Worst hit were Norwest Energy and Bounty Oil, with Voyager, Arc and Hardman not far behind. AWE also took a big hit as well despite its large interest in the Bass Strait Yolla gas field. Norwest boss Ivan Burgess said there is still the High Cliff Sandstone to be drilled, but he did not want to build up unnecessary expectations now that the primary target has proved unsuccessful.
In a good example of playing your cards wisely, Chinese National Offshore Oil Company (CNOOC) this week farmed into the BP-operated Tangguh gas field in Indonesia by buying a 12.5% stake for $US275 million.
This compares with the farmin deal it struck with North West Shelf partners last year, where emerging energy supplier bought a 5% stake in the Australia's most valuable industrial project for $US320 million.
The North West Shelf is a proven, reliable supplier operating in a politically stable country, whereas Tangguh is a greenfield development operating in a nation with many problems. So it seems the Chinese got a bit of a discount to enter the less than certain Tangguh field on the ground floor while paying a premium to get into a more stable project like the NWS.
It's been another busy week for North West Shelf operator Woodside Petroleum. The company set the wheels in motion for development of the Enfield project off the WA coast by inviting shipbuilders to bid for a major FPSO hull construction contract. That was even before getting final government approvals.
Woodside this week also paved the way for development of Australia's newest gasfield by the unitisation of two gas fields in the Otway Basin. By consolidating ownership of the Geographe and Thylacine gas fields, Woodside and its partners hope to speed development of the fields said to contain 800 billion cubic feet of gas. The deal also settled a costly legal dispute between Woodside and its partners Origin Energy and Benaris.
Earlier in the week Woodside rig workers made a special donation to the burns unit at Royal Perth Hospital, headed up by renowned burns specialist, Dr Fiona Wood. The facility was instrumental in saving many lives of the recent Bali bombing tragedy. However, the chances of Dr Wood's facilities being used by Woodside employees will be low after the company, later in the week, announced its workers, both in Karratha and Perth, had worked more than 4 million hours without a lost-time injury - a company record.
It's also been a busy week for company reporting. Amity Oil saw its stock rise on the back of a strong quarterly statement that showed a big increase in Turkish gas sales. Perth utilty AlintaGas reported a good yearly profit and sparked speculation over the likely fate of shareholder Aquila's Australian assets.
Oil Search's merger with Orogen Minerals paid dividends after the company also announced a good profit result. Looking to diversify its international gas business, Santos announced a second big Indonesia gas deal with a local power company agreeing to buy all the output from the Oyong gas field in East Java. Good news for 15% partner, Cue Energy.Meanwhile, construction group John Holland wrapped up its acquisition of Transfield Construction.
It has been a busy week for drilling. Partners in the onshore Perth Basin Hovea gasfield spudded a development/appraisal well this week aiming at proving up the southern extent of the field. Meanwhile, production kicked off at the first of two designated production wells at Hovea.
After a successful redrilling operation, the Harriet Joint Venture can expect an increase in production from its South Plato Oil Field. Not so successful was Magellan's wildcat in the Browse Basin that proved to be a duster. Shell is taking more of an interest in Australian exploration after spudding the Herdsman-1 in the Exmouth Sub-Basin with partner Woodside who is the operator.
Also spudding wildcats were Origin Energy and Essential Petroleum in the central Otway Basin with Esso Australia and partners spudding a wildcat in offshore Gippsland Basin. Drillsearch Energy said it will expand its drilling program this year by targeting oil reserves within the Tintaburra block in south-west Queensland. Meanwhile, Novus Petroleum said testing of its gas condensate discovery in Oman is taking a little longer than expected.
Finally, in overseas news, the Japanese said (politely of course) they intend slapping taxes on Australian energy products such as coal and natural gas to help its greenhouse reduction cause. ConocoPhillips threatened to abandon the Bayu-Undan project if Australian and East Timorese politicians don't get their acts together. PetroTimor wish they had so after losing a billion dollar claim in the courts against the Australian government over ownership of vast oil and gas reserves in the Timor Sea.
In India, UK oil company Cairn Energy made a big gas discovery in the northern region, which has made the Indian Government happy as the country imports 70% of its energy needs. What made the India Government very unhappy was another discovery, not because it won't help the country, but some people at the operating company forgot to inform the bureaucrats. A big no no in a nation known for bureaucratic interference and red tape.
