Australia's Santos reports 2 pct dip in Q1 production

Australia's Santos reports 2 pct dip in Q1 production Thu, Apr 18 20:07 PM EDT SYDNEY, April 19 (Reuters) - Australia's Santos Ltd , the country's No.2 energy firm, said on Thursday its production dipped 2 percent to 12.1 million barrels of oil equivalent (mmboe) in the first quarter. Santos maintained production guidance of between 53 and 57 mmboe for 2013 and said its capital expenditure for the year would remain at $4 billion. Gas production of 9.1 mmboe was in line with the same period a year ago, with higher Otway Basin production offset by lower production from the Cooper Basin due to major planned shutdowns. Quarterly crude oil production of 2 million barrels was down 19 percent, partly due to lower production from Stag and the Cooper Basin. Santos said its $19 billion Exxon Mobil -led PNG LNG project and its flagship $18.5 billion Gladstone liquefied natural gas (LNG) project are on track for first LNG in 2014 and 2015, respectively. The Moomba-191 unconventional shale well, which became the country's first commercially producing shale gas well in September, was flowing at an average rate of 2.3 standard cubic feet per day as at the end of the quarter, the company said. That is slightly below the average 2.5 million standard cubic feet per day it reported at the end of the year. Four new exploration wells are planned for 2013. (Reporting by Rebekah Kebede; Editing by Richard Pullin) =============== Chevron Corp latest oil major to make Australian shale bet Sun, Feb 24 21:05 PM EST PERTH, Feb 25 (Reuters) - The U.S.-based Chevron Corp became the latest in a string of oil majors that have decided to invest in Australian shale, announcing on Monday that it has bought interest in two gas blocks in the Cooper Basin from Beach Energy. Chevron said it will initially acquire a 30 percent working interest in block PEL 218 in South Australia, and 18 percent working interest in block ATP 855 in Queensland. The deal gives Chevron the option of later increasing its interest in PEL 218 to 60 percent and the interest in ATP 855 to 36 percent. Beach Energy will receive up to $349 million over two stages spanning several years for interest in the two gas blocks, Beach Energy said in a statement. "The Cooper Basin is an established petroleum producing basin and provides the opportunity to leverage our expertise in tight gas," Roy Krzywosinski, Chevron Australia managing director, said, adding that it could also add to the company's natural gas portfolio. The Cooper Basin is considered to be one of Australia's best prospects for commercially producing shale gas given its proximity to the country's eastern population centres and export infrastructure at the port of Gladstone. Santos became the first to commercially produce shale gas from the Cooper Basin late last year from its Moomba-191 well, in which Beach Energy holds an interest. Chevron is currently building two of Australia's largest liquefied natural gas (LNG) plants, Gorgon and Wheatstone, with a combined capacity of nearly 25 million tonnes per annum, in Western Australia. Chevron is already a large player in natural gas on Australia's west coast. It is new both to unconventional gas development in Australia as well as to the country's east coast natural gas industry. With the new acquisition, Chevron may also be looking to partner with other gas developers on the east coast, including those developing LNG plants at Queensland state's Gladstone port, Goldman Sachs analysts said in a note to clients Monday. ====================== Australia's Santos underlying profit up by a third Thu, Feb 21 17:25 PM EST SYDNEY, Feb 22 (Reuters) - Australian oil and gas producer Santos reported a 34 percent rise in annual profit after lifting gas production and said its major LNG development projects remained on track. Santos, the country's No. 2 energy firm, posted an underlying profit of A$606 million ($621 million) for 2012, up from A$453 million in 2011 and compared with consensus analysts' forecast of about A$600 million. Santos maintained its 2013 production target at 53-57 million barrels of oil equivalent. Like other gas producers, Santos has been grappling with cost increases on development projects, with the strong Australian dollar a major factor. Rival Origin Energy on Thursday announced a 7 percent hike in costs at its Australia Pacific LNG project. Santos said its $18.5 billion Gladstone coal seam gas to LNG (GLNG) project in Queensland, which is almost half complete, was still on track to start producing LNG in 2015. GLNG has had to purchase additional gas reserves from producers in the area, a move that some industry analysts have interpreted as