Senex Take FIDs on Queensland Projects
Australia’s Senex Energy said October 29 that it has taken the final investment decisions (FID) on the development of two gas projects in Surat Basin, Queensland.
“Following financial close of its A$150mn (US$106mn) debt facility, final investment decisions have been taken and multi-year work programmes sanctioned for Project Atlas and Roma North. These projects underpin a targeted increase in annual oil and gas production to 4mn boe, establishing Senex as a material supplier of natural gas to the east coast market,” the company said.
Together, Project Atlas and Roma North will develop some 110 wells, to be drilled over 18 months beginning late 3Q 2019. Total Surat Basin capital expenditure is expected to be around A$220 to A$250mn, Senex said.
The primary objective of the Project Atlas natural gas development programme is to reach plateau production of 32 terajoules/d (0.85mn m3/d), with an additional 8 terajoules/d (0.21mn m3/d) of installed redundant capacity. Atlas will include around 60 development wells being drilled in its initial campaigns starting late 3Q 2019, according to Senex.
On behalf of Senex, energy infrastructure company Jemena will build, own and operate the Atlas processing plant, plus the 60km pipeline that will transport natural gas to Wallumbilla, a major domestic supply hub.
The Roma North project will see the drilling of 50 development wells starting mid-2019, following completion of the first 15-wells drilled at Atlas; this will continue until all the latter's regulatory approvals are received. Roma North's initial gas processing capacity will be 16 terajoules/d (0.42mn m3/d). Gas from this project will be supplied to the Santos-operated GLNG project as part of a 20-year sales agreement.
“The work programmes set the roadmap for development of our long-life natural gas assets as we become a material supplier of gas to the east coast market. We now embark on a cornerstone year for Senex, creating the foundation for a step-change in production and cash flow over the near term, while maintaining significant optionality for ongoing growth from our existing acreage,” Senex CEO Ian Davies said.