ARRC Australian Resources Research Centre

2007-08 ANNUAL REPORT

University of Technology ARRC, a state-of-the-art technology hub, bringing together research institutions, universities, industry and government to deliver innovative solutions for the petroleum and minerals sector.

 ARRC Annual Report 2007-08 CONTENTS

FOREWORD 4 CHAIRMAN’S REPORT 5 GENERAL HIGHLIGHTS 7 RESEARCH HIGHLIGHTS - 15 Mineral Exploration 15 Petroleum Exploration & Production 20 Environment 24 Exploration Geophysics 26 Petroleum Engineering 27 National Measurement Institute 28 CLIENTS 30 AWARDS AND RECOGNITION 33 OUTREACH AND ENGAGEMENTS 37 FINANCIAL REPORT 40 ARRC METRICS 42 ARRC ADVISORY COMMITTEE 44

ARRC Annual Report 2007-08  FOREWORD

The Australian Resources Research Centre (ARRC) is a major initiative of the Western Australian State Government, CSIRO and Curtin University of Technology, developed in conjunction with the petroleum and mining industries. ARRC’s research capacity continues to grow as the Centre continues to host and expand its pool of leading researchers from CSIRO’s Petroleum Resources and Exploration and Mining Divisions, Curtin’s Departments of Exploration Geophysics and Petroleum Engineering as well as from industry and other government research collaborators. The location of this leading global research institution in Western Australia is fitting, given that the State produces two-thirds of Australia’s non-fuel minerals and about half of its petroleum. Western Australia is one of the great mineral provinces of the world and our thriving resources sector continues to drive the Australian economy. Record levels of mineral and petroleum exploration expenditure were experienced in 2007-08, resulting in Western Australia attracting 51 per cent of all mineral exploration expenditure and 72 per cent of all petroleum exploration expenditure in Australia. The mineral and petroleum sectors remain the pillars of Western Australia’s economy, with quantity and value rising by 9.14 per cent to reach $58.6 billion in 2007-08. Many exciting research projects were initiated at ARRC in 2007-08, some of which are highlighted in this Annual Report. Additional funding boosted research into the development of CSIRO gas-to-liquids technology. This important research is expected to deliver significant economic benefits to Australia, improving the financial viability of converting natural gas into liquid fuels, thus reducing our dependency on imported oil. A new flow loop was commissioned by CSIRO at ARRC in 2008 to help researchers improve understanding of the design and operation of offshore oil and gas production pipelines. Australia’s top universities also began work with CSIRO during the year to improve pipeline technology to help unlock Australia’s stranded offshore oil and gas resources. It is thought that improved pipeline performance will eventually enable platform-free fields to replace traditional oil and gas facilities. Several collaborative research projects progressed at ARRC in 2007-08. During the year, CSIRO entered a strategic alliance with the national petroleum company of Malaysia, PETRONAS Group, formalising a long standing collaborative relationship and facilitating further cooperative research into petroleum exploration and production, as well as advanced materials, clean coal technology and renewable energy. These examples are only a small fraction of the research that is taking place at ARRC to enhance the effectiveness of petroleum and mineral exploration and extraction in Western Australia and around the world. Demand for new petroleum and mineral exploration and extraction technologies continues to grow. With access to a vast global research network, scientists at ARRC can interact, exchange information and explore new ideas in partnership with industry and research collaborators to ensure the ongoing sustainability of our resources industry, our environment and our way of life. ARRC research is meeting industry expectations, providing greater efficiencies and increasing environmental and safety standards. The broad leadership presence at ARRC is helping to make the Centre an internationally-recognised focal point for research and development in Australia. I congratulate all of the staff at ARRC for their efforts in lifting the research profile of Western Australia and on delivering outcomes that will greatly benefit the industry in general.

The Hon Norman Moore MLC Minister for Mines and Petroleum

 ARRC Annual Report 2007-08 CHAIRMAN’S REPORT

It has been another year of tremendous growth and accomplishment for ARRC. As the mining and resources sector continues to expand, so too does the wealth of skills and expertise at ARRC. The 2007-08 financial year saw a large intake of science recruits, drawing in professionals from around the world to create a unique international community with global networks. As a technology hub and representing a successful integration of university, government and industry, ARRC attracts high profile visitors to the centre on a regular basis, including the President of China, Hu Jintao, last year. These visits are testimony to ARRC’s international reputation as a source of innovative research and leading edge technologies in the petroleum geosciences and geoengineering areas. With concerns over global warming and demands for cleaner energy, research at ARRC has delved into more efficient and environmentally sustainable ways to explore and recover energy resources. Research efforts have been invested in geothermal energy, geological storage of carbon dioxide to reduce greenhouse gas emissions and methods for converting natural gas to liquid fuels and chemicals. 2009-10 will see the development of Australia’s largest gas-to-liquids facility at ARRC to improve the efficiency of natural gas recovery and use. Additional efforts are being made to develop technologies enabling the recovery of deep offshore oil and gas reserves that have been previously inaccessible. The hydrates flow loop is another nationally unique facility commissioned this year to enhance research into flow assurance of gas in subsea pipelines. ARRC is fast proving to be a nucleus for resources in the energy sector, combining expertise with unique state-of- the-art facilities, and providing a model for the integration and collaboration of university, industry and government in research to address the challenges faced nationally.

David Agostini Chairman, ARRC Advisory Committee CHAIRMAN’S REPORT

ARRC Annual Report 2007-08  General Highlights

Partnering to create impact for industry

 ARRC Annual Report 2007-08 GENERAL HIGHLIGHTS

ARRC hosts Chinese President The co-location of research facilities at ARRC With research co-location currently being pursued in generated great interest from the President of the China, President Hu was particularly interested in the People’s Republic of China, Hu Jintao, who visited co-location of the research facilities of CSIRO, BHP CSIRO’s laboratories at the Centre in September Billiton and Curtin University of Technology. 2007. CSIRO Group Executive for Energy Dr Beverley The Chinese President and his official party were Ronalds escorted the Chinese President on the accompanied by the then Western Australia Premier research tour, which featured a geomechanics The Hon. Alan Carpenter as they toured the shared laboratory demonstration of a CSIRO-designed CSIRO and BHP Billiton facilities with CSIRO drilling rig aimed at improving the efficiency of drilling Chairman Dr John Stocker AO and BHP Billiton CEO ‘hard to drill’ rocks. Designate Marius Kloppers. The tour also included a 3D presentation on geological modelling of a gold mineralisation process using ARRC’s high-resolution stereo-projection facility. CSIRO has collaborated with China over the past 32 years on research from agriculture to mining, including clean coal technology and environmental research. Since the 1980s, over A$24 million has been invested in research projects between CSIRO and more than 170 Chinese organisations. China is the third-highest collaborator of joint publications with CSIRO, with more than 50 students and scientists from China currently working alongside CSIRO staff. GENEERAL HIGHLIGHTS

ARRC Annual Report 2007-08  GENERAL HIGHLIGHTS

CSIRO enters strategic alliance with Centre of Excellence for Geothermal PETRONAS Energy In January 2008, CSIRO signed a Strategic Alliance The Western Australian Centre of Excellence for Agreement with the national petroleum company of Geothermal Energy was awarded State Government Malaysia, PETRONAS Group, to formalise the long funding in February 2008 to develop low-heat standing collaborative relationship between the two geothermal energy technology in Perth for a clean organisations. and cheap energy source. The agreement facilitates continued collaboration The Centre will receive a total of $2.3 million over between CSIRO and PETRONAS Group on three years under the State Government’s Western petroleum exploration and production, as well as Australian Centres of Excellence in Science and further cooperative research into advanced materials, Innovation program. clean coal technology and renewable energy. The WA Geothermal Centre of Excellence is a CSIRO has identified a number of areas for potential collaborative venture between CSIRO, Curtin collaboration under this new agreement, including University of Technology and The University of training and development opportunities with Western Australia that aims to make Australia a global Universiti Teknologi PETRONAS, a wholly owned leader in geothermal exploration and exploitation. subsidiary of PETRONAS Group. Sources of geothermal energy have been identified Educational partnership opportunities could involve close to population centres in Western Australia. The the co-supervision of post-graduate students, sharing location of these geothermal hot-spots reduces the of facilities and collaborative research. potential costs associated with energy transmission, making them well suited for power generation. PETRONAS Group has so far committed to four new projects, with a number of investment Headed by 2005 Premier’s Fellow, Professor Klaus proposals currently under consideration in petroleum Regenauer-Lieb from CSIRO and UWA, scientists at exploration and production and polymers research. the WA Geothermal Centre of Excellence will assist Western Australia’s clean energy industry to tap into The Group is also working with CSIRO’s Energy these geothermal hot-spots to meet the State’s future Transformed National Research Flagship to research energy needs. clean coal technologies and solar energy, contributing additional investment in alternative energy. Geothermal energy is one of the cleanest methods of power generation available. Work being conducted This strategic alliance under the Centres of Excellence initiative enhances enhances CSIRO’s Australia’s position as a world leader in the collaborative activities development and application of sustainable and with PETRONAS emissions-free energy technology. Group and will ensure that large- scale multidisciplinary research can continue to deliver practical, economical, environmental and social benefits to both Australia and Malaysia.

