Territory Stories

Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT




Tabled by David Tollner


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128 Mining and Manufacturing 2013-14 Budget e: estimate; f: forecast 1 Inflation adjusted, base year 201011 Source: Department of Treasury and Finance; Department of Mines and Energy Oil production in the Territory is estimated to increase from $1.0billion in 201112 to $1.4billion in 201213 (up by 37.8percent), with growth driven by increasing offshore production at the Kitan oilfield and the commencement of production at the Montara project. The Kitan oilfield was first discovered in 2008 and is estimated to contain 30to40millionbarrels of oil. Oil production commenced in October2011 with peak production estimated at 35000 barrels of oil per day (bopd). Oil is being produced through three subsea wells and is connected to a floating production storage and offloading vessel (FPSO). The latest oilfield to begin production in the Territory was the Montara project in the June quarter2013. Located 690kilometres west of Darwin, the Montara project is expected to produce up to 35000 bopd when operating at full capacity. Production is forecast to increase by 63.7percent to $2.3billion in 201314 as output increases from 20000 to 23000bopd in the firsthalf of the year and to 35000bopd in the second half of the year. Production is expected to be partly offset by declines at the LaminariaCorallina oilfields. The $1.4 billion LaminariaCorallina project, located 550kilometres northwest of Darwin, began in1999. At the peak of operations, the FPSO could produce up to 180000bopd and carry up to 1.4millionbarrels of oil. The oilfields are currently producing around 5000bopd, reflecting the age of the field and the significant depletion of the resource over time. The Santosoperated Mereenie oilfield in central Australia is the only onshore oil producer in the Territory. With only oneproducing oilfield, production accounts for only a small proportion of total oil produced in the Territory. Onshore oil production from the Mereenie oilfield is estimated to increase marginally in 201213 as a result of Santos refocusing on its oil operations, which will include an exploration drilling campaign to discover more oilfields in CentralAustralia. The majority of gas and liquids production in the Territory comes from the BayuUndan field in the JPDA. The BayuUndan gas and liquids field is operated by ConocoPhillips and has estimated recoverable reserves of Chart 10.4: Value of Territory Energy Production1 (moving annual total) 0.0 0.5 1.0 1.5 01 02 03 04 05 06 07 08 09 10 11 12 13e 14f 15f 16f 17f Manganese Gold $B Bauxite Zinc/lead concentrate Iron ore Year ended June Oil Gas and Liquids