ISSUE 31, APRIL 2013

APPEA P18 Pacific Hydro Australia P31

AUST�LIANTHE

OIL & GAS REVIEWE N E R G Y – G E O T H E R M A L – P I P E L I N E S

Geodynamics P37

PP643938/00183

WHILE giants BHP Billiton and ExxonMobil plan the world’s largest floating LNG (FLNG) project off the coast of WA, the State Government and Liberal-Nationals Federal coalition are at odds over the technology’s future.

The Abbott coalition Government has supported FLNG technology to hurry the development of the state’s sizeable gas fields, while WA Premier Colin Barnett favoured onshore processing to keep local jobs.

Mr Barnett told The West Australian that FLNG would be bad for the future of Australian industry.

“FLNG may be cheaper to build but it doesn’t bring the same level of long-term benefits to WA and Australia as an onshore site would,” he said.

“It would be a tragedy for Australians if all of these projects ended up as FLNG. No other country would allow that to occur.”

One such project is Woodside’s $40 billion Browse gas venture, which would either utilise FLNG or set up onshore processing at James Price Point, pending environmental approval.

Shadow Resources minister Ian MacFarlane told The West Australian the coalition wanted the gas developed as quick as possible.

“The sooner there are jobs for Australians operating (Browse), the sooner there is PRRT (petroleum resource rent tax) income for the Federal Government,” he said.

“While I respect Colin’s (Barnett) position and hear what the unions are saying, if it is a choice between jobs in operating and ongoing maintenance of the facilities from bases in Australia, or no jobs for an onshore option at James Price Point,

I know which option I am going to choose.”Newly appointed Federal Resources

minister Gary Gray also supported FLNG technology, telling The Australian it “brings a unique capability and solution to the development of offshore oil and gas resources”.

BHP Billiton and ExxonMobil were

considering the development of the Scarborough gas field in the Carnarvon Basin 300km offshore WA; each holding a 50 per cent stake in the project.

The joint venture would target an annual output of 7 million tonnes of LNG, on a floating production vessel capable of processing 6mt to 7mt of LNG.

If the project reached fruition it would be twice the size of Royal Dutch Shell’s Prelude FLNG project which processes 3.6mt per annum.

Operator ExxonMobil stated on its website it was “trying to find a commercial development of Scarborough as soon as possible”.

State and Federal Government in opposition over FLNG futureCourtney Pearson

If BHP Billiton and exxonMobil decide on a floating LnG project for the scarborough field, it would be twice the size of royal Dutch shell's Prelude project which is under construction

2 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW2 www.miningoilgas.com.auTHE AUST�LIAN OIL & GAS REVIEW

Contents

General 1

SpecialprofileS

NeWS

appea2013 18

pacificHydroaustralia 31

oilandGasinVictoria 25

Shellaustralia 32

Geodynamics 37

iNpeX 26

Spillcon2013 40

oTHerSecTioNScompaniesGearingUp 43

instrumentation 50

abrasiveBlasting 52

HelicopterServices 54

WaterTreatment 55

Splurge 56

escapes 57

aDayinthelife 58 26

PUBLISHED BY

ABN 28 112 572 433

GENERAL MANAGERBrad Francis

MANAGING EDITORAmy Mattes-Harris

JOURNALISTSReuben Adams, Jaimee Conn, Jane Goldsmith, Joshua del Pino, Hannah Jenkins, Courtney Pearson, Benjamin Needham SUBEDITORLouise Baxter

RESEARCHERS Skye Fitzgerald, Deanne Walker

PRODUCTION MANAGERMelissa Liinamaa

GRAPHIC DESIGNERSAdam Carriero, Chris Wade

SALES MANAGERDavid Tough

SALES EXECUTIVES Benjamin Needham, Michelle Jasper, Sara Dan

OFFICE MANAGERNikki Retallack

ACCOUNTS MANAGERTeresa Sabatino

PRINTERRural Press

CONTACT US P: (08) 6314 0300F: (08) 9481 7322

160 Beaufort Street, Perth, WA 6000 PO Box 8023, Perth BC, WA 6849.

E-mail the editor at editorial@miningoilgas.com.au. For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au

The Australian Oil & Gas Review is a free publicationto all oil and gas operations and oil and gas companiesin Australia. Its value is $11 an issue (includes GST,postage and handling).The copyright is vested in the Proprietors of TheAustralian Oil & Gas Review; neither whole nor any partof this issue may be reproduced without permission.The views expressed in this publication are notnecessarily those of Publications & Exhibitions AustraliaPty Ltd and its staff, but are those of the respectiveauthor who accepts sole responsibility and liability forthem.NOTICE TO ADVERTISERS:The Trade Practices Act, 1974 came into force on the 1stOctober 1974. All advertisers and advertising agentsare directed to carefully study the provisions of the Act,which contain strict regulations on advertising.It can be an offence for anyone to engage, in trade orcommerce, in conduct deemed “misleading or deceptive”.Specifi cally s53 of the Act contains prohibitions fromdoing any of the following in connection with thepromotion, by any means, of the supply or use of goodsor services:(a) falsely represent that goods are of a particularstandard, quality, value, grade, composition, style ormodel or have had a particular history or particularprevious use; (b) falsely represent that goods are new;(c) represent that goods or services have sponsorship,

approval, performance characteristics, accessories, usesor benefi ts they do not have; (d) represent that thecorporation has a sponsorship, approval or affi liationit does not have; (e) make a false or misleadingrepresentation with respect to the price of goods orservices; (f) make a false or misleading representationconcerning the need for any goods or services; or (g)make a false or misleading representation concerning theexistence, exclusion or effect of any condition, warranty,guarantee, right or remedy.

PENALTIES:For an individual — $10,000 or six months imprisonmentFor a corporation — $50,000. It is not possible for thiscompany to ensure that advertisements published in thisnewspaper comply with the Act and the responsibilitymust, therefore, be on the person, company or advertisingagency submitting the advertising for publication. Incase of doubt, consult your lawyer.

PTY LTD

3www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

GAS giants Santos and Queensland Gas Company (QGC) have hit back at claims of a ‘flawed’ approval process for their coal seam gas (CSG) projects.

ABC’s Four Corners program reported claims by a former Queensland public servant that the environmental impact assessments on two major CSG projects lacked important information.

According to senior environmental specialist Simone Marsh – who was part of the team that approved Santos’s $18 billion Gladstone LNG project (GLNG) and QGC’s $20 billion Queensland Curtis LNG (QCLNG) in 2010 – the final stages of the approval process were rushed and the environmental impacts were not properly looked at.

“All the scientific arguments in the world wouldn’t have changed things in that situation,” she told Four Corners.

“They had decided they wanted to go ahead with the projects and there was nothing stopping it.”

Ms Marsh told the ABC she was concerned about the Santos project’s environmental approval.

“I was taken into a meeting room, sat down and told that there wasn’t going to be a chapter on groundwater and I was stunned,” she said.

“I said, ‘What are you talking about?’.”An anonymous colleague of Ms March told

the ABC there was pressure to get through the documents.

“We were given less than four weeks to deal with 10,000 pages of documents,” the colleague said.

However, QGC and Santos both issued statements that said assessments had complied with State Government regulations.

“It would have been inaccurate and premature to provide the specific location of all infrastructure at the EIS (environmental impact statement) stage as negotiations with landholders had yet to occur,” Santos said in

a statement.“Similarly, undertaking detailed

environmental and cultural heritage survey work across such a large area, most of which will never be disturbed, would have been impractical and potentially misleading,” the statement said.

Santos managing director David Knox told ABC Radio that “there was a very extensive set of groundwater studies done” and that the “process from our side was run with the highest level of integrity”.

QGC stated the final details of the project constantly evolve until the approval process

has been completed.“The exact locations of wells, pipelines

and other infrastructure depend on detailed negotiations with individual landholders as well as cultural heritage and environmental constraints,” the statement said.

"Gas companies must be granted environmental authorities and petroleum leases before these detailed negotiations with landholders can occur.”

QGC also stated there were a number of things unable to be fully covered in the report.

“Greenhouse gas emissions are an example of a matter that cannot be addressed entirely

in an environmental impact statement because the volume of emissions depend on factors such as plant design and operational specifications which, in turn, can be resolved only after permits have been granted,” the company stated.

The GLNG project would comprise gas fields in the Bowen Basin and Surat Basin, a 420km underground gas transmission pipeline to Gladstone and two-train LNG processing facility on Curtis Island in Gladstone, while the QCLNG project was estimated to increase economic activity in Queensland by about $32 billion.

Courtney Pearson

Spotlight on ‘flawed’ CSG approvals process

PROPOSED changes to the Federal Government’s Fair Work Amendment Act have left national resource employer the AMMA (Australian Mines and Metals Association) “deeply concerned”.

Expanded union visitation rights to Australian workplaces were among the changes – including time limits on unfair dismissals and the introduction of default superannuation funds – meaning union officials could access specialised work sites, including Australia’s offshore oil and gas platforms.

AMMA chief executive Steve Knott said the proposed changes were unrealistic as they ignored the complex safety, productivity and operational realities of

the resource industry.“These hydrocarbons sites are highly

specialised operational activities often occurring 100km offshore,” he said.

“Complex oil and gas platforms are not tourism sites for onlookers or industrial playgrounds for union salespeople.”

Under the proposed amendment, union officials would be awarded right of entry for discussions with employees. When the employer and union were unable to agree on a location, meetings would be held where employees take their breaks.

"These changes will balance the need for unions to be able to represent their members and hold discussions with them in an appropriate location, with the need

for employers to go about their business without undue interference,” Federal Employment, Workplace Relations, Financial Services and Superannuation minister Bill Shorten said.

However, Mr Knott was concerned the changes could impact safety and efficiency.

“Proper supervision of union workers will take workers away from critical functions, including health and safety officers who are both highly skilled and well-remunerated,” he said.

“A more appropriate location for union officials to sell membership to offshore workers is onshore at the helicopter pads or airports.”

AMMA members were also worried

that providing unions with access to break rooms would create conflict with the 87 per cent of private sector workers not part of a union.

“There are far more suitable meeting places for unions to conduct their business than in the lunchrooms of workplaces where people are attempting to rest and eat their meals,” Mr Knott said.

According to the Federal Government, “the changes have been developed to provide stability and certainty to businesses and help them remain competitive in a changing economy” and they “also provide employees with improved fairness, flexibility and representation at work”.

Proposed Fair Work changes spark concern for resource employer

the first modules arrived for the Queensland Curtis LnG project in august 2012

4 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

THE Queensland Government has granted environmental approval for construction of Arrow Energy’s Bowen pipeline, which will transport coal seam gas (CSG) more than 580km from the Bowen basin to the proposed Curtis Island LNG plant.

The $1 billion steel pipeline will be buried at a minimum 750mm in a 30m easement and will transport gas from 6625 wells to be built in the basin.

Arrow chief executive Andrew Faulkner said the approval was another step to networking the company’s five main gas projects.

“This is welcome news for our overall project and demonstrates we’re meeting the rigorous government approvals process,” he said.

The company’s LNG plant in Queensland consists of the Surat gas project, the Bowen gas project and pipelines linking the facilities to a natural gas facility at Curtis Island.

Mr Faulkner said the company would continue to employ local workers at these developments.

“Arrow currently employs about 180 staff in the Bowen Basin in our Moranbah operations.

“Our Moranbah gas project, operated in partnership with AGL, is one of the largest domestic CSG fields in Australia, operating since 2004.

“It supplies gas to both the Moranbah and Townsville power stations and mineral refining facilities in north Queensland.”

Environment and Heritage Protection (EHP) minister Andrew Powell said the approval of the environmental impact statement (EIS) would generate 700 new jobs.

“Over the past 12 months we have consistently said we would work with

industry to deliver sustainable economic development while upholding strong environmental standards and this project is a great example of that,” he said.

Mr Powell said that while the EIS process was now finalised, Arrow would need to obtain some final approvals from other government agencies.

“This project will also require Federal Government approval before construction can commence,” he said.

“The buried pipeline route would cross private land, roads, railway lines,

watercourses and wetlands. “Arrow Energy has outlined a range

of practices in the EIS to ensure that activities conducted across various types of terrain and land uses would deliver an acceptable environmental outcome.

“The pipeline will also require an Environmental Authority from the department which will set out enforceable environmental performance requirements during the construction and operation of the pipeline.

“These conditions would ensure

commitments made in the EIS are fully implemented.”

As one of Australia’s largest energy companies, Arrow is owned by Royal Dutch Shell and Petro China both with an equal share in the joint venture.

Coal seam gas explorer Arrow is heavily involved in LNG developments in Queensland, currently supplying 20 per cent of the state’s gas.

The company has 41,500 square kilometres of CSG tenements with an estimated 70,000 petajoules of reserves.

Green light for Queensland LNG pipeline JosH DeL PIno

the Moranbah gas processing facility

AN independent assessment of Sino Gas’ production sharing contracts (PSCs) in China’s Ordos Basin has indicated significant 2P reserves and increased the company’s net present value (NPV) by 66 per cent.

Results were taken from the 12 wells drilled last year, 100km of seismic at the Sanjiaobei PSC, 70km of seismic data from the infield drilling area, and 100km of data from a previously unexplored portion of the block.

The PSCs lie within a 3000 square kilometre area of the Ordos Basin, and are operated by Sino Gas in partnership with MIE Holdings Corporation.

The assessment by advisory firm RISC Operations showed an increase in total project 2P reserves to 327 billion cubic feet from 22bcf, since RISC’s previous assessment in January 2012.

Total unrisked mid-case reserves and resources – including reserves and contingent and prospective resources – increased by 56 per cent to 5.7 trillion cubic feet, with Sino Gas’ net share at 1.6tcf.

Sino Gas’ share of the project NPV

increased by 66 per cent to US$1.86 billion, driven by the larger resource base, refinements to the company’s development modules and strengthening gas price forecasts in China.

Sino Gas managing director and chief executive Robert Bearden said he was extremely pleased with the results, and that the company would soon begin further work in the area.

“This independent and detailed assessment has crystallised all of our hard work over the past 12 months into a significant increase in both the total project resources and the expected realisable value

to Sino Gas,” he said.“We intend to leverage off our continued

exploration success with a fully funded 2013 work program to obtain further data on the potential of the blocks and the preparation of Chinese Reserve Reports for submission later in the year.

“With testing teams currently deployed to test over 20 zones this year; seismic surveying for 2013 well progressed; work on track to have ten drill rigs in the field during the second quarter of 2013, and up to 25 wells completed by the end of Q3, we [will] continue our commitment to deliver value for our shareholders.”

HannaH JenkIns

Reserves and resources rise at Chinese gas project

http://www.ausco.com.au

6 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

AUSTRALIA’S renewable energy target (RET) has unlocked more than $18 billion in clean energy investment since its introduction by the Federal Government in 2001, a Clean Energy Council (CEC) report has shown.

The Sinclair Knight Merz report, commissioned by the CEC, found the RET had encouraged strong investment from companies and carbon pricing between 2001 and 2012, with the original aim to have 20 per cent of Australian energy derived from renewable resources by 2020.

A recent government review found the scheme was on target and continued to be effective in promoting the development of renewable energy technologies.

CEC deputy chief executive Kane Thornton was pleased the RET legislation would remain relatively unchanged, calling the policy “a great economic success story”.

“The Federal Government has acted to lock in current and future investments in Australian clean energy and Australian jobs, by leaving the nuts and bolts of the scheme in place,” he said.

“All major political parties recognise the importance of policy stability to unlocking the massive investment opportunity in clean energy in Australia.”

Mr Thornton said the continued research and development of renewable energy would increase competition in the market and reduce the price of energy.

“This is a transition that the community wants and it’s also an insurance policy against power price spikes in the future,” he said.

“Renewable energy is getting cheaper

while fossil fuel sources such as coal and gas are going up in price.

“We welcome the broad agreement that we should move towards less frequent reviews of the Renewable Energy Target,

and we look forward to working with the major political parties to ensure any future reviews minimise the impact on investors and householders who are demanding more renewable energy in Australia.”

JosH DeL PIno

Renewable energy target generates $18 billion investment

the renewable energy target will reduce the cost of energy in the long term

http://www.austank.com.au

8 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

HOMES have been evacuated as emergency crews try to contain a pipeline breach that caused thousands of barrels of crude oil to spill near Mayflower, Arkansas, in what experts are calling a “major spill”.

Global supermajor Exxon Mobil, which was previously fined for not inspecting the Pegasus pipeline, has begun the cleanup but not yet released the amount of oil spilled.

The Environmental Protection Authority has categorised the incident as a “major spill”, with 12,000 barrels of oil and water recovered so far.

Exxon Mobil Pipeline Company Southern operations manager Karen Tyrone said the pipeline had been shut and cleanup crews were working to get the spill under control.

“We regret that this incident has

occurred and apologize for any disruption and inconvenience that it has caused,” she said.

“Our focus is on protecting health, safety and the environment. We will be here until the cleanup is complete.”

Cleanup crews were using specialised equipment to recover oil and monitor air quality while additional resources were being mobilised, a company statement said.

The Pegasus pipeline is a 65-year old, 20-inch diameter pipeline that stretches 1380km from Illinois to Texas.

The pipeline can carry up to 90,000 barrels of oil per day.

Exxon has acknowledged the impact on wildlife with 10 “oiled ducks” treated at a local animal welfare centre.

Heavy crude mixed oil is extremely difficult to cleanup due to its thick viscosity. Fifteen vacuum trucks remain at the spill with 33 storage tanks deployed to store the oil.

JosH DeL PIno

Major oil spill sparks health fears in Arkansas

Cleanup has begun in Mayflower, arkansas, with 12,000 barrels of oil and water recovered so far

aurora plans to drill between 45 and 50 new wells in 2013Drilling operations at the sugarkane Field

AUSTRALIAN oil and gas explorer Aurora has completed the purchase of 2700 acres directly adjacent to its Sugarkane Field acreage in the Eagle Ford Shale in Texas.

The US$117.5 million acquisition included 11 producing wells and associated assets and infrastructure and has expanded Aurora’s net acreage in the Eagle Ford Shale by over 14 per cent to 21,800 acres.

Aurora executive chairman Jon Stewart said the deal significantly added to the company’s future net well inventory in the liquids rich zone.

“This acquisition, being our third in

the past 12 months, highlights Aurora’s ability to add to its considerable organic growth at the Sugarkane Field through value driven, high-quality Eagle Ford transactions,” he said.

“The recently completed US$300 million unsecured fixed coupon debt issuance and an undrawn US$200 million secured revolver facility means we are very well funded for both our operated and non-operated drilling programs.

“Aurora is extremely selective around acquisition opportunities and we firmly believe the purchase of this acreage will provide significant value and upside to our

portfolio through its current production capabilities and reserves base.”

A vigorous drilling campaign in 2012 saw Aurora drill more than 150 oil producing wells across its North American acreage.

The company plans to drill between 45 and 50 new wells in 2013 with the December average production expected to hit 18,000 barrels per day.

Aurora chief executive Douglas Brooks said the company would use the same drill operators for the new acreage, which was estimated to contain 6.7 million barrels of oil equivalent.

“Acquiring these assets provides Aurora greater flexibility in the overall development of its asset portfolio,” he said.

“It adds materially to current production but more over includes growth opportunities in reserves through higher density well drilling.

“Aurora has recruited Houston-based staff experienced in operations who will execute our plans and, of course, have the benefit of the significant knowledge acquired in all related phases of development from our participation in more than 250 wells to date in the Sugarkane field.”

Selective shale acquisition bolsters Texas holding

http://www.tuttbryant.com.au

10 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

A pre-filing request by Australian producer LNG Ltd has been granted by the US Federal Energy Regulatory Commission (FERC), allowing the review of the company’s Magnolia LNG project to begin.

The Magnolia LNG project, which is 100 per cent owned by LNG Ltd, involves the development of an 8 million tonnes per

annum LNG project on a 108-acre site in the Lake Charles district of Louisiana.

The company has proposed the staged development of four 2mtpa LNG production trains at the site, using the same front end engineering and design as LNG Ltd’s Gladstone Fisherman’s Landing project in Queensland.

The FERC is the main US federal agency

to deal with preparation of environmental impact statements for proposed LNG projects and associated pipelines. The agency works to ensure approved projects, pipelines and LNG ship movements meet safety and environmental requirements during construction and operation.

LNG Ltd pre-filed for approvals in early March; a request which was granted later

in the same month.The review process will now involve a

minimum six-month interactive program with input from FERC, LNG Ltd, other federal agencies, community groups and stakeholders.

The earliest date that the formal application may be submitted to FERC is 20 September 2013.

Approval process on track for US project

QUEENSLAND energy giant Origin Energy has announced its intention to withdraw from two joint ventures with geothermal exploration company Geodynamics.

At the end of the 2013 financial year, Origin will be completely removed from the Innamincka Deeps and Innamincka Shallows joint ventures.

Innamincka Deeps – 70 per cent owned by Geodynamics and 30 per cent by Origin – is a 2300 square kilometre project in the Cooper Basin, South Australia and is estimated to contain 59,200 petajoules of thermal energy.

The Cooper Basin also contains Innamincka Shallows, which is equally owned by the two companies and is focussed on exploring shallow hot sedimentary aquifers.

