Petroleum exploration in South Australia Elinor Alexander Director Geology and Exploration Branch DSD Energy Resources Division Global Maintenance USG & SACOME Conference and Trade Expo,18 August 2016, Pt Pirie www.petroleum.statedevelopment.sa.gov.au
Setting the Scene SA Oil and gas production The long-term outlook remains very positive for SA’s minerals and petroleum sectors – SA has a rich mineral and petroleum resource endowment and long-life resources. Cooper Basin Flooding event SA offers a supportive investment framework, trusted regulation, infrastructure and easy access to data. Rystad Energy’s Global liquid petroleum cost curve US$/bbl Brent Crude oil prices ($/bbl) – BP 2015 Extra Heavy Oil 79 Weighted average 100 Ultra Onsh Oil Sands Deep break-even @ real Rest of Water 60% discount rate of 7.5% World confidence in 80 break-even 79 79 Onsh price for each Mid. 68 67 category East 65 62 63 60 59 59 North Producing fields Offsh Amer. Shelf 44 Shale 40 Deep A$25 to 35 = US$18 waterOnsh to 25 per bbl oil 29 Russia lifting cost range 20 Cooper Basin Non-producing fields Remaining resources in all categories as of 2015 0 0 200 400 600 800 1000 1200 Total remaining recoverable liquid resources (billions barrel) http://www.rystadenergy.com/AboutUs/NewsCenter/PressReleases/global-liquids-supply-cost-curve http://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy/oil/oil-prices.html
State of play in SA Cooper Basin Eromanga Oil: Basin • Western Cooper flank oil play Officer • New plays in Otway Basin Basin • Lightly explored frontier basins. Leigh Creek Huge potential for gas: • Ongoing Cooper production. Infill drilling, pin point fracs etc. • deep coal, tight gas, composite plays • coal gasification plays – e.g. Leigh Creek Bight • New plays, undrilled prospects in Cooper, Otway basins. Basin Offshore Bight Basin: • Prospective areas now under licence or application. • Commonwealth waters are regulated by NOPTA and NOPSEMA. SA part of the Joint Authority. • Opportunities for onshore developments and Otway Basin engagement with service and supply sector through ICN.
Cooper Basin Company news: 28 July - Beach - FY17 capital expenditure expected to be ~$180 – $200 million, ~2/3 directed to Western Flank oil and gas with drilling up to 16 exploration wells. 27 July Senex - FY17 capital expenditure ~$60 - $70 million, potential for more if sustained oil price recovery. At least 6 wells - western flank secondary recovery and Murta tight oil. Senex + Origin to spend $25-45 m on unconventional gas exploration – EPTs on 2 FY16 gas exploration wells + 1 high-impact gas exploration well (northern JV area) Q2 FY17. 15 July Strike announced all 4 Klebb wells on production. Santos indicate that 2017 planning is yet to be finalised. Discovery Energy - about to commence a 3D seismic survey in the Cooper region Petroleum tenements Petroleum pipeline Oil Exploration licence (PEL) Gas Exploration licence application (PELA) Gas and liquids Production licence (PPL) Discoveries 2002 – 2015 Oil Retention licence (PRL) Gas Resource play
COOPER BASIN PLAYS Oil Gas The Western Flank Significant has now been a potential for gas in source of many oil unconventional discoveries utilising reservoir plays, 3D seismic and infill drilling in generates high established fields margin cash flows and some parts of with a short pay the basin remain back period of < 1 only lightly year. explored
Leigh Creek – Telford Basin PEL 650 – granted to ARP TriEnergy (Leigh Creek Energy) Nov 2015. Exploration and evaluation program underway. Baseline environmental data (e.g. water and groundwater sampling and monitoring wells) will inform the Environmental Impact Report required under the Petroleum and Geothermal Energy Act 2000. “Leigh Creek Energy will need to pass rigorous environmental impact assessments overseen by expert scientists if this project is to go ahead. We have a very effective regulatory framework in South Australia and the merits of the Leigh Creek Energy project will be assessed against that framework…” Mineral Resources Minister Tom Koutsantonis MP (The Advertiser 29/4/2016)
ONSHORE PETROLEUM REGULATION LOCATION ON GROUND ENVIRONMENTAL SPECIFIC LICENCE ACTIVITY ASSESSMENT ACTIVITY GRANTED PROPOSED BY NOTIFICATION & (EIR, SEO) OPERATOR APPROVAL Environmental Impact Report – identify all risks to 12,500+ notices of entry for Licence applicant’s financial and the environment and how they will be managed. operations issued since technical capacity, 5 year work Government Consultation Public Consultation Environmental Impact Study September 2000 without a EIR provides basis for Statement of Environmental program (wells, seismic, surveys single person or entity Objectives which sets: etc.), Native title and land access. • environmental objectives, pursuing litigation • how objectives will be achieved, and • assessment criteria. WORLD CLASS REGULATION FOR THE PETROLEUM INDUSTRY 2015 Fraser Institute Global Petroleum Survey – 1 st in Oceania, 12 th in the world and topped the world for Fiscal Terms. In 2009, the Australian Productivity Commission identified SA’s lead agency or ‘one -stop- shop’ approach and straightforward regulatory framework as a benchmark that other Australian jurisdictions should follow. Source: DSD
OFFSHORE BIGHT BASIN Exploration offshore SA commenced 50 years ago. 24 wells drilled, ~150,000 km 2D & 45,000 sqkm 3D seismic acquired. Chevron, BP, Statoil, Murphy and Santos and Bight Petroleum have guaranteed to spend a total ~$1.2bn from 2011-2018, with 9 wells + acquisition of 40,620 sqkm 3D seismic. $1.1bn non-guaranteed exploration from 2018-2021 could include 10 wells +8970 sqkm 3D seismic - depending on initial exploration results. 150 km Commonwealth waters are regulated by NOPTA and NOPSEMA. SA is part of the Joint Authority – but has no day-to-day regulatory role. Copies of The facts about offshore oil and gas exploration in South Australia available here or via DSD website: http://petroleum.statedevelopment.sa.gov.au/latest_updates/the_facts_- _about_offshore_oil_and_gas_in_south_australia . 8
ROADMAP FOR OIL AND GAS IN SOUTH AUSTRALIA THE ROUNDTABLE FOR OIL AND GAS IN SA ROADMAP FOR UNCONVENTIONAL GAS PROJECTS IN SA Energy Resources Division formed the Roundtable for Oil and Gas Projects in SA in 2010. Published in 2012 to highlights opportunities to develop SA’s gas resources in a sustainable way. It is a Roundtable of industry; governments; peak bodies; aboriginal people; research institutions & a few individuals. Now >1000 members. 125 recommendations - 93 have been implemented or are underway. Working groups established to address: Work started on a new edition to be launched in 1. Regional training hub. late 2017. 2. Supply hubs, roads & airstrips. 3. Water use in Cooper-Eromanga. 4. Transport red tape reduction. 5. Green House Gas detection. 6. Supplier forum to boost local content. 7. Gaseous fuels for transport & heavy machinery. 8. Sharing Information. NEW MEMBERS ARE WELCOME: DSD.Petroleum@sa.gov.au 9
www.petroleum.statedevelopment.sa.gov.au
Recommend
More recommend
