to total $274 billion in 2017 to 2019, supported by increased LNG export volumes.

Australian gas production is predicted to more than double as Australian LNG projects come online and China’s gas consumption rises. Supply growth and lower oil prices is expected to place downward pressure on LNG prices.

BREE deputy executive director Wayne Calder said the industry’s prospects remained positive.

“Australia is moving decisively from the investment phase of the mining boom to the production phase,” Mr Calder said.

“First LNG shipments from Gladstone are expected to start by the end of 2014, rapidly ramping up over the period to 2019 to make Australia the world’s largest LNG producer,” Mr Calder said.

“We will continue to see expansions in capacity from the Australian resources and energy sectors with increasing supply of iron ore and coal as well as the commencement of major new LNG projects across Australia.”

Rising exports driving growth

JUNIOR explorer FAR Limited has raised $46.7 million in capital following a significant oil discovery offshore Senegal in West Africa.

Drilling results from FAN-1 indicated a substantial volume of oil in the previously unexplored area. A preliminary analysis indicated 29m of net oil-bearing reservoir in cretaceous sandstones, from a well drilled to a depth of 4927m in 1427m of water.

FAR managing director Cath Norman said the discovery was an important event for Senegal and transformational for FAR and its project partners Cain Energy, Conoco Phillips and Petrosen.

“Confirmation of a proven hydrocarbon system materially upgrades the potential of the multiple deep fan and shelf edge prospects that FAR has identified in the blocks,” Ms Norman said.

“Given the state of the market we are very pleased to have been oversubscribed with particularly strong support from Australian institutions and our existing

shareholders.“The additional funds raised will now

allow us to complete this very exciting drilling program,” she said.

Cairn Energy chief executive Simon Thomson said the discovery was an

important event for Senegal and the joint venture.

“We have encountered a substantial oil bearing interval which may have significant potential as a standalone discovery,” Mr Thomson said.

Junior strikes oil in West Africa

AN independent environmental report has undermined the “scare campaign” against shale and tight gas exploration in WA, according to the Australian Petroleum Production and Exploration Association.

In its latest annual report tabled in State Parliament, the state’s Environmental Protection Authority concluded that WA has the framework to manage any risks associated with current onshore gas exploration activities, including the contentious

hydraulic fracturing (fracking) process.The report stated that six “low-level,

proof of concept” proposals involving fracking had been assessed in WA, and none had potential effects significant enough to warrant formal environmental impact assessments.

APPEA chief operating officer for the western region Stedman Ellis said the report confirmed that current exploration proposals involving hydraulic fracturing in the Kimberly and Mid West posed minimal risk to the environment.

“I urge those with any concerns as a result of environmental campaigns

against the onshore gas industry to look to the EPA’s independent advice for a more rational, objective and fact based discussion of the concerns and regulatory approaches,” Mr Ellis said.

“These exploration programs are already subject to strict regulation and, as noted by the EPA, any proposals for commercial development will be subject to even greater scrutiny and tougher safeguards.”

Conservation and environment groups have previously pledge strong community opposition to unconventional gas proposals in the Kimberley.

emma BroWn

Report challenges anti-gas campaign

Drilling results from the Far Limited Fan-1 well indicated a significant oil discovery.

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ANU dumps resources investments

Industry agenda amends 457 visas

SENIOR Federal Government figures have slammed the Australian National University’s (ANU) decision to dump its investments in fossil fuel companies on ethical grounds.

The ANU announced earlier this month it was divesting stocks in seven resources companies, including Santos, Oil Search and Iluka Resources, following a review of domestic equities.

In a statement, the university said the review provided environmental, social and governance ratings on ANU-held domestic stocks, as part of its social responsible investment policy.

The divestment is worth an estimated $16 million – about 1 per cent of the university’s total investment holdings – and follows similar moves at institutions in the US and the UK.

Prime Minister Tony Abbott said the university was free to do what it wanted, but “when they make stupid decisions, we should be free to criticise them”.

Assistant Infrastructure and Regional Development minister Jamie Briggs described the decision as a “simplistic moral judgement”.

“Blacklisting these high-performing companies will have zero impact on the environment and will deteriorate the ANU's financial returns,” he said.

Federal Education minister Christopher Pyne said suggesting companies like Santos were not ethical investments was “bizarre”, while Treasurer Joe Hockey, Environment minister Greg Hunt and Industry minister Ian Macfarlane also hit out at the move.

Australian Petroleum Production and Exploration Association chief executive David Byers said the decision

fundamentally ignored Australia’s critical role in the global energy task.

“Respected bodies such as the International Energy Agency have forecast that by 2035 global energy demand will grow by one-third and 75 per cent of this demand will still be met by fossil fuels,” he said.

“Any real debate about energy should be built on an appreciation of the scale of the task of delivering clean, reliable and affordable energy to the world; the central role that oil and gas companies play in meeting that challenge each and every day; and the ongoing contribution that hydrocarbons will surely make to Australia’s economy and way of life.”

Santos chief executive and managing director David Knox said his company would not be where it is today without a focus on sustainability, safety and responsibility.

“I can gladly say that Santos is a

company that has the capacity and responsibility to promote progress to a more sustainable future,” he said.

ANU vice chancellor Ian Young defended the decision, likening it to the university’s refusal to invest in tobacco.

“There has been a growing sentiment from our community to not just get a good financial return from our investments but also to invest in companies which...do not manifestly cause social harm,” he wrote in an op-ed for Fairfax Media.

“My own views are that the world must eventually move away from the use of fossil fuels.

“Although the ANU has been attacked for its decision, we are simply part of a much bigger debate about carbon and carbon pricing.

“If ANU has pushed this debate a small way in this direction we will have acted exactly as a leading Australian, and world, university should.”

THE Federal Government has unveiled its $400 million National Industry Investment and Competitiveness Agenda (NIICA), which will see it commit $188.5 million toward five growth centres – including oil and gas – and relax the 457 visa program.

The NIICA will focus on new tax incentives for employee share schemes and a push for science, technology, engineering and maths education.

The 457 visa reforms would ease the application process for skilled migrants; by changing sponsorship requirements, arrangements for existing approved sponsors, English language requirements and implementing a risk-based approach for compliance and monitoring.

“It’s going to be looked at sector by sector, business by business,” Prime Minister Tony Abbott said at a joint press conference with Industry minister

Ian MacFarlane.“We want these to be more flexible, we

want these to be a way of helping business to grow; 457s are not a way of substituting overseas labour for domestic labour.

“They are a way of helping Australian businesses to grow so that Australian workers have more opportunities and higher wages.”

The government also introduced a new premium class of visa aimed at attracting investments of more than $15 million. The sponsorship period has also risen to between 12 and 18 months to allow start-up businesses more time to become sustainable.

“It will continue to be a requirement that a foreign worker receives the same market rates and conditions that are paid to an Australian doing the same job in the same workplace,” the government stated.

The five allocated growth centres – mining, oil and gas, medical technology, food and agribusiness, and advanced manufacturing – will each receive up to $3.5 million of funding per year and

be required to become self-sustaining after four years. Grants of up to $1 million would be available for the commercialisation of ideas.

“The whole point of these growth centres is to put science at the centre of industry policy,” Mr Abbott said.

“In oil and gas, in mining technology, in medical technology, in food and agribusiness and in advanced manufacturing we are going to have these industry growth centres which will link up businesses with researchers – it’s very important that we link up business with researchers.”

There will be a staged rollout of the centres from early next year, Mr Abbott revealed.

Higher Education, Research, Innovation and Industry shadow minister Kim Carr labelled the new agenda “threadbare”.

“With no funding and little by way of new policy, it is clear that the government’s real agenda is scrounging savings – not investing for growth,” he said.

under the Federal Government’s new industry agenda, the oil and gas industry will receive up to $3.5 million of funding each year.

mark sCott

Plane crash kills Total chief

THE chairman and chief executive of French oil supermajor Total has died in a Moscow plane crash.

Christophe De Margerie was onboard a private plane bound for Paris on 20 October when it collided with a snow removal machine during takeoff from Vnukovo Airport.

He was one of four people killed in the incident.

The 63-year-old had worked at Total for 40 years; he was appointed chief executive in February 2007 and chairman in May 2010.

Russian officials have begun investigating the incident.

emma BroWn

emma BroWn

Courtney Pearson

Strong quarter for BHP Billiton

BHP Billiton recorded solid production for the September quarter across its global diversified portfolio, and notably exceeded has exceeded its oil and gas production estimates.

Petroleum production increased by 7 per cent to 67.4 million barrels of oil equivalent as onshore US liquids volumes rose by 49 per cent to a record 11.5MMboe.

However 2015 guidance for petroleum remains unchanged at 255MMboe.

BHP Billiton chief executive Andrew Mackenzie said the quarter’s 9 per cent increase in overall production was due to robust operating performance across its portfolio, with records achieved for eight operations and four commodities.

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THE NSW Government has revoked three CSG licences from an explorer that failed to comply with regulations for community engagement, in a “landmark ruling” against the controversial industry.

Leichhardt Resources owns about 5500 square kilometres of rural land in an area of “known and producing gas and CSG fields”. The three cancelled licences were near Nowra, Rylstone and Moree.

The move was a first for the current government, which announced in March it would target operators that were not adhering to their licence conditions.

Leichhardt was issued a ‘show cause’ notice in August warning its licences would be cancelled for failing to engage with the community.

In a statement, Leichhardt director Simon Tolhurst slammed the “not unexpected” decision.

“Having committed over $3 million towards the development of the resources in NSW, the dysfunctional management

of the coal seam gas industry in NSW by successive governments resulted in a decision by Leichhardt Resources to wind back further investment in the state,” he stated.

“This in turn has led to the decision by the minister.”

CSG protester Lock the Gate Alliance applauded the “landmark ruling as the first real test of the Office of Coal Seam Gas and its regulation of the industry”.

“Importantly this sets a legal precedent and shows what the community has to do to get a PEL cancelled,” Lock the Gate national coordinator Phil Laird said.

“If a company fails to do what is legally required they should lose their PEL.”

Lock the Gate said Leichardt had lost its licences through a failure to consult with Traditional Owners and the community, or to meet its work program.

NSW Resources and Energy minister Anthony Roberts said “the government takes compliance with licence conditions seriously”.

NSW CSG licences cancelled

Leichhardt resources has had its CsG licences cancelled by the nsW Government.

Construction of the GLnG project is nearly complete.

GAS from Santos’ GLNG project has been fed into the 420km transmission pipeline to Gladstone for the first time since construction began.

The pipeline will transport up to 40 million cubic metres of natural gas per day from the GLNG gas fields to the gas liquefaction plant on Curtis Island once the project is fully operational.

Since construction began on the pipeline in 2012 more than 6 million

man hours have been logged and 36,000 segments of pipe, weighing more than 250,000t, have been welded.

Santos vice president downstream GLNG Rod Duke said the commissioning was a step towards the first shipment of LNG next year.

“Commissioning of our pipeline is an important milestone, not only for our business but the Queensland LNG industry as a whole,” he said.

The US$18.5 billion project was approved in 2011 and involves the development of CSG resources in the

Bowen and Surat basins in south-east Queensland.

The project – a joint venture between operator Santos (30 per cent), Petronas (27.5 per cent), Total (27.5 per cent) and Kogas (15 per cent) – is 90 per cent complete.

Santos has also lifted its total production to 14 million barrels of oil in the most recent quarter, its highest amount in seven years.

The company attributed the rise to the PNG LNG project, which shipped its first LNG cargo in May.

Pipeline commissioning marks step forward for GLNG

Courtney Pearson

Courtney Pearson

WA energy generator Synergy has reached an agreement with debt-ridden producer Premier Coal to pay close to market rates for its coal supply to keep the company afloat.

The agreement would not only secure energy supply, but also stabilise the local industry and the employment of mine workers in Collie, south of Perth, the WA Government stated.

WA Energy minister Dr Mike Nahan said although Synergy would pay more for its coal, electricity prices would not rise.

“The State Government through Synergy has worked hard with the owners of Premier Coal to finalise an amended supply agreement that is critical to the future of the state’s economic development and the security of electricity generation,” he said.

“While alternative energy sources are available, including renewable generation which has been developed at unprecedented levels by the Liberal National Government since 2008, coal is significantly cheaper than the alternatives.”

With more than 600 staff at its Collie and Muja power stations Synergy is one of the largest employers in the Collie region. Coal from the Premier Coal mine in the Collie Basin supplies about 40 per cent of the electricity needs of the South West interconnected system.

The original agreement between Synergy and Premier Coal, signed in 2005, was deemed “unsustainable” by the government.

Synergy to pay more for Premier coal

12 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

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emma BroWn

AUSTRALIAN oil and gas explorer Swala Energy aims to raise $5 million to fund additional work on its Tanzanian and Kenyan licences.

Predominantly based in Africa, Swala recently announced a share purchase plan (SPP) to lock in funding for exploration activities to the end of the first quarter of 2015.

Swala chief executive David Mestres Ridge said the company always expected to raise funds for its proposed three-well drilling campaign in 2015, but decided on a SPP to allow current shareholders to participate.

“Part of the preparation for this larger raise of equity was the interpretation of the results of the seismic data acquisition programmes over Block 12B in Kenya and the Pangani licence in Tanzania,” Dr Ridge said.

“In the Kilombero licence in Tanzania the current additional 2D seismic survey is underway.

“These interpretations are currently ongoing and, in the case of the Kilosa-Kilombero Basin, the interpretation will commence later in 2014.”

The SPP will remain open for subscription until 10 November.

Fund raising for African exploration

the Climate Change authority is conducting its second ret review in two years.

Courtney Pearson

A gas pipeline linking Far East Russia with northern Japan could be on the table, according to a Japanese newspaper.

Moscow introduced the proposal to Tokyo last month, with plans to build the pipeline between Sakhalin and Hokkaido, Nikkei reported.

“Constructing a pipeline will depend on the Ukraine issue and negotiations over the Northern Territories,” a senior Japanese official told Nikkei.

However, old wounds between the two countries – including a dispute about islands taken over by Russia at the end of World War Two – could cause difficulties.

The Japanese Government has denied Nikkei’s report, according to Reuters.

Russia has been moving towards agreements with Asian countries, recently signing a pipeline deal with China to export up to 38 billion cubic metres per annum of natural gas from fields in East Siberia for a 30-year period from 2018.

Japanese gas imports have steeply risen since the Fukushima nuclear disaster in 2011, with the country now meeting less than `10 per cent of its energy needs through domestic sources. Japan is the third largest oil consumer and importer in the world and the largest importer of LNG.

Russia-Japan pipeline in talks

THE Climate Change Authority is conducting its own Renewable Energy Target review just months after a Federal Government-commissioned appraisal recommended it be scaled back or abolished.

According to the CCA, key considerations for reviewing the RET were the need to reduce greenhouse gas emissions and to determine the role of a decarbonised electricity sector.

The review would focus on the role of the electricity sector in cost-effectively meeting national emissions reductions targets until 2020 and beyond.

“In the absence of alternative policies to decarbonise Australia’s electricity supply, severely curtailing the RET

would risk stalling Australia’s progress at a time when climate change science makes it clear that rapid reductions in emissions are required,” the CCA said in a statement.

“[The review has the] aim of making a constructive contribution while not exacerbating policy uncertainty for the electricity sector.”

The Clean Energy Council (CEC) was less supportive of the review, citing uncertainty for a 70 per cent drop in investment.

“As an increasingly competitive industry we are happy to be critically reviewed, but this is getting ridiculous,” CEC acting chief executive Kane Thornton said.

“The third review in two years is underway.”

Mr Thornton said the latest review – due by the end of the year – was unnecessary, as the government’s special review of the policy led by former Caltex chair Dick Warburton had only just been finalised and negotiations had begun on its future position.

“The RET is designed to leverage investment, and this simply can’t happen when there is the constant threat of the goal posts being moved,” he said.

The authority conducted a review of the RET in 2012 which highlighted the importance of reducing greenhouse gases and a stable and predictable policy environment for investors.

RET set for new review

Buru adds Kimberley station to portfolio

EXPLORER Buru Energy has secured a cattle station in the Kimberley for about $3.5 million, beating five other bidders.

The 190,000 hectare Yakka Munga cattle station, about 100km east of Broome, contains Buru Energy’s Ungani facility in the Canning Basin, where the

company is drilling for oil. Buru Energy stated its Canning Basin

portfolio includes “a significant oil discovery at the Ungani field and the tight wet gas resources of the Laurel Formation”.

A small group of protestors ‘occupied’ Buru Energy’s Perth office to demand an end to the company’s fracking and oil and gas exploration plans.

Group spokesperson Jaime Yallup

Farrant told The West Australian the protest was targeted at Buru Energy because of its major plans in WA.

“Buru Energy have recklessly ignored the science of climate change and the potential impacts on water, sacred sites and the Kimberley,” she said.

“What Buru Energy are proposing is a huge expansion of risky unconventional gas in the Kimberley region of WA.”

Courtney Pearson

14 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

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WOODSIDE has donated $1 million to WA’s Harry Perkins Institute of Medical Research to support the establishment of a Fellowship in Cancer Research.

The donation was made just before the Ride to Conquer Cancer, which raised more than $5.2 million for the Perkins.

“While the survival rates for many cancers have improved because of medical research, there are some cancers for which the prognosis is poor and it is these cancers that are the focus

of our research at the Perkins,” Harry Perkins Institute director Professor Peter Leedman said.

The Perkins will use the money to attract a researcher whose projects have the best chance of valuable findings in an area of cancer.

Professor Leedman is introducing a new model which will create collaboration between researchers, and with doctors.

“I am hoping that the support from Woodside will inspire other companies and individuals to support the Perkins so we can continue to build on our foundation

of world’s best scientists,” he said. The Perkins has state-of-the-art

research facilities at the QEII Medical Centre and at the Fiona Stanley Hospital.

“Cancer is a leading cause of death in Australia, as one in two Australian men and one in three Australian women will be diagnosed with cancer before the age of 85,” Professor Leedman said.

“Funds raised through the Ride [to Conquer Cancer] ensure sustainability for groundbreaking research, along with supporting new cancer research projects, purchasing new equipment and supporting our cancer research teams.”

Million-dollar donation to cancer research

Harry Perkins Institute director Professor Peter Leedman, team Woodside captain Dave Harwood and Woodside chief financial officer Lawrie tremaine.

Pipeline chief calls for policy changeTHE Australian Pipeline Industry Association (APIA) has called for urgent policy changes to ensure long-term gas supplies across Australia.

Chief executive Cheryl Cartwright said the Federal Government needed to implement change that would improve

competition in the nation’s wholesale gas markets and encourage smaller producers.

“Policies that encourage more explorers, producers and suppliers would increase competitiveness in the domestic market.

“For example, for smaller gas explorers it is usually more efficient to sell their reserves rather than process

the gas and sell into the market. Costs would generally prohibit building their own facility.

“To really improve the competitive environment, multiple policy reforms should be considered, including the use of joint marketing agreements, retention of lease arrangements and incentives to small explorers.”

Ms Cartwright said it was important

governments take action against the looming domestic gas shortage now, as policies and improvements would take years to become effective.

“We need policies that encourage the development and supply of gas to meet the needs of both domestic users and exporters, policies that involve clear and simple reforms to increase the competiveness of the gas market,” she said.

emma BroWn

Courtney Pearson

THE Australian Competition and Consumer Commission (ACCC) has warned the Queensland Government off selling electricity assets to the ‘Big Three’ energy retailers.