a sign Santos has not been as successful as it had hoped in proving up gas reserves for its flagship development. Santos said the Exxon Mobil-led $19 billion Papua New Guinea LNG project was also on track to come online in 2014. Santos' Moomba-191 in South Australia's Cooper Basin became the country's first commercially producing shale gas well last year, and was producing at 2.5 million standard cubic feet per day at the end of the year. Four new exploration wells were planned for 2013, Santos said. Larger rival Woodside Petroleum beat analyst expectations with a record full-year net profit on Wednesday after its Pluto liquefied natural gas (LNG) plant boosted production. ($1 = 0.9754 Australian dollars) (Reporting by Rebekah Kebede and Lincoln Feast; Editing by John Mair) ================================ Australia's APA wins board backing for $1.5 bln HDF bid Mon, Aug 20 20:36 PM EDT SYDNEY, Aug 21 (Reuters) - Directors of Australia's Hastings Diversified Utilities Fund (HDF) on Tuesday recommended a A$1.4 billion ($1.46 billion) bid by rival gas distributor APA after an alternative suitor bowed out. APA had been fighting Pipeline Partners Australia for control of two key gas pipelines owned by HDF that serve Australia's main onshore gas hub, Moomba. Analysts say growth prospects are strong because of new coal-seam gas projects and huge liquefied natural gas export projects in Queensland state. On Monday, Pipeline Partners bowed out of the race, declining to match APA's higher offer. A subcommittee of HDF independent directors said it was dropping a recommendation of Pipeline Partner's lower bid and was now recommending APA's offer in the absence of a superior proposal. Securities in HDF last traded up 1.2 percent at A$2.59 compared with the implied value of APA's cash and scrip bid of A$2.60. APA shares were up 1.1 percent at A$4.67. Pipeline Partners, a consortium that includes Canadian fund manager Caisse de depot et placement du Quebec (CDPQ) and Utilities Trust of Australia, a fund managed by HDF's manager Hastings Funds Management, had offered A$2.43 per HDF security ($1 = 0.9569 Australian dollars) (Reporting by Lincoln Feast; Editing by Richard Pullin) ================ Chevron nod for more beds Peter Klinger September 25, 2015, 7:12 am Chevron nod for more beds The Wheatstone offloading facility breakwater takes shape. Chevron has received planning approval to enable it to increase its Wheatstone construction workforce near Onslow to more than 9000, which will further spark industry chatter the $US29 billion ($41.5 billion) LNG project is struggling to stick to its budget and schedule. Overcoming opposition from the Wheatstone project site’s billionaire neighbours Andrew and Nicola Forrest, Chevron convinced the Kimberley-Pilbara-Gascoyne Joint Development Assessment Panel (JDAP) of the merits of allowing more than $30 million worth of new infrastructure such as carparks, mess and kitchen areas, exercise venues and toilet blocks to be built. The new infrastructure is necessary to enable Chevron to introduce double-bunking, which lets a day-shift worker and a night-shift colleague share sleeping quarters. Chevron wants a 2000-bed extension to its construction camp, which is being built to take Wheatstone’s accommodation capacity to 7194, to be available for the controversial donga-sharing strategy to effectively provide another 2000 beds. Double-bunking has been fiercely opposed by many workers and unions, which unsuccessfully argued their case before the JDAP on Wednesday. The Forrests, who own the nearby Minderoo station, say the Wheatstone camp has already caused environmental damage, light pollution and cattle to be trapped in temporary fencing and it has disrupted mustering activities. Chevron yesterday insisted no decision on double-bunking had been made. “The JDAP decision will allow us to respond quickly in the event additional accommodation capacity is required during our peak construction period,” a spokesman said. When Chevron and its partners sanctioned Wheatstone’s development in 2011 and flagged first LNG cargoes by the end of 2016, industry estimates for the peak construction workforce were about 5000. In line with every significant resources project in Australia in the past decade, including Chevron’s $US54 billion Gorgon and Inpex’s $US37 billion Ichthys LNG developments, Wheatstone is thought to be struggling to meet the targets set at the time of its development go-ahead. One of the few remedies is to beef up the onsite workforce, at significant cost to the project proponent. Chevron is sticking to its original budget and first-LNG target and points to Wheatstone being “more than 65 per cent complete”. =================================