Geodynamics had its first warning in August 2012 when Origin decided to stop funding its share of the cost to complete the Habanero 4 well, and earlier in the year the company decided not to participate in the proposed 2013 financial year work program and budget to complete testing and trial operations of the 1 megawatt Habanero pilot plant.

The Habanero pilot plant will undergo a trial operation in April.

Geodynamics managing director and chief executive Geoff Ward said Origin’s support allowed the company “to significantly progress the development and demonstration of an enhanced geothermal system (EGS) in Australia”.

“The development of EGS geothermal resources in Australia remains a long-term challenge requiring significant capital investment and extension of infrastructure,” he said.

“However, we remain convinced that these resources will play a material role in Australia’s long-term energy economy as a reliable supplier of large-scale, continuous, predictable, controllable energy.”

Energy giant withdraws from geothermal joint venture Courtney Pearson

Before pulling out of the Innamincka joint ventures with Geodynamics, origin energy decided not to participate in the testing and trial operations of Geodynamics’ 1 megawatt Habanero pilot plant last year

A 20-year sale and purchase agreement (SPA) between Cheniere Energy Partners and Centrica plc is set to provide about 1.75 million metric tonnes per annum (mmtpa) for UK customers from 2018.

Under the SPA, Centrica would purchase 89 billion cubic feet of annual LNG from Cheniere: equivalent to the annual gas demand of about 1.8 million UK households.

The LNG would derive from Cheniere’s 100 per cent owned subsidiary Sabine Pass Liquefaction; operator of the Sabine Pass LNG terminal in Louisiana, which is currently under development and would include six 4.5mmtpa liquefaction trains.

Construction of the first two trains has begun, with construction of the third and fourth trains expected to start mid-2013.

The agreement with Centrica would follow the completion of Train 5, on which preliminary engineering work has begun.

Cheniere chairman and chief executive Charif Souki said the company was on track with filing for approvals and would soon begin the necessary processes for the Centrica agreement.

“In February 2013 we began the mandatory [National Environmental Policy Act] pre-filing process with [the Federal Energy Regulatory Commission] for Trains 5 and 6, and we anticipate filing the full application as early as September of this year,” he said.

“We intend to file the license

applications for exports under the Centrica SPA in the upcoming weeks."

Under the SPA, Centrica would purchase LNG on a free on board basis, giving it destination rights for the cargoes for a purchase price indexed to the Henry Hub natural gas price, plus a fixed component.

Mr Souki said Centrica would join companies such as BG Gulf Coast LNG, Gas Natural Fenosa and Total Gas and Power N.A, all of which had already signed sales agreements with Sabine Pass Liquefaction.

“Centrica is an excellent addition to our customer group, becoming our sixth customer to contract for LNG exports at Sabine Liquefaction," he said.

“Centrica serves over 11 million

households in Britain – nearly half of the country's homes.

“With this contract, exports from the United States will become an important part of the UK's overall energy supply portfolio."

UK Secretary of State for Energy and Climate Change Ed Davey said the agreement was very welcome as the UK relied on diversity in its energy supply.

“The UK already receives gas from a range of countries and we can now add the US to Norway, the Netherlands and Qatar as sources of supply,” he said.

The deal is for an initial period of 20 years, with the possibility for a 10-year extension.

The target for first commercial delivery from Train 5 is September 2018.

UK gas mix to diversify energy supplyHannaH JenkIns

12 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

RISING domestic gas costs and expected supply shortfalls have prompted gas and fertiliser group Liberty Resources to push forward with an initial $1.4 billion gas plant in Queensland.

Liberty will begin development of the standalone gas plant in Central Queensland; the initial stage of the company’s proposed world-first $4 billion low-cost gas, electricity and fertiliser complex.

Liberty managing director Andrew Haythorpe said that after three years of project advancement and tenement selection, it had become clear that constructing the gas plant first would lower project costs and risk.

“The availability of stable and consistent quality gas production is an essential element of achieving low-cost

energy and commercial production of urea from gas on the scale we have envisaged for the larger plant,” he said.

“It is increasingly clear that a substantial decrease in initial project costs by going the gas plant first will be easier to finance, generate a solid return on capital of around 22 per cent and offer less development risk and timeframes.”

The gas plant would likely be developed on Liberty’s Denison permit near Injune, or further southeast near Miles, with the potential for the fertiliser plant at a coastal port.

Liberty would inject saline water and oxygen into coal seams to generate natural hydrogen-enriched synthesis or ‘syngas’ from unmineable coal seams across its Queensland tenements, which

stretch from Goondiwindi to Longreach.Mr Haythorpe said the company

planned to produce low-cost gas to boost the Queensland and East Coast markets.

“We are confident of producing a gas at a highly competitive, low cost of around $4.50 a gigajoule and that is well below most industry peer forecasts which peak at around $9GJ,” he said.

“To put that low-cost potential in perspective, Queensland gas demand is around 240 petajoules or about 30 per cent of eastern Australia’s annual consumption of just above 700PJ.

“As Queensland’s LNG industry comes on stream over the next few years, we are looking at a 10-fold increase in the amount of gas that has to be produced in that state.

“That favours the refinement of our first stage development strategy.”

The larger project will comprise of a single, integrated complex with separate plant units for syngas clean up, acid facilities to produce refined sulphur, low-cost power generation, ammonia and urea processing facilities and a water treatment component.

According to Mr Haythorpe, the Denison project has an inferred coal resource of 846 million tonnes, and the company’s work to date suggests a production of 1000PJ of raw syngas per every 100mt of coal.

Once the fertiliser component of the project was complete, the same gas volumes from coal would produce 30mt of ammonia or 72mt of low-cost urea.

Gas plant spurred by east coast demand

IN line with new business strategy, Hess Corporation has announced it will sell its Russian subsidiary Samara-Nafta to Lukoil for $2.05 billion.

Based on its 90 per cent interest in the subsidiary, Hess’ total after tax profit is expected to reach about $1.8 billion. Samara-Nafta currently produces 50,000 barrels of oil equivalent per day in the

Volga-Urals region of Russia.The sale is one of several in 2013 as

Hess attempts to create a tighter, more focused business portfolio, having already announced or completed the sale of its interests in: the Beryl field in the UK North Sea, the Eagle Ford play in Texas, and the Azeri, Chirag and Guneshli fields in Azerbaijan and the associated pipeline. Total expected after tax profit from the sales, including Samara-Nafta, is $3.4 billion.

The company has also announced plans to exit its retail gasoline, marketing and trading businesses.

Hess chairman and chief executive John B. Hess said the new strategy was well underway.

“As the sale of Samara-Nafta indicates, we are making excellent progress in executing our asset sales program, which is a central component of our plan to transform Hess into a more focused, higher growth, lower risk pure play exploration

and production company,” he said.“Just as important, by applying the

proceeds from these divestitures to reduce debt and strengthen our balance sheet, Hess will have the financial flexibility both to fund its future growth and also to direct most of the proceeds from additional asset sales to returning capital directly to its shareholders.”

The sale is subject to approval by the Federal Antimonopoly Service of the Russian Federation.

HannaH JenkIns

New strategy prompts asset sales

CANADIAN-based Pacific Rubiales has elected to acquire a 35 per cent interest in a fifth block owned by Karoon Gas in the Santos Basin offshore Brazil through the funding of an exploration well.

Last October, the two companies signed final agreements for Pacific Rubiales to purchase a stake in four of Karoon’s wholly owned Santos Basin blocks, with the choice to invest in a fifth: S-M-1166.

In return for its interest in the new block, Pacific Rubiales will carry the first US$70 million in costs relating to the drilling of the Bilby-1 exploration well, and 35 per cent of expenses thereafter.

Bilby-1 will be the third well in Karoon’s Santos Basin drilling program in which Pacific Rubiales has participated.

In December last year, the Kangaroo-1 well was drilled in the neighbouring S-M-1101 and S-M-1165 blocks, and was confirmed to contain a 25m gross oil column. The second well, Emu-1, was drilled last month in S-M-1037 and S-M-1102 and was reported by Karoon to have encountered “good quality reservoir sands and seals at several target intervals.”

Pacific Rubiales carried the first US$70 million in costs for each well.

In a statement, Karoon Gas executive chairman Robert Hosking said Pacific Rubiales had proven to be a “great” partner in the Santos Basin drilling program.

“Our companies have worked well together in our Brazilian partnership, having made the Kangaroo discovery, and we look forward to further success in the future.”

Once drilling operations at Bilby-1 are completed, Pacific Rubiales – which is Colombia’s largest independent oil and gas

explorer and producer – will be entitled to request operatorship of the project.

“Although we are in early exploration phases, we are pleased with the results to date and our partnership with Karoon,”

Pacific Rubiales chief executive Ronald Pantin said in a statement.

“Our first well, Kangaroo-1, discovered oil in an Eocene structure and we are looking forward to following up with

an appraisal well as soon as a suitable drilling rig can be sourced and mobilised to the Kangaroo-2 location.”

The five Santos Basin blocks cover a total area of 865 square kilometres.

JaIMee Conn

Farm-in set to fund Santos Basin exploration well

karoon Gas’ five santos Basin blocks offshore Brazil cover 865 square kilometres

14 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

GLOBAL competition, higher pricing and risk are central to Australia’s energy financing challenge, with an estimated total investment of $530 billion required until 2030, a new report has stated.

The Federal Government’s Energy White Paper stated that private sector investment in Australia’s energy sector would require a large amount of capital in the next 20 years for development and electricity generation.

The Business Council of Australia found that Australian projects were 40 per cent more expensive than those on the US Gulf Coast, while the price of electricity rose more than 50 per cent in the past five years.

As stated in the Australia’s Energy

Financing Challenge report, “to meet the financing challenge, both for domestic energy infrastructure as well as resources projects, the Australian energy sector has to create an attractive, stable market environment to facilitate investment”.

“Unless Australia makes changes in a range of intersecting policy, market and financial areas, it risks being left behind.”

Although investors did not see Australia’s carbon policy as an obstacle, there was a risk it could be repealed if the Federal Government changed at the next election, which meant investors would not commit until the policy was stable, the report stated.

According to one international infrastructure investor, “it’s not necessarily the politics itself – it’s the uncertainty”.

The need for a deeper, more liquid and active domestic bond market was also discussed in relation to diversifying the sources of debt available to the energy sector.

KPMG and the Energy Policy Institute of Australia recommended that tax policy be reviewed as energy sector investment was being impaired by Australia’s domestic and global competition for finance.

The report stated that Australian companies “and investors must remain innovative in clearly articulating their investment proposals” due to the quantum and complexity of investment required.

It was suggested that the Federal Government should develop a better energy market framework to improve the investment environment and attract finance.

“Australia’s uneven mix of state and private ownership of energy assets complicates the picture for international investors; expediting moves to full privatisation will improve the sector’s appeal, as will deregulation of retail pricing and greater scope for demand side participation,” the report stated.

As the energy sector is sensitive to political risk, “long-term investors need to have reliable policy principles that will survive through electoral cycles”, which could be achieved through a higher consensus on energy policy and a long-term approach to carbon reduction through global and domestic energy policy.

“The greater the uncertainty around Australian energy investment, the greater the costs of finance will be,” the report stated.

UNCONVENTIONAL gas developer Dart Energy is set to cut 70 per cent of its global workforce and close offices as part of an aggressive corporate restructure to reduce its operating costs by almost two-thirds.

In an ASX release, Dart stated that the institution of a restructuring, cost-cutting and refocussing program came in response to “current market conditions, a re-assessment of the company’s priority projects, recent decisions in Australia by the NSW and Federal Governments relating to CSG, and shareholder feedback”.

The company has cancelled its proposed initial public offering, and is halting its operations in NSW until policies that better support the industry are in place.

“With the changes we are implementing, and with the 2013 planned work program now focussing primarily on the UK, existing funds will meet the company’s needs for the next 12 months,” Dart Energy chairman Nick Davies said in a statement.

“Value-adding joint ventures of the UK assets and other project sell-down initiatives are underway and attracting significant interest.”

Mr Davies said Dart was “extremely disappointed” with uncertainty created by the Australian Government surrounding

CSG development. “The consequence is that investment

is leaving the country, field operations are being suspended, Australian jobs are being lost, and the impending energy crisis in NSW is not being addressed, and indeed, will only get worse.

“This is in direct contrast to the UK, where the government is actively seeking to support the responsible development of unconventional gas resources.”

Mr Davies said steps had been taken to reposition Dart to build value in the UK in the near-term through its CSG projects in Scotland and shale gas assets in England.

“In the mid-term, we still see considerable value in our Indonesian

assets, the shale gas opportunity in China, and through preserving our high-quality blocks in Australia until government policies are reformulated,” Mr Davies said.

Dart Energy chief executive of Australia Robbert de Weijer will be stepping down from his role, as the company’s current chief executive of International John McGoldrick will assume responsibility for the whole company.

Dart currently has $17 million in cash and liquid assets, and expects to receive another $5 million in the next six months as cash-backed guarantees are released. After paying $2 million in restructuring costs, the company’s immediate cash availability will be $20 million.

Courtney Pearson

JaIMee Conn

Financing for energy projects a real challenge, report warns

Government stance on CSG prompts company cuts

TWO hundred adult apprentices are needed for construction giant Bechtel Australia’s Curtis Island LNG project, with the first intake to start in June.

Open to Brisbane, Sunshine Coast and Gold Coast residents, the apprenticeships would be managed through the National Apprenticeships Program (NAP) and experienced workers would have existing skills recognised as part of the program, allowing them to qualify in less than two years instead of the traditional four.

The recruitment is part of a larger intake by Bechtel, which plans to employ 400 adult apprentices for construction work on the three LNG plants in Gladstone – Queensland Curtis LNG, GLNG and Australia Pacific LNG.

Bechtel Australia managing director Andy Greig said the innovative program was a “win-win” for the industry.

“It will help meet the demand for skilled labour and give adult workers with uncompleted apprenticeships — or those working in allied industries without a trade qualification — the chance to complete an apprenticeship in a reduced amount of time,” he said.

“There are certainly skill shortages in the construction industry and we continue to look at every possible way to fill the gaps.”

Successful applicants would be trained as electrical fitter mechanics, dual-trade electrical instrumentation, metal fabrication boilermakers, welders, metal fabrication pipe fitters, mechanical fitters

and carpentry formworkers.The work schedule would include 58

hours per week and be on a four week on and one week off fly in, fly out roster.

NAP program director Alan Sparks said the employment drive was the single largest intake of adult apprentices in

Australia’s history.“The Bechtel intake confirms that the

resources sector and industry at large can successfully tap into additional and alternative apprenticeship programs to contribute to their shortfalls by up-skilling Australians,” he said.

“Many applicants have already been working in industry, in management roles in many cases, and certainly cover a wide and diverse range of skills.”

The NAP was launched in 2011 to combat the skills shortage at Queensland and WA resource projects.

JosH DeL PIno

Apprentices needed for Queensland LNG construction projects

at least 200 apprentices are needed for work at the Curtis Island LnG project

16 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

GeneraL neWs

LEADING African-focused explorer FAR Limited has announced the successful securing of an additional 1876 square kilometre acreage in offshore Kenya, coinciding with the publication of promising preliminary results from the reserves in its new L6 acquisition.

The ASX-listed company confirmed a 60 per cent expansion from its previous permit allowance, with the total granted permit area now more than 5000sqkm across the highly prospective Lamu Basin region in the Kenyan eastern seaboard.

Divided into several exploration blocks, FAR Limited holds 60 per cent and 30 per cent interests respectively in the basin’s L6 and L9 blocks.

Preliminary 3D and 2D seismic data, recovered via sound wave tests exploring the subsurface strata, was released by the company and confirms several different play types and prospects across the new L6 permit.

FAR has stated via company reports

that planning activities for drilling at the L6 site have begun, with estimations of new acreage citing prospective resources of up to 773 million barrels of oil.

In a gas only success case, the acreage is estimated to hold 2141 billion cubic feet of gas, bringing the prospective resource estimate for the total L6 permit to 3962mbbl, or in a gas only success case, 10,689bcf.

“Being the longest standing operator of exploration acreage in the Kenyan Lamu Basin, this award speaks to our good standing in the country,” said FAR managing director Cath Norman.

“With our increased acreage in L6, in conjunction with our existing L9 permit, FAR has now established a significant acreage position over the carbonate reef play, which a number of companies have now recognised as having great potential.

“Being the first company to have acquired modern 3D data over the carbonate reef play, FAR shareholders are well positioned to benefit from this potential,” she said.

The Lamu Basin has maintained

significant appeal within the wider oil and gas industry, with the new site lying just north of the recent world-scale

natural gas discoveries, totalling around 100 trillion cubic feet, off the coasts of Mozambique and Tanzania.

Jane GoLDsMItH

Promising potential off African east coast

Far’s existing L9 permit and the new acquired acreage at L6 on kenya’s eastern seaboard

Fresh from declaring it would enter the Canadian oil market, Australian-based explorer Petrel Energy has announced it would raise up to $10.5 million for a stake in Alberta’s Cardium tight oil project.

Terms have already been agreed with Canadian group Bernum Petroleum, which would see Petrel pay C$3.3 million for a 40 per cent interest in the project, including 5129 acres in the Lochend area of the greater Cardium play.

The capital raising includes $7.5 million new fully paid shares at $0.85 per share, and a share purchase plan of up to $15,000 per share to raise a further $3 million.

Some of the money raised would also be used to develop the company’s interest in Uruguay.

Petrel managing director David Casey said strong support from investors had encouraged the company to proceed with the share placement plan (SPP).

“We are pleased with the significant support we received from existing shareholders, as well as from

new investors, including domestic institutions,” he said.

“The SPP, currently being finalised, will allow Petrel to pursue both the Cardium project with its low risk potential to grow production, reserves, cash-flow and value in the short-term, as well as the longer term 3.5 million acre Uruguay project where the joint venture is about to commence a 3-4 well core hole program.

“The joint venture is a fabulous opportunity to participate in a proven hydrocarbon province leveraging off a proven operator who can optimise our

near term reserve certification program to allow for a relatively quick turnaround and exit strategy.

“Our position in the Lochend Cardium also allows Petrel to potentially acquire further acreage on ground floor terms.”

The Cardium formation covers most of Alberta and is estimated to hold 10 billion barrels of oil, with 1.8 Bbbl already produced.

Recent advances in technology have allowed for the development of the tight oil sands which were previously considered unprofitable.

JosH DeL PIno

Aussie explorer continues Canadian oil pursuit

NORWEGIAN-focused energy company Statoil has added a fifth development to its fast-track project list, starting up production on the Stjerne field in the North Sea.

The field was discovered in 2009 and is 13km from the company’s existing Oseberg South platform, where tie-back

activities would take place.According to Statoil, the field has a

four-slot seabed template with two wells that would produce oil and gas, and two wells that would inject water into the reservoir for pressure support.

One well has already been drilled and Statoil has estimated a total project time of 39 months.

Based on the results of the first well, Statoil estimated recoverable reserves

of 49.2 million barrels of oil equivalent, with 20.7mmboe of oil and 24.1mmboe of gas.

The project is expected to result in increased recovery of 4.4mmboe from the Oseberg North reservoir, with the total production volume estimate – according to the plan for development and operation – at 7800 barrels of oil per day.

Statoil head of Norwegian development and production Halfdan Knudsen said

the project was running below budget.“This is a good example of how to make

smaller discoveries profitable,” he said.“The project has run according to plan,

despite the delayed drilling start due to a rig change.

“The project’s economy appears to be better than expected: we are more than NOK 500 million below what was foreseen when the investment decision was taken.”

Project on the fast-track to productionHannaH JenkIns

THE Australian and Chinese Governments have agreed to work together towards an Asia-Pacific carbon market, with China to closely follow the impact of Australia’s emissions trading scheme and look at the Clean Energy Future package for its own domestic policy.

The collaboration was announced at the annual Australia-China Ministerial Dialogue on Climate Change last month, at the University of New South Wales.

A statement from the Department of Climate Change and Energy Efficiency

said “as the highest per capita emitter in the developed world, Australia has a responsibility to reduce its emissions and to play a strong role in global efforts to tackle climate change, including through bilateral initiatives with key trading partners like China”.

China is the largest carbon emitter in the world and annual carbon emissions in the Guangdong province are nearly as high as Australia’s total.

Later this year, China would commence pilot emissions trading schemes in some of its provinces and major cities and aim for a national policy after 2015.

Australia’s carbon price is set to turn

into an emissions trading scheme halfway through the same year. The fixed price period currently applies to businesses that release more than 25,000t of carbon pollution per year. Part of the Federal Government’s Clean Energy Future plan was to invest more than $13 billion in clean energy projects to expand the clean energy sector.

This year’s annual dialogue featured Federal Minister for Climate Change Greg Combet and China’s National Development and Reform Commission vice chairman H.E. Xie Zhenhua.

“Australia has been working very closely with China on the development of

its pilot and national emissions trading schemes over the past two years,” Mr Combet said.

“In the future, we would like to work towards the development of an Asia-Pacific carbon market including major emerging economies like China and South Korea.”

China promised to reduce its carbon emissions per unit of gross domestic product by 17 per cent from 2010 levels by 2015, and 40 per cent to 45 per cent below 2005 levels by 2020.

Carbon-trading pilots have been established in Hunan and Guangdong and five of the country’s largest cities including Beijing and Shanghai.

Australia and China pledge to work together on climate change Courtney Pearson

18 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE APPEA 2013

Top notch conference aims to transform energy future

IN its 53rd year, the Australian Petroleum Production and Exploration Association (APPEA) Conference and Exhibition is still one of Australia’s most prominent industry events.