In a wide-ranging speech to the annual Energy Users’ Association of Australia conference this month, ACCC chairman Rod Sims said breaking up Queensland’s two major generation companies – Stanwell and CS Energy – for privatisation into three competitors would boost competition.

However, he warned that selling off assets could worsen or entrench uncompetitive market structures, hurting consumers and long-term economic health.

Mr Sims said the identity of the buyers would be critical, and recommended against selling to the eastern states’ Big Three – Origin Energy, EnergyAustralia and AGL Energy.

“If non-big-3 players purchase some of the generation assets, or some assets were listed via an IPO, it would support a more competitive generation sector,” he said.

“Importantly, it would also support a more competitive retail sector, because the independent generator would have an incentive to grow in retail and support the growth of smaller retailers.

“The ACCC hopes that the Queensland government will use this opportunity to establish a competitive structure when privatising its generation assets.”

Mr Sims also used the speech the throw his weight behind privatising Snowy Hydro, which he said could be a “vigorous competitor” to the Big Three in private hands.

“At some stage it would help to privatise Snowy Hydro, and clearly it should not be sold to any of Origin, Energy Australia, or AGL,” he said.

Snowy Hydro, co-owned by the Federal, Victorian and NSW governments, became the country’s fourth-largest energy retailer last month after buying out most of Infratil’s Australian energy assets.

The company is the largest supplier of renewable energy to the national electricity market.

Mr Sims also spoke against gas reservations, warning a “quick fix” solution to problems facing the gas market would distort its competitive operation.

“Rather, efforts should be directed towards addressing inefficiencies in our gas market so that competition can deliver better outcomes for gas users,” he said.

Privatise Snowy Hydro: ACCC

16 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

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DEMAND for oil has fallen as supply surged to a 13-month high in September, the International Energy Agency (IEA) has revealed.

The IEA cut next year’s forecast by 200 kilobarrels per day to 29.3 million barrels per day, as production rose by 415kbbl/d from August to 30.66mmbbl/d on the back of continued Libyan recovery and higher Iraqi flows.

Higher output from OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC producers lifted global supply to 93.8mmbbl/d – a rise of 2.8mmbbl/d on this time last year.

According to the IEA, the price of oil had fallen by 20 per cent since June due to abundant supply and a strong US dollar.

Just one month ago it described the drop in global oil demand as “nothing short of remarkable”.

At the end of September Brent oil fell below $92 per barrel and in the US fell below US$90/bbl.

OPEC members will meet in November, for the last time this year, and some members are expected to push for less production to bring up the price, while others will push for continued supply to defend the market share.

In mid-October the price fell to a four-year low of US$82.60/bbl.

Independent analysis group Future Directions International Indian Ocean Research Programme research assistant Bronwyn Fraser said Iraq and Iran would lead the push to reduce production and raise the oil price to about $100/bbl.

“Saudi Arabia seems to believe the current situation is a temporary phenomenon, and dismissed calling an emergency meeting before November,” she said.

“If OPEC does not cut production (and, given the Saudi position, this is the likely outcome), and neither do other producers such as the US and Russia, prices will continue to fall and fall faster if the discord within OPEC increases.”

The price of Brent fell below US$100/bbl for the first time in a year last September, trading higher than US$115/bbl in June.

Ms Fraser said the price could continue to fall if OPEC members did not reach a conclusion.

“In short, OPEC faces internal and external threats,” she said.

“While there is little the organisation can do to counter a resource threat from, say, the US, the resolution of its internal bickering and working towards its members’ common goals will go some way towards stabilising oil prices and slowing sliding prices.”

TO top off an already fruitful quarter Woodside will expand its international assets by farming into a block offshore Cameroon.

The 3875 square kilometre Tilapia block in the Douala Basin is a joint venture between operator Noble Energy (46.67 per cent), Woodside (30 per cent) and Glencore (23.33 per cent). The joint venture is planning to drill the Cheetah exploration well next year.

“As part of our global exploration portfolio build, our entry into the Tilapia

PSC [production sharing contract] gives us exposure to an emerging play in a proven basin with an exciting near-term drilling opportunity,” Woodside chief executive Peter Coleman said.

The move follows a string of acreage acquisitions in Africa for Woodside, including blocks in Gabon, Tanzania and Morocco.

In third quarter the company farmed into Chariot Oil and Gas’ Rabat Deep permits offshore north western Morocco; the Lake Tanganyika Basin in western Tanzania with Beach Energy; and an exploration, exploitation and production sharing contract for Block F15 in the Gabon Coastal Basin.

The company’s sales revenue has risen 46.4 per cent compared to this time last year, and is 16.7 per cent higher than the previous quarter.

The company upgraded its 2014 production guidance to between 93 million barrels of oil equivalent and 95mmboe, up from between 86mmboe to 93mmboe, at the start of the year. Woodside attributed this to higher production and sales from the North West Shelf and Pluto projects.

Woodside also announced that the basis of design work for the Browse floating LNG project off the coast of WA was complete.

New African permit adds to positive quarter Courtney Pearson

Courtney Pearson

Woodside has entered a farm-in agreement for the tilapia block in Cameroon.

Oil outlook softens as output surges

THE US$54 billion Gorgon LNG project is at the centre of more industrial action after the Maritime Union of Australia (MUA) called a strike at Mermaid Marine’s Dampier Port operation.

The five-day strike about wage negotiations saw 65 MUA-backed stevedores walk off the job after negotiations for a new enterprise bargaining agreement stalled.

The union was pushing for a 15 per cent pay increase across three years, but the company has offered 3.75 per cent in the first year followed by an increase in line with the consumer price index.

The Gorgon Project is more than 80 per cent complete and will start exploring LNG by the middle of next year.

MUA spokesman Doug Heath told the ABC that workers were engaged in a peaceful protest.

The union accused Mermaid Marine of wanting to cut pay by 8 per cent in real terms by refusing to pay a performance and retention allowance, as well as attempting to cut shift times from 10 hours to 8.5 hours.

Mermaid Marine managing director Jeff Weber told the ABC the company was working hard to reach an agreement with the workers.

“We’ve been negotiating well, they understand the challenges we have as a business,” he said.

“We want to make sure that they’ve got jobs going forward and in order for us to do that and be sustainable, they need to start thinking about how can they help us do that and [by] having this strike action no one wins out of that.”

The Australian Mines and Metals

Association said the Dampier Port operation was one of the most important service and supply bases for the offshore oil and gas industry in the North West.

“In virtually every enterprise negotiation it is involved in across the resource and related sectors, the MUA has belligerently pursued unrealistic industrial claims well above those in other industries with zero regard for the broader impacts of their actions and their impacts on working people,” AMMA chief executive Steve Knott said.

“Our message to the MUA is drop the strike threats, drop the misguided campaigns against nationally important hydrocarbons projects and get serious about working with resource employers towards sustainable and fair outcomes for the industry and all who work within it.”

Dampier strike disrupts operations

17www.miningoilgas.com.au NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

Bhagwan marine managing director Loui kannikoski and neptune marine services chief executive robin king at the VIP client day for the Bhagwan Dryden vessel.

WA-based Bhagwan Marine has added an international company to its portfolio through the acquisition of the UK’s Marine and Towage Services (MTS).

With offices and support facilities in Brixham and Falmouth, Bhagwan Marine is now able to expand its

international market presence. MTS provides a range of marine

services including towage, salvage and civil engineering support to ships agency and pilotage.

“We are absolutely delighted to complete the acquisition of MTS,” Bhagwan Marine

managing director Loui Kannikoski said.“Expanding into the international

market is something we have been looking at for some time now and MTS was a perfect fit for us.”

Bhagwan Marine has Australian offices and support facilities in Geraldton,

Dampier, Onslow and Exmouth in WA; Darwin and Gove in the Northern Territory; and Brisbane and Gladstone in Queensland.

The company has a fleet of more than 170 vessels and employs more than 850 staff to service the oil and gas and mining industries.

WA marine company reaches overseas

18 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

neWs Feature

IN keeping with its pioneering spirit, explorer Lakes Oil remains undeterred by Victorian legislation banning onshore drilling.

Nearly 70 years in the business would teach any oil and gas company a thing or two about the industry, and Lakes Oil is no exception. In 2014, the company celebrated its 68th year in business as the oldest operating Australian oil and gas explorer.

Lakes Oil has ground covering more than half of Victoria’s available oil and gas leases, making it one of the state’s most important resources companies.

It has onshore permits in the Gippsland and Otway basins for the exploration of unconventional oil and gas.

Lakes Oil executive chairman Robert Annells said the company could attribute its long history to early foresight.

“We recognised the opportunity for a major resource in Victoria, early, and we’ve positioned ourselves to develop that but obviously we’re at the mercy of the government right now,” he said.

In April this year, however, the Victorian Government banned drilling for onshore gas, effectively pausing Lakes Oil’s operations in the state.

Victorian Energy and Resources minister Russell Northe said the halt on drilling would allow the community to be involved in discussions about its future.

“Our intent is to gain a deeper understanding about the issues and range of views across the community, particularly in the rural and regional communities where commercially viable sources of onshore natural gas might occur,” he said.

Last November the government announced that the “moratorium on new exploration licences for onshore natural gas and on hydraulic fracturing would be extended until at least July 2015 while community consultation and independent water studies were carried out”.

Mr Annells said the state would be better off lifting the ban.

“At a time when Victoria’s going to be squeezed for both prices in relation to energy that we’re consuming here and the volumes that are available it’s important – very important – to Victoria that we get going,” he said.

Lakes Oil has a number of wells in the pipeline ready to go.

“We’ve got two applications that we lodged in December last year to drill wells: one in Gippsland and one in the Otway, both conventional oils, both approved by the department and the environmental studies were approved but they require the minister to sign off and since that time, of course, the government has banned all drilling,” Mr Annells said.

In the Gippsland Basin the company operates the PRL 2, PRL 3 and PEP 166 permits. In August last year Beach Energy and Somerton withdrew from a farm-in agreement in PRL 2, making way for Armour Energy to match the previous agreement. The matching rights relate, among other things, “to the Phase 1 fracture stimulation of two wells incurring up to $10 million of expenditure which unfortunately will be prohibited during the currently imposed moratorium”, Lakes Oil stated.

In the first quarter of this year the company planned to re-enter the Wombat-3 well which was never fully tested, but the

drilling ban halted those plans.The company also planned to drill

the Wombat-5 conventional well in the first quarter of this year. Once the ban is lifted two end-users of Wombat gas, Simplot Australia and Dow Chemical, intend to buy gas from the field.

It is a similar case with PRL 3, as the process of planning and engineering for two potential drilling sites had started but is now delayed.

Lakes Oil has a 75 per cent operating

interest in PEP 166 in joint venture with Armour Energy (25 per cent).

The company stated that without adequate and sufficient seismic data it was “extremely difficult” to map the target zones. Again, due to the ban, no operational activity was conducted in the past year.

The joint venture most recently drilled the Yallourn North-1A, Yallourn Power-1 and Holdgate-1 wells in the permit.

Moving offshore, the company was awarded two new permits in the basin for exploration during the next six years.

The VIC/P43 and VIC/P44 permits are close to existing oil and gas pipelines.

Within the Otway Basin, the story is almost the same.

The PEP 169 permit, which is a joint

venture between operator Lakes Oil (49 per cent) and Armour Energy (51 per cent), contains a number of prospects flagged for drilling.

The permit has existing infrastructure and is connected to the eastern Australian gas network. To date the permit has produced more than 90 billion cubic feet of gas just 20km from the joint venture’s Moreys prospect, which overlaps the border of PEP 168.

The joint venture planned to drill the Otway-1 well in the first quarter of this year but was thwarted by landowner access issues and the total drilling ban. The Waarre and Eumeralla prospects are being considered for follow-up drilling.

Operations in PEP 163 are also on hold, with no drilling activity undertaken since August 2012.

In July the company entered an agreement to acquire PEP 167 and PEP 175 from Bass Strait Oil Company, which was completed in September. However, unless the ban is lifted, no exploration drilling can be done.

The ban came at a time when fracking for CSG was at its most controversial, with many Victorian residents up in arms about the potential effects on the environment.

Lakes Oil is determined to distance itself from the issue, making it clear that the company is not and will not be involved in CSG.

“I think the whole fuss is about nothing, quite frankly, and we’ve got caught up in it,” Mr Annells said.

“I would be extremely doubtful if there’ll ever be any commercial coal seam gas in Victoria. I don’t think that it exists in commercial quantities here – it’s a very different geology to Queensland and New South Wales.”

Mr Annells said he was frustrated but that the company would spend its time “fruitfully” working on opportunities for the future.

“We’ve got a gas field in western Victoria which we want to develop conventionally – we can’t do that,” he said.

“We’ve got an oil flow down in western Victoria that we can’t test. That’s the first onshore oil ever recovered in Victoria.”

In August the company announced it had acquired the ATP 624P and ATP 662P permits in the Cooper/Eromanga Basin in Queensland where onshore drilling is permitted.

“We have to wait on the government to decide on the drilling but in the meantime we’ve taken over acreage in Queensland and we’re working that up so if there’s a ban on Victoria for forever or for a long period of time we’ll take our activities north where we’re wanted,” Mr Annells said.

Australian Petroleum Production and Exploration Association chief operating officer Paul Fennelly said it was “imperative” that the Victorian Government look at science and industry best practice to speed up the research process.

“Moratoriums on gas exploration and hydraulic fracturing technologies, both processes which has been safely undertaken in Australia for decades, continue to put Victorian energy security on the backburner,” he said.

Mr Annells said the Victorian Government needed to evaluate the impact a ban on drilling could have on the state as a whole.

“Beach [Energy] was going to spend $50 million in our permits – they packed up and left,” he said.

“Our whole industry will pack up and leave if we’re not careful.”

Ban puts energy security on backburner

a newly formed mud island in Lake Victoria, Gippsland. the island was caused by natural gas in the area, which has been transported up along with natural gas upwelling from below the lakebed.

Lakes oil executive chairman robert annells was frustrated by the Victorian Government’s ban on onshore drilling.

Courtney Pearson

“Our whole industry will pack up and leave if we’re

not careful.”

http://www.onsitegas.com.au

20 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

eVent reVIeW reacHMecapannualSafetyawards2014

SOMETIMES all it takes is for something to be left unsaid for an incident to escalate beyond a band-aid fix.

Asset integrity service provider Stork is spreading that very message: employees are the strongest link to a safer workplace.

The company’s REACH safety program was put in place two years ago to build and communicate its safety culture, providing its workforce with practical tools and support.

Stork vice president Asia Pacific Tony McAnulty said the REACH program was a solid foundation in the business.

“In the last three years, I think it’s been the most important influence on the company,” he said.

“The results will come as a consequence but it’s made us think and act differently every day.”

The REACH Annual Safety Awards honour employees that have demonstrated outstanding safety performance during the year, as nominated by their colleagues.

This year marked the beginning of a new awards format, with four regional ceremonies held simultaneously in Aberdeen, Rotterdam, Trinidad and Perth, rather than a single ceremony in one location.

“It’s a nice way to take time out to reflect on the last 12 months. It’s an important step – it’s important that we do this,” Mr McAnulty said.

Stork’s Perth event focused on achievements in the Middle East, Caspian and Asia Pacific (MECAP) regions, and was attended by employees, clients and major suppliers including Chevron.

The MECAP REACH awards presentation, held at Fraser’s restaurant in Kings Park, was a celebration of Stork, its client relationships and the work achieved by its employees.

Mr McAnulty said safety was something that can easily become a way of life.

“You can’t treat it as separate – you’ve got to embrace it,” he said.

“Slowly it becomes part of your business.”Inspirational speaker, mountaineer

and consultant Patrick Hollingworth breathed life into the phrase, ‘safety is a journey, not a destination’, by recounting his climb up Mount Everest and the safety values required.

“It’s all well and good to refer to something as priority, but to take a much bigger step than that is to actually make it a value – a value that is embedded throughout the firm that can be communicated across gaps, across cultures and across languages,” he said.

“The overall idea that safety at Stork is a value is a really important one.”

Mr Hollingworth successfully climbed the world’s highest mountain in 2010, and his speech resonated with the crowd. His message was simple – getting to the summit was the only goal, but also get home safely.

“There’s no point pushing on with a mountain if it’s too dangerous – it’s better to live on and fight another day,” he said.

Mr Hollingworth said the safety lessons learned through mountaineering were endless, proving that not only was

it important to remain engaged the entire time but also share a goal.

“It shows you what a group of individuals can do when they work together, when they’ve got a common vision and essentially when safety is a value,” he said.

“It’s a value that is embedded throughout the expedition – it’s not just a priority.”

The awards covered incident prevention, safety innovation, the best safety performance, safety leadership, the best team of the year and the most promising individual.

REACH most promising individual award winner Ronnie Caindoc was recognised for reporting a potentially unsafe incident.

Mr Caindoc was asked to visit a site but was new to driving on Australian roads, taking three hours to get somewhere it should have only taken 30 minutes to get to.

“That night I thought about what if something happens to me because I’m not used to driving on that side [of the road]?,” he said.

“What would happen to my family?”

The incident was reported to alert superiors about an unsafe situation so action could be taken to prevent it in the future.

Mr Caindoc said it was important to be aware of situations that could potentially affect the rest of your life.

“Speaking at the centre of any toolbox meeting [I imagine] a member of my family – they always remind me to work safely to go home and be with them,” he said.

Stork takes its REACH program to small and medium-sized businesses that need advice about safety, particularly in WA.

Mr McAnulty said the company pointed out where clients could improve safety in the workplace.

“You don’t realise the substandard working conditions that you would normally work for that you would’ve thought as normal – your awareness is increased,” he said.

“[REACH is] a marvellous platform to talk to clients but at the end of the day you can do some good to improving them and improving the safety of their people – it’s quite a unique thing to have.”

Making safety second nature

this year stork’s reaCH safety awards were held in Perth.

the stork reaCH safety program was implemented two years ago.

Courtney Pearson

Safety Leadership: Global AwardRecognising individuals who have shown safety leadership with a consistent and proactive approach to improving and maintaining excellent safety practises in their team.

Winner: David Murray from the UK, a 25-year Stork employee and excellent safety leader.

Best Team of the Year: Global AwardRecognising the team that achieved excellent safety and quality results based on key customer benchmarking data.

Winner: the SABIC accounts team in Continental Europe.

Commended: the online leak sealing team from the Middle East.

Incident Prevention: Regional AwardRecognising a colleague who successfully intervened to prevent a potential incident from occurring.

Winner: technician Jak Bissenden, WA.

Safety Recognition: Regional AwardRecognising an individual or team that has developed and introduced a new technology, system or work practice that has improved the safety of Stork operations.

Winner: mechanical services technician Mike McCashney, WA.

Safety Performance: Regional AwardRecognising the business area or contract that has delivered the best safety performance of the year and truly excelled in 2013-2014.

Winner: New Zealand technician Alan Coleman.

Most Promising Individual: Regional AwardRecognising Stork’s future safety leaders that seek to get involved in safety matters and promote the company’s safety culture among peers.

Winner: technician Ronnie Caindor, WA.

Award winners

http://www.hays-oilgas.com

22 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Woodside Petroleum

IN 2014, Australia’s largest independent oil and gas company, Woodside Petroleum, celebrated its 60th anniversary, as well as 30 years of domestic gas production and 25 years of LNG exports.