 ARRC Annual Report 2007-08 Centre of Excellence for 3D Mineral Both the iVEC high computing facility and the Mapping AUSCOPE-Grid program based at ARRC are vital to achieving this outcome. In February 2008, the Centre of Excellence for 3D Mineral Mapping (C3DMM) was awarded a share of The main scientific challenge for C3DMM is the almost $10 million in State Government funding as development of methods that enable accurate one of five new major research facilities in Western mapping of 3D mineral abundances and mineral Australia. physicochemistries, as this requires the removal of the complicating effects of vegetation and the regolith from the remote sensing data. If successful, the resultant 3D mineral volumes of primary rock mineralogy and superimposed metasomatic alteration will be used by researchers from CSIRO’s Minerals Down Under National Research Flagship and the Centre for Exploration Targeting to test new methods for analysing mineral systems in Western Australia. C3DMM researchers are working with government and industry to assess the spectral-mineralogy of sites in Western Australia, using multi-element geochemistry and available geological and geophysical data to better understand the processes of ore formation. The work of the Centre will empower geoscientists with 3D mineral mapping capabilities to better equip them for the challenges of sustainable exploration and mining, in particular, the recognition of spectral- mineralogical vectors to new mineral deposits. It is also hoped that this Centre will be the basis Under the State’s Centres of Excellence in Science for a national initiative taken up by the government and Innovation program, the C3DMM received $1.5 geoscience agencies across Australia, leading to the million to strengthen research and development development of a 3D mineral map of the Australian capabilities in the emerging area of hyperspectral continent. sensing technologies for the resources industry of Western Australia. Led by Dr Thomas Cudahy and hosted by CSIRO Exploration and Mining at ARRC, C3DMM researchers are integrating surface and sub-surface mineralogy to generate 3D mineral maps (volumes) for selected test sites across Western Australia. A key outcome of the research is the development of data processing capabilities that can handle large volumes of data and deliver high level products to the GENEERAL HIGHLIGHTS public via the web.

ARRC Annual Report 2007-08  GENERAL HIGHLIGHTS

Both Professor Beazley and Mr Carpenter commented on Western Australia’s exciting bid to host the $2 billion Square Kilometre Array (SKA) radio astronomy project, with Professor Beazley stating that WA has the potential to be at the forefront of science. Curtin Vice-Chancellor, Professor Hacket was met with loud applause when she called for continued support for science educators at primary, secondary and tertiary levels. Mr Carpenter used the successful Science Week launch to announce a ten-fold increase to the prize money for the Premier’s Science Awards. The prize Premier launches pool for these awards now totals $350,000. National Science Week at ARRC Science and technology took centre stage in August Gas-to-liquids research revs up in Perth 2007 for National Science Week, which was officially Reserves of liquid transport fuels are becoming launched in Western Australia at ARRC by the limited with growing demand and the conversion of State’s former Premier and Minister for Science and natural gas to diesel or gasoline is an obvious solution; Innovation, the Honourable Alan Carpenter MLA. however, there are significant technological hurdles The official launch of National Science Week, a formal that must be overcome to establish a viable synfuels breakfast banquet, was attended by esteemed guests industry in Australia. from Western Australian universities, industry, state Research into the development of gas-to-liquids government, and education and health sectors. (GTL) technology by the Western Australian Energy CSIRO Group Executive of Energy and Chief of Research Alliance (WA:ERA) received a boost this CSIRO Petroleum Resources, Dr Beverley Ronalds financial year with the addition of new equipment and welcomed guests to ARRC and spoke about the great the appointment of new CSIRO staff. success the Centre has maintained over the past six The new equipment gives the facility the flexibility years. to take gas from a range of feedstocks, including Dr Ronalds outlined exciting plans for the future biological feedstocks, coal, solar gas and natural gas, of ARRC, as the Centre’s innovative science and and convert these into liquid products. technology projects continue to play a key role in Once fully commissioned, the CSIRO facility will be Western Australia’s resources boom. the largest of its kind in Australia. With up to three Other keynote addresses were delivered throughout reactors – two commissioned in the 2008-09 financial the morning by Western Australia’s Chief Scientist, year and the third to be commissioned in 2009-10 Professor Lyn Beazley, and Curtin University of – the facility will be capable Technology Vice Chancellor, Professor Jeanette Hacket. of processing a significant throughput of gas. Professor Beazley demonstrated her enthusiasm for science in her address, delivering an inspirational talk CSIRO is using the new on the importance of science in schools. GTL rig to investigate and validate the preliminary work of research partner, the University of New

10 ARRC Annual Report 2007-08 CSIRO’s broad leadership is making‘ ARRC an internationally- recognised focal point for research and development in Australia, with many CSIRO South Wales, which achieved improved product major initiatives now led from distribution of liquids through a modification of the GTL process. Perth. Research has been focused on improving the efficiency of syngas production (hydrogen and carbon ’ CSIRO leaders at ARRC represent the Energy Group, monoxide) from methane, which is the first step in the National Research Flagships, Minerals Down the two-step GTL process. The modified process is Under and Wealth from Oceans, and the Divisions of more energy efficient than the conventional method Exploration and Mining and Petroleum Resources. of syngas production, known as reforming. Through alliances with research and industry CSIRO has established a highly regarded research organisations, CSIRO Petroleum Resources Chief and team dedicated to improving the economic viability Group Executive for Energy, Dr Beverley Ronalds, is of converting natural gas to more easily transportable facilitating research and development efforts for clean liquid fuels and chemicals, and developing technologies energy, energy security and wealth creation to meet that will reduce the cost of gas production, recovery, oil and gas resource challenges with technology-based transportation and processing. industrial solutions. Newly appointed Deputy Chief, The Federal Government has allocated $A60 million Ms Dale Collins is helping to underpin these efforts to CSIRO to increase research into alternative fuels. with a special focus on Western Australian alliances Producing synthetic fuels from gas, coal and biomass and operations. has continued to be a key focus for the organisation’s New CSIRO Exploration and Mining Chief, Energy Transformed National Research Flagship, Dr Michael McWilliams is developing effective through the additional funding. operational relationships with members of the CSIRO CSIRO’s research into gas-to-liquids technology is Executive and with other divisional Chiefs and Flagship also a primary objective of the new AusGas initiative. Directors. With close support from Deputy Chief Dr AusGas is a national collaboration of research centres, Steve Harvey, Dr McWilliams is enabling Exploration with industry and government that aims to address and Mining leaders to pursue their research goals and the technology challenges facing the Australian gas better develop the Division’s capabilities. industry. Highly regarded for his work in wells and subsea Even a small improvement in Australia’s liquid fuel self technologies, Wealth from Oceans National sufficiency will deliver significant economic benefits Research Flagship Blue GDP Theme Leader, Dr to the country, reducing its dependency on expensive Edson Nakagawa leads CSIRO’s offshore oil and imported oil. gas research, focusing on technologies that reduce exploration and production costs for stranded gas in deepwater areas around the world. CSIRO leadership group enhances ARRC Director of the Minerals Down Under National World-class research was a primary focus at ARRC Research Flagship, Dr Peter Lilly has established an throughout 2007-08, with strong CSIRO leadership ongoing dialogue between CSIRO, government, facilitating new initiatives and development efforts industry and relevant university research groups to in minerals and petroleum exploration, extraction, identify issues for research and development and to processing and sustainability research. provide direction for the future of the industry. CSIRO’s broad leadership is making ARRC an The broad expertise and strong leadership provided internationally-recognised focal point for research and at ARRC by CSIRO has enabled continuation of development in Australia, with many major CSIRO strategic and pre-commercial research in priority GENEERAL HIGHLIGHTS initiatives now led from Perth. areas of the resources industry.

ARRC Annual Report 2007-08 11 GENERAL HIGHLIGHTS

ARRC at full capacity with new science recruits ARRC reached full capacity in 2007-08, with the appointment of 20 new science recruits to CSIRO’s Petroleum Resources Division, further increasing the international flavour of the Centre’s research environment. ARRC’s research capacity has continued to grow since its inception in 2001, providing scientists with unparalleled access to a vast global research network. ARRC houses a unique international research community, almost two-thirds of CSIRO’s Petroleum Resources Division hailing from outside of Australia, including nearly all of the Division’s newest recruits. The young and dynamic research community at ARRC has continued to attract bright new talent, with Throughout the year, the Alliance conducted 40 per cent of the science staff at the Centre aged 35 significant research into gas-to-liquid technologies, years or younger. including the optimisation of established techniques and exploration of other techniques such as pyrolysis and cold plasma. Alliance researchers also examined a suite of processes that significantly increase the efficiency of LNG production and could profoundly reduce the production of greenhouse gases. WA:ERA continued to develop strong working relationships with its industry partners Chevron and Woodside in 2007. These companies have supported the Alliance’s energy research capabilities to address the specific challenges facing Australia’s oil and gas sector. 2007 also saw the reinvigoration of the WA:ERA Education and Training Program, which recognises the potential of collaboration, combining the teaching capabilities of Curtin University of Technology and The University of Western Australia, while reaching out to WA:ERA – A year in review other organisations across Western Australia. The Western Australian Energy Research Alliance WA:ERA’s recruitment increased six-fold in 2007, (WA:ERA) significantly progressed its front line compared to the previous year, to match a similar projects in 2007, establishing a new standard for increase in industry funding. industry interaction in Western Australia. During the year, the Alliance made preparations for In a push to reduce the environmental impact of gas the inception of a number of new projects, including recovery in Australia, WA:ERA directed the majority novel floating and subsea structures that could break of its funding in 2007 into research enabling more established norms for field developments. efficient recovery and use of natural gas.

