Petroleum

The Department of Regional Development, Primary Industry, Fisheries and Resources administers petroleum exploration and production activities within the Northern Territory.

The Department also administers petroleum exploration and production activities in Commonwealth waters adjacent to the NT and in the Territory of Ashmore and Cartier Islands offshore area on behalf of the Commonwealth of Australia.

Recent Highlights

1. The Chief Minister, The Honourable Paul Henderson MLA, and the INPEX President, Mr Naoki Kuroda, signed a Project Development Agreement on 18 July 2008 for onshore facilities to process gas from the Ichthys gas/condensate field to produce 8.4 Mtpa of LNG, 1.6 Mtpa of LPG and 15 000 bbl per day of condensate. The Project Development Agreement provides for sufficient land to eventually accommodate up to six LNG trains. A Final Investment Decision for the first two trains, worth over A$12 billion, is expected in early 2010, with the first LNG production in late 2014/early 2015.
    
2. There has been significant progression of the Blacktip Natural Gas Project, including the completion of the onshore gas pipeline between Wadeye and the existing Amadeus Basin to Darwin Gas Pipeline. The revised timeline for first gas was moved back from January 2009 to mid-2009.
    
3. A fifth Floating Production and Storage Offloading vessel (FPSO) is expected to commence production soon over the Swift/Swallow/Skua and Montara projects within Production Licences AC/L7 and AC/L8 in the Ashmore and Cartier Islands Offshore Area.
    
4. A sixth FPSO is under consideration by Nexus for the Crux condensate extraction project for possible commissioning by 2010. The Crux project is within production licence AC/L9 in the Ashmore and Cartier Islands Offshore Area.
    
5. A significant condensate-rich gas column (about 200 m) was intersected in Libra-1 by Shell in AC/P41.
    
6. Extensive exploration and drilling programs were undertaken:
   1. Fourteen offshore exploration wells were spudded in 2008 at an estimated total cost of A$555 million, compared to eight exploration wells in the previous year at a total cost of A$334 million.
   2. Three geophysical surveys were conducted in 2008, compared to seventeen surveys in 2007.
       
7. Four exploration permits were awarded in the Ashmore and Cartier Islands Offshore Area.
    
8. Three exploration permits were awarded in the Principal Northern Territory Offshore Area.
    
9. One new exploration permit was granted over onshore areas.
    
10. The Territory maintained a high profile at the annual Australian Petroleum Production and Exploration Association (APPEA) Conference 2008 and the South East Asia Australia Offshore Conference (SEAAOC) 2008.
     
11. The Darwin LNG plant exported 3.067 million tonnes of LNG in 48 cargoes.