The Shelf has been supplying the Koreans on a spot cargo basis to date, and an agreement, which is expected to be signed in a matter of days, would be a big victory for Woodside and its partners.
In the markets, Oil Search's share price spiked earlier in the week amid speculation it was in gas talks with a major NT refiner and miner major. In response, Oil Search said it will make statements concerning such deals only when they are signed.
Struggling power generation company Energy Development this week rejected a takeover bid by ex-chairman and founder Walter Prahor and investment bank ABN Amro. A one time market darling, the green energy company has struggled to commercialise its solid waste-to-energy technology.
Staying with the bourse and engineering group Worley saw its share price somewhat boosted by a investment bank recommendation. Battery developer ZBB Energy is planning a $10 million float for the middle of year. Struggling power outfit Energy World Corporation has submitted a refinancing proposal to its main creditor, the Commonwealth Bank of Australia. Meanwhile, speculation is also mounting in the media that AlintaGas, Multinet and United Energy will use their latent debt capacity to buy out the stakes held by struggling US energy giant Aquila.
In drilling news, it was a case of early success for partners drilling Cliff Head-3 after the appraisal well hit a gross oil column of 45 metres with at least 40% net oil pay. The partners in the offshore Perth Basin well now plan to drill a sidetrack hole in preparation for production testing.
The Harriet Joint Venture has spudded another offshore WA wildcat, Bob-1. Perth-based Amity kicked off its 2003 Turkish drilling campaign with the spudding of the Gocerler-4 development well. Emerging coalbed methane player Eastern Star Gas recommenced drilling its brown CBM pilot production project in Victoria. Meanwhile, Horizon Oil (formerly Bligh) has farmed into PEP38413 and will contribute 10% to the cost of drilling the Maari-2 appraisal well, which has posted good initial results.
In power generation news, rogue generators now face hefty fines if they withdraw capacity to boost prices - better known as "gaming" - after the national electricity code administrator was given new powers to ensure fair trading and bidding.
The final go-ahead on the Yabulu power station in Townsville will have to wait till next month when the Tax Office gives its ruling on the project. Staying in Townsville, North Queensland power consumers will get a boost in supply with construction of the Alan Sheriff substation due for completion in two weeks.
Speculation is mounting that a Malaysian consortium will make a bid for the debt-ridden Loy Yang power station. In South Australia, plans are afoot to build a power station that will be fuelled by plantation and timber waste.
In overseas news, the oil cartel OPEC agreed to boost production in order to calm the markets after a barrel shot up to $US33. The move comes as the Venezuelan crisis goes into its seventh week with absolutely no sign that the issue is closer to resolution.
While US won't admit the crisis over Iraq is about oil, Britain has no such qualms with Whitehall officials openly admitting their prime concern is energy security rather than weapons of mass destruction.
Chinese oil companies have been in the headlines recently. After successfully farming into the North West Shelf, CNOOC said this week it will go after more Australian gas acreage. China's largest oil company China National Petroleum Company said it wants to join the big boys and is looking to expand aggressively overseas to achieve its aim.
Finally, against the backdrop of North Korea and with Brazil, Indonesia and Iran all lining up to join the nuclear power club, tiny Croatia wants to sell its stake in a nuclear power plant it built with Balkan neighbour Slovenia during the 1980s when they were both part of Yugoslavia.
In Britain, a left-wing think tank has urged the Blair Government to forget about building a new generation of power plants because of the bad economics and the security risks (ie terrorism) they represent. With Britain about to become a net importer of energy , it is understood that the British Energy Minister is looking at renewable energy as a viable substitute.