The Brisbane-based 2013 conference will provide the opportunity for attendees to make new contacts, browse exhibitor’s wares and learn more about the industry.

“While Brisbane plays host, the conference will focus on the whole of Australia where almost $200 billion of oil and gas projects are currently under development and a further investment of about $100 million is being considered,” APPEA chairman David Knox said.

At last year’s event in Adelaide, 3020 attendees registered for the event; the highest number recorded outside of Perth.

As the “voice of Australia’s oil and gas industry”, APPEA is a peak body representing the nation’s upstream exploration and production industry, with almost 100 full member companies and more than 250 associate member companies that account for about 98 per cent of the country’s petroleum production.

APPEA acts as an industry watchdog, working with state and territory governments to ensure regulatory and commercial frameworks promote investment and maximise returns to Australian industry and community.

The conference and exhibition brought together the important players from the oil and gas industry, an APPEA spokesperson said.

“The event provides a forum for discussing projects, ideas, issues and trends within the oil and gas industry and for conveying the industry’s views to other business sectors, politicians and government officials, the media and the general public,” the spokesperson said.

“Because it attracts about 3000 delegates, including many senior industry professionals, the APPEA conference also provides the best opportunity for oil and gas professionals to catch up, network and do business together.

“In addition, the APPEA Exhibition provides a valuable, high-profile, high-traffic showcase for organisations to promote their products and services.”

The APPEA 2013 Conference and Exhibition will be held at the Brisbane Convention and Exhibition Centre on 26 to 29 May.

Queensland as APPEA host Toward the end of February this year, the Queensland Government lifted a statewide ban on shale oil mining after a four-year review.

Queensland Natural Resources and Mines minister Andrew Cripps said the state was rich in resources and contained about 90 per cent of Australia’s known oil shale resources — which is about 22 billion barrels of oil.

He said Queensland was home to some of Australia’s major resource projects, such as the

Arrow Energy LNG Plant and the Australia Pacific LNG and Curtis LNG projects.

“At present, around $60 billion worth of CSG and LNG projects are underway in Queensland. These projects have been made possible through our engineering and scientific expertise and experience and by building strong partnerships with energy partners in Australia and overseas,” Queensland Premier Campbell Newman said.

Mr Knox said Queensland was a thriving hub of industry activity and the perfect setting for the APPEA Conference and Exhibition.

“Australia’s first gas production occurred in Queensland and the state remains an important centre of oil and gas activity,” he said.

“Today it is leading the world in the production of coal seam gas with three liquefied natural gas projects under construction.”

The Queensland Government set up the GasFields Commission in April last year to work with rural landholders, regional communities and the onshore gas industry to try and improve coexistence.

The commission evaluates policy and industry practices and looks to strengthen protection for the environment, groundwater and rural industries.

In light of Queensland’s growth, Brisbane is “fast becoming a global hot spot and home to many of the industry’s most active and influential players”, making it the “ideal choice as host city”, the APPEA website stated.

APPEA 2013 programWith the theme of ‘Transforming Our Energy Future’, it is clear that the 2013 event is largely focussed on the changing nature of the oil and gas industry.

This year, the APPEA Conference and Exhibition will feature 16 plenary speakers, 24 concurrent sessions addressing a wide range of topics, and about 200 stands in the exhibition – a record number for the event.

“The quality of speakers and the relevance of presentations are as strong as ever,” the spokesperson said.

“This year’s event will attract at least 3000 delegates and will feature the largest-ever APPEA exhibition.

“APPEA expects this will be another successful and well-received event.”

The theme was chosen to reflect the importance of anticipating the industry’s future and looking at the coming years was fundamental in making the right choices, an APPEA spokesperson said,

“Australia and the world as a whole must make decisions about how energy needs will be met in coming decades,” the spokesperson said.

“Gas is the only fuel suitable for baseload power, peaking power and intermittent power. It offers much lower emissions than coal, as well as reliability and affordability

This year, the APPEA Conference and Exhibition is expected to attract at least 3000 delegates

CoURTnEy PEARSon

Journalist Ali Moore, pictured, will lead a panel discussion about project updates at this year's event

19www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE APPEA 2013

DIVERSIFIED global technology company 3M has brought together its wide range of products for the oil and gas industry through the 3M Oil and Gas Group.

The specialised division was designed to provide easier access to 3M technologies – from the company’s many global divisions, subsidiaries, departments and laboratories – with locally based sales and technical and manufacturing resources, in the world’s major oil-producing centres, including Australia.

More than 60 years ago, 3M earned

its place in an oil and gas application for the first time. Today, nearly 10,000 of the company’s products and materials are used in every corner of the industry – from exploration, production and refining to transportation and marketing.

“The 3M Oil and Gas Group can provide proven, practical and ingenious products that can be put to work right now to help make workplaces safer, more productive and efficient,” a company spokesperson said.

The 3M team is dedicated to making progress possible by connecting the

toughest challenges with the wealth of solutions in the company’s extensive technology portfolio.

“By working with customers to better understand their needs, we continue to find practical and ingenious ways to help them achieve their business goals,” the spokesperson said.

The company supplies more than 50,000 products to a broad range of industrial and consumer markets. With $26 billion in worldwide sales, 3M is one of 30 companies that make up the Dow Jones Industrial Average.

that renewables cannot match. “Making the right decisions now about

regulation, exploration, investment and development will allow the gas industry to transform our energy future by making it more secure and more sustainable.”

On Sunday 26 May, before the exhibition opens, the Petroleum Exploration Society of Australia is set to present its yearly showcase of acreage and farm-in opportunities within Australia and nearby countries.

Furthermore, a Women in Oil and Gas industry seminar panel discussion will open the conference sessions and provide an opportunity for delegates to hear from successful women in the industry.

Between Monday and Wednesday, the conference sessions would “address the policy hurdles hindering Australia’s ability to meet its energy security and economy development needs” including the need to cut red and green tape, maintain industry access to resources, market-based energy policies and fiscal stability, according to the spokesperson.

The conference will also take an in-depth look at major projects, workforce development,

social licence to operate, environmental and water management, emerging exploration and production technologies, Australian shale gas and frontier basins.

Speaking at the plenary sessions are a number of key speakers including Queensland Deputy Premier Jeffrey Seeney, Federal Resources and Energy minister Martin Ferguson, Royal Dutch Shell chief executive Peter Voser and International Energy Agency chief economist Fatih Birol.

The exhibition will comprise oil and gas producers from Australia and overseas, industry product manufacturers and service providers, energy consultants and international, Federal, State and Local Government representatives and APPEA members.

Delegates will be able to peruse an array of products and services including: oilfield equipment, field automation and data solutions, oil sands technology and services, manufacturing, environmental and research and education.

“The event has helped build awareness of the Australian oil and gas industry in Asia

and increasingly in other parts of the world,” the spokesperson said.

“With global industry leaders and analysts presenting at APPEA and more big international players exhibiting every year, the APPEA Conference and Exhibition has cemented itself as the premier event in Asia Pacific oil and gas.”

NetworkingConferences and exhibitions are a good way to expand contacts and networks, but networking events often provide the best platform for meeting new people within the oil and gas industry.

Officially opening the 2013 conference and exhibition, a carnival-themed welcome reception will be held in the ballroom for attendees to “join the who’s who of the oil and gas industry” and “greet old and new industry contacts in an entertaining, yet relaxed environment”.

Happy hour will run between 5pm and 6pm on Monday 27 May and Tuesday 28 May,

Products and solutions for every corner of the industry

(continued on page 22)

20 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE APPEA 2013

LEADING Australian gasses and engineering company BOC has stepped up its capital works program across WA with the announcement of two new multimillion-dollar plant investments to further boost the state’s supply security.

BOC, a member of the Linde Group, would construct a new air separation unit (ASU) and nitrogen liquefaction unit (NLU) at the company’s Kwinana

site, 40km south of Perth.The innovative design of the facilities

would increase existing production at the site, providing a reliable and continuous supply of industrial and healthcare gasses to the emerging WA market, according to BOC managing director South Pacific Colin Isaac.

“This increased output capability will make us self-sufficient in WA, eliminating the need to import product into Perth from

our network of plants in the eastern states,” he said.

The ASU design was capable of more than doubling the current liquid oxygen capacity and the NLU represented a 50 per cent increase in production capacity from the current unit.

Both plants would demonstrate the latest in Linde’s efficient cryogenic plant technology, significantly reducing the

environmental footprint.The Kwinana project is a key milestone in

BOC’s $100 million plus investment strategy for WA; including investment in the Karratha region with another ASU, bulk gas storage and distribution facilities to support the North West mega projects.

With the latest Kwinana ASU and NLU project underway, the investments are expected to come on stream in 2014.

A global power leader and the world’s largest independent manufacturer of diesel engines, Cummins is a corporation of complementary business units that design, manufacture, distribute and service diesel and gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and power

generation systems.Cummins delivers the most reliable

and durable four-cycle diesel and natural gas power in the world, including mechanically and electronically controlled emissions-compliant diesel engine platforms between 50 horsepower and 4000hp, and natural gas engines between 49hp and 2000hp.

A wholly owned subsidiary of Cummins Inc, Cummins South Pacific has an unmatched regional service support network which comprises 37 branches, 170 authorised dealers and the award-winning Cummins Support Centre which can be contacted via hotline 24 hours a day, every day of the year for after-hours assistance and

technical advice and support. Cummins recognises that the oil and

gas industry has unique needs, and is committed to delivering the right technology, products and people to meet and exceed them. Cummins has invested in this market through the delivery of over 38 new products in the past 10 years.

Major WA investment aims to boost supply security

Reliable solutions for oil and gas from global leader

WHETHER revising drilling targets for identified subsurface hazards or optimising production targets in response to pressure and temperature fluctuations, oil and gas producers have to adapt to real-time data and events.

As the industry adopts more advanced technologies to capture data from the environment, the volume, variety and velocity

of data required to manage and interpret is set to drastically increase.

TIBCO offers an event-driven platform – connecting data, applications, people, and processes – ensuring data from one application is available, reliable and actionable for other applications in real time.

As all the data and events are integrated across an ecosystem, users

get a unified view of their operations to optimize the entire value chain.

TIBCO’s in-memory event-processing and analytics technologies allow users to see through millions of correlated historical and real-time events, positioning a company to anticipate problems and opportunities before they arise and proactively make decisions.

By seamlessly integrating real-time

event streams and predictive models, clients can move beyond the limitations of historical data analysis and identify opportunities and risks in real time.

TIBCO solutions also enable users to take control of their own information, allowing them to interact with the data, view a variety of visualizations, then query and see results immediately in an immersive environment.

Innovative technology to manage data explosion

22 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE APPEA 2013

A global leader in protective coating solutions for the oil and gas industry, International Paint will make its inaugural appearance at the APPEA conference in 2013 ahead of a year of unprecedented activity.

International Paint will exhibit at the show and deliver a peer-reviewed paper with research on qualification testing of coatings for use beneath insulation – an area of significant concern to the industry.

Corrosion under insulation (CUI) is just one area in which International Paint is able to offer market-leading technology solutions. Others include the company’s Chartek intumescent fire protection range and the highly durable

Interzone coatings range. Supported by a global network of

supply, manufacturing and technical services, International Paint is able to offer a complete coatings solution no matter how big or small the project. In addition to complete coatings specification and application support, International Paint offers its highly acclaimed Interplan service, which delivers a detailed corrosion assessment and work program prioritisation for protective coatings maintenance to any facility.

To find out more about the services offered by International Paint or the value it can bring to a project, clients can visit booth 356/357 at the APPEA conference.

Leader in protective coatings joins conference

Top notch conference aims to transform energy future

as a chance for delegates to wind down after the day’s events.

The Paint the Town Red conference dinner is a more formal event, held on Tuesday 28 May, that is expected to attract about 1300 delegates and will offer attendees “the buzz of Brisbane after dark with tantalising food, fine wines and outstanding entertainment”.

On the last day of the conference and exhibition, delegates will have the chance to relax with industry colleagues and celebrate at The Last Drop farewell cocktails.

Closing the conference and exhibition week is the two-day 2013 Australian Oilfield Golf Tournament on Thursday 30 May and Friday 31 May.

First held in 1965, the tournament traditionally follows the annual conference and aims to raise $5000 for the Royal Flying Doctor Service.

This year it will be held at the Brookwater Golf and Country Club designed by Greg Norman, and participants will be rewarded with a fully catered “executive style” golf experience.

However, not all of the networking and social events are in the evening.

On Sunday 26 May, a 70km cycle tour around Brisbane will provide participants with an opportunity to enjoy the quieter side of Brisbane, escorted by experienced cycle guides.

Each morning of the three-day conference will feature a different exercise program or boot camp, a social run or walk, and Pilates and yoga.

The 2013 conference program is focussed on topics such as cutting green and red tape and the need to maintain industry access to resources

(continued from page 19)

INCREASING its presence in the Australian offshore market, Hallin Marine Australia has secured Vessel Safety Case acceptance for its subsea operations vessel Windermere.

Approval from the Australian National Offshore Petroleum Safety and Environmental Authority enables the vessel to operate in Australian Commonwealth waters carrying out subsea – diving and remotely operated vehicle services – and offshore support operations in circumstances where a Vessel Safety Case is a pre requisite.

The Windermere also has approval

from the WA Department of Mines and Petroleum for operations undertaken in state territorial waters.

During the cyclone season, Windermere joined the Royal Australian Navy (RAN) to reinforce the navy’s amphibious capacity during the cyclone season.

The vessel was chartered through P&O Marine Services in a $9.4 million contract.

Forming a key element of RAN’s humanitarian relief obligations, Windermere operated as an accommodation support vessel for RAN’s activities.

Fully compliant with the International Marine Contractors Association, the vessel is equipped for well servicing, inspection and construction diving in addition to ROV support.

Hallin’s subsea operations vessel Carlisle has also been active in Australia, undertaking a significant contract on the North West Shelf that includes supporting air diving services on a major field development.

Carlisle is a 76m-long DP 2 subsea support vessel built in 2006. Equipped with a 50t crane and accommodation for up to 126 people, the vessel has been deployed by Hallin in a wide and varied range of successful projects including remote operated vehicle operations

and saturation and air diving, using the company’s in-house design diving systems.

Hallin also recently announced a major addition to its fleet of subsea operation vessels — the compact semi-submersible (CSS) Derwent.

The multihull CSS Derwent was designed to provide an extremely stable multi-role vessel targeting the complex subsea operations markets such as construction support, inspection, repair and maintenance and light well intervention.

The CSS Derwent is a Dynamically Positioned 3 vessel with accommodation for up to 152 people and has an active heave compensated lifting capacity of 160 metric tonnes.

Vessel safety acceptance highlights company’s growing fleet

A new alliance between Sproule and AWT International brings together a wealth of international and local experience in unconventional and conventional hydrocarbon resources unparalleled in the Australian industry.

“This is an exciting opportunity for AWT and the industry in Australia,” AWT chief executive David Kirk said.

“Local companies can now take

advantage of Sproule’s internationally renowned reserve and resource certification expertise, right here in Australia.”

Together, Sproule and AWT can help guide clients through the entire upstream process from asset acquisition, exploration, appraisal and development, to decommissioning across all unconventional and conventional gas plays.

New partnership combines local and international hydrocarbon experience

http://www.shell.com.au

25www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Oil and Gas in Victoria

VICTORIA is home to four sedimentary basins that contain potential and known oil and gas plays: the Murray Basin, which remains largely unexplored; the Bass Basin, which is in Tasmanian waters; and the producing Otway and Gippsland basins.

According to the Victorian Department of Primary Industries (DPI), gas production from offshore Victoria is worth about $1.5 billion annually, with crude oil production valued at more than $2 billion.

More than 80 per cent of the gas reserves on the Eastern Seaboard can be found in the Bass Strait between Victoria and Tasmania; the majority in the Gippsland Basin.

In 1967 Australia’s largest oil field, Kingfish, was discovered by 50:50 joint venture partners ExxonMobil and BHP Billiton Petroleum (Bass Strait); in 1969 the partners produced the basin’s first gas, from the Barracouta field, which was sent to the Longford gas plant for processing.

Almost 45 years later, the 46,000 square kilometre Gippsland Basin remains Victoria’s most productive basin.

However, the DPI estimates that anywhere between 2 trillion cubic feet and 5tcf of gas may still remain undiscovered, as well as about 600 million barrels of oil.

In 2010 to 2011 the DPI recorded total oil and condensate production from Gippsland at 21.6mmbl; gas production at 0.27tcf and LPG production at 9.4mmbl.

By far the largest contributor to 2010 to 2011 production was ExxonMobil, producing more than 21mmbl of oil and condensate and 256,823 million standard cubic feet of gas.

ExxonMobil and BHP hold a large number of petroleum tenements in the Bass Strait under the Gippsland Basin joint venture, and are currently expanding operations through the Kipper Tuna Turrum project, which has the potential to be one of the largest domestic gas developments on the East Coast.

The $4 billion expansion project began in 2010, and involves the development of two new fields: the Kipper field, which holds about 620 billion cubic feet of recoverable gas and 30mmbl of gas liquids; and the Turrum field, which holds about 1tcf of gas and 110mmbl of gas liquids.

As part of the project, new platform Marlin B was constructed above the Turrum field and linked by a bridge to the existing Marlin A platform; aimed at processing additional oil and gas which will be piped back to the Longford plant.

In the December quarter of 2012, Esso and BHP carried out hook-up activities to connect the new Marlin B platform to the existing Marlin A platform.

Initial production from Turrum will consist of low carbon dioxide gas, with further high carbon dioxide gas production scheduled for 2016 when essential upgrades to the Longford plant have been completed.

Another current Gippsland producer is Nexus, the owner-operator of the Longtom gas project, which reached first gas in October 2009; in the 2010 to 2011 period it produced 136,380bbl of oil and condensate and 13,022mmscf of gas.

In the same period, Roc Oil – operator of the Basker-Manta-Gummy fields –

produced 21,333bbl of oil and condensate and 1120mmscf of gas. In 2012, Roc Oil suspended production as it moved into a non-production phase.

Otway BasinVictoria’s other producing basin, Otway, extends from the Mornington Peninsula in Victoria to Cape Jaffa in South Australia, and has been producing gas and condensate since 1986.

Gas production began onshore at the North Paaratte field in the Port Campbell area; it remains one of the basins’ main producing fields alongside the Wallaby Creek and Iona fields.

According to a 2002 DPI report on Otway gas, “initial recoverable gas reserves of the Victorian portion of the Otway Basin (Port Campbell region) were estimated to be about 59 billion cubic feet”.

“The remaining reserves, including new discoveries as at 30 June 2001, are estimated to be 36.7bcf and 893bcf for onshore and offshore respectively,” the report stated.

Between 2010 and 2011, the onshore Otway basin produced 1537bbl of condensate and 8189mmscf of gas, while the offshore basin produced 88,421bbl of condensate and 60,584mmscf of gas.

The basin is home to a number of operating fields, such as Santos’ Henry, Netherby and Casino fields; BHP Billiton’s Minerva field; and Origin Energy’s Geographe and Thylacine fields, which the company has developed through its $1.1 billion Otway gas project.

According to Origin, the Otway gas project is designed for average production of 60 petajoules of natural gas per year, together with about 100,000t of LPG and 800,000bbl of condensate per year.

Origin also produces gas and condensate from the Yolla field, which lies in Tasmanian waters, and transports it back to Victoria via subsea and onshore pipelines to the Lang Lang gas processing plant.

The BassGas operation began in 2006, and is designed to produce about 20PJ of sales gas per year, 1mmbl of condensate and 65,000t of LPG for the Victorian market.

Origin recently applied to carry out seismic testing near its Halladale discovery in the Otway Basin.

Future of Victorian oil and gasAccording to the Federal Government’s 2012 Australian Gas Resource Assessment, Australian gas consumption has grown by 4 per cent per year in the past decade, with gas accounting for 23 per cent of Australia’s primary energy consumption in 2009 and 2010, and 15 per cent of electricity generation.

The assessment also stated that gas consumption in Australia was expected to increase by 2.9 per cent per year to 2.4tcf in 2034 and 2035.

It stated that at the beginning of 2011, Australia’s total identified conventional gas resources were estimated at 167tcf, including 10tcf of inferred resources in recently discovered fields.

However, with the rate of reserves additions slowing down, the report suggested further opportunities for large discoveries remained with “the development of new technologies and play concepts, and the advance of exploration into frontier areas”.

According to the report, with total identified CSG resources of 203tcf and total identified tight gas resources at 20tcf, plus the potential for shale gas, Australia’s combined indentified gas resources had the possibility to reach 392tcf: equal to about 184 years of gas at current production rates.

With rising gas demand and depletion of conventional gas resources, the paper stated that unconventional sources of gas – CSG, tight and shale gas – would become more dominant in the next few decades.

“The distribution of gas resources in 2035 is expected to shift as finds of conventional gas resources offshore level off, CSG exploration and production continues to increase and new tight and shale gas resources are indentified and developed,” the report stated.

Growth in gas demand and depletion of conventional gas resources would be reflected in Victoria, according to DPI energy development and engagement manager Geoff Collins.

In a report for the Victorian Supplement in 2012, Mr Collins said Victoria’s gas demand was continuing to grow and expected to double by 2030.