Vertigo: Brazil's Libra oilfield

Author Chicago Jack View Profile Add to favourites Ignore Date posted Saturday 18:21 Message Vertigo; I think we visited this previously when ILS got all wound up about a few details showing what oil is worth and how far down you have to go to get it, and where you have to got to get it, snorkel anyone. Regards CJ Ring any bells. ILS. Note the words 'final value.' You understand what they mean, I presume. Unless you believe that the entire asset base of the Conpany will be taken out for five, six or seven Pounds (in the event of a full asset sale) then my statement is not inaccurate. For me the only fly in the ointment is the politics. That's the one thing that could upset any plans in the pipeline. The Board isn't the problem. Nor is geology, the weather, accessibility, route to market or demand for the asset we have. Patience and the passage of time. All that's needed.. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx So Vertigo is correct , its a matter of applying sound economics with paitence and politics, ESPECIALLY for those who frequent the Economics school of Business. Try this simple bit of reading and try to grasp the realities of what is under the ground where GKP as been successful in drilling 17 wells plus. The Political situation as been in play from day 1, and has a large impact, but in saying that, is GKP downgraded by far more than it should be? IMO its is well down in comparison to where it should be currently. If you doubt the asset and its value, then you must simply not understand the enormity of what the proven resources so far are worth- and I use that term loseley-as I would assume the proven resources on ultra cautious . So to the reading and grasping of a few facts, something they simply don't teach you in the business of economics in the UK. You have to study the detail and , but Kurdistan is not Brazil or offshore and I am pretty confident in it holding well in excess of what Libra Filed is reported to hold betewen 8 and 15 billion barrels of OIL The below is worth reading and digesting each part and reflecting on the assets under GKP's PSC agreements. then decide which you would like to develope and take into production http://blogs.wsj.com/moneybeat/2013/08/08/brazils-oil-field-may-be-the-worlds-most-expensive-to-develop/ Oil majors interested in snapping up Brazil’s largest offshore oil discovery had better be prepared to write some very large checks. The total cost of developing the giant Libra field over the next 35 years could be at least $174 billion, making it the most expensive single oil field project ever developed—more than the Kashagan field in the Caspian Sea, which is expected to cost at least $150 billion, according to IHS Energy Insight. Sure – the cost is only two-and-a-bit months’ worth of bond purchases by the U.S. Federal Reserve. But it’s a mind-boggling amount. So is the 8 billion to 12 billion barrels of crude oil that is estimated to be held by Libra, a huge field that lies deep beneath the Atlantic seabed off Brazil’s southeast coast. The government is preparing to auction Libra to the highest bidder in October. Rather than seeking a cash bid, the winner will be the firm that, after covering its costs, promises to deliver the most oil to the government. The winning bidder will have to team up with state-run oil company Petróleo Brasileiro SA, or Petrobras, which—under new legislation passed specifically for the pre-salt fields—is obliged to hold a minimum 30% stake. The huge price tag is expected to attract only the biggest players in Big Oil—companies with enough time and money to sink billions of dollars into a project that is unlikely to generate any payback for nearly a decade—although there may be some smaller firms involved as minority partners. The companies also need to cope with the huge risks associated with drilling kilometers into the seabed in deep Atlantic waters, potentially very dangerous operations. Still, despite costs and risks, some simple math suggests the cost extracting each barrel from Libra would be about $15, making it cheaper to develop than other recent discoveries off the coast of West Africa or the Gulf of Mexico, where costs range between $22 and $30 per barrel. With oil prices hovering above $100 a barrel, the potential profits will likely be worth the risks. “That’s perfectly reasonable on a per-barrel basis and certainly comparable with existing pre-salt developments in Brazil,” said Ruaraidh Montgomery of consultants group WoodMackenzie. Oil companies are still being coy, wary of changes to legislation that have yet to be fully understood. But it’s the sheer size of Libra, which is not only Brazil’s