12 ARRC Annual Report 2007-08 WA:ERA’s major thrust in 2008 will be to focus Australia, such as: on natural gas research across a broad range of 1. Availability of gas at competitive prices, in engineering aspects. The foundation of this research sufficient quantities, at the right time, for will be gas-to-liquids technology and the development domestic and export markets. of new technologies to synthesise fuels from Western Australia’s abundant natural gas reserves. 2. Timely introduction of cost effective carbon capture and storage technologies for gas as WA:ERA researchers will focus on innovative well as coal based operations, including development to safely optimise the recovery of power stations. Western Australia’s remote gas reserves, while safeguarding the natural environment. 3. Cost effective development and operation of gas processing facilities. Arno Schaaf appointment facilitating 4. Technologies for the competitive production AusGas growth of transport fuels from gas. CSIRO Business Development Operations Manager, Arno has over 20 years experience in various Arno Schaaf has been appointed as Business business development and management roles. Coordinator for the Australian Gas Centre (AusGas) His work with virtual teams across various lines in 2008 to further drive, coordinate and develop of businesses in multi-national organisations and CSIRO’s gas industry engagement. external parties will bring together successful value propositions for clients. AusGas is a major CSIRO research and development initiative directed at overcoming technology hurdles and reducing the fragmentation of gas research programs being undertaken across Australia today. Its main hub is at ARRC in Perth. AusGas aims to run its programs using strong collaborative engagement with other research institutions and industry. AusGas gains from CSIRO’s experience in the Flagship program and WA:ERA, and will operate at a national and regional scale. The organisation draws capability from large, multi-disciplinary teams across state based, national and international institutions to address the complex challenges and opportunities facing the energy sector. Research programs will focus on the important aspects that underpin scenarios GENEERAL HIGHLIGHTS which have the most positive impact for

ARRC Annual Report 2007-08 13 Research Highlights

Delivering great science and innovative solutions for industry, society and the environment.

14 ARRC Annual Report 2007-08 RESEARCH HIGHLIGHTS - Mineral Exploration

Gold nuggets reveal their riches All of the nuggets in the study were found to have a A CSIRO study conducted in October 2007 has crystalline structure and silver content that indicates overturned years of accepted scientific wisdom on they formed at high temperatures. the formation of gold nuggets. The study concluded that nuggets originate deep It was previously assumed that gold nuggets formed underground and are present near the surface as a where they were found, either precipitated from result of geological processes and weathering over fluids or grown from microbial action. However, time. after analysing the characteristics of nuggets from A better understanding of how gold nuggets form around Australia, CSIRO researchers determined will help explorers decide where to search for gold that they are formed deep underground and at high mineralisation. If nuggets are not formed where they temperatures. are found, but weathered from gold-rich ore, the Researchers examined the external and internal original source may still be nearby. characteristics of more than 30 nuggets, ranging from This research was conducted in association with one gram to more than eight kilograms, from different the Cooperative Research Centre for Landscape locations in Western Australia, Queensland and Environments and Mineral Exploration, involving Victoria. scientists from CSIRO Exploration and Mining and Curtin University of Technology. With the recent formation of the Minerals Down Under National Research Flagship, this gold research will continue with partners in the minerals industry. RESEARCH HIGHLIGHTS - Mineral Exploration

ARRC Annual Report 2007-08 15 RESEARCH HIGHLIGHTS - Mineral Exploration cont.

A glass of wine can help find mineral Next generation mineral mapping deposits Advanced mineral mapping of large parts of Australia CSIRO Exploration and became available to mineral explorers in Queensland Mining scientists have in 2007-08, through new methods developed by found that chemical CSIRO for processing multi-scene remote sensing ingredients found in data from operational sensors, such as the airborne wine and soft drinks Australian HyMap™ and the satellite-borne Japanese have the ability to ASTER systems. dissolve weakly-bound CSIRO’s Minerals Down Under National Research metals into solution. Flagship Next Generation Mineral Mapping project Research lead by Dr is developing the capability to extract the mineralogy Ryan Noble identified from hyperspectral data to enable geologists to better that the chemical understand what they are seeing. composition of wine Next Generation Mineral Mapping is designed to and soft drinks makes them highly suitable for use empower the exploration industry with mineralogy as a cheap extraction tool that could be applied to data and to better equip companies for sustainable mineral exploration. exploration and mining. Results from the study found that when soil is mixed More than 20 mineral abundance and mineral with wine or soft drink, the weak organic acids in chemistry maps have been generated based on the drinks dissolve some of the metals into solution, airborne hyperspectral HyMap™ data covering which can then be detected in routine laboratory 25,000 square kilometres over mineralised structures analysis. in northern Queensland. The drinks were found to be particularly good for Ten satellite mineral group maps have been created discovering elevated levels of metals such as zinc to cover an additional 150,000 square kilometres and copper. In many cases, the comparison of metals of the greater Mount Isa region. The mapping is extracted using wine and soft drink were superior to supported by chemical analyses of samples collected those extracted using more expensive conventional during field validation. solvents. The scientists tested red wine, although white wine is likely to be just as effective, and a number of popular soft drinks, with diet drinks found to be just as effective as those containing sugar. This new and unconventional technique was presented to the exploration industry at the 2007 Cooperative Research Centre for Landscape Environmental and Mineral Exploration Seminar in Perth and the International Applied Geochemistry Symposium in Oviedo, Spain.

16 ARRC Annual Report 2007-08 Next Generation Mineral Mapping‘ is designed to empower the exploration industry with mineralogy data and to better equip companies for sustainable exploration and mining.

These new maps will enable exploration companies’ to more efficiently evaluate their tenements through improved prospect targeting. The mineral maps also support the development and evaluation of mineral emplacement models, which will lead to greater understanding of mineralisation systems. CSIRO’s final vision is a mineral map of Australia which, when combined with the HyLogging™ of every drill core’s mineralogy, will provide a 3D mineral map of the continent. Next Generation Mineral Mapping is the result of scientific collaboration between the Predictive Mineral Discovery Cooperative Research Centre and the Cooperative Research Centre for Landscape Environment and Mineral Exploration, Geoscience Australia, Geological Survey of Queensland, HyVista Corporation and James Cook University.

The simulations tested several intersections between New techniques for Gawler Craton a series of northwest and northeast-striking faults that drill targeting are interpreted to form a northwest-trending basin Collaborative research undertaken in 2007- 08 by underlain by granites of the Hiltiba Suite and capped CSIRO, the Predictive Mineral Discovery Cooperative by the Gawler Range Volcanics. Research Centre, Department of Primary Industry Researchers identified that some intersections on the and Resources South Australia and Monax Mining northwest-striking, basin-bounding faults were more has identified new drill targeting techniques for likely to localise high fluid flow than others during exploration in the extensive Gawler Craton region of reactivation under dextral transpression, depending South Australia. on their geometric relationship. Researchers conducted a series of numerical, The research demonstrates that any form of mechanical deformation-fluid flow simulations to help transpressive kinematics on the northwest- identify potential sites of high fluid flow associated trending faults at Punt Hill will localise fluids at fault with Mesoproterozoic copper-gold mineralisation in intersections and within some basin corners, in the Punt Hill region of the eastern Gawler Craton. preference to other regions. The project, conducted at ARRC, was designed to The deformation regime associated with establish criteria for ranking potential copper-gold mineralisation at Punt Hill is assumed to be similar targets in the eastern Gawler Craton based on fault to that at the nearby Olympic Dam deposit and relationships identified through geophysics. equivalent age events in the Central Gawler Gold Researchers examined fluid movement around fault Province, resulting in dextral transpression on the intersections, which may aid in determining lateral northwest-trending faults. proximity to major fluid conduits during exploration RESEARCH HIGHLIGHTS - Mineral Exploration drilling.

ARRC Annual Report 2007-08 17 RESEARCH HIGHLIGHTS - Mineral Exploration cont.