“Coupled with this demand scenario, we know the following about the supply side: Victoria’s current gas reserves – and discovery rate – indicate local gas will be

substantially ‘depleted’ by 2030,” he said.Mr Collins said the rise in gas demand

would be driven by an increase in gas-fired electricity generation, and that development of new gas-fired facilities, such as the Mortlake and Tarrone stations, had already begun.

The 550MW Mortlake station in southwestern Victoria is the largest gas-fired power station in the state, and is connected to the Otway gas plant at Port Campbell by an 83km natural gas pipeline.

The station, operated by Origin Energy, was completed in August 2012.

Natural gas and electricity company AGL Energy has announced plans to develop the $600 million Tarrone power project to supply the state in times of peak demand, involving the construction of an initial 500 to 600MW gas turbine power station near Willatook.

DPI earth resources development executive director Chris Brooks said that Victorian gas production was rising but at the same time, reserves were declining.

Mr Brooks said the state’s gas fields had sufficient reserves to continue at current rates for about 15 more years, depending on demand, and that oil production had already declined significantly since its peak in the mid 1980s.

He said the Kipper Tuna Turrum oil and gas project and Otway Gas project would deliver new production, but further exploration was needed in new areas to promote growth.

“Victoria is expected to have sufficient gas supplies to meet demand into the near future,” he said.

“There is still a need to explore for more gas for the mid to long-term future and Victoria is examining all its options for new sources of supply.

“Existing reserves are limited to only a couple of play types in the offshore Gippsland Basin and one in the offshore Otway Basin.

“Other play types exist but to date have not been substantially investigated as they are higher risk than the current low risk plays.”

However, with the Victorian Government’s current hold on all approvals to undertake hydraulic fracturing (fracking) as part of onshore gas exploration – including a ban on the use of BTEX chemicals in the fracking process – further CSG exploration is unlikely to go ahead for some time yet.

In August 2012, the State Government stated it would not issue new exploration licences for CSG until the Federal Government’s National Harmonised Framework for CSG had been considered.

The national framework would examine leading practice approaches to the regulation of the CSG industry, including water management and monitoring, well design and integrity, fracking, chemical use and industry and community engagement.

Mr Brooks said the hold on CSG exploration would continue until the national framework was finalised.

“Victoria already has a strong framework for regulating onshore gas operations,” he said.

“The national framework is designed to enhance this by delivering greater levels of consistency, certainty and transparency in the development of the coal seam gas industry across Australia.

“A draft framework has been released and the Victorian Government has strongly encouraged interested parties to make submissions.”

Onshore future on hold in Victoria

The Longford gas plant in Sale, Victoria Photo - ExxonMobil Australia

HAnnAH JEnkInS

26 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

Netting the Northern Territory’s biggest fishWITH a well-balanced portfolio of LNG exploration and production assets, Inpex Corporation is set to emerge as a global force in the LNG sector by 2016.

Ranked in the top 100 global energy companies, Inpex has a strong international presence and is involved in more than 70 projects in 26 countries.

The company, which is listed on the Tokyo Stock Exchange and operates from headquarters in Tokyo, has been a part of the Australian business community since 1986.

Its primary LNG interests are in Indonesia and Australia – locally, it is operator of the Ichthys LNG project, offshore WA. Inpex reportedly considers the US$34 billion project – for which it will develop the Ichthys gas and condensate field – to be one of the largest and most challenging projects it has ever embarked on. The project will also include the development of an LNG plant and associated facilities that are under construction by JKC Australia LNG on behalf of Inpex in joint venture with major partner Total group companies and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric and Toho Gas.

IchthysInpex has interests in a string of offshore ventures in WA and the Northern Territory, including the Kitan oil field, in which it has a 35 per cent stake; the Bayu-Undan gas-condensate field/Darwin LNG plant (11.3 per cent); the Van Gogh project (47.5 per cent); the Coniston oil field (47.49 per cent); and the Ravensworth project (28.5 per cent).

The company’s journey toward developing the Ichthys LNG project began in 1998, when it acquired petroleum exploration permit WA-285-P in the Browse Basin, about 820km southwest of Darwin.

Today, Inpex owns 66.07 per cent of the project. Total joined the project in 2006 with a 24 per cent interest, which was increased to 30 per cent in July last year, and the remaining interests are held by Tokyo Gas (1.575 per cent), Osaka Gas (1.2 per cent), Chubu Electric (0.735 per cent) and Toho Gas (0.42 per cent).

Named after the Greek word for ‘fish’, the Ichthys field was discovered after three exploratory wells were drilled during 2000 and 2001. The field’s most likely resource estimates are 12.8 trillion cubic feet of gas and 527 million barrels of condensate, to be produced during an operational life of more than 40 years.

Set for production start-up in 2016, Ichthys field gas will undergo preliminary processing at an offshore central processing facility (CPF) to remove water and raw liquids, including a large proportion of condensate. This condensate will then be pumped to a floating production storage and offloading (FPSO) facility, and transferred to tankers for delivery to various markets.

The gas will be transported from the CPF through a subsea pipeline more than 885km long to the onshore LNG processing plant to be built at Blaydin Point on Middle Arm Peninsula in Darwin. The gas will be cooled to below minus-161 degrees Celsius to become LNG.

In addition to the CPF, the FPSO and the export pipeline to Darwin, the offshore facilities will also include umbilicals, risers and flow lines.

The onshore facilities will comprise: two LNG trains with the capacity to produce 8.4 million tonnes per annum; LPG and condensate processing plants; LNG, LPG and condensate storage tanks; administration facilities; utilities and services; power generation infrastructure; and a product offloading jetty.

In a statement, Inpex chairman

Naoki Kuroda said that the Ichthys final investment decision announced in January 2012 signalled the beginning of construction for one of the world’s largest LNG facilities.

“In delivering this important project into production, we will be securing vital long-term energy supply to Japan and our other customers while delivering sustainable economic and social benefits across Australia,” Mr Kuroda said.

He said that the Ichthys LNG project was the cornerstone of the company’s growth strategy into the 21st century, and that it would be Inpex’s first time acting as operator of such a world-scale project.

“Ichthys production volumes represent more than 10 per cent of Japan’s LNG imports at current levels,” Mr Kuroda said.

“Ichthys will provide a long-term stable supply of cleaner energy to Japan, and help Japan diversify its energy sources.”

Mr Kuroda said the project’s commercial strength would help Inpex to achieve its objective of doubling its oil and gas production during the next decade.

In January, Inpex announced that the first steel had been cut for the 150m by 110m Ichthys CPF – a development that the company stated was an indication that progress was on track for Ichthys to achieve first gas by the end of 2016.

When completed, Inpex stated that the CPF would be the world’s largest semisubmersible platform, with a peak gas export rate of 1657 million standard cubic feet of gas per day.

“This is one of the most exciting parts of the project — the first materialisation of what has been many years of hard work; it’s when the design comes to life,” Inpex president director Australia Seiya Ito said.

“The CPF hull size is nearly at the limit of what the biggest shipyards can build in their dry docks today. It will be moored by 28 mooring lines, representing more than 25,000 tonnes of anchor chain.

“Vicinay in Bilbao, Spain will supply the anchor chains for the mooring lines, together with an additional 15,000 tonnes of anchor chain for the project’s floating production storage and offloading vessel. The total represents more than the yearly worldwide production of large-scale anchor chains.”

In the same week as the announcement, Inpex reported that it had achieved another milestone with the cutting of first steel for the turret of the FPSO vessel in Singapore.

“The turret is the mooring point for the FPSO and the means by which it is able to weathervane in response to prevailing weather conditions,” the company said in a statement.

“The FPSO will be capable of storing approximately 1.2 million barrels of condensate.”

Mr Ito said both the CPF and FPSO would be world-class facilities.

“This has been a momentous week for the Ichthys LNG project as it takes its first big step towards reaching its goal of watching the facilities sail...to Australia in late 2015,” he said.

“We are thrilled to be on schedule to deliver first gas by the end of 2016.”

The entire volume of LNG to be produced from the Ichthys project has already been allocated to sales contracts, with 70 per cent to be delivered to Japan.

Ichthys LNG, a company jointly owned by Inpex and Total, signed a legally binding sales and purchase agreement (SPA) with a consortium of five major Japanese utility

Gas will be piped via an 889 kilometre subsea pipeline to the onshore processing facilities at Blaydin Point

The Ichthys gas field, 820 kilometre southwest of Darwin (continued on page 28)

27www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

LEADING steel supplier J Steel Australasia has won the sheet pile contract for the Inpex material off-load facility (MOF) in Darwin.

According to J Steel, the Ichthys project’s MOF is unique as it incorporates the innovative flat web sheet pile in a cellular structure.

As a supplier of steel products to the LNG, construction and engineering sectors, J Steel can provide integrated and customised steel solutions for a wide range of civil, marine and general engineering and construction applications.

The company exclusively represents Arcelor Mittal, the world’s largest integrated steel producer for the sheet piles and structural sections within Australia, New Zealand and the South Pacific; providing global leverage and world leading products with local market knowledge and dedicated supply chain capability.

The company has also developed a

steel fabrication business which has seen it deliver fabricated steel structures to a number of LNG and marine projects on time and on budget.

J Steel provides a diverse range of products including tubular piles, structural steel, tie rods and fabricated steel and is the largest stockist of steel and vinyl sheet piles in Australia.

It has a comprehensive range of services including certified design and design assistance, offshore steel fabrication, project management, logistics, quality inspections and unique product and delivery solutions to suit technical requirements and the client’s budget.

J Steel is Australian-owned and has earned a reputation for quality and value through its integrated procurement, manufacturing and delivery solutions to ensure supply, reduced project risk and cost savings through design optimisation.

PURCHASED by Darren McKenna and Bevan Radel in 2009, the Acacia Quarry is the largest asset in the Yebna Quarries portfolio.

Under the management of Mr McKenna, the site can provide sand, roadbase, drainage rock, fill and concrete and sealing aggregates.

Due to increasing demand for large project works, quarry staff numbers have increased five-fold over the past 12 months with all staff based in Darwin.

Yebna Quarries recently partnered with

Fawcett Cattle Company – a long-term Northern Territory-owned and operated company – for all side tipper and delivery requirements.

The company is experienced in servicing the resources industry; catering for industrial gas, mining and port projects in the past and currently working with Inpex.

With a flawless safety record, Yebna Quarries can supply and deliver to both industrial and residential construction sites.

New project facility contract a major boost for steel supplier

Quarry meets demand for large project works in Northern Territory

28 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

AFTER securing a number of important contracts in 2012, Jobfit Health Group celebrated the opening of its Alice Springs office in September; its fourth in the Northern Territory.

Jobfit was awarded work on the Ichthys project last year, including an $80,000 contract with the McMahon John Holland joint venture for pre-employment medicals and drug testing.

In June, the company opened a new office in Winnellie; increasing its capacity to offer pre-employment medical and functional assessments and drug and alcohol screenings, to cope with higher demand from recent Ichthys contracts.

By August, the organisation had added Leighton Contractors to its list of clients for pre-employment screenings, which already included Laing O’Rourke,

Wagners and Van Oord.To meet the unique demands of the

Van Oord contract, Jobfit was required to take its services to the next level by developing a mobile arrangement that enabled onboard medicals.

The company conducts business across various sectors in the territory and has successfully introduced a health-check service for indigenous

candidates; addressing concerns before pre-employment medicals and helping them secure roles in mining.

Jobfit was established in 1996 and opened the doors to its first NT office in 2007.

The company was recognised in October 2012 as one of the fastest growing companies in Australia, ranking 77 on the BRW Fast 100 list.

WITH extensive experience in radio, satellite and microwave communications, Combined Communication Solutions (CCS) serves a range of industries including oil and gas, mining, commercial and government.

CCS is a leading dealer for top radio equipment brands such as Motorola, GME, Cambium Networks, Ceragon and Sepura and was selected to provide all of

the in-vehicle monitoring system (IVMS) requirements for the Ichthys project, which will process gas from the Browse Basin at an LNG plant in Darwin.

Created in-house by CCS, the IVMS Turbo Track fleet management and asset tracking tool allows users to mix and match hardware while still able to view their entire fleet in one centralised place.

The Turbo Track web interface is a sophisticated solution that provides live tracking and detailed reporting functionality for asset management and protection.

All features can be accessed via the website from anywhere in the world and the application is supported by reliable cloud-based servers for optimal performance.

The application offers text messaging, driver identification, harsh driving

notification, street speed comparison and Garmin interface.

CCS also supplied and installed a 40m mast onsite and a 30m tower at the John Holland yard in the Northern Territory for the Ichthys project, and installed and maintained the microwave links for the Macmahon John Holland Joint Venture, JKC Australia and Leighton Contractors.

IDEALLY located just minutes from INPEX’s Ichthys project, Quest Palmerston provides all the comforts of home, with the convenience of being central to the Northern Territory’s thriving oil and gas hub.

Close to the CBD, Darwin Business Park, INPEX accommodation village, marine supply base and the territory’s largest

LNG development at Blaydin Point, Quest Palmerston could not be better placed.

The new purpose-built 4.5 star property is the standout accommodation provider in the Palmerston area, offering a range of modern and stylishly appointed self-contained apartments that are ideal for corporate travellers.

The property features a well-placed

mix of studio, one, two and three bedroom serviced apartments, all featuring spacious living areas, full kitchen and laundry facilities and underground secure parking.

With outdoor pool and barbecue facilities, an onsite gym and conference facility, Quest Palmerston is the perfect place to conduct business or simply pull

off the work boots and relax after a day on site.

Franchisees James Watson and Jodie Milne are proud of their ability to provide a professional and personalised service, offering extras such as local restaurant chargebacks, valet dry cleaning and pantry shopping services to ensure a pleasant and stress-free stay.

Health services expert spreads wings in Northern Territory

Live vehicle tracking for asset management and protection

Comfort and style at heart of oil and gas hub

companies in December 2011 under which Ichthys LNG will sell the companies a total of 4.0mtpa of LNG for 15 years, starting in 2017.

Tokyo Electric Power and Tokyo Gas will each receive 1.05mtpa, The Kansai Electric Power Company and Osaka Gas will both be given 0.80mtpa, and Kyushu Electric Power Company will receive the remaining 0.30mtpa. Inpex also has LNG sales agreements with Chubu Electric Power Company, Toho Gas and CPC Corporation (Taiwan) for a total of 2.52mtpa; Inpex and a Total affiliate will also take a combined 1.8mtpa of LNG from the project.

Economic benefits The Ichthys LNG project is set to be the largest oil and gas development to be serviced by the Northern Territory, and will deliver significant social and economic benefits throughout Australia. It will showcase the Northern Territory as a region that is capable of supporting the construction and operation of a major development.

“Ichthys will truly be an international collaboration. An estimated 3000 jobs will be needed in Darwin during the peak of construction, with a further 1000 offshore. Once the project is in operation, we will require approximately 700 permanent positions,” Mr Kuroda said.

Inpex and Total have committed to a $91 million environmental and social benefits package for the project, which will provide long-term benefits for the community during the life of the project and beyond, including a $3 million contribution to Charles Darwin University for the North Australian Centre for Oil and Gas.

In 2009, Inpex agreed to the Ichthys Project Australian Industry Participation Plan with the Northern Territory and Federal Governments

to create mutual benefits through business and employment opportunities.

The key objectives of the plan are to: ensure that Australian industry is provided full, fair and reasonable opportunities to participate in the Ichthys project; develop long-term relationships that ensure innovation, effective cost management and value-added solutions are delivered; encourage and facilitate local business participation and development in the oil and gas industry; identify and increase the number of local

people with the skills to work in the oil and gas industry; and increase livelihood opportunities for local Aboriginal and Torres Strait Islander communities through direct employment and business engagement.

In March 2012, the largest contract to have ever been awarded in the Northern Territory was won by local companies Macmahon Contractors and John Holland in a 50/50 joint venture for the construction of the onshore facilities at Blaydin Point.

In a statement, Northern Territory chief

minister Paul Henderson said that both were well-known businesses that had been subcontracting, employing and training in the state for years.

“This $340 million contract is just the beginning of many local opportunities the multi billion dollar Ichthys gas project will bring,” he said.

“The Territory has a very bright future as we move into a period of significant economic growth that will bring with it high-skill, high-wage job opportunities.”

Netting the Northern Territory’s biggest fish

The Ichthys LnG project is expected to create 3000 jobs in Darwin at peak construction

(continued from page 26)

30 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE INPEX

OPERATING since 2007, family-owned and operated company AM Cranes and Rigging has established itself as one of Darwin’s leading mobile crane companies.

Priding itself on a committed team, AM Cranes and Rigging strives for optimum service to all clients, where no job is too big or too small.

The company offers wet and dry hire of mobile cranes and provides riggers, dogman and labour hire and transport logistics.

Services to industries across the territory include: offshore oil and gas, onshore minerals and energy, domestic and commercial building and the crane, forklift, equipment and labour supply sectors.

With more than 20 years of experience in a variety of building trades, AM Cranes

and Rigging can lift material such as demountables, containers, structural steel, concrete blocks and panels, water tanks, machinery and form work.

In the interest of finest safety, performance and service, the company has developed its own safety matric which can be supplied on demand by experienced and knowledgeable staff.

AM Cranes and Rigging has successfully supplied cranes for a number of companies operating in Darwin, such as BHP Billiton Petroleum, ConocoPhillips, Expro Mining and John Holland, and has worked on iconic Darwin projects including the Darwin LNG gas plant, the Darwin Convention Centre and the Inpex Ichthys Howard Springs Accommodation Village and onshore LNG project.

AS a dynamic new mining, earthmoving and plant hire contractor in the Northern Territory, OCTIEF Mining provides large-scale services to major mining, oil and gas and civil projects across Queensland, Northern Territory and WA.

OCTIEF Mining’s primary goal is to be a leader in world-class project management of mining, oil and gas and civil works, utilising a new modern fleet of mining and civil plant and equipment, and supplying industries with a competitive source of all operational requirements.

With access to heavy plant and ancillary equipment, OCTIEF Mining can supply projects with the dry and wet hire of any type of plant or equipment necessary to complete a project.

OCTIEF Mining aims to dramatically reduce project costs, increase production efficiency, dramatically reduce carbon emissions and footprint and, as an environmentally responsible mining and civil company, it aims to use its knowledge to develop greenfield operations from the ground up.

Expanding company takes pride in safety and knowledge

Servicing the resources sector across the top end

31www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Pacific Hydro Australia

Meeting the demand for clean energy FOR renewable energy company Pacific Hydro, powering a cleaner world and addressing climate change is paramount to its purpose.

With a portfolio of assets comprising hydro, wind, solar and geothermal projects at varying stages, Pacific Hydro works to produce clean power from natural resources.

The company was founded in 1992 and is owned by the Industry Funds Management Australian Infrastructure Fund.

It endeavours to reduce greenhouse gas emissions while meeting growing global energy needs; its three core markets are Australia, Brazil and Chile.

“As these three economies grow, so too will their demand for clean and secure energy supplies. Pacific Hydro will play a significant role in meeting that demand for new clean energy,” the company stated in its 2011 to 2012 annual report.

According to the Department of Climate Change and Energy Efficiency, Australia had some of the world’s best wind resources, and the highest average solar radiation per square metre of any continent.

Through the implementation of its Renewable Energy Target scheme, the Australian Government is working to ensure that at least 20 per cent of electricity comes from renewable sources by 2020.

As a clean electricity retailer, Pacific Hydro helps organisations meet their sustainability and carbon reduction objectives.

In the 2011 to 2012 financial year, Pacific Hydro produced more than 1.8 million megawatt hours of renewable energy, resulting in the abatement of more than 1.2 million tonnes of greenhouse gas emissions.

It also achieved a 29 per cent rise in revenue to $197 million, mainly due to the start of operations at its run-of-river Chacayes hydro plant in Chile’s Alto Cachapoal Valley.

Representing an investment of more than $450 million, Chacayes has an 11 megawatt capacity and produces enough energy to power 300,000 local homes.

It is expected to reduce carbon dioxide emissions by more than 340,000t per year.

In another overseas milestone for the year, Pacific Hydro signed a consortium agreement with the world’s second largest miner Vale to jointly build and operate two wind farms in northeast Brazil. Pacific Hydro reported that it regarded the deal as “a crucial strategic step” toward its continued growth in South America.

As a signatory of the United Nations Global Compact, Pacific Hydro supports a framework of 10 principles advocating responsible business practices in the areas of human rights, labour, environment and anti-corruption.

Launched in 2000, the initiative aims to align the objectives of the international community with those of the business world.

Continuing to celebrate more than 20 years of clean energy, Pacific Hydro’s main targets for the 2012 to 2013 financial year were to achieve above-benchmark economic returns for shareholders; continue to bring new clean energy supplies to each of the markets it serves; and to influence legislation and market mechanisms favourable to clean energy investment.

Projects in AustraliaWA is home to one of Pacific Hydro's longest running assets: the Ord hydro plant.

Beginning power generation in 1997 as

Australia’s largest non-government renewable energy project, Ord provides electricity to Rio Tinto’s Argyle diamond mine and to the towns of Kununurra and Wyndham.

The project provides base load power delivered through its own 132 kilovolt transmission network, and remains the largest generator of renewable energy in WA, producing more than 210 gigawatt hours of emission-free energy each year.

