Australia Pacific LNG – CSG Production
Presented by Ross Evans
Group Manager, Exploration Appraisal & Development, QLD CSG
Qld Petroleum Exploration Association
11 February 2014
Origin is responsible for the upstream program for Australia
Pacific LNG, leveraging over 16 years of CSG production
experience …
2 |
Australia Pacific LNG tenure in the Surat and Bowen basins at 30 June 2012
… with Australia Pacific LNG having a dominant position in Queensland's premium CSG acreage
• Australia Pacific LNG is the only
company that has prime
acreage in both of the
Queensland CSG “sweet spots”
• Australia Pacific LNG Phase 1
targets those sweet spots for
initial development and ramp
up to first LNG
• Australia Pacific LNG has both
diversity and scale of resources
to better manage risks
associated with CSG
0
5,000
10,000
15,000
20,000
25,000
Reserves ContingentResources
EstimatedProject
Requirements
PJe
3P = 16,155
2P = 13,382
2C = 3,644
Ramp & tail Gas
T2 ~ 5,000
T1 ~ 5,000
Australia Pacific LNG’s reserves base continues to expand, with 3P
reserves of 16,155 PJe and an additional 3,644 PJe of 2C
contingent resources
3 |
while 2P reserves are more than sufficient to cover gas requirements for
all domestic contracts, as well as off-takes from both trains
• Large CSG reserves position
• Well developed resource base
Domestic Gas
~ 1,000 ORG Contract
~ 1,000
Australia Pacific LNG Reserves
and Resources
(1) Represents ramp and tail gas for two trains, volume will vary depending on operation strategy
QGC GSA
~ 640
1
Australia Pacific LNG permit
Conventional & CSG
Denison Trough fields
Permian CSG fields
Walloon CSG fields
Walloon Fairway
Permeability & net coal Sweet spot
Permian permeability Sweet spot
Permian Fairways
Regional Geology
Regional Seismic Section
4 |
5
Basement
Base mid Triassic
Base Jurassic
Key features • Major structural elements
• Major unconformities
• Coal measures sequences
Western Platform Moonie High
Bandanna/Tinowon/Baralaba
Reids Dome
Springbok
Present Day
Talinga
Hutton
Seis
mic
tra
vel
tim
e
Combabula Condabri
Undulla Nose Taroom Trough Balonne Nose
Walloon
Moolayember
Regional Geology
5 |
Tipton
6
Basement
Key features • Major structural elements
• Major unconformities
• Coal measures sequences
Base mid Triassic
Taroom Trough
Present Day
Fairview Spring Gully
Scotia Peat
Moonie High Western Platform Balonne Nose
Bandanna/Tinowon/Baralaba
To the north …
Surface
Deeper erosion of section
Reids Dome
Undulla Nose Seis
mic
tra
vel
tim
e
6 |
Spring Gully Coal Continuity
Spring Gully coal seams are continuous
over many 10’s or possibly 100’s of
kilometres
Walloons coal seams are thinner and the
packages which contain the seams vary in
thickness across the area
Walloon Coal Variability
Regional Geology - Depositional history creates key differences
7 |
The sweet spots demonstrate world-class reservoir
properties
What makes a good CSG producer
1. High net effective coal thickness
2. Laterally extensive coals
3. High gas content saturation
4. High permeability
5. Shallow depth (low cost to drill)
6. Low CO2 content
Source: Journal of Petroleum Technology & Australia Pacific
LNG data
8 |
TJ/day
2.5
2.0
1.5
0.5
1.0
Australia Pacific LNG has secured more prime CSG acreage...
• Successful Gazettal bid,
May 2013 grant date.
• Bolt-on acreage adjacent
to existing Condabri
(PL265, 266, 267)
development areas.
• 76km2 prime Undulla
nose acreage
• High likelihood of
reserves booking after
initial exploration
drilling.
...enabling high-value step-out development
9 |
Exploration and Appraisal is progressing as planned
Green – pilot wells online
Blue – E&A wells drilled
Operating pilots across Australia Pacific LNG
acreage in the Surat Basin and Northern Denison
Trough
Increase in Australia
Pacific LNG operated E&A
well execution since late
2012
10 |
Horizontal Wells
Pad Drilling
Drilled at Spring Gully and on production
Drilling in 1Q2014
Production Enhancement
• 38 production enhancement trials conducted to date,
more planned for 2014
A number of technology trials are underway to deliver
Phase 2 improvements
11 |
Production History
12 |
Denison, Peat and Moura
Since 1990s
Spring Gully
Ph 1 & 2
Spring Gully
Ph 3 & 4
Spring Gully
Ph 5 & 6
Talinga
Ph 1
0
50
100
150
200
250
300
350
400
Talinga Spring Gully Kenya Fairview Denison Trough Peat Moura
TJ/Day
13 |
Maximum well deliverability considerably higher than current
production levels indicate …
(1) Excludes domestic gas sales and pre LNG-start up gas sales to BG.
(2) Average rate reflects inclusion of approximately 30 Talinga wells recently started that currently average 0.7 TJ/day and are still ramping up.
(3) Maximum average observable rate sustained over a week, looking back over one year, from wells that have been online for more than 6 months.