largest offshore oil find but one of the biggest made in the world over the past three decades, that has grabbed their attention. “Everything leads us to believe that there will be a lot of interest in the auction,” said Lincoln Guardado, chief executive of Queiroz Galvão Exploração e Produção, a small Brazilian oil and gas firm. “I don’t see any reason why there wouldn’t be.” Brazil has been portraying itself as a country that’s keen to welcome the oil industry, providing a degree of economic and political stability that stands in contrast to neighboring Argentina and Venezuela, where Big Oil has been happy to do business. There are challenges, to be sure. Firms must deal with Brazil’s Byzantine bureaucracy and inflexible labor laws. Chevron Corp. was recently targeted with a $20 billion civil lawsuit after spilling a relatively modest amount of oil leaked from an offshore well in Brazil. Companies must also adhere to strict rules requiring local goods and services to be purchased locally, aimed at boosting a burgeoning oil-services industry, but which some argue pushes up costs. But for Big Oil with cash to burn and a thirst for crude, Brazil is once again open for business. http://www.iii.co.uk/investment/detail?code=cotn%3AGKP.L&display=discussion&threshold=0&action=detail&id=10775772 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Of course it was considered a ramp by sone. So I just replied it was a few details. the Brazil article....First it was not a ramp, its was a sensible article based on fact and what is going to happen to those billions of barrels under the sea, it was to give a little glimpse into BIG OIL. What gets lost is peoples willingness to discount the amount of oil under GKP PSC's. Production of mineral never stopped one of the worlds leading companys paying a large amount of money for unproven resources, they snapped them up before the chinese got a sniff. Its time some people learnt Oil finds a way to market and production is not the only requirement to secure an asset for the future. Can anyone show the worlds last largest oil discovery that was made by an independent oil company of this size that was not working for a National Government /State owned oil company. A snippet , as anyone looked at Linc Energy and the possibilities of what it might have . Regards CJ Its the assets stupid, don't lose sight when the M&G gang want a quick sale. http://www.iii.co.uk/investment/detail?code=cotn%3AGKP.L&display=discussion&threshold=0&action=detail&id=10776959 ============ Author leesbillbob View Profile Add to favourites Ignore Date posted Saturday 20:38 Subject Re: Vertigo: Brazil's Libra oilfield. View parent message Votes for this Posting Voted 27 times. Message Good to see you posting Jack;I have pretty much abandoned iii and left it for another sight that the "Gurus" (or as I call them chihuahuas) have not gained editorial control. GKP is a much bigger,much better find than offshore Brazil.S7 is going to be a game changer.The OIP will be upgraded greatly and I hope it won't be sludge;the deeper drills have seemed to found better quality APRs.We will find out. exactly where it should be. "Do you think Todd would put this kind of effort into drilling down 5000 meters if he didn't believe the big columns of oil were there?" Rig 319 Heavy Duty, 3,000 HP General Description Design Branham/Swift-Lift Estimated drilling depth rating 25,000 ft (7,620 m)* Camp capacity.................... 80 Estimated total rig move loads 120 truck loads Estimated total camp move loads 20 truck loads Mast Type Branham/Swift-Lift Height 157 ft (47.8 m) API rated simultaneously load capacity of setback and rotary 2,395,748 lb (1,086,693 kg) Static hook-load capacity 1,597,900 lb (724,795 kg) Setback capacity 797,848 lb (361,898 kg) Substructure Type Branham Swing lift, self-elevating Height 34.9 ft (10.67 m) Clear height, rotary beam to ground 26.9 ft (8.23 m) Casing capacity 1,597,900 lb (724,795 kg) Setback capacity 797,848 lb (361,898 kg) Drawworks Type National 1625 UBDE Power rating 3,000 HP Input power 3 � General Electric GE-752, 1,000 HP each Drilling line diameter 1-5/8 in. Auxiliary brake Baylor/Elmagco 7838 Top Drive/Swivel Type Canrig/1275 AC Capacity 1,653,467 lb (750,000 kg) Torque 51,400 ft-lb at 120 rpm Rotary Table Type National/D-375 Table opening 37-1/2 in. Drive type Independent GE 752, 800 HP each Engine Engines 5 � Caterpillar D-399, 1,215 HP each Generators 5 � Kato, 1,500 kVA, 600 V, 60 Hz SCR/DC-DC General Electric, type U drill Well Control Diverter 1 � Hydril, MSP 29-1/2 in., 500 psi Low-pressure annular 1 � Hydril MSP 21-1/4 in., 2,000 psi Low-pressure ram preventer 1 � Cameron, Type U, 20-3/4 in., 3,000 psi, double High-pressure annular 1 � Shaffer Spherical, 13-5/8 in., 10,000 psi High-pressure ram preventer 1 � Cameron, type U, 13-5/8 in., 15,000 psi, double 2 � Cameron, type U, 13-5/8 in., 15,000 psi, single Choke-and-kill manifold 3-1/16 in., 15,000 psi, hydraulic/manually operated Accumulator unit ..................Koomey 80 MC 220-11SB, 3,000 psi, 9 stations Mud System Mud pumps ...................... 