GAS

Force majeure: HJV lacks reserves for 20-year Burrup Fertiliser gas contract

THE Harriet partners operator Apache, Kufpec and Tap Oil have issued notices of force majeure t...

Force majeure: HJV lacks reserves for 20-year Burrup Fertiliser gas contract

The Harriet partners are currently supplying the daily 80 terajoule contract quantity of gas and anticipate being able to do so for years to come, but the agreement requires the Harriet Joint Venture to have gas reserves for 20 years.

The effect of the force majeure notice is to suspend this obligation to the extent that the HJV cannot demonstrate the full reserves requirement, Tap told the ASX this morning.

“The force majeure events described in the notice include the failure of certain HJV exploration and development wells,” Tap said.

“The HJV continues to progress further exploration and development programs for gas in its permit areas.”

The joint venture is currently drilling the Bambra East-1 and 2 wells. Tap has said progress on these wells as “very encouraging”.

But the force majeure notice will do little to calm investors concerned about Tap’s ongoing failure to replace declining reserves.

The Harriet partners are: Apache Northwest (operator and 68.5%, Kufpec Australia 19.28% and Tap Oil 12.22%.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry