ARRC Annual Report 2007/2008
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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 0 AWARDS AND RECOGNITION OUTREACH AND ENGAGEMENTS 7 FINANCIAL REPORT 40 ARRC METRICS 4 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 4 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 5 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 7 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