Woodside operates six of Australia’s seven LNG processing trains, in addition to four offshore gas production platforms and four floating oil production, storage and offloading (FPSO) vessels in the Carnarvon Basin, North West Shelf and Timor Sea. The company is looking to expand its LNG portfolio with value-enhancing developments including the Browse Floating LNG (FLNG) project, and has a portfolio of exploration assets in Australia and around the world, including acreage in Canada, Timor-Leste, New Zealand, Ireland, Myanmar, the Republic of Peru, the Republic of Korea, the Canary Islands, Morocco, Tanzania and Gabon.

In the first half of the 2014 calendar year, Woodside achieved a record production of 46.5 million barrels of oil equivalent – an 11 per cent increase on the same period in 2013. The company credited this to higher reliability at Pluto and the North West Shelf Project, a full half-year of production from the Vincent FPSO in WA-28-L, 50km offshore Exmouth, and reduced cyclone impact across all assets. Woodside stated these contributions were partially offset by a net field decline.

The company also achieved a record first half operating revenue of US$3.5 billion, up 24.3 per cent on the previous year. The result was driven by higher average realised prices of US$75.02 per barrel of oil equivalent (compared to US$66.70/boe in the first half of 2013) as a result of the new Pluto Foundation customer pricing regime, the restart of production at Vincent and average Brent oil prices increasing from US$107.88 per barrel in the first half of 2013 to US$108.22/barrel in the first half of 2014.

“Our half-year profit was up 27 per cent on the same period as last year [to US$1.105 billion net profit after tax], reflecting our record production, higher realised prices and increased sales volumes,” Woodside chief executive Peter Coleman said.

“Our record production is a testament to our assets’ ongoing reliability.”

Browse FLNGWoodside operates and owns a 31.3 per cent interest in the Browse FLNG project, 425km offshore north of Broome. The remaining interest is held by Shell Development Australia, BL Developments Australia, Japan Australia LNG and PetroChina International Investment. The project is estimated to contain contingent resources of 14.9 trillion cubic feet of dry gas and 441.2MMbbl of condensate within the Brecjnock, Calliance and Torosa fields.

The Browse joint venture partners selected FLNG as the preferred development concept for the Browse resources in September 2013 and Woodside is in the process of concluding the basis of design (BOD) activities for the development.

“The BOD phase involves undertaking all of the studies and work required by the Browse JV participants to be in a position to consider entering the

front-end engineering and design phase of the Development in [the second half of] 2014,” Woodside stated in its half year report.

“In May, the Browse FLNG Development’s Australian Industry Participation Plan (AIPP) was approved by the Australian Industry Participation Authority. The AIPP outlines the Browse JV participants’ commitment to providing full, fair and reasonable opportunity for local industry to contribute to activities and to maximise local industry participation where it is capable and competitive on the basis of health, safety, environment, quality, cost and delivery.”

The development of an Environmental Impact Statement for the project is underway and is expected to be available for public review and comment in the second half of 2014. Woodside is targeting a final investment decision for the project in the second half of 2015.

North West Shelf ProjectWoodside has been operating the North West Shelf (NWS) Project since 1984, and it remains one of the world’s premier LNG facilities. According to Woodside, the project represents an investment of more than $29.5 billion, and is Australia’s largest oil and gas resource development, currently accounting for more than one third of the country’s oil and gas production.

The project’s offshore production facilities comprise the North Rankin Complex (the North Rankin A and North Rankin B platforms, which are connected by two 100m bridges and operate as a single integrated facility); the Goodwyn A platform, which is connected to the Goodwyn gas field 23km southwest of the North Rankin A platform; the Angel platform, which is tied into the first trunkline at the North Rankin A platform via a 50km subsea pipeline and designed to allow for the tie-back of other discoveries in the area; and the Okha FPSO facility, 34km east of the North Rankin A platform.

Onshore, the Karratha Gas Plant produces LNG, domestic gas, condensate and LPG. The facility includes five LNG processing trains, two domestic gas trains, six condensate stabilisation units, three LPG fractionation units, and storage and loading facilities for LNG, LPG and condensate.

“In [the first half of] 2014, we undertook baseline studies of marine areas located near the NWS offshore infrastructure. The studies were conducted in collaboration with the Australian Institute of Marine Science and will underpin our decision-making and management of existing and future NWS assets,” Woodside stated.

“...the Woodside-operated NWS Project continued to maximise the value of our existing business through reliable

production and delivery. We continued to improve in safety, reliability and efficient operations while pursuing opportunities to extend the life of the project.”

The project delivered 121 cargoes of LNG in the first half of the year, compared to 119 for the same period in 2013; the increase was attributed to higher reliability from both the onshore and offshore facilities. However pipeline gas sales were lower than in the first half of 2013 at 40,195TJ (compared to 40,344TJ) due to the completion of a domestic gas contract. The NWS Project’s oil production of 1.6MMbbl decreased from 1.7MMbbl in the first half of 2013, as a result of natural reservoir decline.

Condensate production (3MMbbl compared to 3.3MMbbl in the first half of 2013) and LPG production (49,399t compared to 55,316t in the first half of 2013) both decreased due to the North Rankin field being produced in preference to the richer Angel reservoir following the start-up of the North Rankin B compression platform. Woodside stated the Angel reservoir was being managed to best enhance long-term reservoir performance.

In December 2011, the NWS Project joint venture partners approved the Greater Western Flank Phase 1 Project, which will require an investment of about $2.5 billion. The project will develop the Goodwyn GH and Tidepole fields via a subsea tie-back to the existing Goodwyn A platform.

“At the end of [first half of] 2014, the project was 77 per cent complete. Fabrication and pipeline installation were completed earlier this year, and engineering and procurement activities are progressing to plan. Subsea installation is expected to be completed by [the fourth quarter of] 2014. The project remains on budget and on schedule for start-up in early 2016,” Woodside stated.

The next major gas development for the NWS Project is for Persephone and will involve a subsea tieback to the North Rankin Complex. The joint venture partners expected to make an investment decision for this project in the second half of 2014.

Pluto LNGThe Pluto LNG project processes gas from the Pluto field in the Carnarvon Basin, 190km northwest of Karratha. The current infrastructure includes an offshore platform connected to five subsea wells; a pipeline and an onshore facility between the NWS Project and Dampier Port of the Burrup Peninsula; a single LNG processing train with a forecast capacity of 4.3 million tonnes per annum; and storage and loading facilities for LNG and condensate.

The Pluto project is underpinned by 15-year sales agreements with Kansai Electric and Tokyo Gas; both companies became project participants in 2008 and each hold a 5 per cent interest in the foundation project, with Woodside holding the remainder of the project interest.

Woodside stated Pluto LNG continued to make a strong contribution towards its production in the first half of the year, recording 2mt of LNG (compared to 1.7mt in the first half of 2013) and 1.4MMboe of condensate (compared to 1.3MMboe in the first half of 2013). Pluto achieved capacity utilisation of 93.9 per

Setting records in landmark year

The North Rankin Complex comprises the connected North Rankin A and North Rankin B platforms which operate as a single facility.

The Karratha gas plant processes gas from the North West Shelf Project.

RAChEL DALLy-WATKINS

(continued on page 24)

http://www.kineticaustralia.com.au

24 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Woodside Petroleum

THE experienced team at Kinetic Australia understands the importance of using quality oil to maintain equipment and ensure efficiency.

Kinetic’s background in aerospace maintenance, which is integral to the precision oil service offered to its customers.

The service allows equipment, such as gas turbines or generators, to effectively undergo a complete oil flush of the system; to finish with cleaner oil than when it came out of the drum.

This is made possible while the equipment is still in operation; in the case of a power generation set, it can still be supplying power to the grid.

Ultra low debris levels and moisture content, reduced total acid number and varnish levels can all be achieved by utilising the company’s fully mobile, self-contained and bunded equipment.

This equipment can also re-establish the insulating properties of transformer oil and strips out combustible gases – returning them to low levels.

Kinetic’s precision oil service is a highly refined technology and has proven to be the most efficient way to maintain and extend the life of assets.

Custom systems solving safety problemsEL ES DE Engineering develops custom mechanical systems to solve real world problems in the oil and gas, subsea, mining and infrastructure sectors.

Founded in 2006, EL ES DE has designed and manufactured equipment for WA’s oil and gas industry for more than eight years.

Managing director Robert McMahon said the key to the company’s success was mitigating client risk.

“Whether that’s environmental risk, safety risk or commercial risk, our clients rely on us to think of everything and tick all the boxes,” Mr McMahon said.

“Where we operate – such as in subsea oil and gas – there are no second chances. The job has to be right first time.”

This philosophy was applied to the actuator change out skid (ACOS) that EL ES DE developed for Woodside’s Greater Western Flank project. With a similar system from another vendor, there were some significant safety risks during the attachment of rigging on a moving vessel, specifically working at height. EL ES DE was able to mitigate this risk by designing an innovative extendable guide post system which allowed riggers to stay at deck level during the operation.

Woodside was impressed with site integration testing of the system.

“Especially with the design of the guide post extension and retraction mechanism, risk of working at heights reduced,” a Woodside spokesperson said.

WITH a mission to set – and raise – global standards in everything it does, Sparrows is committed to delivering effective lifting, handling and fluid power solutions that optimise performance and minimise risk to energy producers and service providers.

Sparrows’ core business is providing safe, cost-effective solutions for the running of cranes, lifting equipment and hydraulic equipment, enabling its clients to concentrate on their own core business.

From inception to completion, Sparrows has the resources, facilities and experience to see a project through.

Whether a client is developing a concept or devising a detailed design; procuring new equipment or operating and maintaining what they already have; modifying and upgrading to meet life-of-field expectations; or decommissioning, Sparrows is committed to providing a quality service.

With the recent global acquisition of Servtech, Sparrows Australia can offer a range of non-destructive testing inspection services; rigging and lifting inspection surveys; offshore container inspections; and OCTG inspections, DROPS surveys and derrick inspections both on and offshore, with LEEA and IRATA rope access qualified technicians.

Sparrows Australia recently enhanced its hydraulic services capability with the introduction of new hydraulic equipment and personnel for onsite flushing services, contamination monitoring and control, and diagnostics and hydrostatic testing.

“Businesses need to trust a service provider that is lifting-focused, Australia based and competent to meet high standards: that service provider is Sparrows,” a company representative said.

Lifting-focused services optimise performance

Precision service prolongs the life of assets

Setting records in landmark year

cent, up from 85.3 per cent in the same period for 2013.

“A number of factors contributed to the positive outcome, including higher reliability, the execution of a planned maintenance shutdown in April in line with expected duration,” Woodside stated.

“Production in the period, together with higher realised pricing, supported LNG sales revenue of US$1,168 million from long-term contracts and spot sales. Condensate revenue was US$178 million. The full effects of higher LNG realised pricing will be seen in [the second half of] 2014.

“Three [sales and purchase agreements] were executed during the half-year and build on our long-term relationships with major Japanese and Korean energy buyers. During the period, Woodside signed [agreements] with Chubu Electric (in January) and Korea Gas (in February). Both [agreements]

commenced in April, and LNG delivered under these agreements will primarily be sourced from Pluto LNG. In March 2014 a sales and purchase agreement was executed with Kansai Electric.”

Woodside continued to progress Phase 1 of Xena during the period; this phase comprises a tie-back development expected to cost about US$370 million and access 250 billion cubic feet of reserves. First gas is planned for the second half of 2015.

Australia OilWoodside owns and operates a number of world-class oil developments offshore WA and in the Timor Sea under the umbrella of Australia Oil. Woodside holds a 60 per cent interest in the Enfield and Vincent oil fields in the Greater Enfield area, off WA’s North West Cape; a 50 per cent interest in the nearby Styubarrow oilfield; a majority interest in the Laminaria-Corallina oil field in the Timor Sea; and a minority stake in

the Mutineer oil field north of Dampier. In the first half of 2014, Enfield

produced 600,000bbl, down from 800,000bbl in the first half of 2013 as a result of a 53-day shutdown in the first quarter and natural reservoir decline.

Production at Laminaria-Corallina dropped from 600,000bbl in the first half of 2013 to 500,000bbl in the same period of 2014, and Stybarrow decreased from 700,000bbl in the first half of 2013 to 500,000bbl in the first half of 2014, both as a result of natural reservoir decline.

Production of 2.6MMbbl at Vincent reflected an entire half-year of production from the Vincent FPSO, which returned from planned shipyard maintenance and refurbishment in the fourth quarter of 2013; there was no production in the first half of 2013 however the first half of 2014 was comparable to the first half of 2012 which produced 2.8MMbbl. Woodside stated phase four in-fill drilling was on track to begin in the fourth quarter of 2014 for start-up in 2015.

Gas from Pluto is piped through a 180km trunkline to the onshore processing facility on the Burrup Peninsula.

Sparrows provides safe, cost-effective solutions for the running of cranes, lifting and hydraulic equipment.

(continued from page 20)

26 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Woodside Petroleum

COMPANIES across Australia continue to grapple with the choice between urine and oral fluid for workplace drug testing.

A drug and alcohol testing program has many benefits including a safe can have environment, minimising risk, accident-related cost savings and increased workplace morale.

However, there is no one-size-fits-all solution to choosing a workplace drug testing program and each company should tailor a program specific to their workplace. Different organisations will have different objectives and requirements for their drug testing program.

It’s important for companies to consider the legislation and policy requirements; the reason for testing; workplace issues and union agreements;

whether to implement oral fluid or urine drug tests; and the cost of the program.

For example, oral fluid can detect drug use from the previous 24 hours while urine detects drug use from more than 24 hours prior.

When deciding on a drug and alcohol testing provider, companies should seek information about the provider’s quality; National Collector coverage; 24/7 customer service support; in-house toxicologist support; and flexible education and training services.

Implementing and managing an effective drug and alcohol program can be time consuming.

Companies can make their job easier by researching the market and choosing the substance testing provider than best suits the organisation.

SECURE, remote-enabled service delivery platform ABB ServicePort allows users to view, scan and track key performance indicators (KPIs) to ensure maximum performance of equipment and processes, resulting in higher operational efficiency.

ServicePort takes the expertise ABB has built during decades of equipment and process support and distils these practices into automatic, remote-enabled tools that provide high levels of services efficiently, expeditiously and globally.

Deployed at customer locations, ServicePort provides customers and ABB service experts’ local or remote access to views of KPIs, diagnostics and data.

By automatically collecting, analysing and monitoring specific KPIs, ServicePort helps users make more informed decisions, resulting in improved availability, process efficiency and product quality while reducing risk, raw material and energy costs.

ServicePort can host multiple applications called Performance Service channels, each of which is the basis to deliver specific ABB advanced services. These channels have in-built tools that automatically gather and analyse specific equipment or process data then produces KPIs that users view to see how equipment and processes are performing.

Through periodic KPI analysis, channels identify, classify and prioritise issues based on severity, process area, criticality and financial impact. Then users, working with ABB if preferred, can make better informed decisions to improve performance.

There are three categories of Performance Service channels. These include equipment performance services to monitor the utilisation and performance of ABB-made products; process performance services to diagnose and improve production or business processes; and industry performance services to diagnose

and improve equipment or processes specific to certain industries.

Each channel includes software tools

that gather, store and analyse equipment or process data in ServicePort, including services such as installation and

training; 24/7 visualisation of KPI data; twice-yearly expert analysis; configurable alerts when KPIs are outside limits; and on-demand troubleshooting.

Performance Service channels are available for equipment such as the ABB System 800xA and ABB Harmony system, processes including cyber security and control loop performance and industries including oil and gas, mining, and pulp and paper.

ServicePort features automatic, non-invasive data gathering coupled with advanced channels to address equipment, process and industry issues. ServicePort explorer is used to view, scan and track KPIs while a secure design ensures production remains unaffected, offering on-site or remote access. Combined with no service contracts, capital investment is reduced and scalable solutions including virtualisation are on offer.

The benefits of ServicePort include streamlining issue identification through continuous analysis. This in turn reduces the cost of identifying problems, increases overall equipment effectiveness and reduces response time through Identification of failure trends and efficiency improvement opportunities.

ABB is one of the world’s leading power and automation technology companies, providing secure, energy-efficient generation, the transmission and distribution of electricity and higher productivity in industrial, commercial and utility operations.

The company employs more than 150,000 people in more than 100 countries, benefiting customers through its research, supply, manufacturing, distribution, information technology and benchmarking capabilities.

ABB has operations in Sydney, Brisbane, Perth, Darwin and Melbourne.

ABB’s ServicePort platform allows users to view performance to ensure higher efficiency.

New platform reducing costs and downtime

Right provider vital for substance testing

For workplace safety it’s important to get drug and alcohol policy right, educate and train employees and choose an accredited drug and alcohol testing provider.

PFP coatings offer absolute peace of mindPASSIVE fire protection (PFP) coatings make structures more fire resistant by insulating structural steel from high temperatures. This process allows for longer evacuation times before structural collapse.

When it comes to protecting structural steel from high-temperature hydrocarbon fires, it is essential that PFP materials

are applied properly and on-ratio.The Graco XM PFP Plural-Component

Sprayer incorporates data reporting technology that allows operators to confirm that epoxy intumescent coatings are sprayed on-ratio, at requirements set by coating manufacturers.

The XM PFP is easy to use, maintains consistent temperatures and offers

precise ratio control. The system's control technology and inbuilt USB port enable mix ratio data to be downloaded, as well as historical spraying data including fluid temperatures, spray pressure and total flow output.

Ratio checking for epoxy intumescent coatings is particularly important for when documentation is required

for quality assurance. Graco's XM PFP Plural-Component Sprayer automatically shuts down if off-ratio conditions occur during application of epoxy intumescent materials. With this assurance, contractors know they are applying material at the correct temperature and ratio, avoiding costly re-work.

27www.miningoilgas.com.au NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

INTERNATIONAL oil and gas explorer and producer INPEX has pushed past the halfway mark on what it has called one of the largest and most challenging projects in its 50 year history – the development of the Ichthys gas and condensate field.

INPEX has been operating since 1966 and has more than 70 active projects throughout 29 countries, including the core areas of Australia and Indonesia. In addition to Ichthys, INPEX is also involved in the Van Gogh, Ravensworth and Kitan projects, the Bayu-Undan development and Darwin LNG.

IchthysThe halfway markINPEX began exploring WA-285-P in the Browse Basin – off the northwest coast of WA about 820km southwest of Darwin – in 1998. By 2001, three wells had discovered an extremely promising gas and condensate field, now estimated to contain 12.8 trillion cubic feet of gas and 527 million barrels of condensate.

INPEX operates the development, which is held in joint venture with major partner TOTAL group companies and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. The partners selected Darwin as the site for the project’s LNG plant in 2008, and made a final investment decision in January 2012.

The development comprises an offshore project with subsea facilities and two large floating platforms – the central processing facility and floating production storage and offloading facility (FPSO) – an onshore project featuring an 8.4 million tonne per annum LNG plant in Darwin; and an 889km 42-inch gas transmission pipeline.

Gas from the Ichthys field will undergo preliminary processing at the offshore central processing facility, with condensate pumped to the FPSO facility and transferred to tankers for delivery to market. The gas will be transported from the central processing facility via the subsea pipeline to the onshore LNG processing plant at Blaydin Point on Middle Arm Peninsula.

Ichthys will initially produce at a

capacity of 8.4mtpa of LNG, 1.6mtpa of liquefied petroleum gas (LPG) and 100,000 barrels of condensate per day. Production is scheduled to begin by the end of 2016.

