Oil Andspecial Gas REPORT FEATURE
Total Page：16
File Type：pdf, Size：1020Kb
Oil andSPECIAL Gas REPORT FEATURE KICK-OFF: Wood plc has been growing its Perth presence, Ralph Ellis says. Photos: Gabriel Oliveria Next boom nears as projects progress Decisions are expected on three major oil and gas projects worth $24 billion combined in 2020, with more to follow. Scarborough LNG project, and Worley’s oil and gas expo- support as it moves into the exe- Protracted discussions was last year selected for feed sure includes engineering, cute phase.” between the Browse partners studies on Shell’s Crux expansion. procurement and construction Mr Ellis said the Woodside and the owners of the North West Decisions on these projects, and management work at Woodside’s projects, in particular Browse Shelf Venture, where the gas will Santos’ Barossa, are due in 2020. Karratha gas plant, and brown- and Scarborough, would inten- be processed, are also delaying a Wood president operation ser- field engineering support for sify demand for skilled workers decision. vices for Asia Pacific, Ralph Ellis, Chevron across its WA assets. in WA. Mr Coleman said the negotia- told Business News the company Wood’s Mr Ellis said the tions were down to the last three had grown its team in Perth from outlook for the industry was Pipeline or four key value items. about 500 to more than 1,000 in good, with potentially two The two big Woodside projects Asked if the Browse delay Matt Mckenzie the past three years. big projects from Woodside are among 10 worth more than would lead to an ullage, or excess [email protected] @Matt_Mckenzie_ Part of that was organic, driven backed up by a pipeline of other $500 million each that are under- capacity, at North West Shelf’s by minerals and oil and gas, while developments. way or in the pipeline for WA. five Karratha processing trains in 6-PAGE FEATURE part of it was through the acquisi- “When you throw in Chevron, At its recent results briefing, the mid 2020s, he said there were STRONG graduate intake tion of Amec Foster Wheeler. Inpex, we’re working for Conoco, the company said the $27 billion other potential gas sources under at a major engineering There’s been growth across the we’re working for Inpex, we see Browse development was ready consideration. A firm is usually a good market, according to the latest investment in existing assets for front-end engineering and “We’re hopeful that we’re not barometer of the positive state BNiQ data (see page 22), with the across a number of the owner design work now, with a final going to see any ullage in North of the oil and gas sector. number of engineers employed at organisations,” he said. investment decision late next Multinational company Wood the 10 biggest engineering busi- “We see a cautiously optimistic year. plc’s Australian class of 2020 will nesses in WA up 35 per cent year picture; there’s plenty of oppor- The FEED period was extended have about 30 people, mostly in on year, to nearly 4,700. tunity to do good work on good a few months, however, partly $ Perth, about twice the number The biggest movement was at facilities, we just have to meet because the floating production bn two years ago. Worley, up from 650 to 1,700 engi- the market. platforms for the project would 7 Wood has been undertaking neers in the past year, thanks in “Things like Crux are moving be some of the world’s most BAROSSA PROJECT front-end engineering and design part to the company’s acquisition to the next phase of its evolution, complex, chief executive Peter CAPEX FORECAST work for Woodside Petroleum’s of Jacobs Engineering. we’re currently in phase two Coleman told investors. Source: Santos FEATURE OPTIMISM: Kelvin Andrijich says bigger opportunities are on the horizon. said, affected by the coronavirus Santos will also enter FEED for and an expected oversupply in the $2 billion Dorado oil develop- the market. ment, in the Carnarvon Basin, in I think (opportunities) Next boom nears as projects progress Woodside selected Austral- the June quarter. ian Gas Infrastructure Group in Shell has been moving forward are here in the year ahead, November for construction of an on the $2 billion Crux tieback interconnector pipeline between into the Prelude FLNG vessel, and there’s some bigger fish the neighbouring Pluto and Kar- selecting KBR and Wood for feed ratha plants. work early last year. coming up - Kelvin Andrijich There was also a final invest- A final investment decision is ment decision in the last quarter expected this year. of 2019 on the Julimar-Brunello Chevron named Aker to under- fabrication of subsea equipment The company is the lead con- West Shelf, the