Tracing deep fluids in mineral systems Mineral systems researchers have identified new evidence indicating that the gold-bearing fluids responsible for crustal gold deposits originate some The research delivered 50-300 kilometres below surface, deep in the Earth’s important‘ results for gold mantle. exploration, indicating that the Led by CSIRO Exploration and Mining Computational Geosciences Research Group Leader, Dr James mineral systems used to identify Cleverley, the project incorporated research efforts from the Minerals Down Under National Research gold deposits are considerably Flagship, James Cook University, Melbourne University larger than was previously and AngloGold Ashanti. believed. The research project was initiated to identify the origins and specific chemistry of gold-bearing fluids. ’ Researchers aimed to discern which pathways these fluids had travelled to further develop their The collaborative research team used cutting-edge understanding of how mineral systems operate. electron and laser microprobe techniques, along It was traditionally thought that Western Australia’s with radiogenic Sr isotopes (86Sr/87Sr), to examine gold deposits were formed when fluids derived from the trace element chemistry in apatite, a calcium local rocks were heated and transported, resulting in phosphate mineral, which revealed the source and deposited gold. chemistry of the gold precipitating fluids. The research delivered important results for gold exploration, indicating that the mineral systems used to identify gold deposits are considerably larger than was previously believed.

Groundwater pinpoints mineral riches CSIRO scientists with the Minerals Down Under National Research Flagship are using groundwater to locate gold and other high value resources over a vast area of the northern Yilgarn Craton in Western Australia. As part of this new project with the WA Geological Survey, Department of Water and Minerals and Energy Research Institute of Western Australia, and Geoscience Australia, CSIRO scientists are analysing groundwater samples from this highly prospective region of Western Australia to pinpoint areas for mineral explorers to further investigate. Also known as hydrogeochemical exploration, groundwater sampling is a new cost-effective technique for locating promising areas of gold, nickel, copper, zinc and uranium mineralisation and has

18 ARRC Annual Report 2007-08 the potential to enhance mineral exploration and mapping across many areas of Western Australia, especially outside recognised mineralisation belts. This novel technique also has great potential to assist mineral explorers to establish regional environmental backgrounds. CSIRO is experienced in locating and sampling suitable sites in remote areas, using windmills and bores to access groundwater without drilling at various locations throughout the northern Yilgarn. CSIRO researchers have developed advanced techniques for obtaining mineral saturation data and other valuable exploration geochemical data. This project follows closely on the heels of a similar successful hydrogeochemical exploration project along the Leonora-Wiluna belt in 2006. With more than 25 industry sponsors for the project, Australia’s mineral explorers are confident that this research will point to undiscovered mineral deposits. CSIRO’s Minerals Down Under National Research Flagship aims to deliver technologies and capabilities that will enable Australian mineral explorers to understand the evolution of the continent and to target their exploration efforts with greater effect.

Groundwater sampling is a ‘new cost-effective technique for locating promising areas of gold, nickel, copper, zinc and uranium mineralisation and mapping across many areas of WA. ’ RESEARCH HIGHLIGHTS - Mineral Exploration

ARRC Annual Report 2007-08 19 RESEARCH HIGHLIGHTS - Petroleum Exploration & Production

Gas hydrates flow loop commissioned and Located at ARRC in Perth, the new flow loop is the launched only one of its kind in Australia and can simulate gas dominant flows at high pressures and low A new flow loop commissioned in May 2008 temperatures – conditions that oil and gas pipelines by CSIRO will help researchers to improve the are subjected to in deep-sea environments. The flow understanding of the design and operation of offshore loop is being used to study the conditions leading to gas production pipelines with solutions to predict and gas hydrates formation, growth and transportability. control gas hydrates formation. Researchers will be using the flow loop to test Gas hydrates pose a major risk to offshore oil and different hydrates inhibitors to analyse how they affect gas transportation, blocking flow and interrupting the formation of hydrates under different conditions. production. In the worst case scenario, these ‘ice-like’ Their aim is to develop new materials, such as low crystals can cause flow lines to burst, leading to costly, dosage hydrates inhibitors, and technologies to time-consuming and potentially dangerous repair substantially reduce the required volumes and costs operations. of these inhibitors. The flow loop is being used in a flow assurance The new hydrates flow project that forms part of CSIRO’s Wealth from loop‘ is the only one of its Oceans National Research Flagship Platform-Free Fields program. The Flagship’s aim is to better kind in Australia and can understand the formation of hydrates in gas pipelines and to develop cost effective technologies to avoid simulate gas dominant flows flow disruptions. at high pressures and low The project is an international collaboration between temperatures – conditions the Flagship, the Australian Nuclear Science and Technology Organisation, Curtin University of that oil and gas pipelines Technology, Institute Francais du Pétrole, the Western are subjected to in deep-sea Australian Energy Research Alliance and industry.

environments. Subsea Pipeline Cluster ’ Australia’s top universities are working together with CSIRO to develop new, safe, economically viable and environmentally sound transportation technologies to help unlock Australia’s stranded offshore oil and gas resources. Launched in October 2007, the Wealth from Oceans National Research Flagship’s A$11 million Collaboration Cluster on Subsea Pipelines (CCSP) unites the research capabilities of The University of Western Australia, Curtin University of Technology, The University of Queensland, Monash University, The University of Sydney, Flinders University and CSIRO.

20 ARRC Annual Report 2007-08 More than 80 per cent of Australia’s gas resources exist in remote offshore areas, potentially as far as 300 kilometres offshore and at water depths greater than one kilometre. Realising the full potential of these resources requires improved subsea pipeline design. The collaborative research cluster was formed to Funding for the improve pipeline technology by harnessing expertise from across Australia. The cluster is undertaking cluster‘ comprises a projects to investigate seabed characterisation and A$3.6 million grant morphology, structural integrity, pipeline monitoring, geo-hazards and full-life reliability. through the Flagship Several factors impact the stability of extra-long Collaboration Fund and pipeline structures, such as the effect of strong currents over a period of decades, shifting seabeds, in-kind contributions steep seabed slopes and potential geo-hazards such totalling A$7.4 million as submarine landslides. from the participating The cluster’s research program spans the spectrum of pipeline design and will involve everything from universities. sophisticated computer modelling and sea-floor movement prediction, to understanding tsunami ’ effects and exploring the use of autonomous underwater and remotely operated vehicles. CSIRO’s Wealth from Oceans National Research Flagship envisions that improved pipeline technology will eventually enable platform-free fields to replace traditional offshore production platforms. Funding for the cluster comprises a A$3.6 million grant through the Flagship Collaboration Fund and in-kind contributions totalling A$7.4 million from the participating universities. The Flagship Collaboration Fund enables the skills of the wider Australian research community to be applied to the major national challenges targeted by the National Research Flagship Program. RESEARCH HIGHLIGHTS - Petroleum Exploration & Production RESEARCH HIGHLIGHTS - Petroleum

ARRC Annual Report 2007-08 21 RESEARCH HIGHLIGHTS - Petroleum Exploration & Production cont.

Shale Research Centre The Shale Research Centre The CSIRO Shale Research Centre was founded intends‘ to be a worldwide hub in 2008 to conduct experimental and theoretical research to further develop understanding of clay for clay and shale research and shale behaviour. The Centre involves a number in relation to the petroleum of CSIRO Divisions and their associated laboratories performing clay and shale characterisation. industry, delivery knowledge, Research carried out at the Centre is aimed at critical understanding and solutions for issues relating to clay-rich sediments and rocks, including wellbore stability, pore pressure prediction, industry-related problems in shales.

shale gas, carbon dioxoide-shale interaction,’ seal integrity, 4D seismic and seismic imaging. This research has the potential to save the petroleum industry billions of dollars through enhanced understanding and prediction of shale properties. SHARC, a joint industry project under the auspices of the Shale Research Centre, is currently seeking funding to investigate the links between geomechanical, petrophysical and elastic properties of shales for application to hydrocarbon exploration, development and production scenarios. CSIRO Petroleum Resources has a long history of working with clay-rich rocks, utilising world- class laboratories to pursue its research on these materials. Current work in the IPETS Consortium (Integrated Predictive Evaluation of Traps and Seals) is investigating the prediction of mechanical properties of shales. Previous work by researchers now associated with the Centre include an Australian Petroleum CRC abnormal geopressure program, which investigated the experimental and theoretical rock physics basis for the effect of pore pressure on the dynamic elastic response of sandstones and shales. Wellbore stability in shales has also been an extensive line of research over many years. The Shale Research Centre intends to be a worldwide hub for clay and shale research in relation to the petroleum industry, delivering knowledge, understanding and solutions for industry-related problems in shales.

