Senex has 42 million more reasons to reach FID

Senex Managing Director Ian Davies

Senex Managing Director Ian Davies

Senex has inked a deal with the Santos’ GLNG joint venture, which is expected to help the company reach a final investment decision (FID) for its Western Surat Gas Project.

The agreement will see Senex receive $42 million in cash from the JV as well as subsurface, production and other technical data in exchange for its 77 sq km Maisey Block and a 20-year commitment to supply 50 TJ/day of gas sales from its Western Surat Gas Project to GLNG.

The deal also opens the possibility for Senex to utilise existing infrastructure within the GLNG Project.

The data will speed-up Senex’s FID ambitions for its own Western Surat Gas Project, a proposed gas field development over 990 sq km north of Roma and Wallumbilla in Queensland, according to a statement issued today.

Senex Managing Director Ian Davies said the deal with JV partners Santos, Total, PETRONAS and KOGAS was “natural” given the proximity to GLNG’s Roma fields, and will enable the company to reach FID sooner.

“These transactions will deliver significant value to Senex through enabling an accelerated monetisation of our material resource base,” he said.

Mr Davies expressed confidence in Senex’s Western Surat Gas Project, despite the low oil price and weaker Australian dollar.

“Even at current oil prices and exchange rates we expect the project to be economic, although there is further work to do to proceed to FID.”

Enter your details to subscribe to the free fortnightly Gas Today e-newsletter

Thank you for signing up for the Gas Today Online Update.