Australia’s Santos commissions Moomba CCS facility

: Condensate, Crude oil, Emissions, Natural gas
24/10/17

Australian independent Santos has commissioned its 1.7mn t/yr Moomba carbon capture and storage (CCS) project in the onshore Cooper basin of South Australia state, the firm said in its July-September results.

The Australian carbon credit unit (ACCU)-generating project is running at full injection rates of up to 84mn ft³/d (2.38mn m³/d) of CO2 with all five wells on line, Santos said, adding that the full 1.7mn t/yr capacity would depend on Cooper basin gas production.

The CCS will be Australia's second largest by nameplate capacity after Chevron's controversial 4mn t/yr Gorgon CCS on Barrow Island, which has been criticised for failing to reach its sequestration goals because of issues with the pressure management system.

Santos reported July-September output 3pc down from 22.2mn bl of oil equivalent (boe) in the previous quarter to 21.6mn boe. This was primarily because of planned maintenance at amine trains at its Varanus Island plant and natural field decline in Western Australia state.

Condensate production fell by 97pc from 329,100 bl to 9,000 bl for the quarter because of field decline and shutdown at the Ningaloo Vision floating production, storage and offloading vessel (FPSO) because of a subsea communications fault, expected to return to service in early to mid October-December quarter.

Santos completed decommissioning of 13 wells within the Harriet joint venture and three of 11 wells in the Mutineer, Exeter, Fletcher and Finucane fields.

The 7.8mn t/yr Gladstone LNG shipped 21 cargoes for the quarter, one less than a year and quarter earlier. LNG production was similar to the previous quarter because of seasonal shaping to meet domestic winter gas requirements. Growth is expected in October-December owing to new wells from Arcadia and Roma fields.

Angore field in Papua New Guinea is being commissioned and will start production of about 350mn ft³/d in October-December, Santos said, in line with previous guidance. The Barossa backfill project offshore northern Australia is 82pc complete with FPSO integration continuing in Singapore and three of six wells completed. Santos' Pikka phase one project is 67pc complete, with Alaskan authorities approving a 25pc increase in the acreage in September. But the project's costs would increase by about 20pc, or around $520mn from the original $2.6bn estimate, because of inflation and accelerated pipelay activity costs, Santos said. This would take the cost of Pikka, which was sanctioned in mid-2022 to $3.12bn. Santos controls 51pc and Spanish energy firm Repsol owns 49pc of the asset.

Santos expects its 2024 production to be at the upper end of its guidance of 84mn-90mn boe.

By Tom Major

Santos results
	Jul-Sep '24	Apr-Jun '24	Jul-Sep '23	y-o-y % ±	q-o-q % ±

Volumes ('000 t)
GLNG (100pc)	1,300	1,338	1,370	-5	-3
Darwin LNG (100pc)	0	0	42	-100	-100
PNG LNG (100pc)	1,938	2,001	2,111	-8	-3
Santos' equity share of LNG sales	1,148	1,264	1,300	-12	-9
Financial
LNG sales revenue ($mn)	766	762	821	-7	1
Total sales revenue ($mn)	1,269	1,313	1,436	-12	-3
LNG average realised price ($/mn Btu)	12.69	11.47	12.02	6	11
Oil price ($/bl)	83.24	89.48	89.97	-7	-7
Source: Santos

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25/06/18

Banks increased fossil fuel financing in 2024: Report

London, 18 June (Argus) — Banks "significantly increased" their fossil fuel financing in 2024, reversing a trend of steadily declining fossil fuel financing since 2021, a report from a group of non-profit organisations found this week. The 65 biggest banks globally committed $869bn in 2024 to "companies conducting business in fossil fuels", the report — Banking on Climate Chaos — found. Those banks committed $429bn last year to companies expanding fossil fuel production and infrastructure. The report assesses lending and underwriting in 2024 from the world's top 65 banks to more than 2,700 fossil fuel companies. Figures are not directly comparable year-on-year, as the previous report, which assessed 2023, covered financing from 60 banks. The 60 biggest banks globally committed $705bn in 2023 to companies with fossil fuel business, last year's report found. Those banks committed $347bn in 2023 to companies with fossil fuel expansion plans. Of the five banks providing the most fossil fuel finance in 2024, four were US banks — JP Morgan Chase, Bank of America, Citigroup and Wells Fargo. The 65 banks assessed in this year's report have committed $7.9 trillion in fossil fuel financing since 2016, when the Paris climate agreement took effect, the report found. Finance is at the core of climate negotiations like UN Cop summits. Developed countries are typically called upon at such events to provide more public climate finance to developing nations, but the focus is also shifting to private finance, as overseas development finance looks set to drop . But fossil fuel financing banks are increasingly facing the risk of targeted and more complex climate-related litigation, according to a recent report by the London School of Economics' centre for economic transition expertise (Cetex). Climate litigation is not currently adequately accounted for in financial risk assessment, with case filing and decisions negatively impacting carbon financiers, it said. "While early climate cases primarily targeted governments and big-emitting ‘carbon majors', cases against other firms have proliferated quickly," Cetex said. The report also showed that, based on a review of disclosures from 20 banks supervised by the European Central Bank, many banks across Europe recognise litigation risks as material in the context of climate and environmental factors but tend to not be specific about the risks incurred. By Georgia Gratton and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