22 ARRC Annual Report 2007-08 Measuring the strength and safety of oil wells in hydrate bearing sediments In the past, CSIRO Petroleum Resources has developed world leading technology for wellbore stability and drilling fluid optimisation for shale stability. Instability in wellbores is an industry-wide problem, with collapsed holes, sidetrack holes, lost tools and well abandonment affecting oil and gas companies from exploration through to development drilling. More recently, CSIRO Petroleum Resources researchers Dr Reem Freij-Ayoub and Dr Ben Clennell have been applying their expertise towards understanding the mechanical behavior of hydrate bearing sediments and defining hydrate growth patterns in marine sediments. In this project, CSIRO has developed predictive numerical tools to assess the stability of the wellbore, using coupled mechanical- thermal-fluid-thermodynamic modelling, and the integrity of the conductor/casing when circulating hot CSIRO has developed fluid through the HBS. predictive‘ numerical tools This new innovative model captures the interaction to assess the stability of between the rock formations surrounding oil wells, cement and the cement-casing interfaces, enabling the wellbore. wellbore stability to be evaluated in light of in-situ stresses, formation pressure and material properties. ’ Resulting simulations using the new model demonstrate that the safety factor of the casing is highly dependent on both the quality of the cement and the in-situ horizontal-to-vertical stress ratio. RESEARCH HIGHLIGHTS - Petroleum Exploration & Production RESEARCH HIGHLIGHTS - Petroleum

ARRC Annual Report 2007-08 23 RESEARCH HIGHLIGHTS - Environment

Otway Project makes CCS a reality The project includes an The Cooperative Research Centre for Greenhouse environmental monitoring Gas Technologies (CO2CRC) has undertaken one of program, which both national and the most innovative greenhouse projects in Australia, international scientists believe to taking carbon capture and storage (CCS) in Australia be the most comprehensive of its from concept to reality through the geological storage kind in the world. It was designed, of carbon dioxide at a commercially significant scale in developed and implemented south-western Victoria. by CO2CRC researchers from Australia, New Zealand, the USA The CO2CRC Otway Project is the first geological and Canada. carbon dioxide storage project in the southern hemisphere and is one of the few projects currently The project demonstrates that CCS underway around the world to safely and securely has great potential to dramatically store carbon dioxide. reduce carbon emission from major stationary sources in Australia, such Geological carbon dioxide storage is a low-emission as power stations. technology that can significantly reduce greenhouse gas emissions from burning fossil fuels, such as oil, gas CO2CRC’s research and and coal. demonstration activities in both the capture and storage of carbon CO2CRC’s Otway Project involves compressing dioxide have put Australia at and transporting in the vicinity of 100,000 tonnes of the forefront of international carbon dioxide and then sequestering it in a depleted CCS research, development and natural gas reservoir two kilometres underground. deployment. Research organisations supporting and participating in the CO2CRC Otway Project include CSIRO; Geoscience Australia; the Universities of Adelaide, Melbourne and NSW; Curtin University of Technology; Monash University; the Alberta Research Council in Canada; and the US Lawrence Berkeley National Laboratory. A significant proportion of the research team is based at ARRC. The Otway Project was also supported by the NSW Department of Primary Industries, the Victorian Department of Primary Industries, and the WA Department of Industry and Resources. The CO2CRC received financial support for the project through the Australian Government’s Cooperative Research Centres Program. CO2CRC’s core industry partners are ACARP, Anglo American, BHP Billiton, BP Australia, Chevron, ConocoPhillips, KIGAM, NZ Resource Consortium, Rio Tinto, Schlumberger, Shell, Foundation for Research Science and Technology (NZ), Solid Energy, Stanwell, Woodside and Xstrata.

24 ARRC Annual Report 2007-08 Led by CSIRO Petroleum Resources Scientists Dr Reem Freij-Ayoub and James Underschultz, CSIRO researchers developed a coastal inundation risk map for Victoria’s south-eastern Gippsland coastline. The study investigated Gippsland hydrodynamic systems, coastal subsidence, extreme wave conditions and sea level predictions and inundation risk mapping over the next 50 years. Gippsland Basin Report The study revealed that there is a relatively small risk In 2007, scientists with CSIRO’s Wealth from Oceans of coastal inundation due to subsidence in this area, National Research Flagship completed a study, especially when compared to the risk of water rising entitled “Simulation of coastal subsidence and storm from a storm tide or extreme wave event. wave inundation risk in the Gippsland Basin”, which In delivering the study, CSIRO researchers considered investigated the likelihood of coastal waters rising as a surface settlement due to aquifer-pressure depletion, result of the gradual sinking of the Gippsland Basin. as well as predictions relating to extreme storm surges and tide and wave conditions within various climate-change scenarios, such as a global-warming- induced sea-level rise. The results from the study predict subsidence at specific points along the coastline and include simulations of expected extreme wave heights, storm tides and sea level heights across the Gippsland coast. The CSIRO research concluded that parts of the Gippsland coastline will be inundated due to the modelled 50-year return storm tide and extreme wave, with the risk of inundation set to increase from the present time to the year 2056. The risk map

produced in this study could indicate areas at highest RESEARCH HIGHLIGHTS - Environment risk of inundation.

ARRC Annual Report 2007-08 25 RESEARCH HIGHLIGHTS - Exploration Geophysics

Curtin Reservoir Geophysics Consortium Time reversal acoustics and physical Research undertaken by the Curtin Reservoir modelling Geophysics Consortium (CRGC) in 2007-08 focused Researchers at Curtin University of Technology’s on enhancing geophysical data acquisition, processing Department of Exploration Geophysics have and quantitative interpretation to improve petroleum successfully applied methods of time reversed resource exploration across Australia. acoustics to enhance seismic imaging in physical The primary function of the CRGC is to conduct modelling of regions that exhibit complex geophysical research and develop new technologies heterogeneity in the subsurface. to benefit the petroleum industry. Multi-scattering layers such as carbonate reefs, In 2007-08, CRGC researchers addressed problems sea-floor limestones, karst topography, near-surface associated with geophysical imaging in complex basalts, rugose structures and salt intrusions often heterogeneous reservoirs to deliver enhanced occur in areas associated with hydrocarbon reservoirs imaging capabilities to industry. This research will and present significant problems for conventional enable drilling programs to be better directed, reflection seismology. increasing recovery from known reservoirs. Led by Associate Professor Bruce Harley and The research was structured around the concept of Professor Brian Evans, the Curtin research team improved seismic imaging of reservoirs, using methods aimed to increase the quality of seismic data of signal analysis that enhance the processing of acquisition by virtually removing the severe scattering existing data. and wavefront distortion effects encountered in environments with heterogeneous subsurface. Led by CRGC Director and Professor of Petroleum Geophysics at Curtin University of Technology, Boris The researchers used the Virtual Source Method Gurevich, researchers investigated the potential for (VSM) as an effective way of imaging beneath the understanding the effects of anisotropy using multi- complex overburden environments. The method component processing, and obtained comprehensive involves VSM-style acquisition with sources on the knowledge of the effects that variations in rock surface and receivers in a horizontal line below the physics have on transmitted and reflected seismic heterogeneous scattering overburden. energy. The project utilised the time reversal principle to The CRGC is a partnership between industry and create a downward continued dataset with virtual academia and is the first industrial consortium in sources at the subsurface receiver locations. The the southern hemisphere directed at exploration major benefit of this methodology is that it requires geophysics research. Current CRGC sponsors include no knowledge of the velocity model between the ExxonMobil, Chevron, Saudi Aramco, Woodside, surface sources and subsurface receivers. Santos, Apache, BHP Billiton and DownUnder The research team concluded that the Virtual Source Geosolutions. Method holds great promise for seismic acquisition and physical modelling as it considerably improves the precision of seismic measurements in complex The primary function of subsurface environments. ‘the CRGC is to conduct geophysical research and develop new technologies to benefit the petroleum industry’

26 ARRC Annual Report 2007-08 RESEARCH HIGHLIGHTS - Petroleum Engineering

Curtin Petroleum Engineering Facility and has established linkages with UWA, The Several new initiatives undertaken within the University of Adelaide and The University of New Department of Petroleum Engineering at Curtin South Wales to develop future joint research projects. University of Technology during 2007-08 will see During 2009, a new two-year ‘Masters in Engineering major changes implemented from 2009 onward, Science in Petroleum Engineering’ will provide delivering a technological edge and increased research students with research projects directly linked to capabilities. industry. The department is currently establishing joint Upgrades to the ARRC auditorium, delivered in ventures with companies that will allow researchers 2007-08 with funding from iVEC and the Western to work alongside their industry colleagues on real Australian Energy Research Alliance, will enable industry problems. Curtin to embark on a collaborative co-teaching In June 2008, Petroleum Engineering PhD student initiative with The University of Western Australia Charlie Gao had his PhD, entitled ‘Down-hole (UWA) in 2009. separation and produced water re-injection’, approved Cameras and microphones have been installed and received an award from the Chinese Embassy throughout the ARRC auditorium to facilitate the in Canberra for his contribution to engineering. PhD new co-teaching collaboration. The initiative will use student Reza Taheri, whose thesis is entitled ‘Remote Tele-teaching over the web ACCESS grid to enable sensing, fuzzy logic and GIS in petroleum exploration’, Curtin and UWA students to attend the same classes, won the SPE Best Postgraduate Student Award at regardless of their location. the 2008 Muscat regional conference. These awards demonstrate the calibre of students and the impact of Curtin’s Petroleum Engineering Department will the projects to industry. expand its research profile in 2009 and beyond to increase its research capabilities. A new teaching lab will be constructed in 2009, along The new initiative will enable with two new research labs focused on geomechanics Curtin‘ University of Technology and wellbore fluid dynamics. The department’s three- phase core flooding laboratory will also be modified and The University of Western to enable sonic and resistivity data recording while Australia students to attend flooding at high pressure, high temperature conditions. the same classes, regardless Petroleum Engineering has already commenced weekly seminars with the Woodside Research of location.’ RESEARCH HIGHLIGHTS - Petroleum Engineering RESEARCH HIGHLIGHTS - Petroleum

