“With the first three LNG trains in Gladstone likely to be in operation by the September quarter and with the already intense upstream gas swap arrangements between the LNG producers on feed gas, Blue Energy’s acreage position in the Bowen, Maryborough and Surat basins is ideally located to take advantage of the massive gas demand developing in Gladstone,” Mr Phillips said in a statement on 29 January 2015.
AWE Managing Director Bruce Clement says the last six months have been positive for the upstream oil and gas exploration and production company, notwithstanding the “dramatic fall in global oil prices”.
“We have a portfolio of quality assets that provide good cash flow and valuable growth opportunities and the company remains focused on delivering value to shareholders,” Mr Clement says.
Eni Chief Executive Officer Claudio Descalzi says the multinational oil and gas company’s strategy is to work on exploration. On a local front, Eni has the capacity to expand the Blacktip Gas Plant, which is located 110 km off the northern coast of Australia in the Timor Sea’s Bonaparte Basin. The Blacktip field holds approximately 933 billion standard cubic feet of raw gas and 5.7 million barrels of condensate.
Mr Descalzi remains optimistic about the oil prices, low as they are, and says Eni can do well with oil at $US65 to $US70 per barrel.
“The range is still safe if you are in conventional assets. Oil prices will probably rebound by the end of this year and could reach $US70 to $US90 in a couple of years.”
Reflecting Wood Mackenzie’s predictions for 2015 (read our gas trends article on page 16), Mr Descalzi says once oil prices stabilise, there will be a “good window of one year” in which mergers and acquisitions may occur in the industry as gas companies take advantage of opportunities.
INPEX General Manager External Affairs and Joint Venture Bill Townsend says Australia remains an attractive area of investment and is expected to continue to play a central role in fulfilling INPEX’s ambitious global growth aspirations.
“The fall in oil prices will not directly affect the development of the Ichthys LNG Project. INPEX’s priority lies in continuing its development of the Ichthys LNG Project to achieve first production by the end of 2016, as scheduled,” Mr Townsend says.
WHAT THE ENERGY EXPERTS THINK