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Tuesday 20 September 2011
Tuesday
20 September 2011
SUBSCRIBE JOBS BOARD HELP CONTACT Tuesday 20 September 2011 WA equipment deal could be close Make
SUBSCRIBE JOBS BOARD HELP CONTACT Tuesday 20 September 2011 WA equipment deal could be close Make
SUBSCRIBE JOBS BOARD HELP CONTACT Tuesday 20 September 2011 WA equipment deal could be close Make

WA equipment deal could be close

Tuesday 20 September 2011 WA equipment deal could be close Make PNN my HomePage Friday, 24

Make PNN my HomePage

Friday, 24 June 2011 James McGrath

THE Western Australian government could announce a plan to bring a rig capable of drilling for tight and shale gas into WA “during the third quarter”, Department of Mines and Petroleum executive director Bill Tinapple said.

The government has been in consultation with drilling companies in the Perth and Canning basins since October last year about helping to bring in another rig capable of drilling to the depth required to access unconventional targets after the Weatherford 826 departs.

Tinapple responded to claims made to EnergyNewsBulletin from a source close to negotiations that we “should hear something within three to four weeks”, saying that while a final deal was close, nothing concrete had been worked through.

“We’re close, but it’s really up to the companies now to come to the party. They’ve said that they’d be willing to sign off on a deal, but until we get the piece of paper to them and they sign on the dotted line the deal’s not done,” he said.

He did confirm that one rig would be brought in, and the government was looking to pay for mobilisation costs, thought to be in the $3-5 million range, conditional upon the oil and gas companies concerned forming a “drilling club”.

Weatherford Rig 826 on location at Arrowsmith-2, courtesy Norwest Energy Gas drainage at Tahmoor.
Weatherford Rig 826 on
location at Arrowsmith-2,
courtesy Norwest Energy
Gas drainage at Tahmoor.

Tinapple also confirmed that the technical requirements

of the rig had been agreed upon by all parties, and an expression of interest had

been floated in front of rig suppliers, a process he said was “going well at this

stage”.

A shortage of equipment in the state, particularly the prospective Perth Basin,

has hampered efforts to commercialise tight gas resources.

The only rig capable of drilling at depths required to crack unconventional reservoirs in WA, the Weatherford 826 rig, is slated to go interstate within months.

Fraccing equipment is in short supply as well, with operators having to source the equipment from interstate before they can frac, adding considerably to project economics.

Scottish-based junior tight gas explorer Warrego Energy has previously told ENB that it was part of the consultation process, but was looking at sourcing its own equipment and had grown frustrated with a lack of progress made.

“Access to infrastructure in WA for the type of work we’re trying to do is a barrier

of entry for all of us really,” director Duncan McNiven said.

“What we have to look at is bringing in a rig ourselves. That’s something that we’ve talked to the [state] government about and the government is talking about having a proposal to fund the mobilisation costs and introduce infrastructure into the state.

“It’s in the nature of government that it’s not moving as quickly as government would like.”

The WA government sees unconventional gas resources in WA as a vital cog in getting more supply to the domestic gas market, where despite the plethora of LNG projects in the state, gas prices remain higher than the eastern states.

Tinapple told ENB back in October last year that the exploitation of the state’s unconventional resources was vital.

http://www.petroleumnews.net/storyview.asp?storyid=2394380&sectionsource=s90&

20/09/2011

EnergyNewsBulletin.net - WA equipment deal could be close

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“Despite the large gas resources off our coast, we’re projecting that there may be a risk of having a domestic gas shortage over the coming years until the big LNG projects get up and operating and their domestic gas commitments come into play,” he said.

“Given that, we’ve been trying to stimulate domestic gas sources and unconventional and geothermal are really … the two energy sources that we’ve been focusing on.

“We want to facilitate this embryonic industry of unconventional gas and we’ve looked at what are the problems, what are the hurdles to get over to try and get exploration demonstration projects off the ground.

“It seems like the gas prices are enough to make it worthwhile … but we don’t have equipment. We’re trying to get out and see what we can do about that as a government.”

out and see what we can do about that as a government.” Click here to read

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20/09/2011