Territory Stories

Budget Paper No5 Northern Territory Economy 1998/99

Details:

Title

Budget Paper No5 Northern Territory Economy 1998/99

Other title

Tabled Paper 382

Collection

Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT

Date

1998-04-28

Description

Tabled by Michael Reed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/295415

Citation address

https://hdl.handle.net/10070/395002

Page content

kilometres north of Ranger mine, were granted. Reserves are estimated as sufficient to maintain production until 2027. Over its life, the Jabiluka project is forecast to make considerable direct and indirect contributions to the Australian economy. In particular, it is estimated to increase Territory export earnings by at least $1.5 billion in present value terms. The commissioning of the Laminaria/ Corallina oil field has been delayed until late 1999. The capital cost of the development is now estimated to be $1.3 billion and reserves are estimated at 155 million barrels, with peak production expected to be in excess of 150 000 barrels per day. Oil production facilities for Laminaria/Corallina will have the capacity to process 170 000 barrels per day. The worlds largest floating production storage and offtake (FPSO) vessel is being constructed in Singapore for the project. The life of the project is forecast to be at least 13 years. Significant projects emerging in ZOC-A are the Elang/Kakatua-Kakatua North oil fields and the Bayu-Undan gas/condensate field. Reserves in Elang/Kakatua-Kakatua North are estimated at 30 million barrels and would have an expected production rate of 33 000 barrels per day. The project has an estimated capital cost of $140 million, with first oil production likely in late 1998 via the refitted Skua Venture FPSO. The liquids recovery project for the Bayu-Undan field is proceeding with engineering design. The project has an estimated capital cost of $2 250 million, and during peak production will produce 69 000 barrels of condensate, 24 000 barrels of propane and 20 000 barrels of butane per day. Production start-up is targeted for 2001. The commercial production of gas from offshore fields is expected to take longer to achieve than for oil. The first gas from Bayu-Undan could be exported as Liquid Natural Gas (LNG) by the year 2002. The main joint venture partners in Bayu/Undan are BHP Petroleum and Phillips Petroleum Limited. They are examining various options for the development of the field, including the construction of a $500 million pipeline from Bayu-Undan to Darwin. It is expected that an LNG development would provide sufficient critical mass to encourage exploration and development of other gas resources in the Timor Sea. Shell and Woodside also have plans to construct an LNG plant in Darwin, based on Sunrise/Troubadour gas resource. The concept is for two LNG processing trains with a combined capacity of 7.5 million tonnes per annum. It would supply export contracts for 20 years, as well as supplying domestic gas sales to the Territory and possibly adjacent States. The project would require 10 trillion cubic feet of gas. Shell and Woodside are spending $120 million over the 18-month period to the end of 1998 to quantify the required gas reserves. Capital costs, including ships, for the project are estimated at some $10 billion. Domestic availablity of Timor Sea gas is a new and exciting option for resource development in the Territory. During 1997 the Territory Government assisted in producing a report looking at the opportunities for Timor Sea gas in the Australian market. Given recent reforms to increase competition in the domestic gas market, market demand and infrastructure requirements, the report concluded that Timor Sea gas could be competitive in a number of Queensland markets in the short-term. In the longer-term, Timor Sea gas could service most east Australian markets. 44 Northern Territory Economy


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