• The operated wells to be drilled for Phase 1 are expected to produce around
1,200 TJ/d1, with an additional 200 TJ/d1 from non-operated assets
• Current operated well production is around 1 TJ per well per day on average across
the Talinga and Spring Gully developments, however the observed maximum average
well deliverability2 across these areas is considerably higher
• Well production is turned down to meet market demand but operationally cycled to
maintain confidence in deliverability
Averages over Quarter
to 30 September 2013
Average well
production
Maximum average
well deliverability,3
Talinga 1.4 TJ/day2 2.2 TJ/d2
Spring Gully 0.8 TJ/day 1.2 TJ/d
… whilst Phase 1 planning assumes 1.1 TJ/d per well on average
15% of Talinga wells
have maximum
deliverability over
4 TJ/d
Well Production, Deliverability & Turn-down
• Typical phase 1 well forecast
to have:
– peak gas rate 1-2 TJ/d
– peak water rate 500-1000
bbl/d
– approx 50-70% of well’s
reserves produced within
first 5 years
• Field deliverability to be
monitored during ramp
phase
• Excess deliverability to be
turned down to balance
supply & demand
Pro
ducti
on R
ate
Gas
Dewatering
Stage
Water
Stable Production
Stage Decline Stage
Time
Time
Gas
Volu
me
14 |
4 33 68
119
191 219
244 267
2 36
80 98
117
195
0
50
100
150
200
250
300
End 2011 End Q1 2012
End Q2 2012
End Q3 2012
End Q4 2012
End Q1 2013
End Q2 2013
End Q3 2013
Wells Drilled
Wells Completed
15 |
Condabri drilling has been progressing well
• 267 Condabri wells drilled to
date
• 195 Condabri wells completed
to date
• 14 Condabri wells
commissioned and producing
to date
• Net coal thickness results
exceed pre-drill expectations
0
5
10
15
20
25
30
Predicted Observed
Ne
t coal
thic
kn
ess
(m
)
Early Condabri water rates encouraging...
16 |
...with performance comparable to Talinga
Chart shows water
production rate observed
during the completion
operation
This provides an indication
of ultimate well
performance
Talinga wells produce over a
range with the best wells
peaking at over 4TJ/d
Condabri completion results
indicate similar performance
to Talinga
More Productive
0
500
1000
1500
2000
2500
3000
3500
4000
4500
-50 50 150 250 350
Wate
r ra
te (
bbl/
d)
test
ed b
y
com
ple
tion r
ig
Flow test results
Talinga wells Condabri wells Less Productive
17 |
General Project Update
Eastern Gas Fields (Condabri/Talinga)
September 2013
Western Gas Fields (Spring Gully/Combabula)
September 2013
Upstream development implementation – Phase 1 well
progress
Miles
Condamine
Chinchilla
18 |
Combabula
Spring Gully
Upstream development implementation - Pipeline
• Pipeline design features: 360 km 42-inch main trunk line
and 160 km lateral pipelines to gas fields with 50 year
design life
• 84% complete at the end of September 2013
• Land access, clearing and stringing for mainline complete
• Nacap has constructed Wooleebee Lateral as sub
contractor while MCJV constructs the main pipeline
• The Condabri lateral is complete including hydrotest,
enabling gas transport to the domestic market
• Narrows Crossing construction nearing completion
• GLNG and Australia Pacific LNG pipeline collaboration
announced on 25 October, avoiding need to build 140
kilometres of additional pipeline
Installation of main pipeline Narrows Crossing 19 |
1. Two trains of 4.5 MTPA capacity, consisting of:
1. 6 General Electric (GE) Model LM 2500+ G4
Dry Low Emission drivers
2. Turbine inlet air chilling
3. Redesigned nitrogen reinjection units
4. Waste heat recovery
• EIS approval for four trains
2. Utilities required:
1. Power generation
2. Water and sewerage (from the mainland)
3. Air and nitrogen
4. Ground flares
3. Control Room capable of operating four trains
4. Maintenance, administrative, and warehouse
facilities for two trains which can be expanded
5. Two LNG storage tanks
1. Capacity of 160,000 m3 each
• LNG loading berth and jetty
– Suitable for ships with capacity up to 220,000 m3
• Temporary facilities set-up for construction include:
– 2,600 man camp
– Offices
– Laydown area
Curtis Island site overview
Australia Pacific LNG Downstream Facilities
20 |
Liquefaction of natural gas is an established technology, with project design based on the
Darwin LNG project which has operated since 2006
Downstream Project progress – 54%1 complete and on track
LNG Tank B – roof raised on 29 July Batam Module Yard – Propane Condensate
Module Curtis Island
Downstream Operated Goals FY2014
Plan Actual Progress to 30 September 2013
Final Train 1 refrigeration compressor set Q1 Accomplished
Accommodation camp complete Q1 Accomplished
Complete Train 2 compressor table tops Q2 Accomplished
Complete loading platform for LNG jetty Q2 On Track
First Train 1 cold boxes (methane and
ethylene) delivered to site and set Q2
On Track: Cold Boxes complete, due to be shipped 1st week of
November
Last Train 1 Module set Q3 On Track: All Train 1 Modules are due to be shipped early 2014
(1) As at 30 September 2013. 21 |
Thank you