3 � National 12-P-160, triplex single acting Power rating 1,600 HP Pressure rating 7,500 psi Active mud volume 2,000 bbl Reserve mud volume 1,000 bbl Shale shakers .................... 6 x Derrick/2L/M48-90F-3P Desander Not available Desilter Not available Mud cleaners King Cobra with 3 each, 10 in.+ 24 each � 4-in.cones Sack storage capacity 2 pallets at each hopper Enhancements Crane Not available Forklift Caterpillar 966-D forklift, convertible to loader � 5 ton Kelly spinner/pipe spinner I.T.C./A6-C2 Kelly spinner/ Varco or equivalent drillpipe spinner Desert-style moving capacity ======================== Protests, strike against big Brazil oil auction expand Fri, Oct 18 12:22 PM EDT * Strike has had limited impact on output so far * Union says contingency teams suffered two "small" spills * Gov't to deploy troops to ensure security at auction By Jeb Blount RIO DE JANEIRO, Oct 18 (Reuters) - Brazilian oil workers said on Friday they managed to reduce oil and fuels output from state-run oil company Petroleo Brasileiro SA for a second day after launching a strike for higher pay and against a planned auction of the country's largest-ever oil discovery. Platforms in the Campos Basin run by Petrobras, as the company is known, have been below full capacity for 36 hours, said Marcos Brida, the press spokesman for Sindepetro Norte-Fluminense, the union responsible for Petrobras offshore production platform and land-terminal workers in the Campos Basin, home to about 80 percent of Brazil's oil production. Brida also said contingency teams for Petrobras suffered two "small" oil spills at the PCE-1 and P-15 oil platforms in the Campos Basin. The union also announced the spills in a note. Petrobras officials were not immediately available for comment. Sindepetro Norte-Fluminese is part of a national strike by Brazil's National Oilworkers' Federation (FUP) that began at midnight (0300 GMT) on Thursday. It has seen workers walk off the job at most of Petrobras' 12 refineries, some of its oil terminals and pipelines plus scores of oil production sites. Natural gas and oil pumping operations and fuel production at refineries were also reduced, said Alessandra Muteira, press official for FUP in Rio de Janeiro. Neither Brida nor Muteira were able to quantify the reductions. Petrobras was not immediately able to comment on the strike. Petrobras has said it has contingency plans to ensure that energy and fuel supplies are maintained during strikes and that the safety of its facilities is not compromised. Strikes have rarely had any significant impact on output or supplies in Brazil. Top Petrobras officials have told Reuters in the past that the company can face strikes of about two weeks without any major impact. To prevent the strike from interfering with the auction of the massive offshore Libra field on Monday, the government will provide police and army units to ensure the smooth operation of the sale. On Thursday, oil workers briefly occupied Brazil's mines and energy ministry in Brasilia in protest. Libra holds an estimated 8 billion to 12 billion barrels of recoverable oil, according to both Brazil's oil regulator and Dallas-based oil-reserve certification company Degolyer & MacNaughton (D&G). If the projection holds up, Libra could nearly double Brazil's oil reserves or have enough oil to supply the world's crude demand for as much as 19 weeks. Libra, billed by the government as the largest offshore oil are ever sold, is the latest in a series of "subsalt" finds beginning in 2007 that struck oil southeast of Rio de Janeiro, trapped deep below the seabed by a layer of salt. Brazil is expected to get at least $7 billion in up-front fees from the winning company or group. Petrobras by law will have to take a minimum 30 percent stake in any winning group and run the project as operator. Opposition to the sale of Libra is strong among Petrobras unions. The unions still protest the 1997 end of Petrobras' monopoly over exploration, production and refining and regularly attack any non-Petrobras involvement in oil production, whether the involvement is domestic or foreign. The union's nationalist sentiment is shared by many in Brazil. The creation of Petrobras 60 years ago this month is still considered by many, especially older Brazilians, as an act of national liberation. Ildo