In June, the project reached the halfway mark, with 50 per cent of the overall project scope completed. INPEX president director Australia

Seiya Ito said the achievement was the culmination of millions of man-hours by thousands of people.

“For INPEX, this is a major step towards the successful start-up of our flagship Ichthys LNG project, which, with an operational life of at least 40 years, is integral to realising our medium to

long-term vision for growth,” Mr Ito said. During the construction phase of

the project, $10 billion of spending has been committed to Australia, with more than $5 billion of that in the Northern Territory and about $3.5 billion in WA.

“Building one of the world’s largest and most exciting resource development projects certainly has its challenges, but we have every confidence in our people and our contractors to deliver Ichthys as planned,” Ichthys LNG Project managing director Louis Bon said.

Continued construction Since reaching the halfway point, the INPEX joint venture has continued to move the project towards first production.

In early July, the partners unloaded the first of more than 200 pre-fabricated modules to be used in the construction of the Blaydin Point facility. The components of the onshore facility were assembled in modules at fabrication yards in China, the Phillipines and

Thailand and tested before being transported to site. In the next 12 months, about 60 shipments of modules are expected to arrive in Darwin.

“Much of the work we have been doing to transform Blaydin Point has been leading up to this event – we have been setting the foundations to prepare for their arrival and installation at site,” Mr Bon said.

Later in July, INPEX announced the 336m-long FPSO facility had been launched from the dry dock at the Daewoo Shipbuilding and Marine Engineering shipyard in Okpo, South Korea. Construction will continue quayside and, once completed, the facility will be towed 5600km to the Ichthys field.

The Manigurr-ma Village accommodation at Howard Springs, near Darwin, was completed soon after. The 3500-person camp was developed in four stages and officially opened in September

Mammoth project hits halfway

Once completed, the Blaydin Point LNG plant will process gas from the Ichthys field.

An artist’s impression of the Blaydin Point LNG plant, which is being constructed with pre-fabricated modules.

RAChEL DALLy-WATKINS

“We wanted a village that would foster a sense of

community and a happier, healthier workforce...”

(continued on page 30)

28 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

Huge undertaking for industry expertDARWIN-based mechanical and electrical services provider Mobile Electrics (NT), trading as Mobile Electrics & Refrigeration, has more than 40 years of industry experience. During this time it has increased its scope of services to include contracting and maintenance in the oil and gas industry, and directly employs 105 people.

The company boasts one of the largest service divisions in Darwin and specialises in mechanical services, HVAC and general air-conditioning, refrigeration and electrical works.

Mobile Electrics successfully performed the design and construction elements at the 3500-person Manigurr-ma (INPEX) accommodation village in Howard Springs, Northern Territory.

The team was responsible for the design and construction of full electrical services, mechanical services, refrigeration, fire services, security services, and data and communications serving the permanent and accommodation buildings.

There were 851 accommodation buildings in total, comprising 3500 cabins, which arrived as completed units requiring power, security and communications to be connected from the central infrastructure developed by the company.

This project was by far Mobile Electrics’ biggest undertaking and employed 140 onsite personnel at its peak.

THE INPEX Ichthys project has brought together manufacturers from across the globe to deliver an LNG plant designed to withstand 40 years of harsh northern Australian conditions.

Prochem was commissioned to ensure the design, timely supply and installation of small bore tubing systems.

This required using products in 6 per cent molybdenum (UNS S31254) and other higher alloyed materials that would meet the rigours of the environment it would be exposed to.

HOKE valves and Gyrolok compression fittings were also chosen due to their safety features and long life span created by the enhanced fitting design, including the new integral tube fitting and instrument manifolds which reduce potential leak points.

Tubing supplied by Prochem was manufactured to tighter tolerances, with additional testing completed to the Australian Society for Testing and Materials (ASTM) standards’ requirements.

This ensured the integrity of the

fitting’s make-up.Prochem has also implemented a

stocking program, including consignment stock, in key global locations to further support the project.

The company has designed and facilitated installation and inspections training in local languages to engineering, supervisory and operations staff throughout Europe, Korea, Singapore, Malaysia, Thailand and Australia.

Prochem is proud to be the supplier of choice for small bore tubing and fittings for the INPEX Ichthys project.

Components built to last in the toughest conditions

A focus on technology produces strong company growth WHEN looking for surveying and spatial management services in Northern Australia, go no further than Ausurv, which has more than 20 years of experience in the mining sector.

As well as the ongoing provision of professional mining surveying teams during recent years, Ausurv has invested greatly into the research and development of emerging laser scanning, remotely operated aerial surveying, and large-scale ground mapping technologies.

This fresh focus has opened up a raft

of new products and services, currently provided to the mining industry.

The laser scanning focus has been very successful in reducing the costs associated with plant and mill infrastructure design, monitoring and clash detection, and shutdown work, while providing a superior product capable of millimetre-precise measurements for entire areas of operational plant.

Scanning is completed remotely, reducing safety risks and ensuring no loss of operation.

For ongoing and development-based exploration operations, pipeline construction and maintenance, road and rail corridor planning as well as existing open cut operations and large-scale bulk earthworks operations, the remotely operated aerial surveying teams have been safely providing impressive and cost efficient results.

Spatial mapping and surveying technology is moving very rapidly and Ausurv is working hard to ensure it is at the forefront of that movement.

30 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

AUSTRALIA’S leader in holiday park accommodation for tourists and the corporate workforce, Discovery Parks has taken another significant step towards its goal of providing the best accommodation within the most outstanding Australian parks, with the completion of a major revamp of its Darwin property.

The $6 million expansion allowed the group to further capitalise on Darwin’s resources boom and saw the park’s self-contained cabin capacity rise by 25 per cent to 500 guests per night, while pushing overall accommodation capacity to more than 2000 guests on any given night.

At the same time, a number of functional and aesthetic upgrades have helped to enhance the accommodation experience.

“The Darwin initiative is but the first in our $50 million nationwide investment program which we’ll be rolling out over the next year or so as we look to better deliver on our ‘it’s not about us; it’s all about you’ corporate philosophy,” Discovery Parks chief executive Grant Wilckens said.

“It’s a philosophy that we’ve adhered to since our inception back in 2004 and it has certainly played a vital role in allowing us to understand what guests are looking for and then providing

them with an experience that exceeds expectation and keeps them coming back.

“In line with the refurbishment push, we’re also looking to double the number of parks in our portfolio within the next five years and take this philosophy to

even more corporate and tourist guests.”Discovery Parks is already the country’s

largest owner and operator of lifestyle holiday parks for these sectors, with 35 parks in some of the most outstanding and strategic areas in Australia.

In the last financial year, Discovery Holiday Parks sold more than 1.2 million visitor nights across about 6700 accommodation sites comprising rooms, cabins and caravan and camping spots.

Videoscope provider helps petrochemical company LEADING imaging technology manufacturer Olympus was invited by a global petrochemical company to attend a plant shutdown to audit its heat exchanger condition against its cleaning process.

In addition to looking for the best methods to prolong the life of equipment, reduce repair costs and avoid safety risk factors, the maintenance team was interested in the condition of the outer tubes surfaces in the exchange bundle.

Most optical solutions are unable to capture the condition of these as

the access space between tubes in the bundles can often be too small.

For the purposes of the trial, Olympus brought along its iPLEX TX and iPLEX FX videoscopes.

The iPLEX TX is an ultra-thin videoscope featuring the world’s smallest diameter insertion tube at 2.4mm, designed to navigate into the narrowest of gaps.

Furthermore, the iPLEX FX is the company’s flagship videoscope.

It features an interchangeable scope

option where a long scope that may have been fitted for an inner tube inspection (up to 18m in length) could be easily changed to a short narrow scope as small as 4mm for outer tube inspections.

After removing the outer shell of the exchanger, Olympus utilised the videoscopes to inspect the outer tubes in stages to assess the ‘before’ cleaning condition. Both scopes easily navigated between the tubes and the resulting images showed some concerning build-up of polymer deposits.

After the cleaning process was complete, the inspection was repeated revealing that some of these larger deposits remained on the outside surfaces.

Additionally, a number of ‘cleaned’ tube surfaces showed signs of corrosion which had not previously been picked up.

In the end, the company was impressed that Olympus videoscopes could reach right into the inner bundle of the exchanger, obtain high quality images and make its reporting easier.

2013; the 67-hectare village includes a 50-seat cinema, swimming pool, library, outdoor beach volleyball court, gym, 2700m running track, music room, basketball and tennis courts, cricket nets, internet room, tavern and shop.

“Manigurr-ma Village was designed to provide a safe, comfortable and relaxed second home for one important part of our workforce – temporary fly-in, fly-out construction personnel – expected to peak in 2014-2015,” Mr Bon said.

“We wanted a village that would foster a sense of community and a happier, healthier workforce, and reduce pressure on community services by providing accommodation, food, security, social and recreational outlets, health and other services.”

In August, INPEX and the project partners announced the completion of the dredging and disposal of about 16 million cubic metres of rock and sand from the Darwin Harbour to create a deep shipping channel and berthing area for large LNG, LPG and condensate carriers.

“With first production a little more

than two years away, our operations team is working hard to prepare for start-up and commissioning, and we remain absolutely focused on successfully delivering the second half of this world-class project.”

Other assetsAlthough the Ichthys project is arguably the company’s most important Australian development, INPEX has its eye on further growth in the nation’s market, with stakes in six more projects in the Carnarvon, Browse and Bonaparte basins offshore WA and the Northern Territory.

INPEX holds a 35 per cent interest in the Kitan Field, about 170km offshore Timor-Leste and 550km northwest of Darwin. In 2008 the field was deemed commercial and it now produces between 35,000 barrels of oil per day and 40,000bopd, with a project life of seven years.

The Bayu-Undan gas-condensate field offshore in the Timor Sea feeds the Darwin LNG plant which began operations in 2003 and was officially commissioned in 2006. The field is operated by ConocoPhillips on behalf of joint venture partners including INPEX.

The project includes a central production and processing complex comprised of two platforms – drilling, production and processing; and compression, utilities and quarters. The field also comprises a floating, storage and offloading facility and an un-manned wellhead platform. A 500km subsea pipeline conveys gas to a 3.7mtpa LNG plant in Darwin, where it is converted to LNG and loaded onto tankers for transport to international markets.

Bayu-Undan is being developed in three phases, the first beginning in 2004 and the second completed in 2006. The third phase will be undertaken in stages, the first beginning in 2014 – comprising drilling and tying-back to the facility – with two subsea production wells providing production assurance for the field. Ongoing stages include the evaluation of drilling additional production wells beyond 2015.

INPEX holds a 47.5 per cent participating interest in the Van Gogh field, 53km northwest of Exmouth. The project is operated by Apache, and involves 10 production wells, two water injection wells and one gas injection

well. The production rate is around 40,000bopd and the oil is processed and stored on a FPSO vessel.

INPEX and Apache are also progressing the Coniston project, 6km north of the Van Gogh field. The project involves development of the Coniston and Novara oilfields via a tie-back to subsea infrastructure already in place for Van Gogh, and it will use the same FPSO vessel. The project began in late 2011 and is due for completion this year.

The Ravensworth field, in which INPEX has a 28.5 per cent participating interest, came online in September 2010. The project is 45km off the coast of Exmouth and was developed in conjunction with the Pyrenees project. Oil from the field is processed for offtake via the Pyrenees FPSO.

“INPEX boasts a well-balanced portfolio of exploration and production assets, with a growing focus on LNG,” the company stated.

“Planning is also well advanced on two new LNG projects – Abadi in Indonesia and Ichthys off the coast of Western Australia. These projects will see INPEX emerge as a new global force in LNG by the middle of this decade.”

Philosophy drives upgrade and expansion

Discovery holiday Parks recently completed a revamp of its Darwin accommodation.

Mammoth project hits halfway(continued from page 27)

32 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

WITH eight offices stretching across Australia and a growing workforce of more than 220 employees, Land Surveys stands proud of its achievements and development since it was established in Perth in 1997.

Land Surveys is further expanding its services with the introduction of new subsidiary company Global Scanning Solutions, which offers specialist 3D laser scanning, 3D computer-aided design (CAD) modelling, dimensional control, and subsea metrology services to onshore and offshore oil and gas projects.

The INPEX Ichthys project in Darwin has played a critical part in Land Surveys’ growth and success across the last three years. Land Surveys started exploring the viability of a branch in Darwin in late 2011 and set up an office at Fisherman’s Wharf in May the next year.

Almost immediately the company landed its first contract for the Ichthys project with Laing O’Rourke, to perform the survey requirements on the Howard Springs accommodation village, now known as Manigurr-ma Village.

Other contracts followed, with Leighton Contractors for the civil works package (CVL-3); the CH2-UGL Joint Venture; BGC Contracting for the combined cycle power plant; and Ertech Geomarine for the pipeline shore landing package.

Land Surveys’ most recent contract award was for the UGL Kentz Joint Venture for the structural mechanical piping works package (MEC-1).

These projects have catapulted company staff numbers in Darwin to 80,

with an enormous amount of surveying equipment also required.

Servicing the contracts and dealing with fast growth and project mobilisations has been challenging, and is testament to the hard work and dedication of the Land Surveys management team.

The company’s reputation and success is based on supplying fit-for-purpose solutions, innovation and experience to all projects it works on.

Its broad range of services and latest technologies means the individual requirements for each project can be assessed and serviced to meet specific demands.

Use of such technologies is being displayed to great effect on the CVL-3 package with Leighton Contractors.

Land Surveys initially started flying an area of the project site at Blaydin Point once a month with the Trimble UX5 unmanned aerial vehicle (UAV). It produced photographic imagery of the site, which was supplied to Leighton who shared the imagery with the JKC JV; the engineering, procurement and construction contractor for INPEX.

The imagery was used extensively for project planning, with more and more uses developing over time.

After a few flights, Land Surveys was requested to increase the area of coverage and conduct the flights weekly, with imagery distributed not only across the project’s site management but also overseas so that the INPEX management could see up-to-date construction progress.

In addition to UAV mapping Land

Surveys and Global Scanning Solutions have extensive experience in delivering 3D laser scanning services, providing 3D point cloud data and 3D CAD models of structures, modules, components, pipe spools, tanks, vessels and any other infrastructure required in both onshore and offshore environments.

By combining conventional dimensional control surveying techniques using precise total stations in conjunction with 3D data acquired with a laser scanner, the company can ensure any structure has been fabricated to design and installed within tolerance.

These techniques will be used extensively on the MEC-1 package for the installation and erection of modular structures.

Land Surveys is a Northern Territory surveying company, contributing to the Darwin community and supporting local business, sporting clubs and charities. The company has relocated families to Darwin from other parts of Australia and hires locally when possible, providing opportunities for local indigenous people. It has worked hard to establish a culture and business that will continue to service the Territory well into the future.

Continual growth and diversification has seen Land Surveys expand into markets on the eastern seaboard with new offices in Sydney and Melbourne, joining its existing offices in Mackay and Brisbane.

The company is looking forward to delivering the combined services of Land Surveys and Global Scanning Solutions to eastern states clients.

OPERATING a diesel engine or driving a diesel truck in an area with combustible gas and vapours creates a potentially catastrophic source of ignition.

A hydrocarbon vapour can be drawn into the air intake system of a diesel engine and act as an uncontrolled fuel source, putting workers and property at risk.

This can cause the engine to accelerate and over-speed or run away, leading to dangerous mechanical failure and the potential source for an explosion: an operator cannot shut down a runaway engine by turning off the ignition as the engine is running an external fuel source.

Macquarrie offers a broad range of systems by Chalwyn, AMOT and Roda Deaco to provide the most effective way of shutting down a runaway diesel engine – with an air intake shutoff valve system.

Whether it is a mechanically, electrically or pneumatically operated valve or an automatic, self-contained valve, Macquarrie can provide a solution to keep property and staff safe.

The company has operated for more than 60 years and has grown from specialising in diesel engine reconditioning to offering a multitude of products to a wide range of markets.

Specialised equipment rental hub grows

Engines at risk without proper shutoff systems

RENOWNED for its extensive range of air and hydraulic powered lifting and shifting solutions, Jacks Winches has taken its specialised equipment rental model a step further by entering a collaboration with RentAir Offshore to offer zone 2, safezone and rigsafe compressors and steam generators via Jacks Winches bases.

“The RentAir product is well known in the well testing and fabric maintenance industries,” Jacks Winches managing director Kevin Griffiths said.

“Annexing the RentAir products alongside Jacks Winches fleet is a natural fit given that we both operate diesel driven equipment to zone 2 specs in the offshore space and that we share the same philosophy to deliver market-leading reliability and quality of service.

“The infrastructure and technology base is very similar across both businesses so it’s an opportunity to work closely at an operational level and offer clients the reliability and service they expect at an efficient cost.”

The company is establishing a base in Darwin to complement its WA and Singapore bases and will be able to support the RentAir product from there in the coming months.

“Being from the well test space myself and having worked extensively with the RentAir product in the past I’m very confident that the collaboration between Jacks Winches and RentAir Offshore will be a very effective solution for our clients,” Jacks Winches business development manager Scott McKenzie said.

Land Surveys undertook laser scanning of a floating production storage and offloading facility in North West Australia.

Surveyor success story in Darwin

http://www.prochem.com.au

34 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE CSG & LNG in Queensland

QUEENSLAND’S gas industry has undergone a period of significant transition, with the rise of CSG and LNG plants creating jobs and unlocking major economic benefits for the state – with more to come in the future.

The Queensland Resources Council (QRC) has been working with the state government to develop new frameworks and agreements that will ensure the long-term sustainability of the energy sector.

The non-government body was established in 2003 and represents Queensland’s explorers, miners, mineral processors, contractors, oil and gas producers and electricity generators, which it deemed mainstays of the state economy and significant contributors to the national bottom-line.

Power projectsThree major CSG-LNG projects are nearing completion in the state – Queensland Curtis LNG (QCLNG), Gladstone LNG (GLNG) and Australia Pacific LNG (APLNG). They have a combined local expenditure of $20.5 billion and support 30,000 jobs.

QCLNGThe QCLNG venture on Curtis Island near Gladstone is one of Australia’s largest capital infrastructure projects. It is currently on track to be the world’s first project to turn gas from coal seams into LNG. Construction began in 2010 and, on completion, the plant will comprise two production units, two storage tanks, and a marine facility complete with facilities for LNG cargoes. Once in operation the LNG will be exported to China, Tokyo, Chile and Singapore, and supply a significant proportion of domestic energy needs.

GLNGGLNG, a joint venture between Santos GLNG, PETRONAS, Total and KOGAS, will develop gas fields in the Bowen and Surat basins via a 420km underground

gas transmission pipeline to Gladstone and a two-train LNG processing facility on Curtis Island.

Santos has described the US$18.5 billion project as a “pioneering initiative” to convert CSG to LNG for export, and an investment in clean energy and fuel for the future.

The company’s 2013 annual report showed the project has contributed more than $11.6 billion to Australian businesses since 2011, with $6.2 billion spent in Queensland alone.

Santos Queensland vice president Trevor Brown said the company was pleased to share the benefits of its world-class natural gas operations with the communities in which it operates.

“Santos GLNG is delivering for the people of Queensland by using local businesses for work including drilling, engineering, equipment fabrication, camp, transport, trades and environmental services,” Mr Brown said.

“We are building a new industry for Queensland that will drive the state economy over the long term, which means our contribution won’t stop here.”

APLNGThe APLNG project is already one of the biggest in the industry. As the largest CSG producer in Australia, it supplies gas to power stations to produce lower emissions electricity, as well as major industrial customers, homes and businesses in South East Queensland.