According to Pacific Hydro, the plant has contributed more than $12 million in royalties to the State Government.

In Victoria, Pacific Hydro has both wind and hydro power generation assets.

The Codrington wind farm, which opened in July 2001, was the company’s first wind development; it was also Australia’s largest wind farm with 14 windmills and a combined generation capacity of 18.2MW.

Codrington is ideally situated, in southwest Victoria near Port Fairy, to catch strong winds blowing off the Southern Ocean.

East of Ararat in western Victoria, the

52.5MW Challicum Hills development surpassed Codrington to become the largest wind farm in Australia when it was completed in 2003.

The project generates enough electricity to power 26,000 homes each year, and will reduce greenhouse pollution by more than 3.5mt during its 25-year life.

In southeast Victoria, the Cape Nelson South wind farm is part of Pacific Hydro’s Portland Wind Energy Project (PWEP) near Portland: one of the largest wind energy projects in the southern hemisphere.

The 22-turbine wind farm will contribute 44MW of electricity to the national grid, which is enough power to supply the annual electricity needs of 22,000 Victorian homes. This will result in the wind farm abating 141,000t of carbon emissions every year.

Completed in 2007, the 30MW Yambuk wind farm was the first stage of the PWEP with 20 wind generators, while the 58MW Cape Bridgewater wind farm built in 2008 was the second stage,

comprising 29 wind generators. A final stage of the project is yet to be

completed at Cape Nelson North and Cape Sir William Grant.

Pacific Hydro’s Victorian hydro plants, which were built in the mid 1990s, have an installed capacity of 9.9MW. The company stated that the Lake Glenmaggie, Lake William Hovell and Eildon Pondage irrigation dams were a perfect fit with its policy to use existing irrigation dams for run-of-water flows, as opposed to building new ones. Their combined output has abated more than 450,000t of greenhouse gas emissions.

Pacific Hydro’s first project in South Australia, the Clements Gap wind farm, opened three years ago and has a generation capacity of 56.7MW

The wind farm – the state’s 11th – is 20km northeast of Port Broughton along the Barunga Ranges. It has 27 turbines with a 56.7MW capacity and is estimated to abate 154,000t of greenhouse pollution every year.

Pacific Hydro has proposed the construction of a wind farm at Keyneton in South Australia. The project site is 6km west of Sedan and 10km southeast of Angaston, running about 15km north to south along the Mount Lofty Ranges.

In 2012, the company lodged an application to the South Australian Development Assessment Commission for the approval of a farm with 42 turbines, each with a maximum height of 145.5m.

The proposal was met with mixed community responses, and the process for approval is ongoing.

Pacific Hydro’s Drop hydro plant in NSW was Australia’s first hydro-electric power scheme built on an irrigation channel.

Opened in 2000, it generates 2.5MW of energy without affecting the water flow to farms supplied by the canal.

The project now generates about 10,000MW hours of pollution-free energy each year, and prevents 11,000t of greenhouse gas emissions reaching the atmosphere.

Pacific Hydro produced more than 1.8 million megawatt hours of renewable energy in the 2011 to 2012 financial year, and its wind farms in Victoria were a major contributor

In addition to wind, Pacific Hydro has hydro, solar and geothermal power assets in Australia, Brazil and Chile

JAIMEE Conn

32 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Shell Australia

ALREADY a world-leading producer of LNG, Shell is set to further boost its position in the global energy market when its floating LNG (FLNG) technology reaches completion.

Backed by five decades of experience in the LNG field, Shell considers Australia to be the key component in its LNG growth aspirations; where it is developing large gas resources to help meet the world’s growing energy demand.

Shell has stakes in two of the country’s largest resource developments – the Gorgon and Wheatstone LNG projects – and interests in a string of assets including the Browse LNG project and the Sunrise joint venture.

Its world-first FLNG facility – which will be the largest offshore floating structure ever built – is well under construction and expected to revolutionise offshore oil and gas development.

Speaking at the Deep Offshore Technology International Conference held in Perth last November, Shell Australia country chair Ann Pickard said the project was making “excellent progress” and that FLNG was “coming to life”.

“The reason we must continue to seek advancements in offshore exploration and production is because the days of easy oil and gas are gone,” she said.

“We continue to move into harsher, deeper and more remote environments, because bringing new supplies and sources to market is absolutely essential.

“The fact is, there’s a huge gap between future supply and the world’s growing demand for energy. This is further complicated by the fact that we need to manage carbon [in order] to limit the effects on climate change.”

Ms Pickard said the world population was expected to grow from its current 7 billion to more than 8 billion by 2030, and gross domestic product per capita was expected to triple by the same year in India and China.

“Some two-thirds of energy consumption in 2030 is going to come from non-OECD [Organisation for Economic Co-operation and

World-first technology bringing resources to surfaceJAIMEE Conn

(continued on page 34)

A rear high view of how the 488 metre-long FLnG facility may look once completed

With six storage tanks, the FLnG facility was designed to have a liquids production capacity of at least 5.3 million tonnes per annum

www.miningoilgas.com.au

SPECIAL FEATURE Shell Australia

A leading player in the fields of process technology and separation towers, Sulzer Chemtech is experienced in two-component mixing and dispensing systems.

With state-of-the-art technology, Sulzer has set the standard in the field of mass transfer and static mixing with advanced solutions that strengthen the competitiveness of its customers.

Established in 1971, subsidiary Tower Field Services (TFS) is a tower specialist performing internal mechanical installation.

As the largest supplier of mass transfer equipment in the world, the company has a global network that is well placed, equipped and experienced to service its customers with any requirements regarding the

maintenance, installation and revamping of process equipment for towers and vessels.

TFS’s knowledge and expertise was recently used at Woodside’s LNG Train 5 and Pluto construction projects, with results demonstrating its ability to work with engineering, procurement and construction, as well as major contractors within the constraints of the end user contract conditions.

As part of Sulzer’s core business, the company has world-class safety systems for confined space and heights works.

Staff members are fully conversant with Australian and US piping standards and operate under a full ISO 9001 quality assurance system.

High-end technology for maximum performance

The FLnG facility will be moored 200 kilometres from land and process gas from the Prelude and Concerto fields, eliminating the need for a shore-based LnG plant

Shell’s international portfolio of LnG assets includes a stake in the north West Shelf project, which utilises an onshore processing plant in WA

34 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Shell Australia

SYDNEY-based engineering, maintenance, property services and asset management company UGL Limited was recently awarded a five-and-a-half year contract with Shell Australia, as the primary mechanical services contractor at Shell's Geelong site in Victoria.

Under the terms of the $200 million contract, UGL would provide maintenance services, minor capital works and turnarounds at site; with work starting on site in December last year.

UGL managing director and chief executive Richard Leupen said the contract would boost the company, which aimed to push its presence further in the oil and gas industry.

“We are very proud to have been chosen by Shell as the primary mechanical services contractor, significantly extending the services UGL has provided at the Shell Geelong site since 2009,” he said.

“Securing this contract reflects UGL’s

position as a leading maintenance service provider to the downstream oil and gas industry in Australia and further builds our base of high-quality, recurring revenue streams.

“This win also positions us well to be a key participant in the large pipeline of oil and gas maintenance projects in Australia and Asia as committed projects are brought on line.”

During the past 10 years, UGL has grown from a WA-based resources

construction business into a diverse, multinational outsourced services company.

Its financial strength and risk management approach has supported significant growth across the business, which today operates across 52 countries.

UGL’s four business units provide services for a range of sectors, including power, water, rail, resources, transport, social infrastructure, communications, defence and property.

Lengthy and lucrative contract awarded for Geelong site

Development] countries: today it’s just 56 per cent.

“To meet this demand, the world will require the development of all forms of energy. Renewables such as wind, solar and biofuels have a major role to play...but there’s still a long way to go.

“To ensure renewables remain on track [to] become a major contributor to the energy mix, they must become cost-competitive and not so reliant on subsidies. But in general, we have to be much more efficient with the energy we do have.”

However, Ms Pickard said hydro

carbons – such as coal, oil and natural gas – were continuing to dominate the energy mix for the foreseeable future.

“The IEA [International Energy Agency] estimates that we will need to spend $620 billion per year in the oil and gas sector alone to match the demand growth for the next 20 years. One of the interesting things [to consider] is whether that money is going to be spent here in Australia, given the cost challenges that we face.”

Ms Pickard said climate change was “not debated at all,” and that the world had to work for solutions.

“The market prospect of gas as it being the cleanest burning fossil fuel

is the fastest way to manage carbon emissions. It is also abundant. The IEA estimates there’s over 250 years supply at current consumption rates; our deepwater resources are a major part of this picture.”

Iron giantAccording to APPEA, Australia is currently the world’s fourth largest producer of LNG: its major export markets are China, Japan and South Korea.

However, the petroleum industry is aiming to make Australia the world’s first or second largest producer of LNG by 2020, exporting at least 60 million

tonnes per annum.An attractive alternative to coal in

power generation, LNG has significant environmental benefits.

A Greenhouse Gas Emissions Study of Australian LNG by WorleyParsons in 2008 found that LNG had a “substantially” lower greenhouse footprint compared to coal. Life cycle greenhouse intensity for LNG was about 50 per cent lower than that of coal.

According to the Australian Bureau of Resources and Energy Economics, LNG is set to be a major source of export growth as a result of huge investment in

World-first technology bringing resources to surface(continued from page 32)

(continued on page 36)

First steel for Shell’s FLnG facility was cut in october last year at the Geoje shipyard in South korea

36 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Shell Australia

FROM its national oil and gas solution hub in Perth, WA, Fujitsu manages a portfolio of oil and gas operators and EPCM clients, driving innovation from its global experience across the sector.

With a foundation in telecommunications and more than 40 years of experience in supplying subsea optical fibre solutions

around the globe, Fujitsu works with global communications carriers, local industry and oil and gas SMEs to provide industry-changing connectivity solutions that address the challenges of oil and gas projects in Australia.

Fujitsu’s vision for innovation and proven expertise in systems integration has enabled global operators to reduce total ownership

costs and remain competitive in the tight global oil and gas market.

Fujitsu’s capital project services cover engineering, design, procurement, construction, hook-up and commissioning, ongoing support, asset management and maintenance.

The company is also supporting oil and

gas retail customers across South East Asia with fully outsourced application and infrastructure offerings through to globally deployed and supported point of sale solutions; this allows Fujitsu to offer continued excellence in the integration and management of client-focussed solutions covering upstream to downstream operations.

Integrated subsea technology solutions across the country

LNG production in Australia; increasing from 19 million tonnes in 2011 and 2012, to 88mt in 2017 and 2018.

In conjunction, LNG export earnings are projected to rise from $12 billion in 2011 and 2012 to about $61 billion in 2017 and 2018, to become Australia’s second highest export earner, second to iron ore.

Designed to have a production capacity of at least 5.3mtpa of liquids comprising 3.6mt of LNG, 1.3mt of condensate and 0.4mt of LPG, the FLNG will be a significant contributor to these increases.

INPEX, KOGAS and CPC Corporation are joint venture participants in the $12 billion project, with stakes of 17.5 per cent, 10 per cent and 5 per cent respectively.

Moored 200km off the WA coast in Shell’s WA-44-L permit, the FLNG

facility will be used to develop the Prelude and Concerto gas fields in the Browse Basin, which have been estimated to contain 3 trillion cubic feet of liquids-rich gas.

According to Shell, the fields’ small sizes and their remoteness made them ideal candidates to be developed via FLNG technology, as it would not be economically viable to pipe the gas to an onshore processing plant.

After the gas from Prelude and Concerto has been chilled to minus 162 degrees Celsius and reduced in volume by 600 times, the resulting LNG would be offloaded into LNG carriers and transported to markets worldwide.

Equipped with six LNG storage tanks, the facility will require more than 3000km of electrical and instrumentation cables and weigh 600,000t at full capacity: more than 11 times heavier than the Titanic.

Ms Pickard said Shell was “immensely proud” of its FLNG technology, which had been recognised by industry awards.

The joint venture partners and the lead contractor, Technip Samsung Consortium, celebrated the first 7.6t steel cut for the FLNG substructure at the Geoje shipyard in South Korea last October – one of a few places in the world that has a dry dock big enough to be able to build the FLNG facility.

Steel for the project was also cut in Malaysia and Dubai.

“In total, more than 260,000t of steel will be fabricated and assembled for the facility: that’s around five times the amount of steel used to build the Sydney Harbour Bridge,” Shell Australia vice president of technical and Prelude Bruce Steenson said in a statement.

“It was a proud moment seeing this new technology coming to life knowing that Shell’s first FLNG facility will one day be

operating off the coast of Australia.”At peak levels, about 5000 people

will work on the construction of the FLNG facility, with another 1000 on the turret mooring system, subsea and well equipment.

In the lead up to the FLNG facility being ready for production, Shell reported the drilling of production wells, and the installation of subsea flowlines, risers and mooring chains would take place.

The company is currently training a FLNG workforce for roles that have never been done before.

To achieve this, Shell has set up partnerships with Curtin University and the Challenger Institute of Technology in WA to help train the world’s first LNG operators in Perth.

In addition, the company has deployed some of its Australian employees overseas to receive the best training available.

World-first technology bringing resources to surface(continued from page 34)

37www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Geodynamics

Fuelling the geothermal fireGEOTHERMAL exploration has long been linked to the naturally occurring hydrothermal or volcanic systems of the world in places such as Iceland, New Zealand and Japan.

As head of one of Australia’s most advanced geothermal exploration and development companies, Geodynamics managing director and chief executive Geoff Ward knows this all too well.

“When people think of geothermal, they typically think of an Icelandic field and hot water spontaneously appearing and bubbling to the surface, or a New Zealand-type geyser field with boiling mud, and that is typically what geothermal has been around the world,” he said.

Mr Ward said conventional volcanic reservoirs were often very cost-effective, reliable, clean and highly productive resources, but were restricted to naturally occurring volcanic areas.

This prompted the need for a way to access resources that were more broadly available in non-volcanic regions, and led to the development of enhanced geothermal systems (EGS) technology.

“EGS or enhanced geothermal was an idea which came to prevalence really in the 60s in the US, and gained a lot of attention after the oil crisis as a way of addressing issues of energy security [and] finding a way of tapping an energy source that would be prevalent in large areas around the world,” he said.

“The idea was rather than looking for shallow, hot resources created by volcanic activity and charged by shallow surface water, that you would look for deeper, crystalline rock – the basement rock underneath the sedimentary sequences – and look to exploit those by either creating or enhancing fractures in the crystalline rock.”

Innamincka and Habanero 4Geodynamics employed this method at its Innamincka Deeps (EGS) project in the Cooper Basin in South Australia, where it recently began commissioning operations for Australia’s first EGS pilot plant.

The project has been the company’s main focus since it signed the Innamincka Deeps joint venture with Origin Energy (30 per cent interest) in 2007. Mr Ward said the intense heat, location and pure size of the Innamincka deposit had made it one of the world’s best EGS reservoirs, and a very pleasing discovery for the company.

He said due to a lack of tectonic movement in Australia, the dense shales of the Cooper Basin had remained intact for hundreds of millions of years, acting as insulation for the reservoir and trapping its heat in the granite.

“It is very large, very hot and it is in an area where it is possible to do deep drilling; you don’t have many other uses for the land

out there – it is not a crowded urban area or a pastoral area for instance,” he said.

“We’ve indentified that Innamincka granite is a very good EGS resource [and] at approximately 4km we are seeing temperatures of around about 235 degrees Celsius, with those temperatures increasing to near 270 degrees Celsius by 4900m.

“At Innamincka we have an exceptionally large granite [resource], which has been mapped on about 1000 square kilometres in surface area, and we estimate it is in excess of 7km thick, so there’s many thousands of cubic kilometres of the granite down there.”

The project’s first well, Habanero 1, was drilled at Innamincka in 2003, with a total of six wells drilled in the area to date.

The most recent and successful of the Innamincka wells was Habanero 4, which was drilled in mid-2012.

Mr Ward said Habanero 4 had benefitted from engineering improvements and optimisations gathered from previous wells.

“We achieved very good reliability of our drilling, improved rates of penetration and longer bit lives, all of which give us confidence that we will be able to continually improve the cost of our wells as we go forward,” he said.

“Secondly, we managed to drill through the fractured granite section with much greater control than we had previously and we were able to do it in a way that we felt wouldn’t degrade the flow performance of that fracture.”

Two flow tests were conducted at

Habanero 4 in the December quarter, with the first achieving the planned maximum of 35kg per second at a flowing pressure of 27.7 megapascal (4020 pounds per square inch).

Following local stimulation, the second flow test achieved increased flow of 38kg/s at 29 MPa (4200 psi).

Major stimulation at Habanero 4 was also completed in the December quarter, involving the injection of 34 million litres of fresh water into the well in 14 days. During this time Geodynamics detected more than 24,000 micro seismic events.

Mr Ward said the company was encouraged by the positive results.

“In previous wells we were achieving stabilised flows of around 25kg a second, so that’s a significant improvement,” he said.

“In the major stimulation we saw the ability to achieve a very large number of micro seismic events at lower pressures than previously, and with high injectivity rates at lower pressure, indicating to us that this well would both produce and inject very efficiently.”

Completion of commissioning activities and trial of the Habanero pilot plant is the next step for Geodynamics, and is expected to occur this month despite the company experiencing a six-week delay as it waited on a coiled tubing unit; the equipment necessary to remove the plug in Habanero 1.

According to Mr Ward, Habanero 1, when connected to Habanero 4, would “create the closed loop necessary to power the 1

megawatt pilot plant”.“We have been going through

pre-commissioning loop checks and final installation of equipment and control systems so that the power station is ready to operate,” he said.

The trial of the pilot plant will run until August.

Gove Peninsula In September 2012, Geodynamics signed a heads of agreement with Gulkula Mining to enter into a 50/50 joint venture determining the potential for a direct heat geothermal project on the Gove Peninsula in the Northern Territory.

Gulkula Mining is a subsidiary of Gumatj Corporation, the commercial arm of the Gumatj people who are the traditional owners of land within Geodynamics’ 3558sqkm geothermal exploration permit.

The joint venture will examine the possibility to deliver heat to the Rio Tinto-owned Pacific Aluminium alumina refinery, lowering long-term operating costs for the plant and allowing Pacific Aluminium to reduce fossil fuel consumption and carbon emissions.

While an EGS project, the Gove joint venture is different from Habanero in that its drilling targets much shallower depths of between 800m and 2km, and temperatures are much lower than that of the Innamincka

HAnnAH JEnkInS

(continued on page 38)

The Habanero 4 well is the most recent and successful well in Geodynamics' program to date Photo - Geodynamics

Geodynamics will soon commission Australia’s first commercial enhanced geothermal systems pilot plant in the Cooper Basin Photo - Geodynamics

38 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Geodynamics

UNDERSTANDING the challenges of collecting reliable environmental data in remote locations – and the importance of this reliability in client decision-making – is a fundamental aspect of LBW Environment’s operations.

The LBW team has provided a broad range of environmental services to the oil and gas and geothermal industries in South

Australia, Queensland and the Northern Territory since founding in 2007.

With a strong emphasis on data reliability and quality of service, the company proudly assists Geodynamics with its operations in the Cooper Basin.

Recent progress in exploration and the development of unconventional gas resources in the region has led to an

increased demand for LBW’s environmental monitoring services.

LBW continues to deliver extensive programs for baseline assessments of groundwater; monitoring of flow-back fluids post fracture stimulation; compliance monitoring of groundwater and produced formation water; and other assessments of soils and groundwater in response to client needs.

LBW managing director Jarrod Bishop said clients, including Santos, Beach Energy and Geodynamics, chose LBW because the team had extensive capability and experience in the Cooper Basin.

This experience enables the company’s field teams to operate largely independently, allowing clients to carry on with what they do best: producing the energy, he said.

FROM the open ocean to harbours, dams and creeks, privately owned Australian company Mapping and Hydrographic Surveys (MHS) has extensive experience in all marine environments. Specialising in remote areas, MHS has the technological knowledge and equipment to accurately identify the seabed for greenfield port investigations, engineering design, dredging surveys and under keel clearance surveys.

Aware of the growing trend for port development and marine infrastructure

engineering requiring broader and deeper geophysical investigations, the company identified that sub-bottom profiling geophysical techniques were falling short of requirements.

In response to this, together with a US consultant, MHS developed a marine seismic tomography system to meet the needs of port development marine infrastructure engineers. Based on the proven offshore oil industry 2D seismic system, MHS’s marine seismic tomography system is specifically

designed to acquire high definition 2D reflection seismic and compressional P-wave velocity data within a target penetration depth of 50m. The company has been operating the system on a number of projects with considerable success.

During 2011 and 2012, MHS completed hydrographic and marine geophysical survey investigations for a new port study in Daru; charted 500km of the Sepik River; and surveyed 120km of the Purari River in PNG.

The company has also recently completed submarine pipeline and power cable route surveys in PNG, the Gulf of Carpentaria and North Queensland’s Whitsundays.

MHS’ major clients have included BHP Billiton, ExxonMobil, Oil Search Limited, Xstrata, PNG Energy Developments Limited, the Port of Brisbane, the Port Hedland Port Authority and several consulting engineering companies on behalf of other major clients.

Reliable data the emphasis for environmental services provider

Experience in marine environments highlights technical knowledge

Fuelling the geothermal firegranite.

