australia - aacc texas · australia petroleum 2020 • tom bernecker director, energy resources...

Australia:A federal perspective on current and emerging oil & gas opportunities

Tom Bernecker, Australian Government, Geoscience Australia

[email protected]

AUSTRALIA PETROLEUM 2020

• Tom Bernecker

Director, Energy Resources Advice and Promotion

Geoscience Australia, Canberra, ACT

• Jeff Haworth

Deputy Director General, Resource and Environmental Regulation

Department of Mines, Industry Regulation and Safety, Perth, WA

• Elinor Alexander

Director, Geoscience and Exploration

Department of Energy and Mining, Adelaide, SA

• Dorothy Close

Director, Regional Geoscience

Northern Territory Geological Survey, Darwin, NT

© Commonwealth of Australia (Geoscience Australia) 2020 Austrade/AACC Business Seminar, February 2020 2

2019 highlights: LNG

© Commonwealth of Australia (Geoscience Australia) 2020

• Ichthys (INPEX-operated) designed to

produce 8,9 MMt of LNG, 1.6 MMt of

LPG per annum. Approx. 40 years

lifespan

• Prelude (Shell-operated) expected to

deliver 3.6 MMt of LNG, 1.3 MMt of

condensate, 0.4 MMt tons of LPG per

annum

• Gorgon LNG (Chevron-operated)

produced 15.6 MMt of LNG in 2019

and commenced CO2-sequestration on

Barrow Island, designed to capture

and store up to 4 MMt of CO2 annually

Austrade/AACC Business Seminar, February 2020 3

LNG projects

• Existing projects produced 77.5

MMt of LNG in 2019

• Considerations to bring Browse

LNG on line by 2026

• Brecknock, Torosa and

Calliance fields estimated to

hold a combined resource of

14 Tcf of dry gas and

390 MMbbl of condensate

• Wide-ranging opportunities to

explore for additional gas

resources in onshore and

offshore basins

• Unconventional shale gas

resources about to be unlocked


0

20

40

60

80

100

Million tonnes

Australia’s position in the global LNG trade

Global LNG import forecasts

2018 2021

Japan South

Korea

China Emerging

Asia(excl. China)

Europe Rest of

World


0

50

100

150

200

250

300

350

400

450

500

2014 2015 2016 2017 2018 2019 2020 2021

Million tonnes

SE-Asia

Global LNG supply capacity

Africa

Middle East Rest of the world

N-America

Australia


Supply shortfallAdequate

supply

2024

Domestic gas supply and demand (2019 – 2038)

AEMO Gas Statement of Opportunities, March 2019

Projected eastern and

SE- Australia gas

production (export LNG and domestic)

supply from existing

projects and committed

developments


AEMO Gas Statement of Opportunities, March 2019

Supply shortfallAdequate supply

2030

Projected eastern and

SE- Australia gas

production (export LNG and domestic)

supply from all available

resources (including uncertain and

developed projects)

Domestic gas supply and demand (2019 – 2038)



Vulcan Sub-basin (Bonaparte Basin):

• Gas discovery, Orchid-1, PTTEP

• Gas/ condensate discovery, Bratwurst-1, Shell

• AC/P66 awarded to INPEX

Bedout Sub-basin (Roebuck Basin):

• Dorado-2 appraisal (Santos/Carnarvon Petroleum)

confirms new oil province

• Dorado-3 confirms producibility of Lower Triassic

reservoirs

• Largest Australian offshore hydrocarbon discovery

(oil, condensate, free natural gas) this century


2019 Highlights: offshore exploration and discoveries


Vulcan Sub-basin (Bonaparte Basin):

• Gas discovery, Orchid-1, PTTEP

• Gas/ condensate discovery, Bratwurst-1, Shell

• AC/P66 awarded to INPEX

Bedout Sub-basin (Roebuck Basin):

• Dorado-2 appraisal (Santos/Carnarvon Petroleum)

confirms new oil province

• Dorado-3 confirms producibility of Lower Triassic

reservoirs

• Largest Australian offshore hydrocarbon discovery

(oil, condensate, free natural gas) this century



Resource estimates from ERC Equipoise Pty Ltd



Seven (7) bids received

Permit WA-541-P awarded

to Santos and BP

W18-5: three bids received

Permit WA-542-P awarded

to Equinor

• Strong industry interest in central

North West Shelf

• Lower Triassic new exploration

focus

• Questions about Permian source

rock contributions remain open

• Regional geological study by

Geoscience Australia provides

new insights in tectonic

framework and basin evolution




Bight Basin:

• Offshore regulator approved Equinor’s drilling

proposal (Stromlo-1)

• Drilling planned for summer season 2020/21

Otway Basin:

• Gas discovery, Annie-1, Cooper Energy

• ConocoPhillips farms into T49/P (3D Oil)

• New seismic surveys approved by regulator


• Deliver the most globally attractive and competitive

investment destination for resources projects

• Deliver new resources, industries and markets

• Invest in new technologies and approaches,

especially to deliver better environmental outcomes

• Create well paid, secure jobs

• Support communities to ensure they receive benefits

from the development of Australia’s resources.

