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Russian gas producer Gazprom announced on Sunday (7 May) that it has begun construction of the TurkStream pipeline’s offshore section.

The Allseas Group, contractor for both strings of the gas pipeline's offshore section, has started laying the pipes, using the Audacia vessel.

Construction works for the TurkStream gas pipeline in the deepwater area will be performed by the Pioneering Spirit pipe laying vessel.

“By late 2019, our Turkish and European consumers will have a new, reliable source of Russian gas imports,” Alexey Miller, chairman of Gazprom, said in a statement.

TurkStream is a transit-free export gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey's border with neighboring countries.

The first string of the gas pipeline is intended for Turkish consumers, while the second string will deliver gas to southern and southeastern Europe. Each string will have the throughput capacity of 15.75 Bcm of gas per year.

TurkStream’s offshore section will run over 900km from the Russkaya CS near Anapa across the Black Sea to the Turkish seaboard, with an onshore string for gas transit to be laid up to Turkey’s border with neighboring countries.

TurkStream history

In December 2014, Gazprom signed an agreement with Turkey’s Botas Petroleum Pipeline, to construct a gas pipeline running across the Black Sea toward Turkey.

Approximately two years later in September 2016, Gazprom received first permits for the TurkStream project from the Turkish authorities. This was quickly followed by an intergovernmental agreement signed between Russia and Turkey a month later in October 2016.

In December 2016, South Stream Transport, a wholly-owned subsidiary of Gazprom, and contractor Allseas signed the contract to build the first string of the TurkStream gas pipeline’s offshore section with an option for laying the second string.

Tuesday, 02 May 2017 20:07

Total online at Badamyar off Myanmar

France’s Total has started production from the Badamyar gas field, which is expected to enable an extension of the Yadana gas field’s 8 Bcm annual production plateau beyond 2020.

Located in the M5 block, offshore 220km south of Yangon in Myanmar, the Badamyar project was launched in mid-2014.

Arnaud Breuillac, president of exploration and production said the project was completed on schedule and with costs 20% below budget.

“This project underscores Total’s commitment to develop gas projects to provide Myanmar and Thailand with affordable, reliable and clean energy to support the countries’ economic growth over the coming years,” he said.

The Badamyar project involves the installation of a new wellhead platform connected to the Yadana production facilities, and the drilling of four horizontal wells to develop the Badamyar gas field as a satellite of Yadana. It also includes a new compression platform.

Total is the operator of the project with 31.2% interest. Its partners are Chevron-Unocal (28.3%), PTT Exploration and Production (25.5%) and Myanma Oil and Gas Enterprise (15%).

Present in Myanmar since 1992, Total E&P Myanmar is the operator of the offshore M5 and M6 blocks that cover the Yadana gas field, which has been in production since 1998.

Gas produced from both blocks currently supply half of all gas consumed by Myanmar and around 12% of gas consumed by neighboring Thailand.

Total is also actively pursuing exploration activities in Myanmar, particularly in deep offshore, and currently, holds significant interests in seven offshore blocks: Last January, a gas discovery was announced on the A6 block; appraisal drilling will be conducted in 2017.

Image: Total's facility offshore Myanmar / Total

Inpex announced that the Ichthys Explorer, the Inpex-operated Ichthys liquefied natural gas (LNG)  project’s central processing facility (CPF), sailed away from its construction site in Geoje, South Korea, en route to the Ichthys field offshore Western Australia.

The Ichthys Explorer will be towed to the Ichthys field over a period of approximately one and a half months, after which it is scheduled to undergo hook-up.

The facility will then separate and process the produce lifted from subsea production wells into gasses and liquids over 40 years of continuous operation.

The Ichthys Venturer, the project’s floating production, storage and offloading (FPSO) facility, is also scheduled to be towed to the Ichthys field and undergo hook-up.

Inpex and its partners will also continue to proceed with construction work on the onshore natural gas liquefaction plant outside of Darwin in the Northern Territory of Australia.

Following the arrival of the CPF and the FPSO, installation and commissioning work will be undertaken and production from the wellhead will commence.

