Taskforce to identify petroleum prospects

Business Asia, July 6, 1998

A dedicated taskforce has been set up in Darwin to fully exploit the potential economic benefits of offshore petroleum activity in the Timor Sea.

A government initiative, the Northern Territory Oil and Gas Task Force is designed to identify and promote business opportunities.

Its establishment fits in with Darwin's plan to become a hub of the Asia-Pacific petroleum and mining sector.

Offshore activity in the Timor Sea and the mining industry in eastern Indonesia and South East Asia are the prime targets of this strategy.

A 1500km natural gas pipeline from central Australia's Amadeus Basin to Darwin's Channel Island power station is Australia's longest gas pipeline, providing an energy spine for distribution of gas throughout the Territory.

The NT controls some of Australia's most important energy resources.

Oil has been produced since 1986 from floating production facilities in the Timor Sea.

Oil and gas fields are currently being discovered off the Northern Territory coast at unprecedented rates. Fifteen discoveries over the past four years, with a phenomenal success rate of around 30 per cent, including the world-class Bayu-Undan, Laminaria-Corallina and Cornea fields, have attracted the oil industry's attention.

Two concepts are being considered for LNG production -- onshore LNG production in Darwin, or offshore gravity-based platform production. Both are estimated to entail expenditure of about A$2.25 billion.

In addition, Northern Territory Chief Minister Mr Shane Stone and Western Australia's Premier Mr Richard Court have held joint discussions with China about the supply of LNG for electricity generation in China's coastal provinces.

The surge in oil and gas activity in the Timor Sea is also creating a demand for operational labour, supplies and a wide range of industrial services.

The development of an offshore supply base by an international consortium, including the local OilNet group, has been announced, and will be located adjacent to Darwin's new A$90 million (Stage 1) East Arm Port. The new port is scheduled to open later this year.