only issue we tieback into the Wheatstone plant, take FEED work on a compression for the project. tractor for Mitsui’s Waitsia would see is the composition of operated by Chevron. Subsea 7 system at the Jansz/Io field last Chief executive Pat Tallon was development (see page 21). the gas, the multiple composi- won a contract valued at up to year, while further in the dis- optimistic there would be a pipe- “We’re doing some FEED [work] tions, and whether the capacity $US300 million for a transmission tance is the company’s Clio/Acme line of work for the fabrication for Woodside at the moment,” Mr of the plant will be affected,” Mr flowline and umbilical system. tieback to Karratha, and Western business ahead. Galvin said. Coleman said. Drilling will begin early this Gas’s Equus development. “The first indicators of what’s “We’ve got engineering capabil- “We don’t see a big gap with year and completion is due in Deloitte national oil and gas happening are going to come from ity as well as construction … from any delay in Browse at this point, 2022. leader Bernadette Cullinane, who client and engineering houses; if a construction perspective we’re however, it does get to a point Meanwhile, moves were made is a key figure in Australasian they are active in getting ready a couple of years off of the bigger where the ullage at North West on a series of other big projects, Oil and Gas Exhibition and Con- for something, it’s going to hit us stuff.” Shelf is larger than these multiple which together would be worth ference’s industry supply forum, in a couple of years,” Mr Tallon He said the local labour sources of gas can service.” more than $14 billion. said she expected a number of said. market was starting to dry up, A decision on the $15 billion The biggest is Barossa, to projects in the pipeline would be “We’re seeing general activ- with Clough on the front foot to Scarborough project, including a supply the existing Darwin LNG sanctioned. ity mainly in subsea work, and recruit good people early, ahead second train at Pluto LNG, is due plant. Ms Cullinane said demand for we have some indication that of the market. in the middle of this year. Technip, Allseas and Modec LNG would continue to rise. onshore capital expenditure Alltype Engineering manag- Mr Coleman said Woodside International were awarded con- “I’d feel very positive about the could be in the realms of late 2022 ing director Kelvin Andrijich said planned to have about half its tracts last year on the $7 billion future in WA,” she said. or 2023. enquries to the Naval Base-based offtake gas contracted by the development in the Timor Sea. “It’ll be a time of significant “Two or three years ago we had company had increased. time it pushed the go button, and Control of the project will be change.” no vision on anything happening He said the business was expects to achieve the target. shifting to Santos, which commit- in this space.” involved in a number of mainte- A tolling agreement between ted to buy ConocoPhillips’ share Optimism Clough executive vice-presi- nance projects and minor projects. Woodside and partner BHP of the Barossa and Darwin LNG The biggest project under way dent John Galvin said he expected “I think [opportunities] are here should be finalised within assets late last year. now is Chevron’s Gorgon stage bigger construction work pack- in the year ahead, and there’s some months, he said. A final investment decision is two. ages would start to flow through bigger fish coming up,” he said. That is happening amid a soft expected in the second quarter of Henderson-based contrac- next year, although some smaller market for LNG, Mr Coleman this year. tor Civmec has worked on projects were available now. Continued on page 21 FEATURE OIL & GAS Onshore options attract attention The Perth Basin could be in for a transformational year. Matt Mckenzie Basin, including appraisal drill- [email protected] ing and long lead items for 2021 @Matt_Mckenzie_ exploration. THREE companies with con- Mitsui and Beach also share nections to prominent Western an interest in Beharra Springs, Australian business figures plan which was drilled in October and to spend more than $110 million hit gas. in the Perth Basin starting this Strike Energy, which boasts year. John Poynton as chairman, That follows years of promise in raised $31.4 million for appraisal the basin, which covers the area drilling at West Erregulla in the about two hours north of Perth. Perth Basin and for operations Mineral Resources, head- on the east coast. ed by Chris Ellison, has said it West Erregulla is jointly owned would allocate about $30 mil- by Strike and Warrego Energy.