Focus for the future:

Australia’s National Resources Statement


Domestic

gas supply

• Australian Domestic Gas Security Mechanism

– Purpose is to ensure sufficient gas supply to meet

Australia’s forecast needs

– Currently under review

Increasing

stakeholder

confidence

• Focus on consultation and transparency

• Environmental regulations amended to include:

– Publication of Environment Plans

– Public comment period for exploration Environment Plans

Policy priorities


Managing

maturing assets

• Reviewing Commonwealth decommissioning framework

• Options paper release in early 2020

• Review complete by late 2020

Safety

Review

• Reviewing offshore safety regime – OHS & process safety

• Draft policy framework release early 2020

• Review complete by mid 2020

Policy priorities


Offshore exploration activity 2012 -2018: a positive outlook?

Number of offshore exploration wells drilled Number of release areas

Number of release areas that received bids

Number of exploration permits granted

Total number of bids


0

5

10

15

20

25

30

35

40

45

50

2012 2013 2014 2015 2016 2017 2018


Existing TitleExploration

Open until

5 March 2020

Existing TitleProduction/Retention

• 64 areas open for work program bidding until

5 March 2020 (NW Shelf, Otway, Gippsland)

• Nominations for 2020 release closed

31 January 2020

• New offshore acreage to be released

in July 2020

• Comprehensive support documentation

provided by government

• Ready access to relevant open file

petroleum data.

2019 Acreage Release


Existing TitleExploration

Open until

5 March 2020

Existing TitleProduction/Retention

• 64 areas open for work program bidding until

5 March 2020 (NW Shelf, Otway, Gippsland)

• Nominations for 2020 release closed

31 January 2020

• New offshore acreage to be released

in July 2020

• Comprehensive support documentation

provided by government

• Ready access to relevant open file

petroleum data.

2019 Acreage Release


industry.gov.au/2019-acreage-release

www.ga.gov.au/petroleum

Feb 2019 • 2019 nominations closed

July 2019 • 2019 bidding opened

31 Jan 2020

• 2020 nominations close

5 Mar 2020

• 2019 bidding closes

April/May

2020• 2020 consultation occurs

July 2020• 2020 release and

bidding opens

Acreage release process

• Optimised process implemented for the

2019 acreage release

• Time period from nominations to permit

award cut down from approx. 3 years to 18-

20 months

• Extensive public consultation prior to

gazettal

• Nominations accepted all year round


Current geospatial understanding of

potential hydrogen production

regions in Australia:

• occurrence and availability of

hydrogen as a low emission energy

source

• description of different production

scenarios

• initial hydrogen resource estimates

Government initiatives: HydrogenSupporting a low emission economy


Government initiatives: HydrogenSupporting a low emission economy

Two main scenarios:

• Production utilising

electrolysis and renewable

energy

• Production utilising existing

gas and coal (gasification)

resources with carbon capture

and storage

(currently pursued as the most

feasible option for the

immediate future)


South Nicholson Basin:

• The ‘missing link’ between Mount Isa in

Queensland and the Beetaloo Sub Basin

in the Northern Territory

• Data will be processed and released in

the first half of 2020

• Current industry activity

• Amour Energy granted acreage in South

Nicholson 2011 and Santos joined in 2019

• Positive results from Kyalla 117 (Origin

Energy) in the Beetaloo Sub-basin

Government initiatives:“Exploring for the Future”: seismic surveysGA’s major pre-competitive program across northern Australia


“Exploring for the Future”:

source rock and fluids portal

delivering petroleum geochemical data online

https://nonprod.eftf.ga.gov.au/

• Delivery of oil, gas and source

rock geochemistry sample data

from boreholes and field sites

• Provision of online up-to-date

information on the bulk, molecular

and isotopic composition of

Australia’s oil and gas resources

• Data sets assist evaluations of

Australia’s oil and gas resource

potential by governments and

industry


Exploring For The Future:

source rock and fluids portal

Australia’s Energy Resources Assessment

• Comprehensive overview of all

energy commodities: oil, gas,

uranium, wind, solar, hydro,

geothermal, hydrogen, enabling

technologies

• Assessment of reserves and

contingent resources, based on

published data

• Collaboration between GA,

Department of Environment and

Energy, Australian Renewable

Energy Agency

• Target date: May 2020


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