Mr Ward said the set up would allow Geodynamics to provide hot water to the refinery for activities such as power generation.

“That makes it a very different type of project in that rather than temperatures of in excess of 240 degrees Celsius, we’re looking for temperatures of approximately 80 to 90 degrees and we will look to supply high volumes of hot water to act as a pre-heat to the Gove electricity generation and alumina processing plant,” he said.

The future of the Gove refinery was in doubt until February 2013, when Pacific Aluminium announced it would keep the underperforming plant open.

The decision followed a deal with the Northern Territory Government and Italian gas major ENI, under which ENI would supply the refinery with 10 years worth of gas from its offshore fields in the Bonaparte Basin.

Mr Ward said Geodynamics was keen to move forward with discussions now that the refinery had a long-term future.

“With Gove, our activities have been primarily on hold while a resolution to the ongoing operation of Pacific Aluminium was taking place,” he said.

“Our first priority has been to allow Rio Tinto and Pacific Aluminium to resolve the future of the refinery.

“We are very pleased with the announcement that came; we have had discussions in the last week with our joint venture partner Gulkula Mining...and we are going to seek to take those discussions with Pacific Aluminium forward now that there’s some more clarity on the future of the refinery.”

Savo Island In November 2012, Geodynamics announced its first international acquisition, entering into a two-stage earn-in and joint operating agreement with Kentor Energy to acquire an interest of up to 70 per cent in a conventional geothermal power supply project in the Solomon Islands.

Sitting 14km off the north coast of Guadalcanal, Savo Island hosts a conventional hydrothermal volcanic resource that will allow Geodynamics to diversify its

predominantly EGS-focused portfolio.Early studies of the area indicated that

unlike the 4km-deep EGS wells of the Habanero project, the Savo geothermal reservoir could reach temperatures of about 260 degrees Celsius at depths of anywhere between 500m and 1.5km.

Mr Ward said the company had decided to acquire a stake in the project as a way to balance its Cooper Basin operations.

“Savo Island represents a real key step out from our strategy,” he said.

“The Habanero project is extremely large and will require significant growth in the Australian power market before there is a customer demand or pull that will bring such a new source of energy into the market.

“Currently we are seeing declining volumes in the Australian electricity market rather than growing volumes, so to balance that and counter that, we have looked for opportunities in areas where there is strongly growing market demand and where you’re competing against high priced energy sources – such as power generated from imported diesel fuels through small generators – rather than the highly efficient large grid that Australia has typically had.”

Under the deal, Geodynamics is able to earn an initial 25 per cent interest in the Savo

Island geothermal power project by providing $350,000 for a first stage exploration program, including geothermal mapping and geophysical studies to determine drilling targets.

Following stage one, Geodynamics will also assume operatorship of the project.

The remaining 45 per cent interest can be earned through the completion of a $4.65 million exploration drilling program and a feasibility study for the development of a first stage geothermal power plant.

According to Mr Ward some geophysical analysis had already been completed, with pleasing results.

“We undertook some geophysical exploration over the November-December period and I am pleased to say we are very encouraged by the early results of those geophysical interpretations and that we are well on track to deliver a preliminary feasibility study in May and resource ahead of June,” he said.

According to Geodynamics, Solomon Islands’ capital Honiara has a current maximum demand of 14MW, and with the high cost of diesel-based electricity generation, locals are paying among the world’s highest prices for power.

Mr Ward said the company was confident the project would not only provide economic

benefits, but would also help the local population and industry by providing a clean, efficient and reliable alternative.

“We think that it can be an efficient producer and earn a good margin for us as the client company; we think that we’ll be able to produce enough power to almost completely replace all of the diesel-fired power in Honiara...and supply the nearby gold mine at Gold Ridge, should we be able to secure them as a customer,” he said.

“By doing that, we can improve the reliability and reduce the cost of power to the Solomon Islands and reduce their dependence on imported diesel as well.”

Further explorationIn 2010, Geodynamics was granted two geothermal exploration permits in Queensland covering a total area of 1200sqkm.

According to Geodynamics, gravity surveys conducted within the two tenements showed that the Innamincka granite was unlikely to extend far to the east beyond the South Aus-tralian-Queensland border, prompting the company to suspend plans for drilling shallow temperature delineation wells.

The company has also suspended exploration efforts at its 196sqkm acreage in NSW’s Hunter Valley as it focussed on its three main projects at Innamincka, Gove and Savo Island.

Mr Ward said there were a number of other factors that led to the suspension of exploration at the Hunter Valley.

“We have agreed with the NSW Government to terminate some of the funding of state support for the Hunter Valley project,” he said.

“We think at this point with declining demand for Australian electricity and an embargo on drilling and fracking operations associated with coal seam, methane and shale gas in NSW, that it is not viable to open up a new exploration site at the moment.

“With the current size of our team and the funding available to us we are going to focus on the completion of the Habanero trials and justifying the development of somewhere between a five and 10MW commercial station; supplying the gas operators in the Cooper Basin [is] a number one priority.”

(continued from page 37)

In november 2012, Geodynamics announced its first international acquisition on Savo Island Photo - Geodynamics

40 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Spillcon 2013

WHEN the Exxon Valdez oil tanker ran aground in Alaska in 1989, it sent shockwaves around the world.

Such a large-scale, man-made environmental disaster had never been encountered before and the slow, inefficient cleanup of 750,000 barrels of oil exposed massive deficiencies in spill prevention and response.

The disaster prompted governments and oil companies to create or update procedures so such spills could be prevented from happening again.

The Australian Marine Oil Spill Centre (AMOSC) was established by the petroleum industry, to work alongside the Australian Maritime Safety Authority

(AMSA) set up by the Australian Government.

Both groups manage Australia’s national plan to combat pollution of the sea by oil and other substances.

The Asia-Pacific Spill Prevention and Preparedness Conference (Spillcon) 2013 operates as part of a triennial series of oil spill conferences and will be held in Cairns on 8 to 12 April.

Other conferences that run as part of the series are the International Oil Spill Conference (IOSC) in the US, and the Interspill Conference and Exhibition in Europe, to be held in 2014 and 2015 respectively.

Exhibits at Spillcon 2013 will feature manufacturers of products used for oil spills and response services.

Exhibiting companies include OPEC

Systems, Lamor Corporation, Oil Response Company of Australia, Oil Spill Response Limited and UK Spill Association.

AMSA Marine Environment Division general manager Toby Stone said the conference would provide an avenue for attendees to discuss issues relating to oil spills, including cause and prevention, preparedness, response management and environmental concerns.

“Spillcon 2013 will bring together local, regional and global environmental and shipping representatives from across industry, government and non-government organisations,” he said.

“It is hosted and organised by a key group of Australia’s government and industry agencies responsible for Australia’s marine environmental

protection arrangements.”Mr Stone said the conference was a

great opportunity for attendees to catch up on the latest industry developments, with more than 50 organisations showcasing their products and services.

“The conference will also include a live on-water demonstration at the Cairns Cruise Liner Terminal demonstrating Australia’s capability to respond to marine environmental incidents,” he said.

“It will include a demonstration of a hazardous material response using a helicopter, the simulated application of dispersant from two aircraft and the deployment of boom and containment equipment.

“AMSA’s emergency vessel Pacific

Spilling the truth on oil disastersJoSH DEL PIno

IF spilled oil is recovered before it reaches the shore, clean-up operations can minimise environmental damage and be up to 500 times less costly.

Throughout history, a number of ships have run aground and caused major environmental problems; most memorably, the Exxon Valdez disaster of 1989 which smothered Alaska’s Prince William Sound shoreline with 40,000t of oil.

The spill caused immense damage and destroyed resources depended on by local people and fauna.

At the time, it was the most serious oil spill disaster the world had faced and the clean-up bill reached 20 billion Norwegian Kroners (NOK), which equates to NOK 500,000 per tonne.

The ship owner was strongly criticised for not doing enough in connection with the clean-up efforts.

In 2002, the oil tanker Prestige went down off the coast of Spain spilling 60,000t of oil, of which 17,000t reached the shore.

The cost of removing the oil from the

Spanish beaches hit €2.5 billion, just more than NOK 20 billion: a cost per tonne of some NOK 1 million.

Five years later, the Server went down off the Norwegian coast and 200t of oil was spilled. A total of NOK 250 million was spent on the clean-up operation, resulting in a cost per tonne of some NOK 1.2 million.

Frank Mohn AS – Oil Recovery Systems has years of experience in developing tools for recovering oil from the sea surface.

The Norwegian Clean Seas Association for Operating Companies (NOFO) operates closely with Frank Mohn AS – Oil Recovery Systems and several solutions have been developed in collaboration, including emergency response equipment that is now standard in the industry on a global scale.

Estimates made by Frank Mohn AS – Oil Recovery Systems show that removing oil from beaches is 500 times more expensive than removing oil from the sea.

Recovering oil from the sea surface reduces clean-up costsMore than 30 organisations will showcase the latest spill prevention and response technology at Spillcon 2013 Photo - Pulse Photography

Delegates at Spillcon 2010 in Melbourne Photo - Pulse Photography

(continued on page 42)

http://www.framo.no

42 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SPECIAL FEATURE Spillcon 2013

Spilling the truth on oil disastersResponder and search and rescue aircraft will also be assisting in the display, and attendees will also have the chance to witness the use of Australia’s new oil spill equipment, including dispersant spray systems, skimmers (oil recovery systems) and oil containment boom.”

More than 250 people attended Spillcon 2007, and more than 400 people attended the conference in Melbourne in 2010.

This year’s conference is expected to attract record numbers, with several high calibre national and international speakers to address various fields of expertise.

“Topics include marine pollution response; regulating oil spill response for the offshore petroleum industry; satellite technology and regional issues,” Mr Stone said.

“Attendees will learn from case studies by various conference speakers and may be able to apply these learnings in their own organisations.”

He said speakers would include representatives from the Australian Shipowners Association, International Tanker Owners Pollution Federation, IPIECA, the International Oil Pollution Compensation Fund and Australian and New Zealand maritime authorities.

“Several speakers will also present case studies such as the oil spill from the cargo vessel MV Rena off the coast of New Zealand in 2011, and salvage operations including the MV Tycoon and Costa Concordia,” Mr Stone said.

“There will also be opportunities to talk to exhibitors about their services and products and share ideas.”

Mr Stone said the keynote address would be delivered by Cape York Institute for Policy and Leadership director Noel Pearson, one of the most influential indigenous lawyers in Australia.

He said other notable speakers would include International Maritime Organization secretary general Koji

Sekimizu and Infrastructure and Transport minister Anthony Albanese.

“The social program for Spillcon 2013 will again be a highlight of the conference, with the global profile of delegates from all around the world, and of course within Australia, promising excellent networking opportunities and sharing of industry information,” Mr Stone said.

Spillcon 2013 will be the 13th oil spill prevention and preparedness conference in Australia.

Following a number of major international spills, Australia also experienced offshore incidents.

In 2009, Cyclone Hamish hit the southeast coast of Queensland, causing unsecured cargo on the MV Pacific Adventurer to damage other cargo and spilling more than 230t of oil and 31 shipping containers of ammonium nitrate into the Coral Sea.

Later that year a blowout at the

Montara wellhead platform off the WA coast resulted in one of Australia’s worst oil spills.

The Australian Department of Resources, Energy and Tourism estimated that up to 2000 barrels of oil leaked into the Timor Sea every day for two months.

AMOSC mobilised aircraft and oil spill cleanup equipment within hours of both incidents.

The Australian Maritime Safety Authority Act 1990 specified that AMSA’s role would include protection of the marine environment from ship pollution.

AMSA is guided by Australia’s National Plan for Maritime Environmental Emergencies.

“The national plan is an integrated government and industry organisational framework enabling effective response to marine pollution incidents and maritime casualties,” Mr Stone said.

“AMSA manages the national plan, working with State and Northern Territory Governments; the shipping, ports, oil, salvage, exploration and chemical industries and emergency services to maximise Australia's marine pollution response capability.

“The shipping industry is also governed by legislation to prevent dumping of hazardous and noxious substances.

“Vessels transiting Australian waters must adhere to the specifications for environment protection set out in the Navigation Act and the Protection of the Seas (Prevention of Pollution from Ships) Act.”

The Port of Gladstone has seen a huge increase in shipping traffic and its proximity to the Great Barrier Reef is of great concern to authorities.

These concerns were realised in 2010, when the Shen Neng 1 sailed 10km outside of the designated shipping zone and ran aground on the World Heritage-listed site.

Tearing a 3km scar in the reef, the ship also leaked huge amounts of oil, threatening the sensitive ecosystem.

Mr Stone said recent incidents showed the importance of conferences like Spillcon in raising awareness and improving oil spill response and prevention.

“We are quite lucky in Australia, we’ve had some spills but nothing on the scale of some of the global spills,” he said.

“Since Spillcon was started all those years ago, we really are in a position of zero tolerance in oil pollution.

“The public expectation is not a question of managing the oil spill, but that you do not have the oil spills in the first place.

“It is a highly emotive subject and none more so than in Australia, especially with the jewel in the crown – the Great Barrier Reef.”

While the industry continues to learn from each incident, Mr Stone acknowledged that increased shipping traffic, especially through sensitive marine environments, increased the risk of an incident occuring.

“On the back of the Shen Neg 1 incident for example, we increased the Vessel Tracking System along the entire reef,” he said.

“A recent risk assessment said there will be something like a 80 per cent increase in shipping, so it is critical we get the national plan set up to serve us for the next 10 years.

“Australia has quite a dynamic national plan: we just did a huge review and there are 70 recommendations which were linked to that risk assessment.

“I think we have one of the most robust risk assessments anywhere globally, but there is a lot work that needs to be done to put these recommendations in place.”

Mr Stone said that managing and adapting to the risk that came with shipping was the best solution as ships were the “life blood” of Australia.

They bring in all the goods from overseas so you can’t not have ships,” he said.

“I think we do a pretty good job of managing the risk and looking to the future; we are always looking at new measures to reduce the risk of spills.

“At the end of the day, it’s a partnership between government and industry and we both need each other for a big response to incidents.”

A record number of people are expected to attend this year’s Spillcon Photo - Pulse Photography

oil spills leave a devastating path of destruction that often take years to clean up

(continued from page 40)

43www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

SERVICING WA’s booming resources sector from its fully equipped 1200 square metre fabrication workshop in Rockingham, Hatrick Engineering has carried out work for some of the industry’s biggest names.

With a client list that includes Rio Tinto, BHP Billiton, Newmont Mining, Thiess, Oceaneering, Fuel Fix and Kerman Contracting, Hatrick has established

itself as a dynamic, specialised onsite maintenance and construction company with a varied portfolio including: extensive pipe welding, fabrication and installation, pressure vessel and heat exchanger construction, maintenance and repair, HDPE polyethylene pipe installation, welding and fabrication.

Hatrick maintains onsite teams at

major mining and petrochemical projects, comprising welders, boilermakers and pipefitters with superior levels of workmanship and accuracy.

The staff also possesses the ability to interpret and accurately implement detailed architectural and engineering plans, along with isometric piping schematics and piping instrumentation drawings.

The company’s three mobile workshops – fully kitted with welding equipment, tools and consumables – enable the qualified team to complete any job, anytime, anywhere.

With a strong focus on health and safety awareness, Hatrick will not only ensure the job is done on time and to budget, but make certain every project is completed without incident.

Engineering firm the pick of the crop

MAKING a substantial investment in its fleet, Avis now has several thousand mine specification vehicles including 4WD dual cabs, wagons and single cab trays – plus 12, 14 and 25-seat buses.

The mine speciality vehicles are from various suppliers including Toyota, Mitsubishi, Ford and GM Holden to suit a

range of mine requirements. Focussing on the safest possible

vehicles, Avis has invested heavily in five-star ANCAP vehicles – namely the Ford Ranger and Holden Colorado.

Where required, vehicles not rated five stars are fitted with roll-over protection structures.

Avis also installs in-vehicle management systems when requested.

The fleet is available across Australia including remote mining locations – recently an additional location was opened in Onslow on the WA coast to service the area’s substantial development.

Avis has dedicated staff to handle mine

specification vehicle enquiries – rentals can vary from one day to long-term project requirements – and anything in the middle.

The company is able to supply the complete range of vehicle hire requirements for the mining industry including passenger cars, people movers, utes, vans, trucks, mini-buses and a full range of mine specification vehicles.

Additional mine spec vehicles bring specialty supplier to forefront

SINCE 2003, Gravity Crane Services has grown to be considered one of the strongest and most reliable companies in the Pilbara community.

Gravity’s fleet comprises more than 38 units, ranging between 18t and 350t capacity, and offers a full lifting service including lift studies, lifting analysis and

crane selection reporting. In addition, Gravity offers both wet and dry hire options.

Based in Port Hedland, Gravity has extensive experience in all facets of the crane industry including marine construction, maintenance, dredging and transport support.

The company has set the standard for

delivering safe and effective crane services on time and on budget to industries in WA.

Gravity is proud of its long-term commitment to customer service and technical innovation and its large fleet of road registered cranes is able to service projects of any size.

The company’s fleet can deliver the

entire spectrum of lift and shift services with vehicles from small pick and carry Franna Cranes to site-based rough terrain cranes and heavy-lifting all terrain cranes.

Gravity maintains the highest level of quality control and service delivery with the finest and most cost-effective service for its clients.

Extensive experience takes company to new heights

44 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

WITH a reputation for providing consistent, first-class health services in remote and complex environments, Aspen Medical has become the popular supplier of medical services to the Australian oil and gas sector.

The company provides medical support services and healthcare solutions based on the specific needs of each client’s project activities.

Its services range from providing one intensive care paramedic in an oil and gas exploration team, through to delivering a full medical service to multibillion-dollar projects.

A pioneering medical business, Aspen offers modern, responsive and trustworthy solutions to service delivery problems. The company grew from a need to provide the highest quality healthcare wherever required, and is able to satisfy the needs of its clients through a unique combination of flexible teams and highly refined medical processes and procedures.

Along with the ability to provide health professionals (both on and off site), mobile medical facilities, equipment, consumables, training and health and wellness programs, Aspen has expanded its capability to provide aeromedical evacuation (AME) services across Australia.

The company now has two AME-equipped aircrafts with air and medical crew stationed in Karratha, and has been contracted for up to nine years to provide AME services throughout WA for a number of multinational oil and gas companies.

First-class health services for specific project needs

An intensive care paramedic boarding an Aspen Medical jet

A major industrial workshop facility on the western side of Toowoomba’s CBD is being offered for sale or lease by Ray White Commercial.

Marketed by John Smith and Mark Wynhoven of Ray White Commercial Toowoomba, the 8800 square metre property at 179 Stephen Street, Harristown was originally designed and built by local builder FK Gardner & Sons to accommodate civil operations.

Mr Smith said the near-new complex has a current net rental return of $365,000 per annum, with the landlord offering

flexible lease-back options to accommodate an existing purchaser or tenant.

“This is a great opportunity for an owner-occupier, investor or tenant to secure a high-quality industrial and office facility in a strategic location,” he said.

Toowoomba is one of the largest and fastest growing inland cities in Australia and has established itself as the key regional centre for industry and services; the booming economic centre of southwest Queensland.

“Located in a commercially strategic location in Toowoomba, it is conveniently

positioned near the arterial intersection of the Gore Highway and Warrego Highway, which offers convenient access to heavy vehicle routes.

Mr Wynhoven said the property provided ample space and flexibility for any future tenant requirements.

“179 Stephen Street comprises a 1324sqm tilt panel workshop facility and 382sqm of office accommodation on a large site,” he said.

“The facility offers substantial hardstand including a 548sqm covered loading area.

“The workshop incorporates an existing service pit that is fully equipped with hydraulics, oil and air suitable for servicing large machinery and vehicles; as well as a 10t gantry crane”.

The office component is split over two levels with a reception area, open-plan work space, five partitioned offices, a lunch room and toilets on both levels, plus a separate warehouse office.

“The facility has been constructed to the highest specifications and is security fenced with double gate entry,” Mr Wynhoven said.

Near-new industrial facility in Toowoomba

CONTRACTED extensively for works on many major pre-commissioning projects throughout Australia, Baker Hughes Process and Pipeline Services (PPS) has a history of investing in the latest technologies and equipment available to the pre-commissioning market.

The company has introduced the following equipment into its large

WA fleet: zone 2 nitrogen membrane packages; zone 2 high-volume and high-pressure triplex pumps; zone 2 high-pressure liquid nitrogen convertors; electrical, hydraulic and fibre optic testing packages; and flange management systems and equipment. It has also established a fully automated NATA accredited hose and valve testing

and recertification facility. Baker Hughes PPS has the largest

portable air compression package in Australia, capable of producing 44,000 standard cubic feet per minute at a gauge pressure of up to 180 barg.

All Baker Hughes PPS products have been specifically designed for use in Australia and are stationed at the

company’s Welshpool facility. The comprehensive Baker Hughes

PPS service line portfolio also includes tank decontamination and inline inspection services. Additional equipment and services complement the company’s ability to perform multiple major pre-commissioning projects simultaneously.

Increasing in-country process and pipeline service capacity

THE primary difference between a site being ‘isolated’ and ‘remote’ is its ability to be connected to the rest of the world. Nixon Communications is an expert provider of communications technology and carrier links – it allows any project, anywhere in Australia to keep talking business.