ARRC Annual Report 2007-08 27 RESEARCH HIGHLIGHTS - National Measurement Institute

Research for an environmentally friendly acid if drained or excavated, often releasing toxic petroleum industry quantities of iron, aluminium and heavy metals. This can have major environmental, health, engineering, and The National Measurement Institute (NMI) is economic effects. working in collaboration with the Department of Environmental Biology at Curtin University of ASS are a major problem for development in Technology to develop environmentally friendly Western Australia. The aim of the NMI trial project drilling muds for use in the oil and gas industry. was to determine the effect of acid drainage on trace metal mobility in the Swan Coastal Plain. NMI researchers are focused on validating the effectiveness of the Closed Bottle Biodegradation Test Results from the trial project are being used to in Australian conditions. Their research has identified create a database of heavy metals leaching from ASS that the quantities of drilling fluids used is significant in in the Swan Coastal Plain to assist with the future terms of environmental impact. remediation and development of this land. This project will assist the petroleum industry The findings of the trial have been presented at to improve the monitoring of drilling fluid various technical working group meetings and are biodegradation in drilling on the North West Shelf of currently being assessed by researchers prior to Australia. publication.

Acid sulphate soil profiling in WA soils Treated waste-water for drinking purposes NMI, in collaboration with the Western Australian NMI continued to work with the Western Australian Department of Water, delivered a trial project in Water Corporation and various other agencies in 2007-08 examining the leachability of a number of 2007-08 on a Premier’s Collaborative Research Acid Sulphate Soil (ASS) types currently found in Project investigating the possible use of recycled Western Australia. water for drinking purposes. ASS is the common name given to soils and The project involves characterising waste-water that sediments containing iron sulfides, the most common has been treated by reverse osmosis and injected into being pyrite. Potential ASS are soils containing iron the depleted aquifer of the Gnangara Mound. sulphides that have the potential to produce sulphuric Purified samples from an experimental reverse osmosis unit and membrane installed at the Water Corporation’s Beenyup Treatment Plant were tested during the period, along with samples from the Kwinana and Subiaco Treatment Plants, for the presence of any chemicals of concern. As the Quality Manager for the project, NMI provided support in method development, validation, measurement uncertainty, and quality assurance and control.

28 ARRC Annual Report 2007-08 Bringing new capabilities and methodologies to ARRC NMI is experienced in the efficient development and validation of methodology prior to accreditation to international standards by the National Association of Testing Authorities (NATA). NMI’s Western Australian staff developed several new capabilities during 2007-08. Throughout the year, NMI’s WA staff conducted ground-breaking research in the analysis of fresh and sea water combinations for the determination of total organic carbon and nutrients. The necessity for this Other innovative techniques developed by NMI in analysis was made apparent when methodologies the past year include inductively coupled plasma- supplied by major instrument manufacturers in the US mass spectrometry (ICP-MS) techniques for low and Germany were found to be deficient for analysing level metals analysis in the environment and high fresh and sea water samples that were co-mixed. performance liquid chromatographic techniques for Following advice from the American Water Works the determination of low level (0.5 µg/L) chlorophyll Association that it will shortly require the US and phaeophytin in marine and other waters. Environmental Protection Agency to issue a regulation In 2007-08, NMI’s WA team also developed a new for perchlorate, NMI staff developed new capabilities methodology for analysis of chlorite in seaweed in the analysis of low level perchlorate in water. polyps. This analysis provides a unique facility within Institute staff also conducted an analysis of low level Australia to measure and mitigate the impact of pulp polycyclic aromatic hydrocarbons in environmental mills and bleaching plants on the environment. soils and waters during the period, building their NMI’s efforts have ensured the availability of robust, expertise in this area. accurate and precise methodologies for highly variable NMI staff developed further capabilities that minimise Australian sample matrices that can be adopted environmental impacts, such as proficiency in the globally. replacement of mercury catalysts in total Kjeldahl nitrogen (TKN) determinations. NMI’s WA staff have conducted‘ ground-breaking research in the analysis of fresh and sea water combinations’ RESEARCH HIGHLIGHTS - National Measurement Institute

ARRC Annual Report 2007-08 29 CLIENTS

Abu Dhabi National Oil Company ENI Australia (ADNOC) Falconbridge Adelaide Resources Fugro Robertson (United Kingdom) Alkane Resources Geolnformatics Anglo American Exploration (Australia) Geological Survey of Western Australia Australian Scientific Instruments Geoscience Australia Baker Hughes Goldfields Barrick Gold Corporation GNS Science (New Zealand) BHP Billiton Halcyon Resources Cameco Corporation Helix Resources Chevron Heron Resources Codelco Independence Group Corelab (Indonesia and United Kingdom) Icon Technologies Cia Vale do Rio Doce (Brazil) Institut Francaise du Petrole (IFP) De Beers Inco Technical Services Department of Industry and Resources, INPEX Western Australia InterMet Resources Department of Mineral Resources, InterOil New South Wales Jabiru Metals Department of Primary Industries and Japan Oil, Gas and Metals National Resources of South Australia Corporation (JOGMEC) Deutsche Forschungsgemeinschaft Japan Vietnam Petroleum Company (JVPC)

30 ARRC Annual Report 2007-08 Johnson Matthey PETROBRAS Kerr-McGee PETRONAS Leviathan Resources Petronas Research Sdn Bdh (PRSB) LionOre Australia PT Caltex Magellan Metals Regis Resources Minara Resources Rio Tinto Mincor ROC Oil Minerals and Energy Research Institute of Santos Western Australia (MERIWA) Schlumberger Minotaur Exploration SGS Minerals Multiplex Shell Murphy Oil Southern Gold Nautilus Minerals Stellar Resources Neptune Resources Sumitomo Metal Mining Newmont Australia Teck Cominco Northparkes Tethyan Copper Oil Search TOTAL Oolithica (United Kingdom) WMC Resources Origin Woodside Energy Patterson Instruments Xstrata Pilbara Iron Zinifex

Placer Dome CLIENTS

ARRC Annual Report 2007-08 31 Awards and Recognition

Dedicated multi-disciplinary experts committed to achieving excellence in research.

32 ARRC Annual Report 2007-08 AWARDS AND RECOGNITION

EXTERNAL AWARDS This technology could benefit the Australian resources industry by collecting real-time geochemical Brent McInnes – Fulbright visit outcomes data in a safer way from sites that are isolated or in hazardous locations. Dr Brent McInnes, a Chief Research Scientist with CSIRO Exploration and Mining, received the 2007 There is great potential for US-Australian Fulbright Professional Business/Industry Scholarship, collaboration in developing exploration technologies which allowed him to spend three months working that would benefit both Australia’s minerals industry with instrument scientists and engineers at the NASA and planetary exploration, as demonstrated by the Goddard Space Flight Centre in Maryland. cooperative efforts of CSIRO, NASA and NASA- associated institutions such as LANL. Dr McInnes’ visit highlights the value that both Australia and NASA could gain from sharing technologies in a mutually beneficial partnership. Dr Dr Peter Lilly elected to ATSE McInnes led the CSIRO team that developed the Leading CSIRO engineer, Dr Peter Lilly AlphachronTM (U-Th)/He geochronology instrument, was elected as a Fellow of the Australian technology that can provide an insight into when Academy of Technological Sciences and liquid water, and potentially life, was present on the Engineering (ATSE) in November 2007. surface of Mars. ATSE is an independent, non-government CSIRO’s AlphachronTM technology has been used to organisation dedicated to the promotion determine the age of iron oxide minerals in laterite and practical application of scientific and and iron ore deposits in Australia. As these minerals engineering knowledge in Australia. Each are also prevalent on Mars, it is possible that a year scientists, judged by their peers to have miniaturised version of the instrument could be used made an exceptional contribution to knowledge in to date Martian minerals. their field, are elected as Fellows of the Academy. NASA technology developed for the upcoming 2009 Dr Lilly’s election acknowledges his outstanding Mars Science Laboratory Mission also has mining contributions to Australia’s minerals sector through industry applications. Dr McInnes also spent time at scientific research, research management, tertiary Los Alamos National Laboratory (LANL) in New education, engineering consultancies and service to Mexico, where a ChemCam laser-induced breakdown professional associations. spectroscopy instrument is being developed for the Mars Science Laboratory. As Director of the CSIRO Minerals Down Under National Research Flagship, Dr Lilly has worked CSIRO and LANL are currently discussing the to establish an ongoing dialogue between CSIRO, opportunity to trial ChemCam technology to conduct government, industry and relevant research groups to remote geochemical analysis on mine sites in Western identify issues for research and development and to Australia. provide direction for the future of the industry. Dr Lilly is internationally recognised for his expertise in the fields of geotechnical risk analysis, rock slope engineering, excavation and blast engineering, and mine planning and design. AWARDS AND REGOGNITION AWARDS

