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Kipper gas field retention lease renewed.



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KIPPER GAS FIELD RETENTION LEASE RENEWED

 

02 December 1998

 

98/029

 

 

Statement by:

 

Senator Nick Minchin

Federal Minister for Industry, Science and Resources

 

Hon Patrick McNamara

VIC Deputy Premier and Minister for Agriculture and Resources

KIPPER G AS FIELD RETENTION LEASE RENEWED

 

Federal Minister for Industry, Science and Resources, Senator Nick Minchin, and Victorian Deputy Premier and Minister for Agriculture and Resources, Patrick McNamara, today announced the renewal of a retention lease over p art of the Kipper gas field, located in waters offshore Victoria.

 

The lease conditions will require joint venture participants to undertake an active field appraisal and marketing program over the next two years.  The consortium will also be required to provide regular reports to both State and Federal Governments during this period.

 

The work program will provide a firm basis on which all parties are able to determine the commercial viability of the field.

 

If the Kipper field is determined to be commercially viable, the consortium will be required to seek a production licence for its development.

 

The Kipper gas field extends into an adjacent production licence area. Therefore, the joint venturers will also be required to pursue discussions with the holders of the adjacent licence on matters relating to the commercialisation of Kipper.

 

The joint venture participants in Retention Lease VIC/RL2 are:

 

ESSO Australia Resources Ltd (25%)

BHP Petroleum (Victoria) Pty Ltd (25%)

The Shell Company of Australia Ltd (20%)

Australian Worldwide Exploration NL (10%)

The News Corporation Limited (10%)

Crusader (Victoria) Pty Ltd (7.5%)

Petroz Offshore Pty Ltd (2.5%)

 

A copy of the work program for the retention lease is attached.

 

 

Work Program for VIC/RL2

 

The lessee pe rforms the following work program for years 1 and 2 of the lease:

 

Appraisal Activities

Year 1 (1998-1999)

Acquisition and processing, of a 221 Sq Km 3D seismic survey

 

G&G Studies

Year 1 (1998-1999)

Interpretation of a 3D seismic survey

Geological and geophysical studies (ie to reassess field reserves after the 3D seismic survey, and to define any appraisal needs)

Year 2 (1999-2000)

Geological and geophysical studies (ie to reassess field reserves after the 3D seismic survey, and to define any appraisal needs)

 

Engineering

Year 1 (1998 - 1999)

Engineering work and technical studies (ie to progress the lead development concept or an alternative development concept to the point where cost and scope uncertainties do not impact on the assessment of commerciality

Year 2 (1999-2000)

Engineering work and technical studies (ie to progress the lead development concept or analternative development concept to the point where cost and scope uncertainties do not impact on the assessment of commerciality

 

Commercial

Year 1 (1998-1999)

Commercial activities(ie including marketing of Kipper gas)

Year 2 (1999-2000)

Commercial activities (ie including marketing of Kipper gas)

 

Other

Year 1 (1998-1999)

To reassess commerciality (ie re-evaluation of the commercial viability of Kipper)

Year 2 (1999-2000)

To reassess commerciality (ie re-evaluation of the commercial viability of Kipper)

 

The lessee actively pursues the unitisation issues with the VIC/L9 Joint Venturers.

 

The lessee continues to pursue other development scenarios such as an integrated development of the Kipper with Esso/BHP facilities and/or jointly with a possible Basker-Manta development and third party access to the Esso/BHP facilities and the tolls and tariffs involved with such access.

 

The lessee carries out a feasibility review of the lead or an alternative development concept, to the point where cost and scope uncertainties would not impact on the lessees ability to make a firm decision on the development of Kipper.  Upon completion of this, and any other necessary work it is anticipated that any remaining uncertainty would not impede either an immediate application for a production licence or a declaration that the field is not commercial.

 

The lessee continues to monitor Victorian gas markets and offshore technology, including developments in the area of pipeline technology and intervention systems, for any significant developments which would enhance the prospects for the early development of the Kipper field.

 

The lessee, in addition to providing the usual annual reports, provide the Designated Authority with a report within nine months of the renewal of the lease addressing the technical and commercial activities undertaken from the time of the lease renewal a pplication to the expiry of the first six months of the lease renewal period, and the results achieved in this respect.  The report should include the results of monitoring Victorian gas markets and technological developments relevant to the development of the Kipper field.

 

 

CMR 020

 

 

Contact:

Kate Shulze, Senator Minchins Office, 02 6277 7580

John Richards, Mr McNamaras Office, 03 9651 5799

Steve Payne, ISR, 02 6272 4595

 

 

 

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