A joint venture between Origin Energy, Conoco Phillips and Sinopec, APLNG is currently under construction and comprises a 530km gas transmission pipeline to transport CSG from gas fields

to an LNG facility on Curtis Island off the coast of Gladstone.

The plant’s first two gas production trains will process up to 9 million tonnes per annum.

The construction period has created thousands of jobs and awarded contracts to many local businesses and suppliers.

Construction remains on track for first LNG mid-2015. About 10,000 jobs are expected for the life of the project.

Government and industryWith all three projects nearing completion within the next year, the Queensland Government is looking for further development opportunities in the sector.

This year, the Newman Government launched ResourcesQ 30 year vision – an initiative designed to drive growth and jobs in the state’s resources sector.

QRC chief executive Michael Roche welcomed the blueprint as an opportunity to enhance Queensland’s global reputation as a preferred supplier of minerals and energy resources.

“Industry and government working on the same page is a great investment in the economic future of Queensland,” Mr Roche said.

In September, The Mineral and Energy Resources Bill 2014 was passed to reduce the complexity of existing regulations for the resources industry – part of the Modernising Queensland Resources Acts Program, designed to foster greater certainty and investor confidence in the sector.

Queensland’s legislative framework previously consisted of five separate acts and the reforms aimed to streamline the lease process to ensure maximum resource extraction when coal and CSG tenures overlap; as well as fast-tracking legacy boreholes and installing a simple and consistent system of restricted land for all resource tenures.

Landholders objected to the bill, claiming it stripped their powers to object to lease applications.

Mr Roche said it was important legislation that enabled regional growth and development by consolidating unnecessary regulation.

“The Bill streamlines the objections

process for the grant of a mining tenure but does not limit or remove a right to object to the mining project, rather objections are considered as part of the project’s environmental authority,” he said.

Natural Resources and Mines minister Andrew Cripps said the industry had enormous potential to increase the state’s domestic and export gas supplies, while delivering substantial economic benefits.

“The development of the state’s deep gas and oil resources is potentially worth billions to the economy and has the potential to increase the security of gas supply for Queensland industries and consumers and potentially extend the life of Queensland’s LNG,” Mr Cripps said.

OutlookDeep gas exploration is on the rise in Queensland, with around 30 exploration wells in operation as of May this year.

Companies currently exploring throughout the state include Beach Energy, Icon Energy, Chevron, QGC and Armour Energy, with the number expected to increase alongside long-term demand from domestic and export gas customers.

Despite being a clean energy source, activists have protested LNG developments throughout Queensland due to the potential environmental impacts of CSG exploration and extraction, including hydraulic fracturing.

The Bureau of Resources and Energy Economics’ (BREE) September report forecast a positive outlook for the Queensland resources sector, stating that emerging economies would sustain increased demand for resources and energy.

Mr Roche said the sector’s outlook was encouraging despite the current downturn in commodity prices.

“Overall BREE forecasts that over the next five years exports are projected to total $274 billion in 2018-2019 with Queensland LNG exports reflected in these projections,” he said.

“Queensland’s first LNG shipment from Gladstone is expected to start by the end of 2014, rapidly ramping up over the period to 2019 to make Australia the world’s largest LNG producer,” he said.

Major players driving growth

The Australia Pacific LNG project is the biggest CSG producer in Australia. [Image: Australia Pacific LNG project]

EmmA BROWN

“We are building a new industry for Queensland that will drive the state economy

over the long term, which means our contribution

won’t stop here.”

http://www.bestech.com.au

36 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE CSG & LNG in Queensland

SPECIALIST engineering consultancy K2 Technology is focused on asset optimisation, as well as organisational strategies, processes, systems and data infrastructure, delivering project operational readiness and operations excellence.

Since its inception in 2000, the company has built a proficient and diverse structure for its skills and services, covering all stages and attributes of

asset management. Utilising cloud-based computerised maintenance management system technology, K2 can remotely or locally service and operate a client’s asset management function.

The company’s industry-leading systems and processes have been developed and continuously refined during years of oil and gas experience attained by its senior engineers.

K2 can quickly and efficiently identify, establish and deliver the outcomes specific to individual client needs with a commitment to cost saving and improving overall operational effectiveness while constantly focusing on the safety and wellbeing of staff and the environment.

K2 has been recognised as a leader in the engineering community, delivering excellence in operations, maintenance,

reliability and supply chain solutions. In 2013, the company was recognised by

the Asset Management Council of Australia with the Gold Asset Management award.

From its offices in Perth, Brisbane and Singapore, K2 is ready to support and consult with organisations from around the globe.

For more information, visit the company website.

COMPLETE heavy lifting and erection professional Assess Orr’s commitment and enthusiasm to complete the project is demonstrated by its volume of repeat clients.

Assess Orr is a family owned and operated business established in 2007. It specialises in the supply of equipment and labour for heavy lifts, rigging, scaffolding equipment, steel erection, and structural, mechanical and piping works.

The company strives to be the leader in industrial equipment supply and service, providing one of the most highly recognised and respected names in the industry.

Assess Orr’s management and staff like to think outside the box; always striving to achieve the impossible and setting new and exciting industry standards. The company assesses each client’s individual construction requirements through a quality consultation and innovative ideas.

Utilising a team of highly skilled supervisors, experienced riggers, scaffolders and crane operators, clients

can be sure that Assess Orr has the necessary skills and resources to complete any required job at maximum proficiency.

All of the company’s tradespeople work to the highest standards in accordance with industry codes and

safety regulations.Assess Orr has provided consultation,

labour and equipment for construction and infrastructure projects valued up to $5 billion for some of the country’s leading contractors.

Most recently Assess Orr managed scaffold deliveries, stock control and erection, modification and dismantle operations for the Queensland Curtis LNG upstream northern region and played an integral part in reaching five mechanical completion dates on time and without incident.

Assess Orr provided services for QGC’s Kenya water treatment plant in Chinchilla, Queensland, and received safety awards from the client for its effort and commitment towards safety.

Furthermore, Assess Orr has been involved with Origin Energy’s Darling Downs power station project in Dalby and the Sino Iron project in Cape Preston, WA, and is very close to practical completion with its works on BHP Billiton’s Yarnima power station in WA.

With clients including Laing O’Rourke, Origin Energy and QGC, Assess Orr’s versatility ensures the knowledge and experience to understand client requirements and deliver high quality services.

Assess Orr has a strong reputation for industrial equipment supply and service.

Engineering consultancy’s business is asset management

Innovation behind trusted name

http://www.assessorr.com.au/home

38 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE 2014 Queensland Gas (QG) Conference & Exhibition

BUSY times are ahead for the Queensland gas industry as a number of LNG and CSG projects near completion. Now more than ever, industry events such as The 2014 Queensland Gas (QG) Conference and Exhibition are significant to the sector.

Reed Exhibitions director Paul Baker said the state was fortunate to have extensive gas reserves, particularly evident in regions such as the Bowen and Surat basins. Projects nearing completion include Queensland Curtis LNG (QCLNG), Gladstone LNG and Australia Pacific LNG.

“For several years now the significant investment has been made in drilling wells and developing infrastructure such as pipelines, processing facilities and ports,” Mr Baker said.

“The sector is now coming online as it enters the production and exportation phase – it’s now time for companies to capitalise on the financial potential and benefits of these gas resources.

“This will have a substantially positive impact on Queensland’s economy by creating jobs in areas such as project management, maintenance, monitoring, ancillary services and, of course, for suppliers of technology and innovation.

“[This is why] the 2014 Queensland Gas (QG) Conference and Exhibition is a timely business-to-business trade event for the gas sector because of the technology and innovations on display.”

QG Conference and ExhibitionThe two-day event – run by Reed Exhibitions at the Brisbane Convention and Exhibition Centre on 25 and 26 November – will be structured around four key pillars: digital gas field, drilling, maintenance, and workforce. Each pillar will focus on key segments within the sector.

The digital gas field will cover instrument and control automation, information technology, sensor technology, network and data management, and integrated and intelligent operations.

The drilling pillar will feature discussions

and information on well completions, casing and tubing, environmental management, fluid management, and exploration drilling.

Plant maintenance, service products, productivity and optimisation, pipeline management, asset integrity and non-descriptive testing will come under the maintenance umbrella.

The workforce field will consist of recruitment, training, skills transfer, community engagement, health and safety, and environment.

The exhibition in particular will focus on showcasing innovative technology and services relating to products such as drilling equipment and solutions, pipeline technology and operations, power and gas utilities, process equipment and engineering, and water management systems.

Mr Baker said a lot of research went into this year’s event, to cater to the latest industry needs, including suppliers that facilitate the ability to explore and conduct operations.

More than 40 suppliers have confirmed positions at the exhibition including Draeger Safety Pacific, Pivotel Satellite, Tox Free, MM Electrical Merchandising, Queensland Fire and Rescue Service, and Gas Today, with more to be announced closer to the event.

“Today, companies will need to focus on reducing their downtime and ensure system integrity, making sure they are as productive as possible; maximising the financial value of the CSG and LNG they are producing,” he said.

“The suppliers [at the exhibition] are able to offer companies more efficient

procedures, practices and operations.”Networking opportunities will be

another notable benefit for visitors and suppliers, including the introduction of the TechLab.

“The Techlab will allow suppliers to present their innovations and technologies through interactive seminars,” Mr Baker said.

He described the exhibition as one of Reed’s most comprehensive events for the Queensland gas sector to date.

“This stems from the extensive industry consultation to find out what the industry required to increase productivity, which has increased the quality of the content on offer for delegates of the conference and attendees.”

The conference will complement the exhibition component and, for the first time in its history, it’s free to attend.

Attendees can pick and choose which conferences they attend based on areas relevant to their business.

Mr Baker said there were extensive benefits for personnel to reflect on company processes and resources.

“Which in today’s fast-paced business culture are only facilitated with the industry gravitates to platforms like this,” he said.

“Events like this are critical to the industry being more productive, efficient and cost-effective.”

Organisers of the 2014 QG event have reviewed and revamped the structure and format to stay up-to-date with the ever-changing industry and will continue to do so in years to come. This year attendees can download a mobile app to view exhibitor profiles and the conference program in an interactive hand-held format.

“QG is the leading CSG and LNG event for the Queensland gas sector personnel and we encourage all our prospective attendees and delegates to pre-register,” Mr Baker said.

Evolving event leading the wayEmmA BROWN

The 2014 Queensland Gas (QG) Conference and Exhibition will provide a wealth of information to those working in the sector.

“The sector is now coming online as it enters the

production and exportation phase – it’s now time for companies to capitalise

on the financial potential and benefits of these gas

resources.”

“Events like this are critical to the industry being more productive, efficient and

cost-effective.”

40 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE 2014 Queensland Gas (QG) Conference & Exhibition

Resilient products give clients peace of mind CORROSION engineering company Corrocoat specialises in high-performance anti-corrosion industrial coating production and application, operating extensively in the oil and gas, mining, marine, petrochemical, power, infrastructure and structural steel industries.

Corrocoat’s track record goes back 30 years to the early North Sea and Middle East oil and gas sectors, and the company has since gained experience

both onshore and offshore.Corrocoat’s products are designed

primarily for corrosion protection and its range extends from general purpose applications through to aggressive and abrasive environments.

Its numerous case studies confirm a product life expectancy of between 15 and 20 years in the harshest conditions.

The company has provided heavy duty applications for projects throughout Australia, Papua New Guinea and

surrounding islands. Its highly mobile application teams

fly to oil rigs, mine sites and industrial plants, completing projects quickly and efficiently.

Corrocoat also has a fully equipped factory with blast room and pipe-spinning facilities in the Perth suburb of Canning Vale.

More information about Corrocoat’s products and services can be found on the company website.

Skills shortages remain as job numbers jump

Sustainable waste management solutionsCORE values of safety, reliability and sustainability underpin Toxfree Solutions’ commitment to offer industry-leading waste management solutions to its customers.

Toxfree Solutions is one of Australia's leading integrated environmental, waste management and industrial service providers.

The company’s national network of waste management facilities and treatment technologies ensures it can

provide innovative and sustainable waste management solutions for all types of waste, including commercial, household, industrial, construction and hazardous waste.

Toxfree has a range of onsite industrial services including industrial cleaning, vacuum loading, contaminated site remediation, high pressure water jetting, tank cleaning, non-destructive digging, emergency response services and disaster recovery.

It has more than 55 facilities nationwide and employs a team of more than 1100 experienced and qualified staff.

Toxfree has a portfolio of treatment technologies and technical expertise to enable the cost-effective remediation and treatment of a broad range of solid, liquid, industrial and hazardous waste.

Toxfree services more than 20,000 customers across Australia, and provides solutions for some of the country’s leading businesses and government organisations.

TRUSTED recruitment expert Hays Oil and Gas specialises in finding jobs for qualified, professional and skilled people within the global oil and gas industry.

The company deals in permanent positions and contract roles across the full life cycle – from exploration, project development and construction through to oilfield services, operations and maintenance.

Hays has the specialist local knowledge and access to industry networks to attract the best talent, operating around the world in major oil and gas centres including Houston, Calgary, Aberdeen, Norway, Perth, Darwin, United Arab Emirates, Rio de Janeiro and Singapore.

The Hays Oil and Gas Job Index for the first quarter of 2014 showed that hiring has increased globally, with key areas seeing significant jumps in job numbers. However, as new projects and business investment lead employers to increase their headcounts, skill shortages are still affecting recruitment plans.

Many regions are facing an increase in hiring for 2014 and, in order to attract top talent in competitive markets, companies are increasing salaries and benefit packages. There is particularly high demand for talent in Asia, reflecting the region’s growing importance in the global oil and gas market.

Investment in businesses and new technologies to support enhanced oil recovery is driving new projects; as a result, optimism is high and further growth is expected in 2014.

However, as companies look to increase their headcounts in niche areas, employers may struggle to find the required talent and be forced to compete with other companies for sought-after profiles.

Hays’ new Oil and Gas Salary Guide will be released in January 2015 and will provide the industry with an informed view of global and regional trends in compensation and benefits and identify some of the key industry factors and events that contribute to these trends.

For more information and to be part of this year’s Salary Guide, visit the Hays website.

IN recent years oil and gas companies have worked in an increasingly challenging environment. Ensuring the safety of employees and being able to track assets are major and consistent industry concerns. Satellite technology has become an increasingly popular solution for businesses seeking ways to keep on top of their operations and reduce these concerns.

With the largest fleet of domestic satellites in Australia and New Zealand, Optus Satellite is one of Australia’s leaders in integrated communications. It offers a complete suite of communication

services incorporating fixed fibre, wireless and satellite technologies into a single, fully digitised network. The company has provided premium satellite services for almost 30 years, and is the only telecommunication company to own and operate satellites in Australia.

Optus Satellite understands that communication needs can vary greatly between companies and sites in the oil and gas industry. Each business is presented with its own unique communication challenges, which can range from monitoring remote pipelines

to supporting mobile camps. With a broad range of products and services – including fixed and portable voice and data satellite solutions – Optus Satellite customers benefit from reliable, integrated, secure and easy-to-transport equipment which can be rapidly deployed and tailored for any requirement.

Optus Satellite’s range of SatTalk handsets allow teams working on pipelines away from the main camp to communicate without signal or range concerns. The Optus SatMonitor telemetry devices help monitor and

communicate with unmanned remote pipes, while the Optus SatVoyager trailer service provides an instant data connection for remote camps on the move to keep in touch with head office. The Optus SatZone trailer service can provide a voice and data connection in areas where terrestrial coverage is limited or non-existent, and it can also act as a backup communications service.

Optus Satellite works with its customers to develop a specialised communication solution for every stage of an oil and gas venture.

Keeping the oil and gas industry connected

Corrocoat specialises in protecting products in harsh conditions.

http://www.ipstratint.com

42 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE CIVMEC

AUSTRALIAN based, Singapore-listed heavy engineering services provider Civmec is building strong foundations in the domestic oil and gas industry. From humble beginnings in 2009, the company has established itself as a major player, having secured construction contracts for many of Australia’s premier oil and gas projects.

Civmec reported a 25.4 per cent rise in net profit for the June quarter of 2014, doubling its revenue between April and June, and lifting its revenue for the financial year to a record high. It also reported an order book of SGD301 million at the end of June. This strong final quarter was a result of increased momentum in its existing projects, according to Civmec chief executive Patrick Tallon, who also said the company would only continue to grow.

“We will build upon the momentum in the last quarter and increase tendering activities in construction, maintenance and oil and gas sectors in FY2015, while emphasising higher-value and longer-term projects,” Mr Tallon said.

By bolstering its existing systems and processes and exploring geographical expansion here and overseas, Civmec wants to position itself as a preferred heavy engineering solutions provider.

“Our strategy is to further integrate our suite of capabilities to position ourselves better for [the] public sector as well as resources projects, with particular focus on the oil and gas sector,” Civmec chairman James Fitzgerald said.

Although Civmec experienced an outstanding increase in revenue, income from oil and gas industry contracts declined by 9.2 per cent from SGD143.6 million in FY2013 to SGD130.4 million in FY2014. This was due to the allocation of resources to contracts secured in mining and other industries – which experienced 15.6 per cent growth. Consequently, gross profit from the oil and gas industry contracts decreased by 17.1 per cent to SGD21.6 million. The company stated it would continue to seek out opportunities in the oil and gas industry, which it had identified as a potential growth area.

The oil and gas industry is relatively new territory for Civmec. Its first contract, works on the Gorgon Downstream LNG Project at Barrow Island was awarded in 2011. More recently, the company has secured repeat subsea contracts for two prominent WA-based projects from Technip Oceania: Shell’s Prelude floating LNG development and the Wheatstone Project.

Shell’s development in the Browse Basin represented its first deployment of the FLNG technology. The facility, which will extract and process gas from

the Prelude and Concerto fields, will allow for the production, liquefaction, storage and transfer of LNG at sea. The technology could potentially reduce project costs and environmental impact, and represents an important technological development for the global LNG industry. Civmec was contracted to supply, fabricate and test subsea components for the project.

“Playing a role in the world’s first FLNG development will open many doors for us in the oil and gas sector, where we see immense growth potential,” Mr Tallon said.

The Chevron-operated Wheatstone Project is one of Australia’s most significant resources developments. It consists of an onshore facility in the Ashburton North Strategic Industrial area, 12km west of Onslow in WA. It includes two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant. Civmec was contracted to fabricate and test 68 subsea jumper spools from various

materials, including CRA Inconel clad pipe and carbon steel.

Mr Tallon said it wasn’t the first time Civmec had been awarded a contract from Technip in Australia.

“It is a good indicator of their satisfaction with our service and also further demonstrates our ability to win repeat work in the oil and gas sector from our existing client base,” he said.

Exploring emerging opportunitiesIn April this year Civmec opened its state-of-the-art headquarters in Henderson. The large, four storey, 6,500m2 facility is a significant development, and consists of offices catering for more than 450 personnel, an extensive training and induction centre and a medical centre used for pre-employment medicals.

Mr Tallon said the development demonstrated the company’s commitment to further developing its capabilities.

“Our belief at Civmec is that improved productivity, combined with a high level of support services, ultimately means a more cost effective project delivery,” he said.

“The more efficient we can be in carrying out projects locally, the more likely we are to see more projects being approved for Australia.”