ARRC Annual Report 2007-08 33 AWARDS AND RECOGNITION

AlphachronTM technology receives Service The AlphachronTM instrument is the first automated, from Science Award integrated and compact turnkey thermochronometric system to become commercially available. CSIRO’s AlphachronTM Instrument Commercialisation Team received the Service from Science Award in The technology was licensed to Australian Scientific 2007 for its efforts in designing, developing and selling Instruments, implementing a new model for CSIRO the innovative AlphachronTM technology to the world. engagement with the Australian small and medium enterprise sector. It is now being adopted by the market as a standard analytical platform, allowing an accurate determination of the thermal history of the The AlphachronTM instrument is Earth’s crust. the‘ first automated, integrated and SPE Distinguished Lecturer – compact turnkey thermochronmetric Reem Freij-Ayoub system to become commercially CSIRO principal research scientist, Dr Reem Freij- Ayoub was selected to participate in the Society of available Petroleum Engineers Distinguished Lecturer Program in 2007-08, delivering her lecture entitled ‘Wellbore- TM ’ The Alphachron team consists of Dr Brent McInnes, Stability Issues in Shales Mr Brad McDonald, Dr Noreen Evans and Mr Tim or Hydrate-Bearing McLennan of CSIRO Exploration & Mining, Dr Peter Sediments’. Crowhurst of CSIRO Petroleum Resources and Mr Des Patterson of Patterson Instruments. The team The 2007-08 Distinguished developed the instrument to provide rapid and Lecturer Program featured automated determination of 28 speakers from various helium in mineral samples disciplines and professions for the purpose of helium within the petroleum thermochronology. industry. The lecture series emphasised current industry trends, challenges Helium thermochronometry and technology, delving into diverse topics such as is a relatively new, highly hydraulic fracturing, wellbore stability, improved oil sensitive and cost-effective recovery and field performance. method of radiometric age dating that can be The Distinguished Lecturer Program aims to extend used to determine the the knowledge and experience of the top experts in thermal history of the all aspects of the energy and petroleum industry. Earth’s crust. The chief A key member of CSIRO Petroleum Resource’s benefit to the resources petrophysics team, Dr Freij-Ayoub was nominated by industry is the ability to her international peers to participate in the program quantitatively determine the in recognition of her expertise in numerical modelling low temperature thermal of coupled processes. histories of mineral belts and petroleum basins - data The main focus of Dr Freij-Ayoub’s presentation important in exploration for was the provision of tools to predict the stability of minerals, oil and gas. wellbores drilled in challenging formations, drawing on the application of numerical modelling, laboratory

34 ARRC Annual Report 2007-08 rock testing and knowledge of the processes critical in mineral exploration. to shales and hydrate-bearing sediments. Dr Butt has received several prestigious awards During her lecture, Dr Freij-Ayoub also discussed throughout his career, including the Gold Medal of the applying geomechanical modelling and testing to sand- Association of Exploration Geochemists and the Gibb production prediction, an area of major concern to Maitland Medal of the Geological Society of Australia the oil industry. (Western Australia). Dr Freij-Ayoub is currently working on model In 2003-04, CRC for Landscape Environments and development and application for problems in Mineral Exploration and CSIRO Exploration and wellbore mechanics and coupled processes related Mining named a medal after Dr Butt and Dr Ray to wellbore stability in hydrate bearing sediments and Smith for their achievements in regolith science. The land subsidence. Butt Smith medal has been awarded three times, in 2004, 2006, and 2008. Dr Charles Butt appointed as As a CSIRO Fellow, Dr Butt will have the opportunity CSIRO Fellow to play a role in planning for enhanced high quality science in the organisation. He will also play a key Former Chief role in mentoring and supporting programs to attract Scientist for CSIRO more young scientists. Exploration and Mining, Dr Charles Butt was honoured for his eminent Dr Butt will play a key scientific contribution ‘role in mentoring and to Australia, being appointed as a supporting programs CSIRO Fellow in December 2007. to attract more young Selected by the CSIRO Chief Executive and Executive scientists. Committee, Fellowships are appointed to exceptional scientists who have displayed eminence in a significant ’ field of science or engineering. Already a Fellow of the Australian Academy of Technological Sciences and Engineering (ATSE), Dr Butt is a geochemist whose concepts have been widely adopted by industry, making him an international authority on mineral exploration in deeply weathered terrain and ore deposits formed by weathering. Research by Dr Butt and multi-disciplinary teams has demonstrated the importance of the geology and geochemistry of the regolith in mineral exploration, contributing to significant changes in the philosophy and practice of exploration by industry in Australia,

Africa and South America. Once generally neglected, AND REGOGNITION AWARDS these are now widely recognised for their importance

ARRC Annual Report 2007-08 35 Outreach and Engagements Opening our doors to inspire next generation science and technology professionals

36 ARRC Annual Report 2007-08 OUTREACH AND ENGAGEMENTS

Visitors • International representatives from China United ARRC staff hosted numerous international delegations Coalbed Methane Corporation (CUCBM), and individual visits during 2007-08, strengthening ties PetroChina and several Chinese universities with government and industry decision-makers, as visited CSIRO and ARRC as part of a study well as with other international research institutions. tour on coal bed methane research in Australia. Seventeen delegates, including CUCBM • As part of a four-day Perth visit, British Vice President Aimei Hu and PetroChina High Commissioner to Australia The Right Vice President Chengzao Jia, received a short Honourable Helen Liddell attended ARRC to presentation on ARRC and CSIRO Petroleum meet with Acting Chief of CSIRO Exploration Resource’s work on exploration technologies, and Mining Dr Steve Harvey, representing understanding and characterising oil and gas CSIRO Petroleum Resource’s Dr Beverley reservoirs, drilling and well construction projects, Ronalds, and WA Energy Research Alliance Chief and sustainable development, followed by a tour Executive Dr Ian Finnie. Following a presentation of several ARRC laboratories. highlighting the current research activities at the Centre, Mrs Liddell inspected a number • The Indian Minister for Science and Technology of research laboratories to see some current toured the facilities at ARRC during his visit to research projects first hand. Perth in 2008. This visit underlines the growing depth and breadth of the relationship between the research communities of India and Australia. • A delegation from China’s largest nickel, cobalt and precious metals producer, Jinchuan Group (JNMC), visited CSIRO Petroleum Resources and CSIRO Exploration and Minerals laboratories at ARRC as part of their study tour of CSIRO and BHP Billiton’s capabilities in mineral processing. Led by JNMC Chairman and President Mr Li Yongjun, the delegation visited CSIRO Petroleum Resource’s Rock Mechanics and Geomechanics and Drilling laboratories, discussing the various research activities with CSIRO staff. • ARRC hosted a visit from Digby, Lord Jones of Birmingham during the year. Lord Jones holds overall responsibility for UK Trade and Investment and was received at the Centre by ARRC Advisory Committee Chairman David Agostini, CSIRO Petroleum Resources Commercial Manager Jeff McCulloch, Deputy Chief CSIRO Exploration and Minerals Dr Steve Harvey, WA:ERA Chief Executive Dr Ian Finnie and representatives from WA Department of Industry and Resources. Lord Jones and his entourage toured CSIRO and WA:ERA laboratories and received presentations on the

significant projects being undertaken at ARRC. OUTREACH AND ENGAGEMENTS

ARRC Annual Report 2007-08 37 OUTREACH AND ENGAGEMENTS

Events As a hub for resources research, ARRC is a natural • NWSJEMS launch – The North West Shelf Joint meeting point for a range of industry activities, from Environmental Management Study (NWSJEMS), workshops showcasing the latest technologies and a collaborative project by CSIRO’s Wealth from techniques to seminars aimed at inspiring the next Oceans National Research Flagship and the generation of science and technology professionals. Western Australian Government, was officially Events hosted at ARRC or featuring research launched at ARRC in April by the Federal conducted at the Centre during 2007-08 included: Minister for Industry, Innovation, Science and Research, the Hon Kim Carr, and the former Western Australian Minister for Environment, the Hon David Templeman MLA. The NWSJEMS project is developing practical tools to help planners manage potentially competing uses of Australia’s marine ecosystems.