AWRP tanker insurance to jump in Mideast Gulf

25/06/18

AWRP tanker insurance to jump in Mideast Gulf

London, 18 June (Argus) — Additional War Risk Premiums (AWRP) in the Mideast Gulf could be set to rise sharply in the coming days in the wake of the Iran-Israel conflict, potentially pushing up freight rates, sources indicated to Argus , as the number of underwriters willing to commit at current levels appears to be shrinking. Offers from underwriters in line with last-done levels are becoming increasingly scarce, sources told Argus , with a number of underwriters now offering at significantly higher premiums. The situation is extremely fluid and even the higher offer levels are expected to climb in the coming days, sources said. One source suggested that tomorrow would be a trigger point to revise AWRP rates upwards for all oil and gas cargoes seeking Mideast Gulf cover and the new level would require "a massive uplift". AWRP cover protects a vessel against any physical loss or damage incurred from war related activities such as missile, drone or mine attacks, as well as capture, seizure or detainment. Although vessels are still able to secure AWRP in line with the standard 0.125pc for the Mideast Gulf before the conflict, participants have indicated that some offers are now at or above 0.2-0.4pc of the insured value of the vessel — hull and machinery value. Offers vary widely depending on the specifics of the vessel or providing insurer but several sources have indicated that some offers are at least 50pc higher than early last week. One source stressed that protection and indemnity (P&I) clubs have not yet made a definitive statement on insurance but there is increased alertness. P&I clubs provide marine protection and indemnity insurance for about 90pc of the world's oceangoing tonnage and are key determiners of the overall policies around marine insurance. AWRP in the Black Sea for a Russian crude cargo on a Suezmax tanker peaked at 1.5pc of the insured value of the ship according to Argus assessments, (around $800,000) in 2022 and 2023 as a result of the Russia-Ukraine conflict. Argus estimated that the insured value of a very large crude carrier (VLCC) at around $90mn, and a 0.4pc AWRP would equate to around $360,000. A shipowner could receive up to 50pc of this back as part of a no claims bonus but it remains a substantial extra cost faced by crude exporters from the Mideast Gulf. The Mideast Gulf to Asia-Pacific VLCC rate already jumped to the equivalent of $2.14/bl for Murban crude ($16.35/t or WS70) on 17 June from $1.34/bl ($10.28/t or WS44) on 12 June before the first missile strike on Iran. VLCC tankers carrying crude from the Mideast Gulf is the single largest crude trade in the world and since the start of the current conflict between Israel and Iran the cost of freight has bounced almost to a 2025-high from close to a 2025-low. A higher AWRP would most likely be passed on to charterers, leading to further gains in the spot freight market. There is also the likelihood that some insurers could cease offering cover citing inherent risks. But, higher AWRPs are also an opportunity for insurers to generate higher revenues, albeit with significant risks. By John Ollett, George-Maher Bonnett, and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Adding credits, CO2 removals to EU ETS ‘fatal’: Study

25/06/18

Adding credits, CO2 removals to EU ETS ‘fatal’: Study

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Malaysia's Petronas to build third LNG import terminal

25/06/18

Malaysia's Petronas to build third LNG import terminal

Singapore, 18 June (Argus) — Malaysian state-owned Petronas plans to develop the country's third LNG regasification terminal, the firm's chief executive Tengku Muhammad Taufik said at the Energy Asia 2025 conference in Kuala Lumpur on 17 June. The need for the third regasification terminal in peninsular Malaysia comes on the back of expectations of rising demand, Taufik added. The plan follows a government directive to ensure energy supply security in peninsular Malaysia, according to state-controlled news agency Bernama. There are two import terminals presently operational in the peninsular — the 3.8mn t/yr Melaka and 3.5mn t/yr Pengerang import facilities. The third terminal will likely be built in Lumut, southwest Perak, and have a nameplate capacity similar to existing terminals, Bernama reported. Malaysia's LNG receipts have held stable in recent years, having steadily increased since the country began importing in May 2013. Imports totalled 1.04mn t over January-May, little changed from 1.06mn t a year earlier, Vortexa data show. And gas-fired power generation comprised 41pc of the power generation mix over the same period, averaging 5.7 GWh/d, up from 5.5 GWh/d a year earlier, data from electricity planning authority Single Buyer show. This indicates imported LNG makes up about 32pc of total gas used in power generation. Malaysia is mulling becoming a net LNG importer within the next 10-20 years because of declining natural gas reserves and growing energy demand. Gas is set to account for as much as 56pc of the country's energy mix by 2050. But Petronas continues to retain an "advantaged" position in east Malaysia to export LNG in fulfilling its contractual obligations, Taufik stated. Malaysia exports LNG through the 30mn t/yr Bintulu terminal in Sarawak alongside the 1.5mn t/yr PFLNG Satu and 1.3mn t/yr PFLNG Dua floating LNG (FLNG) units offshore Sabah. By Irfan Jaafar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Karoon updates guidance on new Brazil oil blocks

25/06/18

Karoon updates guidance on new Brazil oil blocks

Sydney, 18 June (Argus) — Brazil-focused Australian oil firm Karoon Energy has updated its 2025 guidance after winning access to six of 33 oil and natural gas exploration blocks awarded by Brasilia. The Melbourne-based company secured 100pc interests in the Santos basin blocks offshore Brazil which will be formally granted in October-December, Karoon said. The firm's 2025 capital expenditure guidance has increased to $120-140mn from a previous $105-125mn to incorporate bid bonuses and a financial guarantees owing. "The terms of the bid included a bonus payment of approximately $14.8mn in total plus a minimum work program of $20.2mn, to be undertaken within seven years of the formal award of the blocks. The bids did not include well commitments on any of the blocks," chief executive Julian Fowles said on 18 June. Two of the blocks include the Piracuca discovery, which Karoon said could be tied back to its proposed Neon development, while four deepwater blocks represent a strategic move for Karoon to consolidate its position in the area. State-controlled Petrobras and Spanish-Chinese joint venture Repsol-Sinopec returned the shallow-water Piracuca field to domestic oil regulator ANP in 2017, after determining the acreage was not commercially viable. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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