Civmec stated that it would operate primarily from Henderson, but would continue to grow its Darwin operations as it pursued future oil and gas contracts. The company is also investigating opportunities to establish an operations base in the Pilbara.

Civmec’s industry achievements were recently recognised at the inaugural Subsea Energy Australia (SEA) Awards, where it won the new enterprise award. Civmec was chosen for its growth in revenue and its future plans for health and safety, commitment and community engagement.

Mr Tallon said Civmec had achieved a significant amount since it commenced operations in 2009, and it was encouraging for the industry to recognise the breadth and depth of expertise of its diverse skills base.

“It was an honour to receive this award and I feel it truly reflects the hard work and passion that has got us to where we are today,” he said.

Opening doors in oil and gas

Civmec was contracted to fabricate and test 68 subsea jumper spools for the Wheatstone Project.

Civmec was recently awarded a contract for Shell’s Prelude floating LNG development.

EmmA BROWN

“Playing a role in the world’s first FLNG development

will open many doors for us in the oil and gas sector, where we see immense

growth potential.”

44 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE CIVMEC

IN a strategic move to expand its market reach, RS & RA Morton Plumbing recently joined forces with Australia’s leading plumbing contracting network, Laser Plumbing Group.

Today, the company is known as Laser Plumbing Bowen (LPB) and is one of the biggest plumbing firms in North Queensland.

Owners Steve and Tracey Morton said the company had seen a steady growth in both business and clientele in its 26 years of operation.

“We agreed to join the Laser group as we believed our business will ultimately benefit from the branding, systems and support network the group has to offer,” Mr Morton said.

“It will also provide us a great opportunity to grow our business in a challenging market.”

LPB is renowned for its experience and expertise, and its services are sought-after throughout the oil and gas industry. These services include new house plumbing design and installation, eco-friendly solutions, hot water heat pumps, roofing and drainage clearing, gas continuous flow installations, leaks checking and repairs, and ventilation systems.

The Laser Group is known for its highly efficient systems, which are expected to complement Morton Plumbing’s wide range of services.

Unsurpassed expertise services industry FOR the past 15 years RM Surveys has proudly been the preferred surveyor to many fabrication companies servicing the mining and oil and gas industries.

With a wealth of experience and a can-do attitude, the company has become a recognised leader in its field.

RM Surveys specialises in survey

services for major mining, oil and gas and construction projects, and its large team has been involved in many major projects across Perth and WA.

The company prides itself on providing cost-effective and timely services with an emphasis on client relations, satisfaction and accuracy.

RM Surveys has developed many innovative survey techniques and specialised software, which are continually assessed and upgraded to keep up with technological advances.

A strong team of experienced surveyors allows the company to bring in extra crews when required, providing flexibility to meet

peak demand or unforeseen circumstances, particularly on large projects.

RM Surveys has worked on the Western Power substation at Three Springs, Apache’s Devil Creek gas project, the Karara minesite construction and more recently the construction of caissons for the Gorgon LNG loading jetty.

Rm Surveys has been the preferred surveyor to fabrication companies for the past 15 years.

Laser Plumbing Bowen is one of the biggest plumbing firms in North Queensland.

A formidable plumbing partnership formed

45www.miningoilgas.com.au NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Onslow: The LNG Hub of WA

THERE are few towns in Australia so perfectly placed within a burgeoning oil and gas sector as Onslow in WA.

The Pilbara hotspot is close to the Carnarvon Basin – WA’s most prolific petroleum basin – and home to major projects such as the North West Shelf Project and the Chevron-operated Wheatstone Project.

In 2009 the WA Government established the Ashburton North Strategic Industrial Area (ANSIA), 12km southwest of Onslow, as a hub for the gas processing industry.

The $29 billion Wheatstone Project is the most important development under construction near the town and is expected to employ more than 5500 workers during construction. As it stands the project is 40 per cent complete and should begin production late 2016.

The project will have an initial capacity of 8.9 million tonnes per annum, with potential for up to 25mtpa.

BHP Billiton’s $1.5 billion Macedon domestic gas project in ANSIA was also completed last year and employed more than 600 workers during construction.

The once sleepy coastal town is expected to more than triple its population of 700 in the next few years, with another 3300 expected down the track.

The resources effectOnslow is the oldest town in the Shire of Ashburton and right in the centre of oil and gas activity.

Shire of Ashburton chief executive Neil Hartley said despite the town experiencing unprecedented growth since 2012, the resources boom had been a double-edged sword.

“The development of the gas industry has brought financial opportunities for some, but for others it has resulted in higher costs and more inconvenience,” he said.

“For example, some local property owners have benefited greatly from the rise in property but for others who do not own property it has meant higher rents.”

A spokesperson from the Department of State Development said that construction activities led to an increase in the service population of Onslow, including fly in, fly out labour and a rise in demand for short-stay and residential accommodation.

Members of the Onslow Chamber of Commerce and Industry (OCCI) found the biggest issues related to the cost of housing, land and rentals, access to power and water, access to flights in and out of Onslow, and affordable land.

Despite the OCCI lobbying the WA Government and Chevron to improve power, water and residential land issues, it said local businesses still had a number of financial concerns with the completion of the airport, the availability of benefits from the project and the lack of available and affordable light industrial land.

“If, over the next two years, local businesses can’t establish, consolidate or expand they will not be in a position to support industry or the community once the plant becomes operational,” a spokesperson from the OCCI said.

“When the plant does become operational the presence of the national and international companies will diminish and Onslow will be left with nothing.

“The local trades will have been squeezed out of the community (costs, lack of work), shops will have shut (lack of trade) and the tourists will have gone – numbers [are] already reducing due to the lack of accommodation, high costs and changing social fabric.”

Significantly, Premier Colin Barnett

recently allowed Chevron to renege on its commitment to construct the Wheatstone Project’s 3800-bed accommodation in the town.

Mr Barnett told State Parliament last month that the decision was purely based on economics and safety.

“The thought of staying in temporary worker accommodation in Onslow and having a 45-minute to one-hour drive before and after a shift is hardly good for safety,” he said.

“From the company’s point of view it will be more effective. From the workers’ point of view, it will be a lot easier in terms of their lifestyle and stress levels.

“I agree with Chevron that it is a better solution, therefore I approved it retaining its construction camp.”

The Shire of Ashburton expressed its disappointment with the announcement and planned to develop a memorandum of understanding (MOU) with Chevron to build a more positive relationship.

Shire president Kerry White said the accommodation back flip was a major concern.

“The MOU is intended to cover mutual benefits and understandings, commitments and the values of respect, honesty and transparency – important values for both parties to address in the MOU especially as the Wheatstone Project will have a presence in Onslow

for the next 50-plus years,” she said.“It is critical that the relationship is

one that is working well.” If the shire receives approval from

Chevron Australia it will take the MOU to the company’s US headquarters with a posse of politicians.

The OCCI urged the government and Chevron to commit to what was promised and build the operational village in town “as this will have a positive impact on both the community and the tenants [and] most importantly it will sustain local business”.

Chevron still intended to build 50 homes in the town and has purchased a larger site that Mr Barnett told the ` he assumed was for housing.

A spokesperson from the Department of State Development said it was also progressing a number of projects to ease accommodation pressures.

“Temporary service worker accommodation facilities were completed in early 2014, providing some relief while more permanent housing options for service workers are delivered,” they said.

“The state is also working to progress the supply of residential land, with the first lots in a new residential subdivision now on sale.”

Through the Wheatstone State Development Agreement, Chevron also committed to upgrade and/or build critical and social infrastructure in the town.

The company pledged to provide new power and water infrastructure facilities, plus a further $200 million to upgrade roads and airport as well as contribute to building a new hospital, waste management and wastewater management facilities, childcare facilities and a Community Development Fund. The WA Government contributed $10 million towards the fund through Royalties for Regions.

The agreement will see the State Government contribute about $55 million to supplement the project’s

Humble town to resources hub

Upgrades to the main street of Onslow are planned under the Onslow Expansion Plan.

An aerial view of the Onslow town centre.

COURTNEy PEARSON

(continued on page 46)

“The development of the gas industry has brought financial opportunities for some, but for others it has

resulted in higher costs and more inconvenience.”

46 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Onslow: The LNG Hub of WA

Renowned accommodation heads northA home away from home for the growing transient workforce, Discovery Holiday Parks has made its way to the Pilbara region in far north WA.

It has become something of an accommodation oasis for companies such as Bechtel, BHP Billiton and Structural Civil, drawn to the reputation for customer service that sees staff routinely go above and beyond to ensure employees are taken care of.

Discovery Parks Onslow is the major accommodation provider in the Onslow township, with 400 rooms offering a broad range of modern and comfortable accommodation options.

These include deluxe studio suites with balconies and Indian Ocean views; self-contained one-bedroom cabins; and modern bunkhouses or donga-style accommodation.

All rooms have split unit air-conditioning, refrigerators, colour TVs with 20 free-to-air channels, Wi-Fi accessibility, desks and wardrobes.

The accommodation options are complemented by shady grounds that serve as a peaceful sanctuary from the heat and dust of the region, as well as a raft of business and leisure facilities including conference rooms and meeting facilities; a bar and recreation room with pool and table tennis tables, a juke box and darts; a gymnasium; a swimming pool; and a retail

shop that sells a range of drinks, snacks, toiletries and sundry items.

Completing the picture is a great selection of meals for which Discovery Parks Onslow is well known. Guests can enjoy everything from full breakfast and

dinner buffets to workforce crib lunches, all served seven days a week in a dining room with alfresco balcony.

The Discovery Parks Onslow team is also more than happy, when needed, to provide meals on site to external workforce crews.

infrastructure contribution. Mr Barnett told the ABC the

government and Chevron were working together to improve the town’s facilities.

“I’ve been to Onslow many times and I assure you the lack of power supply and water supply is a critical issue for Onslow with or without [Wheatstone], and yes, they do need a new airport – you could not have the Wheatstone Project without an airport upgrade,” he said.

“And look, that’s interesting in itself because the Shire took on the job of building the airport for $30 million… they had a cost overrun of $13 million and the State Government and Chevron have stepped in to pick up that shortfall.

“No other community in Western Australia has done as well as Onslow out of a single resource project.”

Future developmentOnslow has a number of expansion plans and initiatives to keep it moving forward through the current period of growth.

The Pilbara Cities Vision, delivered via the Pilbara Development Commission (PDC), was aimed towards a population of 140,000 in the Pilbara by 2035.

The PDC allocated $1.7 billion of Royalties for Regions funding to the Pilbara Cities initiative.

“Civic and community facilities have been upgraded with multi-purpose recreation centres and renewed public open space developed in major population centres, improving the quality of amenity and liveability in the region,” PDC chief executive Dr Ken King said.

“Health and education infrastructure and services are being improved through joint funding partnerships between industry and government.”

Furthermore, the Onslow Expansion Plan was designed to support and

progress the community and has been a collaborative effort between the Shire of Ashburton and various government departments and stakeholders.

“The key objectives underpinning that vision include sustainable living, economic vitality and community wellbeing,” Dr King said.

The plan focused on investment and planning from the government, resources companies and the private sector.

The Onslow Expansion Plan aimed to tackle critical issues such as main

street upgrades, airport expansion, and light industrial development, while LandCorp has addressed residential lots, a structure plan to accommodate medium to long-term growth, and guidelines to ensure new housing and facilities reflected the local climate and character.

“Onslow is envisaged as one of the Pilbara’s major towns and will be a vibrant, sustainable and prosperous place for work, living and leisure for both residents and visitors,” Dr King said.

Humble town to resources hub

Pilbara Development Commission chief executive Dr Ken King supports the vision for a sustainable and economically viable Onslow.

SINCE its inception in the 1950s, Onslow-based NTC Contracting has evolved into a leader in earthworks and civil construction.

The privately owned, mid-sized company has established an excellent reputation in the industry due to its experienced management team, skilled operators and extensive range of plant equipment.

NTC has successfully run numerous contracts for big industry players including Chevron, Bechtel, Technip, BHP Billion and Citic Pacific.

It offers clients a complete package of skills and resources to deliver projects in civil construction, mining, bulk earthworks, road construction and drainage projects, and currently runs a NATA accredited geotechnical lab in Onslow.

NTC is renowned for completing projects on time, to the required quality and budget. It works with the philosophy of ‘getting it right the first time’ and only uses quality subcontractors to maintain high standards of production.

Its current fleet consists of a range of new earthmoving plant and equipment, modern heavy haulage trucks, trailers, and road trains. All equipment is maintained by NTC’s own fitters in the company workshop.

Civil and earthworks leader serving big players

IN a small community with a population of just 700, the Onslow Chamber of Commerce and Industry (OCCI) is a standout.

With 72 financial members, OCCI has established itself as a critical point of contact for locals and visitors in relation to business development and networking through its Business Services Hub.

The hub offers permanent office space and meeting rooms for local operators as well as ‘hot desks’ for visitors to access when in town.

It also supports the OCCI in enhancing and expanding its current service delivery model and promotion of the ‘buy local’ philosophy which was identified as a priority by its members.

In addition to the establishment of the hub, the OCCI has hosted a range of events and networking opportunities, providing local businesses and industry a forum for promoting their capabilities and to exchange knowledge and information.

Through the hub the OCCI offers a range of services including project development, community consultation, event coordination and report writing.

In engaging the OCCI, clients can be assured of a service that has an understanding of the area and associated risks related to conducting business, access to an established and extensive network for promotional and feedback purposes and the best possible outcomes on time and within budget.

Proudly sponsored by Chevron and OCCI membership, including silver members Dredging International, NTC Contracting, Bechtel Corporation, Ashburton Resort, EFS/Pilbara Access and Drilline, the hub is a one-stop shop for business in Onslow.

Business hub offers valuable services

Discovery Parks Onslow provides comfortable accommodation for the resources workforce.

(continued from page 45)

48 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Territory Generation

NORTHERN Territory Government-owned corporation Territory Generation began trading on 1 July 2014. Prior to that, it operated as a business unit of the Power and Water Corporation and was separated out as part of the Territory Government’s reforms regarding electricity supply.

Territory Generation produces more than 2000 gigawatt hours of electricity per year for the cities, towns and communities of the Northern Territory, using gas, diesel and solar technologies. As the largest electricity producer in the Territory, it owns 592 megawatts of installed capacity and contracts an additional 114.5MW from independent producers.

Its power stations combine the latest technologies with heritage equipment, dating back to first stations built in Darwin in 1934 and Alice Springs in 1937.

History of powerElectricity reached Alice Springs – now the third largest town in the Northern Territory – in 1872 in the form of 120 volt batteries operating the Overland Telegraph Line. Small, individual power plants provided electricity to a limited number of town dwellings for more than 60 years, until the Bath Street station was built in 1937.

The power generation building could fit up to three electricity generating sets in deep flooring beds; a total of six generators were installed during the plants’ 13 years of operation. Its main directive was to supply six government institutions, however by early 1938 it was supplying electricity to more than 60 dwellings and 21 street lights, improving public refrigeration and lighting.

Increased demand from residents and the Second World War made a larger plant necessary, and so power generation moved to a new site in the Sadadeen Range in 1942. The Bath Street station was decommissioned in 1950. The Sadadeen Range station was largely funded by the army; it was fitted with a PCT6 Crossley generating set which remained in service for 18 years.

At the end of the war, the Northern Territory Administration took control of the electricity supply in Alice Springs. The Sadadeen Range power station was extended twice in the 1950s to increase

capacity, and reached its present day configuration in 1957. The plant was decommissioned in 2010 with the regions’ power generation now coming from the Ron Goodin Power Station.

Power stationsTerritory Generation’s power stations fall into three categories: the Darwin-Katherine Interconnected System, the Alice Springs System, and Territory Towns.

The Darwin-Katherine Interconnected System comprises the Channel Island, Weddell and Katherine power stations as well as power purchase agreements from the 26.6MW Pine Creek Power Station (which is independently owned and operated by Energy Development) and the Landfill Management Services renewable energy facility at Shoal Bay. The system is connected via a 132KV transmission line from Darwin to Katherine.

The Channel Island Power Station is the largest in the Northern Territory and the system’s main source of electricity.

The first units at Channel Island were commissioned in 1986; today, it operates at 310MW capacity as a natural gas-fired station with diesel back-up capability.

The Weddell Power Station comprises two open cycle gas turbines commissioned in 2008 and a third commissioned in 2014; it has a capacity of 129MW.

The Katherine Power Station has four open cycle natural gas turbines and has been operating since 1987. It has a 34.7MW capacity with diesel back-up.

The Alice Springs System is powered by the Ron Goodin and Owen Springs stations, with Territory Generation also purchasing electricity from Central Energy Power’s 8.5MW Brewer Power Station and Epuron’s Uterne solar plant.

The natural gas-fuelled Ron Goodin station was established in 1973 and has a capacity of 44.6MW. The Owen Springs station is the newest of Territory Generation’s assets; it was commissioned in 2011 and uses the latest duel fuel reciprocating technology.

The Territory Towns system services a number of townships and surrounding areas, including Tennant Creek, Yulara, Kings Canyon, Borroloola, Elliott, Daly Waters, Timber Creek and Ti Tree. The 16.7MW Tennant Creek Power Station supplies electricity up to 150km south of the township; the 10.95MW Yulara

station is the only commercial source of electricity in the region and services the Ayers Rock Resort; and the 1.176MW diesel and solar power Kings Canyon station is the only commercial source of electricity in the area.

Renewable energyTerritory Generation is involved in a number of opportunities aimed at reducing the greenhouse gas emissions associated with electricity production. It owns the Kings Canyon solar photovoltaic power station, which was completed in December 2003 and has a peak capacity of 241 kilowatts. The station, which supports the electricity needs of the nearby Kings Canyon resort, cost $3.6 million and was the largest single installation of its kind upon completion in 2003.

A power purchase agreement with Australia’s largest renewable energy company, Epuron, sees Territory Generation purchase all electricity exported from the Uterne solar plant for delivery to Alice Springs residents. The 1MW Uterne operation comprises 3000 high-efficiency SunPower mono-crystalline solar panels on a 4 hectare site, and is the largest tracking solar power system in the country. It produces enough energy to power about 288 average Alice Springs homes.

An additional power purchase agreement with TKLN allows Territory Generation to use the solar power generated by the Ti Tree power station to reduce the volume of diesel required to supply electricity to nearby communities.

A 15KW rooftop photovoltaic solar system at the Daly Waters Power Station is used to offset station loads and reduce the volume of diesel required to produce electricity.

Territory Generation also has an agreement to purchase all exported energy generated from methane gas at the Shoal Bay landfill site in Darwin. LMS has been generating energy from the landfill since 2005, producing about 9000MW hours of renewable energy each year. According to Territory Generation, methane gas is 20 times more harmful as greenhouse gas than carbon dioxide; by capturing and converting the methane to electricity, LMS is preventing the gas from entering the environment.

New generation of Territory power

The Weddell Power Station is powered by three open cycle gas turbines to produce 129mW capacity. The first units at Channel Island were commissioned in 1986.

RAChEL DALLy-WATKINS

The Channel Island Power Station is the largest in the Northern Territory and operates at 310mW capacity.

Electricity reached Alice Springs – now the third

largest town in the Northern Territory – in 1872.

http://www.evanspeck.com

50 www.miningoilgas.com.auNOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Territory Generation

FOR more than 40 years, Air Radiators has partnered with customers across industries including mining, resources exploration and process cooling to provide innovative heat transfer solutions.