Nixon's combination of technological excellence and willingness to go the distance has seen the company build many long-term relationships since it began operations in Gladstone in 1977. To date, Nixon has assisted on many remote area projects,

including the Alice to Darwin Rail (ADRAIL) project; the Longford to Sydney Pipeline (EGP); the Burnett Dam project; the Mesa- A rail project; the Millstream Link road upgrade; the Ayre Highway upgrade; BHP Billiton's RGP5 project; Fortescue Metals Group's Solomon rail spur project; and Rio Tinto's Hope Downs 4 project.

Nixon is often one of the first contractors onsite at a project, setting up communications technology that is essential for project operation, and for worker safety and wellbeing in remote locations.

"Our communications centre is mobilised first off, at a new camp that is usually still in early stages of construction. Within a few hours of being onsite we can provide full internet and telephone services via satellite so people can stay in touch with the rest of the world — from a safety perspective this is critical," Nixon construction communications manager Shawn Purkis said.

“The comms centre also provides satellite TV, so personnel have something to do at night, and a small 10-booth internet café that is open for

use by any one onsite; this, along with WiFi hotspots, allows people to stay in touch with family and friends.”

Nixon's quality systems are third-party accredited to AS/NZ ISO 9001:2008 standards, and its capabilities allows it to deliver complete services, from design through to supply, installation and maintenance. For effective, reliable and technologically advanced communications solutions for projects across Australia, Papua New Guinea and the Solomon islands, Nixon is the clear choice.

Expert communications systems triumph in challenging environments

45www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

BLOW out the cobwebs at WA’s only shooting complex, in the Perth suburb of Belmont.

Established more than 15 years ago, Lone Ranges Shooting Complex is one of the safest recreational shooting facilities in Australia. It offers customers the thrill of shooting handguns, rifles and shotguns in the security of an indoor complex that operates seven days a week.

On offer are well-known brands such as Browning, Beretta, Glock, Ruger, Smith & Wesson, Para Ordnance and Desert Eagle. As well as these famed

guns, customers have a choice of cowboy lever-action rifles, 12 gauge shotguns and .22 rifles that can be used to test accuracy.

Lone Ranges can organise social or business functions and team building exercises, and it can easily cater for recreational groups of friends wanting to compete against each other.

Discounts are offered to groups of 10 or more, and all packages include firearm hire, ammunition, safety equipment and basic training. There are also special midweek packages on offer.

Memberships at Lone Ranges are also available, featuring many perks: reductions of up to 50 per cent off non-member prices; access to club information nights; participation in competition matches; and invitations to the club’s social functions. Additionally, members of the public interested in owning a firearm of their own can go through the licensing process with Lone Ranges.

For the ultimate adrenalin rush for mum, Lone Ranges is offering special Mother’s Day gift vouchers.

The ultimate in excitement for Mother’s Day

THROUGHOUT the years, Buschutz Engineering has become a significant manufacturer of storage, dewatering and condensate oil and fuel tanks, with its products purchased by many major resources companies.

The company recently introduced its Best-Vessels (Buschutz Engineering Storage Transportable Vessels) range of stainless-steel intermediate bulk containers (IBCs) and round and square grease bins, which are made in Australia under license from American partner Custom Metalcraft.

The IBC range includes models designed to hold capacities of 500L,

1000L, 1300L, 1700L, 2000L and now, 3000L. The containers are UN certified for storing Class 3 dangerous goods, and for packaging Class 11 and 111 products such as chemicals and aviation fuel.

Due to overseas demand, the company has successfully appointed an agent in Singapore to market IBCs throughout select Asian regions.

The Best-Vessels grease bin range includes mobile square bins with capacities of 2000L, and 4000L, and round containers available in 750L, 1000L, 1250L, 1500L and 1750L capacities.

Specialised vertical large bins are

frequently used by lubricant suppliers as feeders to smaller grease bins. The Best-Vessels range includes designs with 5000L, 10,000L, 15,000L and 20,000L capacities.

Buschutz has now developed a MAXI grease bin based on the footprint of a standard 20ft sea freight container or, if preferred, an ISO approved container. The design would make the 20,000L containers easily transportable through the utilisation of existing container-equipped transport.

Buschutz Engineering is proud of its growing contribution to the needs of the Australian resources sector.

New product range pushes company ahead of the pack

46 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

OIL and gas companies looking to reduce operating costs are streamlining staff travel to ensure long-term cost compression, according to corporate travel and expense management specialist FCm Travel Solutions.

FCm regional sales leader Robert Lawson said companies with large fly in, fly out workforces or significant regional or offshore travel had implemented strategies to ensure their travel procedures were as proficient as possible.

“We’ve been working closely with many oil and gas companies that want to enhance their travel program consolidation, expense management, process efficiencies and after hours and emergency services,” he said.

Mr Lawson said consolidation was a key strategy for companies looking to drive savings.

“Consolidate all of your travel bookings with the one travel provider and your business will save time managing travel and achieve greater visibility of expenditure. A travel manager will take care of all changes and re-accommodation in the event of crew changes, flight disruptions or inclement weather,” he said.

Additionally, the key to a successful travel program was ensuring staff had access to 24/7 emergency support services.

“With major travel disruptions occurring more frequently, businesses and their travellers need to know they have around-the-clock support should they need assistance with re-bookings,” he said.

Firms focus on streamlining travel

LEADING advancements in water disinfection for the oil and gas industries is award-winning company Australian Innovative Systems (AIS).

Established in 1974, AIS designs and manufactures onsite chlorine generators for the disinfection of salt, sea or fresh water through electrolysis.

AIS systems are exported to over 50 countries and used by major industry players such as Rio Tinto, BHP Billiton,

Talison Lithium and Chevron.Signature products Autochlor, Chlorogen

and Ecoline can be powered by mains electricity, solar or generator power and produce chlorine from salt or fresh water.

Autochlor is a commercial level onsite, in-line chlorine generation plant capable of producing chlorine from salt water of any salinity or temperature.

Chlorogen generates chlorine onsite from salt or sea water and stores it offline in a

separate storage tank. Ecoline is the world’s first onsite, in-line

system capable of producing chlorine from fresh water using just the natural salts and minerals present.

AIS technology is suitable for any application where chlorination is required such as: sewage and wastewater treatment plants to meet Class A reclaimed water standard; seawater for cooling or ballast; drinking water treatment systems, re-use of

industrial wastewater (e.g. from equipment wash); and iron, arsenic or heavy metal removal from water.

For challenging environmental conditions, AIS systems (IP66) can operate in up to 100 per cent relative humidity and above 60 degrees Celsius ambient air temperature. Systems are guaranteed and can be new or retro-fitted. For remote or confined space locations, pre-assembled or kit delivery systems are available.

All water chlorination options coveredFCm Travel Solutions can help to streamline

corporate travel arrangements

TWO new Streamlight products have met stringent safety standards, making them suitable for use in division one hazardous locations faced by many industrial professionals.

The Streamlight 3AA ProPolymer HAZ-LO and the 3C ProPolymer HAZ-LO are intrinsically safe alkaline battery-powered flashlights, approved by

UL (Underwriters Laboratories) and ULC (Underwriters Laboratories of Canada) after meeting strict safety requirements.

Featuring C4 LED technology, both lights also provide extraordinary brightness for a variety of tasks.

The 3AA ProPolymer HAZ-LO delivers 120 lumens, 14,000 candela peak beam intensity and a beam distance of 237m,

while offering a run time of 6.5 hours. With a run time of 18 hours, the

3C ProPolymer HAZ-LO provides 150 lumens, 7000 candela and a beam distance of 167m.

The new polymer lights are made of a more durable thermoplastic material that has anti-static properties, as well as superior resistance to chemicals and

solvents used in many industries. In addition, both lights feature a

mechanical locking mechanism that prevents the battery compartment from being opened without the aid of a tool.

This helps to prevent batteries from being changed out, or the housing from inadvertently being opened, in a hazardous environment.

Top safety ratings for new industry flashlights

Technologies to improve performance and lower environmental impactOPERATING in about 100 countries, ABB is a leader in power and automation technologies that enable its utility and industry customers to improve their performance while lowering

environmental impact. The company’s Discrete Automation and

Motion division provides products, solutions and related services that increase industrial

productivity and energy efficiency. Its motors, generators, drives, programmable logic controllers, power electronics and robotics provide power, motion and control for a wide

range of automation applications.ABB employs about 145,000 people

worldwide and is listed on the Zurich, Stockholm and New York stock exchanges.

47www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

FAMILY-owned and operated business JSB Fencing and Machinery Hire has operated since 1974 and now has a local workforce of over 20 staff servicing WA.

A sound reputation, personalised service, competitive pricing and consultation on a wide variety of jobs has allowed the resilient family company to thrive during periods of boom and bust throughout its 30 years of business.

JSB supplies and installs a wide range of fencing products in both residential and commercial sectors. A complete design service is also offered to ensure that each fence meets all relevant standards and is suitable for its intended application.

A large fleet of vehicles is available for wet or dry hire and all machinery is built to mine site specifications. JSB has specialised rock drilling equipment for drilling fence post footings, cyclone tie-downs and earth stakes in rock terrain.

The team has made its name through comprehensive management controls, highly competitive pricing and a bottom line commitment to quality.

JSB’s project management approach is designed to achieve the outcomes that project stakeholders expect, while controlling costs, ensuring quality, and the completion of projects on time, every time.

No job too big or small for strong family business

STEEL tank specialist Austank is a leading supplier of custom-designed and manufactured tanks to clients across the country.

From its first product, a 450L oil tank, Austank's manufacturing capabilities have grown to enable the fabrication of tanks between 15L and 1.2 million litres.

Austank can help with designing complete fuel management solutions, from a 2000L self-bunded diesel tank complete with mini bowser to a multi tank fuel farm with multiple transfer pumps to suit giant mine trucks or locomotives.

The company recently built its first 95,000L containerised tank at its

Melbourne factory and sent five to a mine site in Queensland, where they continue to provide an outstanding solution for the site's lube oil facility and fuel farm.

Tank types include: rectangular, vertical single skin, horizontal single skin, and popular self-bunded designs. Austank also supplies pumps and bowsers to create complete fuel management systems.

Working closely with the oil and gas industry, Austank has diversified its services to include the installation of tanks and associated pipe work, as well as the removal of existing tanks and rerouting of old pipe work.

Tank specialist expands range of products and services

48 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

THIS year marks the 75th anniversary of the Tutt Bryant Group.

The company traces its origins back to 1938, when Leo Edward Tutt established L. Tutt & Co., selling earthmoving equipment out of a small office in Sydney’s CBD.

Armed with an idea and £500, Mr Tutt joined up with George Edward Bryant and embarked on a journey that eventually produced one of Australia’s largest construction equipment sales, manufacturing and distribution companies of the time – Tutt Bryant Limited.

Today, as a leading equipment sales and industrial hire service provider, the Tutt Bryant Group continues the rich tradition of providing customers with quality, well-built and well-maintained equipment, backed by a service-oriented network of workshops, expert technicians and support infrastructure.

Tutt Bryant Group managing director David Haynes said the company set the standard in earthmoving equipment.

“Tutt Bryant, over its 75 years in Australia, has continually set the benchmark for excellence in its products and services,” he said.

“Our name invokes strong values and positive qualities that are enduring through generations in the Australian construction industry.

“It’s definitely no small task achieving a 75-year milestone, so to be in a position to celebrate our 75th anniversary is testament to the success and hard work ethos Mr Leo Tutt and Mr George Bryant first instilled in this company.”

Major milestone for significant grassroots company

FOR operators in many industries, storage of thermally sensitive chemicals can be a significant challenge: storage must comply with safety regulations and keep chemicals at a consistent temperature.

The range of outdoor relocatable dangerous goods stores from STOREMASTA is recognised by many manufacturing, mining, processing and offshore industries as the most effective and versatile means of compliant storage for potentially volatile chemicals. This recognition has been further enhanced by the company’s addition of temperature-control systems to the range, making it suitable for dangerous goods storage.

With consideration of the peculiar characteristics of chemicals and their unique properties, STOREMASTA, through design and consultation, can manufacture solutions for most chemical storage situations.

The company’s specially designed, temperature-controlled units cater for a variety of ambient and storage temperature requirements, and are designed and manufactured to meet specific storage needs.

STOREMASTA outdoor relocatable dangerous goods stores cater for the storage of pallets and 1000L intermediate bulk containers, and are wholly constructed in Australia using locally produced materials.

The stores provide an attractive and economical alternative to fixed storage constructions and require minimum site preparation or submissions to local planning authorities.

With the increasing demand for occupational health and safety, compliance and environmental protection, it is imperative for hydrocarbons and chemicals to be stored safely and correctly.

The STOREMASTA range also offers efficient storage efficiency, product accessibility, security, contamination control and waste elimination.

Keeping dangerous goods at bay with storage expert

A STOREMASTA temperature-controlled store manufactured by Priority Supplies

A showcase of Tutt Bryant equipment in 1943

49www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

COMPANIES GEARING UP

AS one of the largest suppliers of mass transit vehicles to the Australian resources sector, Iveco designs, manufactures and markets a broad range of small, medium and large busses and coaches.

The company has extensive experience providing vehicles for remote operations Australia-wide, including the Gorgon project

on Barrow Island in WA and Newmont's Tanami gold mine in the Northern Territory.

Iveco is the only original equipment manufacturer producing bus chassis in Australia, with its own manufacturing base in Dandenong, Victoria, where it designs and manufactures two types of bus chassis specifically for harsh

Australian operating conditions. The company also imports a further

three chassis models from Iveco Europe, covering rear engine and front engine configurations.

Adding to its range, Iveco recently released two new vehicles; a 4WD bus and a three-axle, high-capacity mine bus for

efficient site transport operations. Besides Australia, Iveco also operates in

Europe, China, Russia, Argentina, Brazil and South Africa.

With more than 4600 service outlets in over 100 countries, Iveco is committed to ensuring that technical support is available wherever its vehicles are at work.

Leading supplier of mass transit vehicles to the resources industry

FOR 20 years Umwelt has worked with some of the largest companies in the world, completing more than 3000 projects in the resources, infrastructure and government sectors, across Australia and overseas.

A growing business with more than 100 employees, and offices in NSW, WA and the Australian Capital Territory, Umwelt offers personalised cost-effective

environmental and social services at a corporate, site and project level.

The company works with its clients to plan for, and deliver on, the full project life cycle of work comprising the concept phase, assessment and approvals, implementation, rehabilitation and closure.

At the core of Umwelt’s dedicated workforce is a team of experienced

professionals who are highly skilled in project management, and focussed on the effective delivery of services to its clients.

The company’s recognised experts in their fields cover the majority of key issues that arise in major resource development projects.

The Umwelt team is at the forefront of policy and practice. For example, its ecologists are early players in the new

Commonwealth Biodiversity Offset Policy and the company recently picked up two prestigious planning awards for its work in Aboriginal cultural heritage and coastal natural resource management.

Umwelt director Barbara Crossley described the company’s growth as “a testament to our focus on quality outcomes, and the depth and dedication of our team”.

Dedicated team drives environmental success

FOR more than 20 years, WA Country Builders has built better lifestyles for people across rural and regional WA.

As one of the state’s only real ‘country’ builders, the company is focused on creating high-quality new homes in a range of locations; from Kalbarri in the north, to Augusta and

Albany in the south, Merredin in the east and just about everywhere in between.

An impressive track record of awards demonstrates the company’s commitment to excellence: its Geraldton office won the coveted statewide HIA Excellence in Service Award for a large builder in 2011.

WA Country Builders managing director Julian Walter said while the award was a bonus, the company’s main objective remained delivering customers their ideal home.

“With hundreds of home designs, WA Country Builders is geared to assist people

in all stages of life, from a young family looking to build their first home to an older couple keen to upgrade to a luxury two-storey home,” Mr Walter said.

“We understand that people don’t fit the same mould, so our business is all about providing a personalised solution.”

Personalised solutions building better lifestyles

50 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

INSTRUMENTATION

WITH commitment to customer satisfaction its top priority, HK Calibrations offers expert instrument calibration, sales and hire services for all types of instrument requirements.

Formed in 2006 to provide a new level of service in professional, experienced and certified calibration, HK Calibrations has enjoyed continued growth and success and recently moved its Perth-based premises to a new facility in Malaga.

The new location has allowed the company to provide a single point of contact for WA customers, who can now have their instruments calibrated in one place rather than sent to the eastern states.

Along with promoting the WA economy, the enhanced facility has helped HK Calibrations maintain its commitment to an “unmatched” turnaround.

The company offers a full spectrum of calibration sales and hire services

such as: electronic and electrical, pressure gauges, hard gauges, flow measurement, telecommunication, weighing, temperature, gas monitoring, dumpy levels, surveying equipment and occupational health and safety.

“Extensive metrology experience is applied to every calibration we perform, and our strict adherence to our quality registrations assures you of complete compliance to the standards that affect

your industry,” the company stated.HK Calibrations’ professional and

experienced staff works towards solving client measurement challenges while providing a cost-effective service.

The company’s accreditations include NATA accreditation for electronic measurements (ISO/IEC 17025 – 2005) and its quality management system maintained to ISO 9001-2000 SAI Global Standards.

AUSTRALIAN-owned Integrated Analytical Systems (IAS) recently completed analyser systems for ABB Australia in two separate projects: one for CSBP in WA and the other for Caltex in Queensland.

The scope of work for both projects was to design, manufacture, assemble and test a fully integrated analyser system.

The system for CSBP was installed

inside a 75mm-thick steel sandwich air-conditioned analyser house, clad with grade 304 stainless steel.

The cladding was chosen for its known durability in harsh environments.

Although the analysers were free-issued by ABB, the sample conditioning systems (SCS) were designed by IAS and measure nitric oxide, nitrogen dioxide, ammonia, nitrous oxide and oxygen.

The SCS for Caltex required wetted components in Monel grade R-405 in accordance with ConocoPhillips’ process design specifications for the HF alkylation process.

A three-sided shelter was manufactured for the PGC 5000 series ovens. The PGC 5000 series controllers were installed in existing analyser houses previously manufactured by IAS.

With more than 100 man-years of experience designing online analyser systems, IAS is recognised in the oil, gas and petrochemical industries for its high level of quality and reliability in system design and manufacturing.

The company also offers project management, installation, commissioning, maintenance and servicing of analyser and custody transfer systems.

Calibration expert offers unmatched turnaround in new facility

Analyser systems backed by design experience

THE oil and gas industry requires accurate and timely site-specific weather data to assist with site planning and remote activities, to manage heat-stress risks and operational limits on machinery.

Many environmental licences call for weather to be monitored in accordance with Australian standards, utilising a 10m instrument mast and sensors of high accuracy in the correct location.

The monitoring of dust or gas drift and dispersion – along with the likelihood of inversion layers, rainfall intensity, evaporation, barometric pressure, solar radiation temperature and humidity levels – are often required to meet the regulations of these licences.

Workers in the resources industry need to be protected from heat stress, without their productivity being compromised.

Research into heat stress by WA’s

Curtin University has resulted in the development of the Thermal Work Limit (TWL) index to indicate the limiting metabolic rate a worker can sustain while exposed to given environmental factors.

As a specialist in the design and manufacture of weather stations since 1982, Environdata Weather Stations can provide client-specific modular units, suites of weather sensors and convertors ensuring reliability, accuracy and longevity.

Its TWL calculation can trigger alerts directly from the logger via SMS, allowing decisions to be made by occupational health and safety professionals to protect workers from heat-stress related injuries.

Environdata Weather Stations offers installation, onsite and remote backup services Australia-wide.

The company can be contacted by phone or via its website for further information.

Quality weather stations manage risks and limits onsite

http://www.environdata.com.au/mining_weather_stations

52 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

ABRASIvE BlASTING

WITH more than 40 years of experience in international ship building, marine construction, project management, and design and engineering, Australian-owned Harwood Marine International has the technical knowledge and ability to cater to all facets of the marine industry.

The highly qualified team at Harwood Marine is adept in the service, repair and

construction of a range of vessels including freight ships, barges, work and tugboats, patrol boats, luxury yachts and commercial vessels.

Harwood’s sophisticated ship building, aluminium and steel fabrication and abrasive blast facilities in NSW allow the company to specialise in the custom manufacture of tough, sturdy and

reliable multipurpose vessels with a quick turnaround time.

The facilities are strategically located on the Clarence River and include a 200t and 2500t slipway, 55m and 100m deepwater wharfs, with the ability to accept wider vessels with a beam up to 30m.

At its international facilities in the Philippines, Harwood has access to a

100m deepwater wharf, three slipways (up to 7000t) and fully equipped metal fabrication and engineering workshops.

With offices in Australia and abroad, the Harwood Marine team is able to offer a holistic service for businesses of all sizes, whether they operate locally or throughout Australasia and the South Pacific.

Celebrating 30 years of producing high-quality abrasives, GMA Garnet is the world’s largest and most advanced garnet mining and processing group.

Since opening its first office in WA’s Mid West, the company’s commitment to providing quality abrasive and consistent supply has seen it expand into Europe, the Middle East, the US and South East Asia .

GMA Garnet has always been ahead of its competition with innovative new products and superior performance abrasive.

When compared to conventional abrasives, GMA Garnet’s abrasives are virtually dust free and have twice the productivity on most blasting surfaces. This efficiency has made it the leading producer of industrial garnet for blast cleaning and high-pressure waterjet

cutting with advanced mining, processing and distribution operations.

