origin targets nt gas market

This is old news to some but in this past week things have changed to MEOs favour in this area.

Eni managing director Ernie Delfos told the SEAAOC conference in darwin on Wednesday 11/9/03 that the onshore gas processing plant at yelcherr near Wadeye would now be available to third parties.

"We look forward to the expansion of the onshore gas market in the north he said.
Many producers are looking at shells floating LNG
technology as a cheaper alternative to expensive pipelines.
But mr Delfos said if it was commercially competitive to pipe the gas to Yelcherr, then companies would consider it. it gives people an option he said.

ConocoPhillips vice president commercial Mike Nazroo said they are also looking to third parties as potential feedstock providers for their Wickham point plant in Darwin.

Hopefully ConocoPhillips wont effect MEOs Tassie Shoals?


And Here's the Origin Article.

ORIGIN Energy has significantly expanded its offshore exploration interests off the coast of Darwin, investing in a drilling venture run by junior MEO Australia that it believes could help fill a growing gas shortage in the Northern Territory.


Under the deal announced on Monday, Origin will buy a 50 per cent stake in the WA-454-P permit by reimbursing 80 per cent of costs spent by MEO in the area to date, or $5.6 million.

It will also fund 80 per cent of the cost of drilling a new exploration well, capped at $35 million, and take over as operator of the venture, The Australian Financial Review reports.

The well will target the Breakwater prospect, which lies in the Bonaparte Basin, just to the south of the Petrel, Tern and Frigate fields to be tapped by Santos and partner GDF Suez for the Bonaparte floating LNG project.

It is also north-west of Eni's Blacktip gas field, the main gas supplier for the Northern Territory market, which is also set to supply Rio Tinto's alumina refinery at Gove in Arnhem Land.

MEO describes Breakwater as "an LNG-scale prospect with potential for significant liquids near discovered resources". It puts the potential resource as high as 2.7 trillion cubic feet of gas, with 87 million barrels of condensate if it holds gas only. However, Origin is understood to want to target the market within the NT if the drilling is successful.

A deal reached by Rio Tinto and the NT government in February for gas supply to Gove revealed a supply shortage expected to emerge next decade.

A Santos spokesman said the investment "is consistent with our strategy to explore for resources in regions that offer high prospectivity and access to growing demand".

MEO shares rose as much as 18 per cent early on Monday before closing up 6.6 per cent at 6.5¢.

The permit contains an existing gas discovery, Marina-1, made by ExxonMobil and Drillsearch Energy in 2007. MEO has carried out additional seismic work in the licence. Marina holds contingent resources of 98 billion cubic feet and 6.5 million barrels of oil and condensates.Well must be drilled by June 2016

MEO began seeking a partner for the exploration last October to help fund drilling required in its licence. The well has to be drilled by June 2016.


http://www.theland.com.au/news/agriculture/general/news/origin-targets-nt-gas-market/2665231.aspx