Thereafter, the Ichthys LNG project will, during the current fiscal year begin production of condensate, LNG and liquefied petroleum gas (LPG) in sequence and then ship these products.

The Ichthys LNG is led by Inpex (62.245%) alongside major partner TOTAL (30%) and the Australian subsidiaries of CPC Corp (2.625%), Tokyo Gas (1.575%), Osaka Gas (1.2%), Kansai Electric (1.2%), JERA (0.735%) and Toho Gas (0.42%)

The project involves liquefying natural gas lifted from the Ichthys gas-condensate field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, and producing and shipping approximately 8.9 million tons of LNG and 1.6 million tons of LPG per year, along with around 100,000 bbl/d of condensate at peak. 

Image: Ichthys Explorer sail away / Inpex

Wednesday, 26 April 2017 23:11

Cooper Energy Q3 revenue jumps 144%

Cooper Energy’s sales revenue for the three months to 31 March 2017 was AU$14.9 million compared with $6.1 million in the previous quarter and $6.1 million in the March quarter of 2016.

Sales revenue for the nine months to 31 March 2017 was $26 million compared with $20.8 million in the previous corresponding period.

This increase, the ASX-listed company said, is due to the sales contributed from the Casino Henry gas assets from January 2017.

Cooper bought Santo’s 50% interest in the Casino-Henry gas project last October as part of a larger $82 million agreement to snap up the latter’s natural gas assets offshore Victoria.

Other assets acquired include 10% interest in the Minerva gas field and gas plant; 100% interest in the Patricia-Baleen gas field; and remaining 50% interest in the Sole gas field and the Orbost gas plant.

Cooper’s board approved the Sole gas project in March 2017. The group is now looking to raise $151 million in an equity raising to help develop the field in the Gippsland basin.

Gas produced from the Sole field will be piped to the Orbost Gas Plant from where the gas will be supplied to customers through the Eastern Gas Pipeline.

“The milestones completed for the Sole gas project have set the company on the path to its next phase of growth,” said Cooper managing director, David Maxwell. “We are now finalizing the debt finance that will complete the final investment decision for Sole in the current quarter.”

Commenting on Q3, Maxwell said the quarter ranks as the most eventful and significant for Cooper since its formation and first hydrocarbon discovery.

“We completed the transactions and tasks that reset the company as an exploration and production company focused solely on Australia and generating the majority of its income from gas. The results show the first benefits with revenue growth of 144%, and production growth of 575%, on the prior quarter,” he added.

During Q3, Cooper produced 0.43 MMboe up 282% from 0.11 MMboe in the previous corresponding period. Contribution from the Victorian gas assets was the principal feature of production results for the period.

Production of 2.14 PJ of gas and 1440 bbl of condensate from the Casino Henry and Minerva gas fields accounted for 85% of total production. Cooper basin oil production recorded higher production on a daily rate basis of 697 bo/d.

Completion of international withdrawal

To concentrate its resources on Australia and build a gas business focused on supply to southeast Australia, Cooper has been shedding international assets since last February - beginning with the sale of its Indonesian exploration permits to Mandala Energy for US$8.25 million.

Mandala is a Southeast Asia-focused upstream company backed by global investment firm Kohlberg Kravis Roberts. The agreement included 100% of the Sumbagsel and Merangin III production sharing contracts (PSCs) located in the South Sumatra basin.

In June 2016, the firm accepted Bass Strait Oil’s offer to buy its remaining Indonesian asset, a 55% interest in the producing Tangai-Sukananti KSO in the South Sumatra basin, for $ 5.7 million. Cooper is currently a 13.5% shareholder in Bass.

In Tunisia, Cooper elected not to participate in the renewal of interest in the Bargou permit in December 2016 and transferred its 30% stake to joint venture partner Dragon Oil. With the closure of operations in Tunisia, following the completion of the sale of all Indonesian assets in March 2017, Cooper officially ceased all international operations in Q3. 

Image: Orbost gas plant / Cooper