38 ARRC Annual Report 2007-08 • Educational events – Students from Kent Street Science Teachers Association (CONASTA) also and Sacred Heart Senior High Schools visited visited ARRC during the year. The CONASTA ARRC to participate in the Schools Information group received an introductory talk on CSIRO Program, co-run by APPEA and The Petroleum Petroleum at ARRC and a presentation on Club of Western Australia. Twenty students from ‘Unlocking the mystery of gold nuggets’ before Murdoch University Science and Engineering touring the research facility. Summer School also visited ARRC during the • Drilling technologies workshop – Held at year as part of the school’s STAR program. The ARRC, this workshop was designed to expose student groups toured ARRC’s research facilities, companies to new technologies developed by visiting the iVEC, Scanning Electron Microscope, CSIRO’s Drilling Technologies Group. Workshop Rock Mechanics and Microscope and Geophysics attendees viewed presentations on new laboratories. A delegation from the CSIRO- technologies and participated in laboratory sponsored Conference of the Australian tours.

ARRC is a natural‘ meeting point for a range of industry activities.’ OUTREACH AND ENGAGEMENTS

ARRC Annual Report 2007-08 39 FINANCIAL REPORT

40 ARRC Annual Report 2007-08 Non-appropriation funding sources (CSIRO Exploration and Mining and CSIRO Petroleum Resources at ARRC)

23% 48% 29%

State Government Departments &Universities Co-operative Research Centre (CRC) Program & Other Federal Funding Private Sector and other non-government sources FINANCIAL REPORT

ARRC Annual Report 2007-08 41 ARRC METRICS

Organisations at ARRC

Metrics 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Government CSIRO PR CSIRO PR CSIRO PR CSIRO PR CSIRO PR CSIRO PR CSIRO PR CSIRO E&M CSIRO E&M CSIRO E&M CSIRO E&M CSIRO E&M CSIRO E&M CSIRO E&M NMI NMI

University Curtin Geophys Curtin Geophys Curtin Geophys Curtin Geophys Curtin Geophys Curtin Geophys Curtin Geophys Curtin Pet Eng Curtin Pet Eng Curtin Pet Eng Curtin Pet Eng Curtin Pet Eng Curtin Pet Eng Curtin Pet Eng

Major BHP Billiton BHP Billiton BHP Billiton industry Chevron Chevron

Collaborative initiatives Metrics 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

CRCs CRC LEME CRC LEME CRC LEME CRC LEME CRC LEME CRC LEME CRC LEME pmd* CRC pmd* CRC pmd* CRC pmd* CRC pmd* CRC pmd* CRC pmd* CRC APCRC APCRC CO2CRC CO2CRC CO2CRC CO2CRC CO2CRC CSRP CSRP CSRP CSRP CSRP

Flagships WfO WfO WfO WfO WfO ETF ETF ETF ETF ETF MDU MDU

Other iVEC iVEC iVEC iVEC iVEC iVEC iVEC WA:ERA WA:ERA WA:ERA WA:ERA WA:ERA WA:ERA R2D3 R2D3 R2D3 R2D3 R2D3 AES:WA AES:WA AES:WA AES:WA ESWA ESWA ESWA ESWA AARNet AARNet AARNet CoE EPG CoE EPG CoE EPG CoE EPG CoE HDG CoE HDG CoE HDG WA PRC WA PRC WA PRC Curtin RGC Curtin RGC Curtin RGC GCE C3D MinMap

42 ARRC Annual Report 2007-08 CSIRO PR CSIRO Petroleum Resources CSIRO E&M CSIRO Exploration and Mining

Curtin Geophys Curtin University of Technology Department of Exploration Geophysics Curtin Pet Eng Curtin University of Technology Department of Petroleum Engineering CoE EPG Centre of Excellence for Exploration and Production WA PRC Western Australian Petroleum Research Centre CoE HDG Centre of Excellence for High Definition Geophysics Curtin RGC Curtin Reservoir Geophysics Consortium

NMI National Measurement Institute BHP Billiton BHP Billiton Perth Technology Centre Chevron Perth Technology Centre, Chevron Energy Technology Company CRC LEME Cooperative Research Centre for Landscape Environments and Mineral Exploration pmd*CRC Cooperative Research Centre for Predictive Mineral Discovery APCRC Australian Petroleum Cooperative Research Centre CO2CRC Cooperative Research Centre for Greenhouse Gas Technologies CSRP Cooperative Research Centre for Sustainable Resource Processing iVEC The hub of advanced computing in Western Australia WA:ERA Western Australian Energy Research Alliance R2D3 Research to Discover, Develop and Deploy (WA:ERA and Woodside) AES:WA Western Australian Alliance for Advanced Energy Solutions (WA:ERA and Chevron) ESWA Earth Science Western Australia AARNet Australia’s Academic and Research Network C3DMinMap Centre for 3D Mineral Mapping GCE The Geothermal Centre of Excellence WfO Wealth from Oceans National Research Flagship ETF Energy Transformed National Research Flagship MDU Minerals Down Under National Research Flagship ARRC METRICS

ARRC Annual Report 2007-08 43 ARRC ADVISORY COMMITTEE

The role of the ARRC Advisory Committee is to provide focus and direction for ARRC’s activities, thus ensuring maximum benefit to Western Australian industry, research organisations and the community. Additionally, it oversees the research plans for the Centre and annually reviews the activities of the Centre against objectives. The ARRC Advisory Committee meets twice a year and comprises representatives from research institutions, government agencies and industry.

Adj. Professor David Agostini Australian Resources Research Centre Chair 26 Dick Perry Avenue ARRC Advisory Committee Kensington WA 6151 T: 6436 8500 F: 6436 8555 E: [email protected]

Dr Beverley Ronalds Australian Resources Research Centre Group Executive Energy, 26 Dick Perry Avenue Chief, Kensington WA 6151 CSIRO Petroleum Resources T: 6436 8700 CSIRO Secretariat F: 6436 8578 E: [email protected] Executive Assistant: Mandy Robinson [email protected]

Dr Peter Lilly Australian Resources Research Centre Director, 26 Dick Perry Avenue Minerals Down Under Kensington WA 6151 National Research Flagship, CSIRO T: 6436 8613 F: 6436 8561 E: [email protected] Executive Assistant: Wendy Waggitt [email protected]

Dr Mike McWilliams Australian Resources Research Centre Chief, 26 Pick Perry Avenue CSIRO Exploration and Mining, Kensington WA 6151 T: 6436 8953 F: 6436 8561 E: [email protected] Executive Assistant: Jenny Porter [email protected]

44 ARRC Annual Report 2007-08 Dr Steve Harvey Australian Resources Research Centre Deputy Chief, 26 Dick Perry Avenue CSIRO Exploration and Mining Kensington WA 6151 T: 6436 8610 F: 6436 8561 E: [email protected] Executive Assistant: Jenny Porter [email protected]

Jeff Gresham Gresham Mineral Consulting Services Consultant Suite 6, 19 York Street Subiaco WA 6008 T: 6380 2111 M: 0418 628 896 F: 6380 1999 E: [email protected]

Dr Joe McNutt Woodside Energy Limited Vice President, Woodside Plaza Science and Technology 240 St Georges Terrace Perth WA 6000 T: 9348 6586 F: 9214 2744 E: [email protected] Executive Assistant: Ambre Cook [email protected] Anne Nolan Department of Industry and Resources Director General 1 Adelaide Terrace East Perth WA 6004 T: 9222 0422 F: 9222 6160 E: [email protected] Executive Assistant: Barbara Coomber [email protected] ARRC ADVISORY COMMITTEE ARRC ADVISORY

ARRC Annual Report 2007-08 45 ARRC ADVISORY COMMITTEE

Dr Tim Griffin Geological Survey of Western Australia Executive Director WA Department of Mines and Petroleum Mineral House 100 Plain Street East Perth WA 6004 T: 9222 3160 F: 9222 3633 E: [email protected] Executive Assistant: Nell Stoyanoff [email protected]

Professor Doug McEachern The University of Western Australia Deputy Vice-Chancellor M460 Research and Innovation 35 Stirling Highway Crawley WA 6009 T: 6488 2460 F: 6488 1013 E: [email protected] Executive Assistant: Bernadette Ferns [email protected]

Mr Tony Tate, Curtin University of Technology Director Office of Research and Development Research and Development Building 100 Curtin University of Technology Hayman Road Bentley WA 6102 T: 9266 3854 F: 9266 3045 E: [email protected] Executive Assistant: Hanne Cunningham [email protected]

46 ARRC Annual Report 2007-08 Australian Resources Research Centre 26 Dick Perry Avenue Technology Park KENSINGTON WA 6151

Phone: +61 8 6436 8500 Fax: +61 8 6436 8555 Website: www.arrc.net.au

ARRC Annual Report 2007-08 Design and artwork by ARRC Visual Resources Unit.

© Commonwealth of Australia 2008 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at: http://www.ag.gov.au/cca

ARRC Annual Report 2007-08 47 ARRC Australian Resources Research Centre

2007-08 ANNUAL REPORT

26 Dick Perry Avenue Phone: +61 8 6436 8500 Technology Park Fax: +61 8 6436 8555 Kensington WA 6151 Web: www.arrc.net.au

ARRC Annual Report 2007-08 48