Otway
Gas Project approved
Posted: 20 May 2004
Joint venturers in the Woodside-operated Otway Gas Project have
approved development of the A$1.1 billion Thylacine and Geographe
gas fields off Victoria in southern Australia.
The project involves initial expenditure of A$810 million on the
Thylacine gas field in Tasmanian permit T/30P, about 70km south
of Port Campbell. Construction, which is expected to begin in October
2004, will involve a remotely operated platform, offshore and onshore
pipelines, and a new gas plant to be built near the Iona gas plant,
6km north of Port Campbell.
The Geographe field, 55km south of Port Campbell in Victorian permit
Vic/P43, will be connected to the main offshore pipeline in a later
development phase.
Over the Project’s life, the Thylacine and Geographe gas
fields are expected to supply 950 billion cubic feet of raw gas,
885 petajoules of sales gas, 12.2 million barrels of condensate
and 1.7 million tonnes of LPG at the Probable (including Proved)
level.
Woodside’s Gas and Commercial Business Unit Director, David
Maxwell, said the project demonstrated Woodside’s commitment
to establishing a significant gas business in eastern Australia.
“The Otway Gas Project will initially produce about 60 petajoules
of sales gas a year, which is equivalent to about 10 per cent of
south-eastern Australia’s current annual gas demand,”
Mr Maxwell said.
“With production scheduled to begin in mid-2006, the Otway
Gas Project will make a significant contribution to Woodside’s
overall production.”
State and Commonwealth Government environmental approvals have
been obtained and the joint venturers have received notices of intention
to grant production licences over the fields.
Technip Oceania Pty Ltd has been awarded two major contracts. These
are for the engineering, procurement, installation and construction
of the onshore gas processing plant and onshore pipeline, and the
offshore platform facilities.
The offshore pipelay and subsea tie-in contract has been awarded
to Allseas Construction Contractors S.A. The horizontal directional
drilling shore-crossing contract has been awarded to DrillTec Australia
Pty Ltd. The remaining major contract in the process of being awarded
is for the drilling of production wells. Other materials and service
contracts will also be awarded during the construction phase.
Woodside signed a gas sales agreement with TXU on 14 April 2004
for Woodside’s share of sales gas production, around 30 petajoules
a year for more than 10 years. Condensate from the project is expected
to be sold to an Australian refinery, while liquefied petroleum
gas is expected to be sold to distributors operating in Victoria.
2
Woodside holds a 51.55 per cent interest in the project. The other
joint venturers are Origin Energy Resources Limited (29.75 per cent),
Benaris International N.V. (12.7 per cent) and CalEnergy Gas (Australia)
Limited (6.0 per cent).
For more information see www.woodside.com.au
Posted by Richard Price,
Editor Pipeline Magazine
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