“The key to Air Radiators’ success is our ability to tailor cooling solutions suitable to operate in these diverse and demanding markets and meet the stringent requirements of the businesses that rely on their equipment

to perform flawlessly,” Air Radiators general manager Jamie Baensch said.

“At the heart of our experience and expertise is our unique range of technology which offers products as diverse as the environments and applications that require cooling.”

Technologies range from heavy duty radiator cores, found as original fitment in the largest earthmoving equipment, to

the unique PinFin wire-wound product with positive mechanical tube-to-fin bond in either copper or stainless steel wire and a range of base tube materials.

“More recently we’ve coupled the high performance PinFin product with our manufacturing capabilities and quality systems to enable world class design, manufacture and registration of panels and products to AS1210, ASME BPVC and

API 661 standards,” Mr Baensch said.“Our engineering team uses proprietary

design software, coupled with HTRI’s thermal modelling software, to guarantee the performance of the equipment we design.”

Air Radiators offers a nationwide repair and refurbishment service for existing radiator packages and other industrial coolers, including compressor after-coolers and conveyor drive hydraulic coolers.

CREATED from the merger of Evans & Peck, MTG, Ltd and WorleyParsons EcoNomics, Advisian is a global advisory firm that provides deep domain expertise and advice to clients in the hydrocarbons, transport, utilities, social infrastructure, and minerals, metals and chemicals sectors.

Advisian helps clients create greater value, new possibilities and superior outcomes from their assets and businesses. It provides high-end advisory capability grounded in strategic development and commercial operations experience: a truly unique approach to advisory services.

The company’s hands-on experience means its people are able to step in at any stage of the business or project life cycle and provide valuable advice about the issues at hand because they’ve solved them before at a similar scale, on similar projects and for similar organisations.

Advisian provides high-end advisory capability grounded in strategic development and commercial operations experience: a

truly unique approach to advisory services.With people operating in Australia,

Asia, Europe, the Middle East, Africa and the Americas, and access to a worldwide

network of 35,000 WorleyParsons professionals, Advisian is able to tap into diverse global perspectives on the challenges facing projects and businesses.

Its global scale and reach mean the end-to-end solutions available to clients, from strategic development and commercial operations experience, are deep and comprehensive.

Advisian has provided expert advice on a number of major projects throughout the world including the Queensland Curtis LNG project; Diamantina power station; Colongra power station; Santos GLNG; the Northern Territory power system review; a deepwater field development offshore West Africa; China Offshore Oil Engineering Corporation’s Khafji crude offshore projects; a natural gas liquefaction plant for Peru LNG; and for Shell Development Australia.

When it comes to complex assets in the hydrocarbons, infrastructure and minerals, metals and chemicals sectors, Advisian provides expert advice based on real-world experience.

Advisian is the independent advisory arm of the WorleyParsons Group.

Advisian provided delivery support services to connect the Diamantina power station in mount Isa, Queensland.

Flexible cooling solutions ensure maximum protection

Merger combines capabilities

51www.miningoilgas.com.au NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Apache Corporation

A dramatic discovery in the Canning Basin has propelled Apache into the limelight, adding to the company’s high profile oil and gas projects.

Despite being so entrenched in US oil and gas history, Apache is also Australia’s largest domestic gas producer with a large number of developments in the pipeline.

Apache’s Australian focus is on basins offshore WA, where it controls about 7.9 million gross acres through 30 exploration permits, 18 production licences and nine retention leases. Apache’s Australian assets offshore WA, where it has operated since 1993, produced 50 million barrels of oil equivalent per day in the second quarter of 2014. Only about 11 per cent of its acreage has been developed thus far.

A new discoveryThe company recently found oil in the Canning Basin, 180km north of Port Hedland, sparking major industry interest around what could be a new Australian oil province.

The Phoenix South-1 discovery within WA-435-P could contain up to 300 million barrels of oil in place.

Apache has a 40 per cent interest in WA-435-P and the adjacent WA-437-P in a joint venture with Carnarvon Petroleum (20 per cent), Finder Exploration (20 per cent) and JX Nippon (20 per cent).

“Although evaluation is at an early stage, Phoenix South-1 is an exciting result,” Apache executive vice president and international chief operating officer Thomas Voytovich said.

“The oil and reservoir quality we have seen point to a commercial discovery.

“If these results are borne out by further appraisal drilling, Phoenix South may represent a new oil province for Australia.”

Next year the joint venture will drill the follow-up well, Roc, in WA-437-P once results from Phoenix South-1 have been released and technical work is complete.

Near term productionApache’s Coniston subsea oilfield development, one of the company’s major projects, is also due for completion in the

first half of 2015. The company plans to develop the Coniston and Novara fields via the Ningaloo Vision floating production, storage and offloading vessel (FPSO). Apache has a 52.5 per cent stake in the joint venture with INPEX and each month edges closer to production.

During the second quarter of this year development drilling continued, and seven of 17 lateral wells have now been successfully drilled. Subsea flowlines were removed and replaced to increase capacity, and offshore installation of the last flowline replacement is underway. Once this is finished, Coniston’s offshore facilities development will be complete. The joint venture is also continuing maintenance and upgrade works on Ningaloo Vision.

Apache’s Balnaves development project is also on track for first oil production from a reservoir in the Northern Carnarvon Basin, about

180km offshore northern WA. Oil will be processed via an FPSO. The project is adjacent to the Brunello gas field in WA-49-L, which is operated as a joint venture between Apache (65 per cent) and Kuwait Foreign Petroleum Exploration Company (35 per cent). The field came online at the end of August with an initial peak rate of up to 30,000 barrels per day from two wells and is currently working through some “routine operating issues”, Mr Farris said.

Apache also has a stake in the Devil Creek gas plant with Santos, which supplies major WA gas users with gas from the Carnarvon Basin.

A shift in focusHowever, Apache revealed it was looking to focus on assets in North America to cement itself as a “leading North American exploration and production company” and was “evaluating multiple strategic opportunities for our LNG and international assets”. Apache chief executive, chairman and president Steve Farris said the company was “in the acreage market right now” to expand its North American assets.

Apache is opting out of its 13 per cent stake in the Chevron operated Wheatstone Project, as well as planning to divest a number of other Australian

and international projects. During the last 18 months the company has sold properties worth about US$10 million.

“They are world-class projects but they don’t fit in our next life cycle,” Mr Farris said.

In the second quarter this year just 9 per cent of the company’s total production came from Australia, compared to 16 per cent from the Central US and 28 per cent from its North American Permian Basin assets.

In 2009, 34 per cent of the company’s production was in North America. By the second quarter of this year that number had nearly doubled to 62 per cent.

“We stand at a very exciting point in our evolution because right now we’re putting the finishing touches on that transition,” Mr Farris said.

“It’s been a lot of hard work.”Apache’s withdrawal from the

multi-billion dollar Wheatstone LNG project is in line with the company’s plan to back away from its international assets. The Wheatstone facilities are being built at the Ashburton North Strategic Industrial Area near Onslow, WA, which will be connected to an offshore processing platform via a 225km pipeline. As part of the joint venture, Apache was going to design and install the subsea facilities needed to supply gas from the Julimar and Brunello fields. The Julimar development project is a joint venture between Apache (65 per cent) and Kuwait Foreign Petroleum Exploration Company (35 per cent), expected to unlock more than 2.1 trillion cubic feet of sales gas.

At this stage, Apache has not indicated which other projects will be divested to make way for its US assets.

Apache has assets in the central, Permian and Gulf Coast regions as well as on the Gulf of Mexico. The company is also bowing out of the Kitimat project in Canada, which produces 10mtpa of LNG. Apache has a 50 per cent stake in the project, which it described as the “most advanced LNG project in Canada”.

Looking ahead, Mr Farris was confident in the company’s growth.

“Five years ago we set out to build a North American exploration and production company,” he said.

“We have built a tremendous resource base with the potential to have organic growth for the years ahead.”

US-based major reshuffles and refocuses

Apache has opted out of its stake in Chevron’s massive Wheatstone Project.

COURTNEy PEARSON

“We have built a tremendous resource base with the

potential to have organic growth for the years ahead.”

According to Chevron the Wheatstone Project is about 40 per cent complete.

52 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

COMPANIES GEARING UP

LONG-established UK filter and strainer specialist Barton Firtop Engineering Company has a significant presence in the Australian resources sector.

In 2010 Barton Firtop was awarded the strainer package for the Gorgon Project, which included the supply of T-type, Y-type, basket and conical strainers.

In 2012 it was awarded a multi-million dollar strainer package for the Ichthys LNG Project. Hundreds of different strainers were ordered for the project, with the largest strainers spanning 76 inches (DN1900mm). There were also T-type strainers in 316SS at ANSI Class 300 rating weighing in at 11,500kg each.

More recently, the company was awarded the T-type strainer package for the Wheatstone Project, which involved supplying equipment from 3 inches NB to 72 inches NB pipe sizes and pressure ratings up to ANSI Class 900.

Barton Firtop is heavily invested in research and development, incorporating 3D modelling, finite element analysis (FEA) and computational flow dynamics (CFD) to enable supply of complete design filtration solutions for its clients.

Operations director Kevin Troughton said the company catered for the whole range of filter and strainer equipment.

“We supply everything from small single standard units in stock up to

complex package supply containing hundreds of bespoke items to project specifications,” he said.

“Our equipment designs are really taking the strain in Australia’s major projects.”

Industry school offers accredited courses DELIVERING first-class training courses to the global oil and gas industry through online, computer-based and instructor-led training methods, the Well Control School Australia (WCSA) is a leading provider of International Association of Drilling Contractors (IADC) and International Well Control Forum (IWCF) accredited well control training.

WCSA now offers IADC and IWCF accredited well control training through the ERGT oil and gas training centre in Jandakot, near Perth.

WCSA will offer instructor-led and computer-based well control courses through its Australian training centre.

The IWCF rotary drilling well control curriculum, a five-day course, will be available for driller and supervisory levels three and four for surface or subsea.

Computer-based training courses for drilling, workover completion, coiled tubing, wireline and snubbing are offered for IADC certification.

WCSA is an affiliate of Well Control School (WCS), which was established in

1979 in New Orleans, Louisiana. WCS was one of the first commercial well control schools to offer IADC WellCAP

(Well Control Approved Provider) and IWCF certification courses.

These certifications are recognised

globally and serve as benchmarks in setting curriculum guidelines for well control training standards.

Through its agreement with ERGT, Well Control School Australia will offer instructor-led training, simulation exercises, and computer-based training labs in the ERGT oil and gas training centre in Jandakot, WA. Photo: Well Control School Australia

72 inch (1800mm) T-type strainer from Barton Firtop.

Taking the strain in Australian projects

MEETING compliance standards is a priority for any workplace, but when staff and the environment are at risk the stakes are particularly high. Storemasta specialises in the storage of dangerous goods, allowing business managers to rest assured their employees are in safe hands.

Recognising a need for practical compliance solutions, Storemasta recently launched a new feature-packed website that allows customers to conduct their own compliance audits to determine their safety standards and provide practical solutions for their work site.

As with Storemasta’s dangerous goods storage range, the website is Australian made and has exclusive features developed with the customer in mind.

Storemasta’s range of dangerous goods storage units are designed and manufactured in Australia to comply with all Australian safety standards. The range offers products to service industries across the Australasian region. Storemasta’s range of stainless steel storage equipment is designed specifically for tough, corrosive conditions where mild steel would prematurely age and become unsafe: such conditions can be found at offshore platforms, on board ships and at ports, marinas and salt mines.

High production, high turnover environments need reliable and long-lasting equipment to keep performing at their peak, and Storemasta’s stainless steel range has a proven industry performance record.

Storemasta offers on-site safety compliance reviews assessing various methods of dangerous goods storage. Individual business needs are then taken into account and recommendations are made for the most cost-effective solutions to ensure regulatory compliance.

Safe goods storage is non-negotiable

Support base home to reliable marine operator THE new state-of-the-art Onslow Marine Support Base, set to be complete in early 2015, will feature more than 16,000 square metres of sealed land and a 200m long hard-back wharf and will offer services including stevedoring, logistics management, marine services, laydown facilities, environmental wash areas, weed and seed, vessel berthage and dual landing craft tank (LCT) ramps.

The base has been designed to support mining and oil and gas operations in the area and serves as home port for Jetwave Marine Services (JWMS), which owns

and operates a variety of offshore utility vessels, LCTs, accommodation vessels, barges and port service vessels.

JWMS complies with environmental standard ISO 14001:2004, occupational health and safety standard OHSAS 18001:2007 and quality management standard ISO 9001:2008.

The company was founded in 2005 and has developed a strong reputation for being a reliable, customer-focused marine operator in Australia’s northwest.

Resource Engineering & Design (RED) also operates from the base, providing

a full range of onshore services for mining and oil and gas infrastructure. RED maintains a fleet of construction equipment to support its operations in the area, while also operating a light and heavy vehicle maintenance service and equipment and labour hire.

RED is a company with 10 years experience in the Pilbara working with a variety of clients including BHP Billiton, Rio Tinto, Woodside Petroleum, Mermaid Marine Australia, Coogee Chemicals, Fortescue Metals Group, Atlas Iron and Chevron.

http://www.cudd.com

54 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

COMPANIES GEARING UP

Dehumidification essential for safer work environment IN its provision of 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 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 Dehumidification Technologies’ equipment and services is available from the company’s website.

More than 75 years of electrifying performance

Nitrogen systems expert expands fleet

FOR more than 75 years, Mayfield Industries has delivered on its promise of quality and performance in its offering of transportable switchrooms, switchboards, motor control centres and other electrical products.

Delivering these to clients locally and overseas, in the industrial, processing, mining, infrastructure and oil and gas sectors, Mayfield has built an enviable reputation founded on its switchboard manufacturing capability.

Mayfield has more than 20 years’ experience in building custom-designed transportable switchrooms, control rooms and process skid assemblies capable of withstanding harsh Australian climate conditions and transport routes.

As a leading manufacturer, based in

modern facilities in Adelaide, it is able to offer turnkey transportable switchroom solutions incorporating heating, ventilation and air-conditioning; fire systems; gas suppression; medium and low voltage equipment; and networks, from concept through to design, engineering, fabrication, install, test and commission.

In addition to these capabilities, all switchrooms are manufactured to Australian standards and can be fully two-hour fire rated and comply with Category D cyclone rating.

Mayfield prides itself on having consolidated into one of Australia’s most recognisable brands in its chosen offerings through continuous improvement and innovation.

A productive 12 months for nitrogen generation systems designer and manufacturer On Site Gas Systems (OSGS) saw it build a fleet of highly mobile trailer-based nitrogen and tracer gas generators specifically designed for the Queensland CSG market.

The trailers are used for pipeline purging, general equipment and plant purging, and rapid leak detection.

The equipment can be towed by a standard ute and requires only a

connection of compressed air to generate the nitrogen required, as well as offering onboard air preparation and drying and full automation.

OSGS has seen great success with the portable systems. More than six systems were produced in the last six months and more are planned for the company’s rental fleet, ready for deployment to gas fields.

The systems are operating across Santos, QCG and AGL Energy sites in Queensland.

OSGS trailers come in a variety of capacities and are now capable of up to 1000 cubic feet per minute nitrogen at 95 per cent, though they are often required to run as high as 99 per cent.

The company also has larger containerised nitrogen generators in its rental fleet, which offer flows to 1200 cubic metres per hour at 95 per cent.

These containers have operated on Origin and QCG sites for various projects.

In addition to its rental fleet, OSGS

has also spent a busy six months building containerised nitrogen generators used in larger applications, such as plant shutdowns or transmission line purging.

The high pressure containers are capable of flows to 4000cfm at 95 per cent and have recently been used for major gas plant shutdowns in Karratha.

All equipment that OSGS offers to the Australian and Asian oil and gas industries is designed and built in Australia and is backed by local factory support.

Switchrooms designed and manufactured by Mayfield Industries are of the highest quality.

Efficient and cost-effective toolsMACHINERY expert Kennards Hire Lift & Shift has introduced a range of mechanical and hydraulic flange spreaders and pipe alignment tools to its Australia-wide branches.

This latest range of tools is suited to the oil and LNG industry, water treatment works and desalinisation plants as well as sewer and water mains installation, and public and private sector maintenance projects.

Kennards Hire Lift & Shift general manager Andrew Lambert said the tool range provided a simple, labour-saving and cost-effective solution for precise linear or rotational misalignment of fixed flanges.

“These specialised tools are not normally available from the hire industry,” Mr Lambert said.

“Several of our specialist branches in Queensland and WA had received

enquiries regarding flange spreaders and pipe alignment tools, which led to incorporating them into our growing product portfolio.”

Kennards Hire Lift & Shift’s flange alignment tools and spreaders were designed to be easy to set-up and use, and are stored in a robust yet lightweight case.

These tools add to site safety by negating risks associated with traditional practices to align pipeline flanges such as pry-bars, pulleys, hammers and crowbars, which have a propensity to slip and potentially cause serious injury.

Flange spreaders and aligners are the preferred tool for medium to large high pressure flanges. The range available from Kennards Hire Lift & Shift is manufactured from the highest quality materials and utilise innovative design technology.

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COMPANIES GEARING UP

Hydraulic expert releases safety-focused pump LEADING UK hydraulic tools manufacturer Hi-Force recently launched a new range of hydraulic torque wrench pumps to the global market.

The TPA and TPE range of air and electric driven pumps complement Hi-Force’s existing range of bolting products, which provide effective and safe bolting solutions to a wide variety of industries.

Created by Hi-Force’s research, development and design team based at the manufacturing facility in Daventry, the pumps have a high speed three-stage design which provides a faster flow at mid-range pressure.

The multi outlet four-way design allows for four hydraulic torque wrenches to be used simultaneously, providing an even compression of the critical leak sealing gasket on flange joint connections.

Both the TPA and TPE range are

compatible for use with the TWS-N square drive and TWH-N low profile female hexagon design Hi-Force hydraulic tool wrenches.

An automatically activated oil cooling heat exchanger, fitted on all electric models, cools the pump and the hydraulic fluid while the TPA air-operated models incorporate an exhaust radiator which helps keep oil temperature under control during high usage operations.

For ease of use and safety, the pumps incorporate a 5m pendant cable allowing for a considerable and safe distance between itself and the bolting application.

The leading-edge range of torque wrench pumps provides consistent and reliable hydraulic power; can withstand harsh environments, and has a 7L capacity lightweight aluminium reservoir making it one of the lightest torque wrench pumps available in the market.

The new range of TPA air driven torque wrench pumps manufactured by Hi-Force are safe and easy to use.

DRY gas seals are usually utilised as shaft seals in turbo machinery and work with pressurised sealing gas that is continually adjusted to maintain a higher pressure than inside the machine, effectively preventing leakage.

Seals in turbo machines are very complex systems and extremely sensitive to contamination, which is why the seal gases must be carefully filtered.

Hydac International has developed a range of changeover duplex coalescing filters in stainless steel: the GCF gas filters.

All the filter components are made of stainless steel machine parts without weld connections and comply with API 614-5 requirements, and for safety reasons all seals on the filters are double seals.

Hydac offers two standard versions of the GCF gas filters: a simple coalesce version, preferably used with dry gases;

and a coalescer version with the patented integrated cyclone pre-separator for applications using wet gases.

The modular design allows the retrofitting of a cyclone pre-separator to an existing standard filter simply by replacing individual filter housing parts.

Gas filtration occurs via the left or right-hand filter housing, and there is no interruption of filtration during changeover of the duplex filter. To achieve this, the adjacent filter housing is pressurised via a pressure equalisation valve.