The company’s leading high performance abrasive products include: NewSteel – for new steel surfaces that have light rust, SpeedBlast – for medium rust, and PremiumBlast – most effective for blast cleaning surfaces that have heavy rust or thick coatings.

These efficient and cost-effective grades are applied in industrial fabrication, shipyards, tanks, construction, maintenance and repair of chemical plants, as well as oil and petrochemical refineries.

With a superior cleaning rate and low consumption rate, it’s easy to see why GMA Garnet continues to set the industry standard in abrasive blasting.

AUSTRALIAN-owned and operated Burwell Technologies is the leading manufacturer and distributor of air blast equipment, dust extraction systems, abrasives and accessories for the surface preparation industry.

For more than 40 years, the company has stayed true to its original philosophy of delivering premium grade equipment engineered to improve productivity and reduce costs.

This dedication has earned Burwell a reputation for innovative design, exceptional quality and value for money; culminating in ISO 9001 certification in late 2012.

Burwell sales and managing director Damian Williams said the certification reflected the company’s high standards.

“We are proud of our employees and staff for their contribution in helping us to earn ISO accreditation,” he said.

“This is just another example of our ongoing commitment to achieving excellence in everything we do.”

Burwell has maintained its lead in a competitive market by constantly evolving with technology; pioneering many techniques and processes that are now industry standard.

The team at Burwell uses the most advanced design and manufacturing

techniques available, to optimise product performance and custom design equipment to specific customer needs.

No job is too large or too small; from abrasive blasting facilities to dust extraction units Burwell can design a system to suit every client.

A comprehensive distribution network and personal approach ensures superior customer service and support nationwide.

Far-reaching business has marine industry covered

Leading supplier of blasting abrasive celebrates milestone anniversary

Accredited blasting expert offers complete package

54 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

HElICOPTER SERvICES

AS a global aviation specialist, Adagold Aviation has provided market-leading aircraft charter solutions and ground services to a wide range of Australian and international clients since 1992.

Now employing almost 50 staff worldwide, Adagold has become Australia’s largest independent aircraft charter solutions company with offices in Sydney and Brisbane, and representatives in Cairns, Perth, Europe, North America and the Middle East.

Catering for both passenger and cargo requirements, Adagold can find the best aircraft charter solution in an ever-changing marketplace, with a complete range of charter aircraft including private VIP jets, helicopters, twin pistons and turboprops, through to larger regional or commercial airliners and heavy-lift aircraft.

The company was recognised as an industry leader in 2010, 2011 and 2012, ranked as the number one wholly Australian-owned SME supplier to the defence industry by the Australian Defence Magazine.

Utilising its unique aircraft sourcing methodology, Adagold provides a number of charter options from the company’s comprehensive network of approved aircraft operators.

Adagold’s independence ensures an objective and non-biased approach to choosing the most suitable aircraft for each individual customer's operational requirements.

In safe hands with global aviation specialist

The turbo prop is a robust, sophisticated aircraft that offers air-conditioned, pressurised comfort to virtually any destination

55www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

WATER TREATMENT

BEING unaware of the location, quantity or condition of a firm’s water treatment assets can put the business at serious risk.

Infrastructure owners need to ensure their assets operate efficiently, safely and sustainably.

Having audited a vast array of infrastructure for government and industry – including a large water network riddled with legacy issues – engineers at Daly International have identified some emerging patterns.

Daly International senior structural engineer Marek Volejnik said many companies were not aware of issues with their own assets.

“In our experience, over one third of assets audited contained serious structural or operational issues and 75 per cent did not comply with current

standards,” he said.Woolacotts principal hydraulic engineer

Clare Woods, Daly International’s specialist engineering subsidiary, said the finding was alarming.

“These companies open themselves up to countless risks: void warranties, safety incidents, environmental fines, or worse, criminal action,” she said.

Energy developers were at particular risk as they frequently inherited aging networks. Over time, legislative environments change, making assets more onerous to own and manage.

“Conducting an audit is the first step,” Mr Volejnik said.

“There is huge value in having consistent, quality, technical data about your network of assets; it allows companies to plan, perform proactive maintenance and respond to network failures quickly.”

SYDNEY-based SWA Water Group is a multinational engineering group specialising in the design, manufacture, construction, operation and service of industrial wastewater treatment plants.

The team at SWA has extensive experience in wastewater treatment for power stations, the oil and gas industries, steel processing industries, automobile manufacture, the food industry and

textile industries, among others.Dissolved air flotation (DAF) is the

process used for the treatment of effluents to reduce biochemical oxygen demand and chemical oxygen demand; suspended solids, and grease concentrations to a level acceptable for sewer discharge.

It is a process that uses air to decrease the density of entrained solids and immiscible liquids, thereby accelerating

the process of gravity separation of the contaminants from the water phase.

In the last three years SWA has supplied plant and equipment to a diverse number of industries, including power stations in Africa, the Middle East, Thailand, the Philippines, New Zealand, China, Singapore and Australia.

The company has also been contracted for work at major oil and gas projects

in Vietnam, Indonesia, Malaysia, NZ, Australia, Peru, UAE and the US.

SWA's unique dissolved air flotation system and oil separators are used across the food industry, textile industrial estate and aviation industry in China.

The company’s water treatment units are more compact and efficient, making them useful for a wide variety of applications.

Asset awareness the key to avoiding risk

Global wastewater treatment from multinational specialistWoolacotts principal hydraulic engineer Clare Woods

56 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

SplurgeLifestyle & Products

Hannah Jenkins discovers some of Australia’s best luxury

getaway destinations.

Southern Ocean LodgeSINCE its opening in 2008 travellers have continued to flock to Kangaroo Island’s Southern Ocean Lodge for a sea change with a twist, and more than a little bit of luxury. The modern and stylishly appointed hotel features 21 suites, each with spacious bedrooms, beautiful lounge areas and outdoor decks with sweeping views of the island’s rugged coastline.

Kangaroo Island is renowned for its breathtaking natural surroundings, and with a prime position on the isle’s southwest coast, Southern Ocean Lodge is just a stone’s throw from attractions such as Seal Bay, Kelly Hill Caves, Admirals Arch and Remarkable Rocks.

Guided excursions are available for those looking to explore these natural wonders, including a sunrise sea lion adventure, a trip to Remarkable Rocks, canapés with kangaroos at dusk and an excursion to a stargazing platform at night.

Beachcombers keen to go it alone can

choose from any number of beaches, ranging from pristine waters for snorkelling and diving to coves perfect for swell-happy surfers. Beach and jetty fishing is a popular past-time, and deep water fishing charters offer the opportunity for that big catch.

The lodge’s Southern Spa offers the opportunity for pampering, treatments including Aboriginal massage techniques and incorporating local natural beauty ingredients such as mineral salts, pink clay, eucalyptus, lavender and honey.

The area’s local produce is highly sought after for its flavour and freshness, something Southern Ocean Lodge chef Tim Burke lives by; creating the hotel’s menu daily according to the availability of the best seasonal ingredients. These include the island’s famous cheeses, sheep’s milk, yoghurts and free-range eggs; the world’s only pure Ligurian honey; and an array of delicious seafood from the daily catch such as prawns, crayfish, abalone and whiting.

Cape LodgeNestled within 40 acres of stunning parklands, including its own secluded vineyard in the heart of WA’s premier wine region, Cape Lodge is a veritable feast for the senses. As soon as they arrive, visitors can begin to revel in the peace and serenity of the lodge’s idyllic backdrop. Overlooking a lake and surrounded by lush forest, the five-star lodge is just minutes from the famous beaches of Margaret River and Yallingup, and shares the area with a number of big-name wineries such as Vasse Felix and Mosswood.

In a region known for its gourmet delicacies as well as its wines, it is no surprise that Cape Lodge’s restaurant is world-renowned for its exquisite meals; its menu changes daily to make the most of the area’s sumptuous fresh local produce. Under executive chef

Tony Howell, the restaurant was named in Conde Naste Traveller’s Gold list, honouring the top 10 establishments in the world for food. Guests can also enjoy wines from Cape Lodge’s very own vineyard, which produces premium Sauvignon Blanc and Shiraz exclusively for the lodge.

The lodge features 22 secluded rooms, five luxury vineyard residences and a swimming pool, tennis court and walking trail, and the area boasts a number of interesting activities including winery and brewery tours, wildlife tours, horse riding, golf, surfing, whale watching and nature hikes.

Voted as Australia’s best boutique hotel and one of the top 100 hotels in the world in 2012, Cape Lodge is an ideal getaway for those looking to escape the rush of city life, allowing time to celebrate the natural beauty, tranquillity and flavours of the region.

Longitude 131At Longitude 131 guests are not only privy to one of the world’s most exclusive luxury wilderness camps, but are also treated to a spectacular view of one of Australia’s best-known landmarks. Looming in the distance, Uluru (or Ayers Rock) is just 9km from the camp, and is best viewed at sunrise and sunset when the vibrant red of the desert rock is bathed with an ethereal golden light.

The unique attraction and Aboriginal sacred site can be viewed close-up with the Uluru sunrise and sunset walks, where an experienced guide explains its geological history and cultural importance. Guided tours are also available to the region’s other extraordinary rock formation, Kata Tjuta (the Olgas), the Walpa Gorge and the Kantju Gorge.

The five-star eco-camp features 15 luxury ‘tents,’ with the Dune House as the communal dining and lounge facility. Each of the tents is designed to honour one of Australia’s early explorers or pioneers, with names such as Burke and Wills, Ernest Giles and John McDouall Stuart. The tents are complete with authentic artefacts such as telescopes, compasses and magnifying glasses to help visitors develop a feel for the rich history and significance of the area.

For a dining experience like no other, guests can dine under the stars, indulging in cocktails and canapés as the sun sets, followed by an extravagant three-course meal and a selection of quality Australian wines. After dinner a star-talker explains the formations and names of the many constellations in the skies above.

Wolgan Valley ResortThe first hotel in the world to be granted an internationally recognised carbon neutral accreditation, the Emirates Wolgan Valley Resort is the epitome of first-class style and comfort, while remaining sensitive to the delicate ecosystem of its surrounding wildlife reserve.

Occupying just 2 per cent of the 4000 acre reserve, the resort features 40 lavishly appointed individual suites, each with a private veranda and swimming pool, separate living and bedroom areas, walk-in wardrobe, ensuite bathroom and double-sided fireplace.

The resort sits within the scenic Greater Blue Mountains World Heritage Area, with its unique Federation-style architecture paying homage to the early settlers of the Wolgan Valley. One of the highlights of the resort is the Heritage Homestead, an 1832 farmhouse that was restored to its original state. The

father of evolution theory, Charles Darwin, visited the homestead in 1836 during a trip to Australia.

Making the most of the area’s captivating natural beauty and abundance of native wildlife, the resort offers guests a number of nature-based activities including guided walks, four-wheel drive safaris, horse riding, mountain biking, wildlife spotting, star gazing, and visits to Wollemi Pine Grove where guests can view the 200 million-year-old Wollemi Pine labelled the ‘botanical find of the century’.

For those more inclined to relax and indulge, the resort also boasts the Timeless Spa, where guests can de-stress by enjoying a range of beauty therapies and relaxation treatments; soak in the plunge pool or unwind in the sauna or steam room. A 25m infinity pool and spa are also available, from which guests can take in the picturesque scenery of the valley.

57www.miningoilgas.com.au APRIL 2013THE AUST�LIAN OIL & GAS REVIEW

THE beauty of England’s Lake District has captured writers, artists and poets for centuries. Known commonly as ‘The Lakes’, the district is now England’s largest national park, covering 2292 square kilometres in the northwest county of Cumbria.

The district hosts more than 15 million visitors a year, who travel from all corners of the world to enjoy activities ranging from hiking and skiing to painting and nature drawing. The district’s 42,000 residents mainly live in small, dispersed villages, only three of which have permanent populations of more than 3000. Residents work predominantly in tourism, forestry, mining and agriculture.

The district has appeared in many guises through the works of people such as Beatrix Potter and William Wordsworth. Potter spent many holidays in ‘The Lakes’, and the area fuelled the inspiration behind many of her most famous children’s book characters and settings, including Peter Rabbit, Jemima Puddle-Duck, Squirrel Nutkin (who sailed on Derwentwater), and Hawkshead, which was the setting for The Tale of Johnny Townmouse.

Romantic poet Wordsworth fell in love with the Lake District and its dramatic scenery. It was there where he produced famous work such as The Lucy Poems. Today Dove Cottage, the house where Wordsworth grew up, remains largely unchanged and is a popular tourist attraction that receives about 70,000 visitors each year.

The Lake District is home to a number of natural boasting points – England’s largest ‘mere’ (Windermere), deepest ‘water’ (Wastewater) and tallest ‘pike’ (Scafell Pike).

Windermere is the most commercialised of the famous English lakes, and is a tourist magnet that can become very crowded in the warmer months of spring and summer. The lake has three principal towns on its east bank – the twin towns of Bowness and Windermere, and Ambleside which lies further to the north.

Bowness has its origins in the 11th century: the surrounding areas were colonised by invading Vikings and the town’s name is said to have come from the Old Norse 'bogi nes' meaning 'promontory shaped like a bow'. The town of Windermere was originally the Hamlet of Birthwaite, and owes its development to the arrival of the Kendal and Windermere railway. The establishment of the railway was staunchly opposed by residents including Wordsworth, who were concerned that the resulting influx of visitors would spoil the natural appeal of the nearby lake.

In time, the towns of Bowness and Windermere merged, and the resulting Bowness-on-Windermere is now the heart of the Lake District. The holiday town offers every sort of shop imaginable, along with many fantastic cafes and restaurants. Another major draw for tourists visiting the town is its many buildings that date back to the Victorian era. The area’s most beautiful old buildings originated from wealthy Lancastrians, who visited the Lake District and, taken with its natural beauty, returned to build large homes for themselves; many of the most stately homes have been converted into hotels and offer tourists a taste of old English grandeur.

Lake Windermere – whose name comes from the Scandinavian term for ‘lake of a man called Vinandr’ – is more than 10 miles

long and reaches depths of 219 feet in some areas. Many visitors tour the lake on cruises that depart from Bowness Pier, taking in the towns of Bowness, Lakeside at the lake’s southern end, and Waterhead at its northern end. There are also island cruises on offer that tour Windermere’s many islands, including its main island Belle Isle.

In addition to boating there are a number of excellent ways to explore the beauty of the Lake District. River-side strolls and more strenuous mountain hikes are the best way for visitors to get an in-depth feeling for the landscape’s natural undulations and its spectacular beauty. Touring by car is also a great way to enjoy the scenery and visit stately homes, particularly if weather is inclement. Visitors who are feeling particularly energetic can hire a bicycle to explore the district’s forests, or a boat or kayak to take to the water.

The majority of the Lake District’s towns are filled with charming, distinctive white cottages – a design feature that was originally more practical than aesthetic: historically, locals treated their homes with red lead and then a lime wash to keep out persistent damp. Although modern architecture offers many new ways to combat the area’s weather, visitors are still recommended to prepare for cooler temperatures and blustery rain throughout much of the year.

How to get thereThe Lake District is south of Lancaster and north of Carlisle, and can be reached from most major metropolitan areas by train or car. By train, the West Coast mainline runs to the east of the Lake District, connecting Oxenholme, Penrith and Carlisle with London and Glasgow. A direct train runs from Manchester to Windermere, and local trains stop at Kendal, Staveley and Windermere. There is also route following the Cumbrian coastline.

Towns and villages such as Ambleside, Windermere, Coniston and Keswick are linked by bus, with extra services in the summer.

The average journey time from London and the south east to the Lake District is about five hours; the journey takes about one-and-half-hours from Manchester and two hours from York. More detailed by-road instructions are available from the Lake District National Park website www.lakedistrict.gov.uk.

For travel by air, the nearest airports are Manchester to the south and Glasgow to the north. There is a railway station at Manchester airport with services that run to Oxenholme next to Kendal, Kendal, Staveley and Windermere. Airfares vary widely depending on the airline chosen and the time of year of travel – contact a travel agent or research online to find package deals that include airfares and car hire to make touring to the Lake District as easy as possible.

The natural beauty of England’s Lake District has long been immortalised in novels, poetry, photographs,

paintings and films – Ben Needham explores all that the area has to offer.

Escapes

Photo - Andrea Hills

Photo - LDNPA

Photo - Nick Thorne

58 www.miningoilgas.com.auAPRIL 2013THE AUST�LIAN OIL & GAS REVIEW

A day in the lifeFinding the balance between the oil and gas industry

and environmental harmony is all in a day’s work for OTEK director and founder Grant Scott, as

Courtney Pearson discovered.

Do you know someone who could be profiled in this section?Send suggestions to editorial@miningoilgas.com.au

Q. What does your role involve?

A. The role of director is varied, primarily focused on business development and working with clients, frequently from the oil and gas industry, to develop the best way to tackle their environmental issues.

Q. What is a typical workday for you?

A. The only thing typical about my day is the number of emails I receive – only 100 if I am lucky! Once I have sifted through them, my day has a complete mix of high-level strategy meetings within the business; detailed conversations with our technical experts about the best way to handle various remediation and pollution assessment projects; and liaising with key industry stakeholders. I’m surprised how often my law degree has proved useful in working through technical implications. Some of my most interesting days are when I get to review new technology and how it might help our clients.

Q. How did you become involved in the oil and gas industry?

A. After completing my degree in physics, I decided I wanted to work overseas. The oil industry seemed a great way to achieve this, so I applied to Schlumberger and found myself working on an oil rig in Venezuela at the age of 23. It was very primitive compared to today, with antiquated equipment, no mobile phones and not even a fax machine; I loved it. My next move found me working for Western Arabian Geophysical across Egypt in the Nile Delta and in the Sinai desert. From a work perspective it was fascinating seeing the vibration from propeller shafts of ships going through the Suez Canal miles away being recorded up the geophone lines. I managed the seismic crew of more than 100 local and 20 expat workers. Working in the Sinai desert was interesting from a non-work perspective too: I won’t ever forget

having a large, deadly camel spider crawl over my leg one night, or working with the Bedouin people. I then moved to Shell after completing my Masters in Petroleum Engineering to work in the oil patch. After a few years, I started focusing on the environmental management side of their well operations. I stayed in oil and gas until I founded OTEK 21 years ago, primarily to provide environmental solutions back to the industry and make a positive difference.

Q. What does environmental assessment and management in the oil and gas industry involve?

A. Put simply, everything. The hugely increased focus on the environment and constant striving to develop new ways to extract natural resources means

environmental assessment and management is important at every stage in an oil and gas project. Some of the major issues being faced at the moment are how to find practical responses to the use of drilling muds; how eco-systems are being impacted; and coping with produced water. How we manage environmental impacts [and] community interactions in the new burgeoning shale gas industry is a developing issue in Australia. The shale gas prospects, known and unknown, could lead to Australia being the next Saudi Arabia, but also bring a clear potential environmental impact. Dealing with the day-to-day monitoring and clean up issues is one thing, but environmental assessment and management are much more of a board-level issue than they used to be. I am currently finding a lot of focus being placed on implementing practical strategies across industry.

Q. What has been one of your most interesting projects so far?

A. On an environmental basis, I was involved in a fracture job in Altona, Victoria, to help enhance recovery of product in fractured basalt for a major oil company. I worked closely with the CSIRO to define a program on how best to recover these hydrocarbons from the sub-surface. Helping develop environmental remediation solutions that keep pace with the technological advancements in the oil and gas industry is a great challenge. I wish we had had the direct sensing tools that now give us high resolution images of pollution and our new mobile remediation units earlier – my task would have been a lot easier.

Q. What are you working on now?

A. OTEK’s role as a founding member of the Environmental Bankers Association of Australasia has seen us bring together the major banks and the regulators, for the first time, to discuss how financing of major projects must interface with environmental management. This has extended to me facilitating the involvement of senior oil and gas industry executives in a proactive debate with regulators and other stakeholders to develop more effective approaches across the industry. The major focus is on developing a World Best Practice process for environmental impact assessments from before a project starts through to after it has been decommissioned.

Q. What is the most challenging part of your job?

A. Clients now have a much better understanding of the environmental impacts of their activities, but are still faced with the constant pressures of delivering value to their shareholders and reducing costs. It is an ongoing challenge to try and work with them to develop effective solutions at costs that are practical, but also to help educate clients on the longer term environmental remediation expenditure that can be associated with today’s decisions.

Q. What has been the most memorable moment in your career so far? A. I have been fortunate enough to work with some of the world’s leading oil and gas experts, for example Dr Michael Economides, who advises at the highest level in Russia, China and around the world and Ron Oligney, from ZEEP, regarding their development of the biggest methanol plant in the world. Recently, I have gained a new appreciation for how regulators have practical experience and are keen to work with industry, not always against it; I see my role, in part, to facilitate this approach.

Q. What qualities would someone need to take on your role?

A. Persistence and vision, especially when it comes to working in an industry that is relatively immature and not always welcomed by the industries we work with. Fortunately, we have come a long way, but finding the path between operational efficiency and environmental impact can still be a bit of a battle, especially when the best solutions may not have been invented yet.

OTEK founder and director Grant Scott

Mr Scott recently hosted a delegation of industry leaders in Melbourne from China’s Hunan province, sponsored by the victorian Government

http://www.fieldwork-group.com

http://www.siemens.com.au/oilandgas