Once the pressure has equalised the filter can be switched over using the new ball, duplex changeover valve, specially developed by Hydac.

To develop these filters, as well as its other filtration products, Hydac utilised computer-aided design and modern research and test laboratories.

Gas filters designed for complex systems

58 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

MARINE LIFTING

Experts provide right winch for the job WINCH requirements are as varied as their users and applications.

Australian winch manufacturer and distributor HES Winches is familiar with the full gamut.

Working to provide the best winch for the job, HES Winches ensures all safety and operations standards are adhered to, and that its winches meet

all requirements.With an extensive industry

background totalling more than 50 years, HES Winches’ engineers know the right questions to ask and the right standards to apply before supplying a customer.

They make sure their winches are the optimum to meet and even exceed customer expectations.

HES Winches has 50 years of experience supplying winches for any application.

http://www.fendercare.com

60 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

SCADA SySTEMS

THE oil and gas industry forms the backbone of today’s growing energy sector, as demand for these energy sources increases, so too does exploration for untapped resources in under-served parts of Australia and the world.

Terrestrial mobile coverage often doesn’t stretch into these areas, increasing the need for alternative, reliable and cost-effective communications.

Today’s modern satellite communication services offer a range of options specifically designed for SCADA and remote monitoring applications. These options bridge the gap by providing reliable, cost-effective satellite services using small, low-power, easy-to-install terminals that have been purpose built for the remote satellite M2M and SCADA market.

Australian satellite communications company Pivotel Group has been a leader in providing remote satellite monitoring and tracking services, with more than 50,000 low speed simplex and duplex satellite data services.

Pivotel recognised the increased communication needs of the Australian energy industry and launched a range of SCADA capable satellite data solutions that have been optimised for the Australian environment.

Operating in conjunction with Inmarsat, Pivotel has released SCADA connectivity solutions to support monitoring solutions for temperature, pressure, flow or video surveillance. As an example, the Inmarsat BGAN M2M system is simple to integrate and install, has a low power budget so it can operate from solar power and effectively

maintains IP connectivity at speeds of up to 448 kbps so the user has the bandwidth they need, when they need it.

Pivotel’s commitment to the satellite M2M and SCADA market is evidenced by its Australian carrier network, purpose-built for satellite voice and data services.

Pivotel is the only Australian carrier working directly with all four major mobile satellite operators – Inmarsat, Iridium, Globalstar and Thuraya. Pivotel’s range of satellite data solutions offer cost effective, secure and reliable connections with the lowest possible latency.

Data security and network reliability

are of paramount importance to users of SCADA systems, and with network interconnect points in Brisbane, Sydney, Melbourne, Adelaide and Perth, Pivotel customers can connect securely in more places with lower costs – bypassing the public internet and eliminating the risk of cyber-attacks on the system.

Providing extensive coverage to the sector

http://www.pivotel.com.au

62 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

INSTRUMENTS & INSTRUMENTATION

CONFINED spaces, heights and space restrictions pose a challenge when it comes to gas detection. Accessibility to some areas can make the otherwise simple process a daunting task.

The cost of maintenance can be high, depending on the need for temporary or permanent scaffolding, ex-approved scissor lifts or cherry pickers, on top of added risk. There could be significant savings to costs, time and permits if solutions were available without the need for regular direct access to the gas detectors.

Air movement makes it challenging to reliably test or calibrate detectors due to the dilution of calibration gases. Some detectors require high concentration (above 100 per cent LEL) at higher flow rates for testing gas detectors remotely, which adds to higher costs of calibration gases.

Additionally, there are applications in existing plants where local warning alarms or shut-down and switch-on/off processes require additional cabling. This could be avoided with the use of inbuilt relays, and could also be used in functional safety applications of SIL2.

Dräger provides an answer to these challenges in remote display, remote sensor, remote calibration using flow-cell, built-in relays, SS316 steel or aluminium enclosures, exd or exe enclosures/installation and duct mounting kits.

The Dräger Polytron 8700 (hydrocarbon)

and Polytron 8000 (toxic and oxygen) gas detectors are SIL2 certified as per IEC61508. Features include backlight display with three status LEDs (healthy, alarm and fault) and cross calibration with any hydrocarbon gas for Polytron 8700. The detector also features analog

output (0 – 20mA) milliAmp generator and concentration output ( 0 – 100 per cent LEL) for testing and configuring of I/O’s in PLCs.

From a pioneer in gas detection to today’s innovations in flame detection, Dräger’s wide variety of detection

solutions will exceed whichever safety needs are required. The company’s products are designed to provide quick, accurate and reliable detection in a variety of configurations, all of which can be smoothly integrated into existing systems.

EDUCATION and training is of utmost importance in today’s oil and gas industry. It is forever evolving and companies must stay up-to-date with the latest in technological advancements and keep staff in the know.

For more than a decade, Bestech Australia has helped people in the industry do just that.

The company specialises in state-of-the-art instrumentation and teaching equipment from world-leading manufacturers and delivers quality customer service to clients.

Bestech Australia has a wide range of oil and gas technical training and teaching equipment available – its Hampden Engineering range is particularly popular within the sector.

Customers can also choose from a wide range of calibration and measurement sensors that measure physical parameters such as load, force, torque, flow, level, pressure and temperature.

Bestech’s instrumentation equipment has proven invaluable to the teaching process. Its equipment is used to demonstrate the principles of measurement, calibration and control of process variables. Models include the Hampden Model H-6458 instrumentation and calibration console and the H-IPPT-3.

The H-6458 can be installed on a trainer and utilised post calibration on a real application. It enables the demonstration of the principles of calibration and measurement of process instrumentation.

The H-IPPT-3 comprises two sections and contains all control equipment, remote control interface and a complete tri-coloured graphic representation of the pilot plant – which allows students to actually see the process in action.

Bestech Australia prides itself on having quality education and training equipment available to meet clients’ needs.

New facility proves clients are top priority CUSTOMER-focused HK Calibrations is now offering clients the opportunity to purchase test and measurement instruments, inclusive of a calibration certificate, directly from its new e-commerce website.

HK Calibrations can deliver most instrument requirements within a 48 hour turnaround period.

Customer satisfaction is the company’s number one priority. It offers expert instrument calibration and repair services for all instrument types, including test and measurement process instruments, from its new facilities in the Perth suburb of Bibra Lake.

The new facility represents a single, centralised point of contact for the company’s WA customers, who can now have instruments calibrated in one place rather than having them sent to the eastern states.

Along with promoting the WA economy, the enhanced Bibra Lake facility has helped HK Calibrations maintain 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; and occupational health and safety.

All work performed by HK Calibrations conforms to ISO/IEC 17025 – 2005 standards. HK Calibrations’ business management system is maintained to SAI Global ISO 9001:2000 standards; an added assurance that the company is focused on delivering the best level of quality service every time it performs an instrument calibration.

HK Calibrations’ new e-commerce website is an easy way for clients to purchase test and measurement instruments.

The Dräger Polytron 8700 fixed gas detection system is popular among the oil and gas industry.

Remote fixed gas detection made easy

Education key to leading edge

63NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEWwww.miningoilgas.com.au

PATENT ATTORNEyS

AS oil and gas fields become more remote and harder to access, companies are becoming much more innovative, leading to a boom in patent filings for new technologies.

Infringing intellectual property (IP) is expensive and can be avoided by evaluating a company’s freedom to operate.

With the substantive shift in the attitudes of resources companies to protect valuable IP – instead of treating it as an unnecessary precaution or drain on financial resources – Wrays assists companies with shielding their technology and developing proactive IP strategies for competitive edge.

Even if the IP strategy of a company does not include filing patents, seeking advice to avoid infringing third party patents when implementing new technology is standard risk mitigation.

Wrays’ experts provide ‘freedom to operate’ opinions, identifying patents

and pending patent applications that could interfere in the commercialisation of a technology, or which that technology might infringe, as well as patent due diligence to reduce risk when acquiring or licensing new technology.

“We filed patents to protect a prominent Australian oil and gas company’s technology for a method of producing natural gas hydrate,” Wrays principal Dr Brendan Peachey said.

“This technology was at the time critical to its definition of itself as a gas company.”

Wrays is a multidisciplinary, national IP practice encompassing patent attorney services, IP law, commercialisation, strategy and brand, research and culture services.

The company now operates from the Gold Coast and Sunshine Coast in addition to its offices in Perth, Adelaide, Sydney and Brisbane.

Wrays principal Dr Brendan Peachey said the company helps oil and gas companies to patent their innovative technology.

Intellectual property filings rise

Showing support for software patentsKNOWLEDGE, experience and drive are qualities that underpin Brisbane-based patent attorneys IP Strategies International.

Founder and principal Kevin Ashby worked in the resources sector for many years until drawn into the legal realm. He said the majority of enquiries IP Strategies International received these days pertained to patenting an ‘app’ for a smartphone or tablet.

“Australian patent law, as currently

interpreted, does not allow this,” Mr Ashby said.

“Many apps involve programming a smartphone to automate a process that would previously have involved filling out a form.

“The Australian Patent office is resisting these applications. It is not alone, as software patents have traditionally been excluded – either expressly or impliedly – by the patent laws of most countries.”

Mr Ashby said to overcome this, patent attorneys often define ‘app’ inventions in terms of their function, as tools for achieving a desired result by following a new method, or as part of a functional system comprising various items of typical hardware.

“Australian software patenting law is murky, largely as a result of two conflicting Federal Court decisions that deal with computer-implemented inventions.”

Mr Ashby said an upcoming appeal should reduce uncertainty, but until then the patent attorney advising on patenting a computer-implement-ed invention would emphasise the importance of explaining how or why a computer device was unexpectedly required for the working of an invention.

“This demonstrates inventiveness – a key legal requirement for a valid patent,” he said.

64 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

SPLURGE

Splurge Take the home gym to the next level with these high-tech

fitness innovations.

Like a pair of roller blades with springs instead of wheels, Kangoo Jumps Boots are no ordinary shoes. By incorporating these boots into a regular regime, walkers and runners can add some extra fun to their fitness.

The spring base provides a great cardiovascular workout that is ideal for toning the legs, buttocks and abdominals, and is kind on joints as it

absorbs impact. The boots should fit like snug roller

blades, and are durable enough for both indoor and outdoor use, without damaging surfaces or the boots themselves.

Kangoo Jumps Boots retail at around US$250 and come in a range of sizes and colours.

Visit the official website for pricing and stockist details.

Combining the endurance of a treadmill with the adventure of rock climbing, the Treadwall provides a fun workout in the comfort and convenience of home.

The machine’s rotating walls incorporate Natural Pace Technology, so climbers can set their own speed and choose the rate and angle of ascent with a simple adjustment.

The Treadwall is compact and freestanding – designed to incorporate the capabilities of a climbing wall into a limited space. It is 6ft wide and either 10ft or 11ft high, with no installation required. Climbers can engage in upwards and side-to-side movement, providing a great overall arm workout.

The Treadwall is available from Motion Fitness for US$10,975.

With summer fast approaching, gyms are experiencing their busiest time of year and the wait for equipment can be frustrating. Why not avoid the queues and embrace the warmer weather by transforming a home pool into a gymnasium.

The Aquabilt A-2000 Swimming Pool Treadmill provides an overall cardio workout with minimal impact – all while

keeping cool in the pool. The treadmill’s weight keeps it

grounded during the workout and a removable handrail gives extra peace of mind.

It is safe for all fitness levels and ensures a calorie-burning experience.

The Aquabilt retails at US$1295. Visit the company website for more

details.

Designed by runners, the revolutionary ElliptiGO allows an old gym favourite to go outdoors.

Resembling a standard bicycle without the seat, the ElliptiGo has the long, flat pedals of a cross trainer and combines the benefits of running, cycling and elliptical training.

Originally created as a low-impact, high-performance alternative for injured runners, the ElliptiGo recreates the feeling of running outdoors, without the intensity of pounding the pavement.

The ElliptiGO is ideal for people of

all ages and heights, and up to 114kg, to build cardiovascular fitness without aggravating injuries.

There are four models available with varying degrees of resistance, accommodating all fitness levels.

It comes in four different colours – green, black, red and black, and white – with a number of accessories available.

A foldable steering column allows for compact transport and storage.

Visit the ElliptiGO Australia & New Zealand website for details.

Off the wall Cross cycle

Walk in water Hop, skip and jump

EMMA BROWN

65NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEWwww.miningoilgas.com.au

ESCAPES

BETTER experienced than described, Amsterdam is a city of many personalities.

Despite being renowned as one of Europe’s wildest cities, there is a lot more to Amsterdam than just the parties.

At once a hotbed of Dutch culture and night-time activities, the country’s capital mixes the old with the new and the slightly kooky.

Amsterdam is truly its most beautiful when the sun hits the canals and everyone wakes to the smells of fresh coffee and frites.

The city is rife with juxtaposition: while one shop sells flowers, the neighbouring ‘coffee shop’ sells plants of another variety.

Amsterdam’s liberal and artistic nature attracts a range of interesting characters; from professionals to painters, there is something for everyone.

Its exciting culture provides a feeling that anything could happen in the winding streets.

A good introduction to one of the world’s most interesting cities is to stroll through its canal-lined streets, and take in the seventeenth century buildings dotted with sculptures and art.

Dam Square – considered the centre of Amsterdam’s medieval roots – is an excellent starting point; surrounded by the interesting Nieumarkt and Spui districts.

From the centre of town, travellers have endless options to explore, including Leidseplein for the nightlife, De Wallen for the Red Light District, Grachtengordel for the Anne Frank House and the posh Museumplein for various museums and art galleries.

Red Light District Perhaps the biggest, and most notorious,

drawcard for travellers is the Red Light District – world-famous for all kinds of reasons.

It is the city’s centre for all things sordid and is unlike any other place in the world.

A walk down any of the alleys will reveal glowing red windows, adult shops and any number of eye-opening sights. Although the district’s seedy stereotypes are still true to a degree, the area has largely cleaned up its act to provide a lively and unique night life.

MuseumsDuring the day the canal ring, Grachtengordel, boasts the Anne Frank House – one of Amsterdam’s most popular attractions.

The house was where the Franks hid from the Nazis in World War Two to escape persecution – as chronicled in Anne’s famous journal, The Diary of a Young Girl.

The museum is widely popular and receives more than 1 million tourists per year. The queue is often long, but the wait is worth it. Ambling through the tiny rooms and endless narrow staircases, visitors can gain an understanding of what life would have been like for the family.

For those in the mood for more museums, a trip to Museumplein is the best option.

Last year, the Rijksmuseum was the most visited museum in the Netherlands – and rightly so, with about 8000 artefacts on display from between 1200 AD and 2000 AD, including pieces by Rembrandt, Frans Hals and Johannes Vermeer.

The Van Gogh Museum is another fantastic space, containing hundreds of pieces by the post-impressionist painter, as well as Gauguin, Monet and Toulouse-Lautrec.

OutdoorsFor something a bit more relaxing, a ride through the canals offers another perspective of Amsterdam.

Gazing up at the stunning architecture and natural beauty, with the sun shining and a glass of wine in-hand, is an experience every traveller should have

while in the Netherlands’ capital. The city’s beloved Vondelpark has a

number of cafes and restaurants and is also home to an open-air theatre, a bike and skate rental store, and rose garden. The park attracts visitors from all walks of life and has a lively atmosphere: some relax and read a book while others sit with friends and enjoy wine and songs.

Alternatively, hire a bike and take a trip to the floating flower market to see why the Netherlands is famous for its blooms.

Things to knowThe best way to get to Amsterdam is through Schiphol airport, one of the

busiest airports in the world, followed by a train to Amsterdam Central Station.

With a good pair of walking shoes it’s possible to walk through the city’s various districts, but the tram is the quickest way to get around – particularly from the city centre to Leidseplein.

Visiting in January and February can be a little uncomfortable with temperatures varying between minus 1 degree Celsius and 5 degrees Celsius. April to September is the best time to visit due to its milder temperatures and longer days.

A large number of airlines fly from Australia to Amsterdam, which takes about 20 hours.

Escapes: Amsterdam

The Dutch capital is renowned for its beauty.Taking a canal ride is a relaxing way to see the city from a different perspective.

Amsterdam’s Red Light Distr ict is a must-see . Amsterdam’s liberal and artistic nature attracts a range of interesting

characters; from professionals to painters, there is

something for everyone.

COURTNEy PEARSON

66 NOVEMBER 2014THE AUST�LIAN OIL & GAS REVIEW www.miningoilgas.com.au

A DAy IN THE LIFE

A day in the life Linc Energy Adelaide SAPEX exploration geologist Ryan Roch tells Courtney Pearson why

he loves his job.

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

Q. What does your role involve?

A. Linc Energy has commenced operations to drill three exploration wells in the Arckaringa Basin in South Australia. My role revolves around supplying the government with the relevant information they require, along with designing geological sampling and testing analysis programs.

Q. Describe a typical work day.

A. No two days at work are ever the same. It also varies depending on whether or not I am in the office or in the field. In the office I can be working on government documentation and organising field-based contractors. When I am in the field my day will usually involve getting up much earlier and driving to different sites for reconnaissance or to complete environmental assessments or native title clearances. If a rig is on site and we are drilling, my day may solely be spent at the one well site inspecting rock samples.

Q. Why did you want to work in the oil and gas industry?

A. To a degree I fell into the oil and gas industry. I finished university at the end of 2008 when the job market wasn’t as strong as it once was. I was offered the role of field technician on coal seam gas rigs on a Thursday and by the Monday I had moved to site in Newcastle. I just worked my way up to my current role from there.

Q. Where has your job taken you?

A. I have worked in remote parts of South Australia, New South Wales and Queensland.

Q. How does your job challenge you?

A. As I said before, no two days are the same and there are regularly new challenges to overcome. This current Linc Energy exploration

program is looking at the deeper, more prospective parts of the Arckaringa Basin which have never been tested. I anticipate that there will be very long days on site collecting data that will be critical to understanding the basin and determining the next phase of development.

Q. What has been the most

satisfying part of your career so far?

A. The most satisfying part of my career is completing any exploration program. After an exploration program there is still work to be done in regards to interpreting the data but there is a good sense of achievement when the field part of the program is complete.

Q. What qualities does someone need to be an exploration geologist?

A. To be an exploration geologist you need to be able to adapt to different working environments and also be comfortable with working away from home for extended periods of time. I am also pretty punctual and, while this isn’t necessarily essential to being a geologist, I do think it is an important quality.

Q. What makes exploration geology different to other streams?

A. Typically exploration geologists are involved in the exploration phase of projects, so we help to plan technical aspects of the exploratory program, and we also analyse and record samples throughout, to adhere to environmental regulations and ultimately help determine how best to extract a resource.

Q. What are you working on at the moment?

A. I am currently working on a three-well drilling program targeting an unconventional resource in the deepest part of the Arckaringa Basin. My role is focused on ensuring the appropriate sampling and analysis is completed throughout the program.

Q. What do you see in the future for Australia's shale energy sector?

A. There is an enormous potential for shale oil in South Australia, particularly in the Arckaringa Basin where Linc Energy holds 16 million contiguous acres across seven petroleum exploration licences and two petroleum exploration licence applications. Independent analyst reports have suggested a prospective shale oil resource that could have the potential to change the face of the Australian energy sector. Linc Energy’s Ryan Koch enjoys the diversity of his role as an exploration geologist.

Linc Energy is exploring South Australia’s Arckaringa Basin for shale oil.

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