Sauer, a former Petrobras gas and energy chief, has filed a lawsuit seeking to block the Libra sale. To date, oil regulator ANP has managed to get all suits seeking injunctions against the sale quashed. ================ Brazil's oil regulator says 2014 concession auction unlikely Thu, Oct 17 16:13 PM EDT By Jeb Blount RIO DE JANEIRO (Reuters) - The head of Brazil's oil regulator said on Thursday that her agency is unlikely to recommend an auction of oil exploration concessions in 2014, raising doubts of a revival of an annual auction cycle after a five-year hiatus. "I'm not so concerned about having annual auctions as I am about having good areas to sell," Magda Chambriard told reporters in Rio de Janeiro. "Right now I think it unlikely that we will recommend an auction next year." On May 15, Brazil raised about $1.4 billion at its first oil rights concession auction since 2008. From 1999 to 2008 Brazil held annual auctions for on-shore and offshore areas. Many investors and experts consider annual auctions essential to the long-term health of the Brazilian oil industry, allowing companies to plan while knowing they have or can buy new projects to replace any old or diminished field. During the 1999-2008 period Brazil experienced rapid oil output growth that transformed the economy from one dependent on imports into a net exporter of crude. Oil output rose, on average, more than 5 percent a year in the period. Brazil ended its annual auction system after a series of giant offshore discoveries south of Rio de Janeiro known as the "subsalt" starting in 2007. Subsalt refers to oil strikes made under a layer of salt deep beneath the seabed. The auctions were canceled to allow the government time to draft and pass a law that boosted government control over those new discoveries and adjacent areas. Since then, output has faltered, growing an average of 2.35 percent a year. Output even fell 5.3 percent in 2012. The first auction under that new framework is scheduled for Monday. Chambriard, who has headed the regulator known as ANP since last year, has billed the sale of the Libra area, which contains an estimated 8 billion to 12 billion barrels of oil, as the largest offshore oil prospect ever sold. If the projection holds up, Libra could nearly double Brazil's oil reserves and would contain enough oil to cover world crude demand for as much as 19 weeks. Chambriard said Thursday that she expects production to peak in Libra at about 1.4 million barrels a day in a decade, though some in the government suggested that production could rise to more than 2 million barrels a day. That auction will be for a production-sharing contract, an accord that will go the company or group that offers Brazil the largest share of "profit oil," or oil produced after investment costs are recouped, to sell on its own account. State-run Petroleo Brasileiro SA (PETR4.SA), or Petrobras, will have to lead any winning group as operator of Libra and take on a minimum 30 percent ownership and investment stake. Chambriard said it was also unlikely that a new production-sharing auction would be held next year as the oil prospects in the area covered by the new framework are too large and require too much investment to be tendered on an annual basis. The concession system gives exploration and production rights to the highest bidder, Brazilian or foreign, in exchange for an exploration commitment, an agreement to buy a minimum of related goods and services in Brazil- usually more than half - and the payment of a royalty. All oil produced is owned by the concession holder and can be sold wherever the owner wishes. This system still applies to all areas outside the Subsalt Polygon, an area that comprises most of the Campo and Santos offshore basins south and northeast of Rio de Janeiro, already home to more than 80 percent of Brazilian output. Those basins are also where the main subsalt finds were made. All future development in the Subsalt Polygon will be done under production sharing contracts. (Reporting by Jeb Blount; Edited by Alonso Soto and Jim Marshall) ============

Santos, BG to link Australia LNG pipelines in bid to cut costs

Thu, Jul 04 01:18 AM EDT By Rebekah Kebede PERTH, July 4 (Reuters) - Australia's Santos Ltd and BG Group PLC agreed on Thursday to link their major gas pipelines, allowing them to buy, sell, and swap gas supplies - a move that will help slash costs at a time when they have been hit by budget overruns. The long-awaited first step toward collaboration between three coal seam gas to LNG projects under construction on Australia's seaboard should result in savings of hundreds of millions of dollars, according to Santos. The connection between the two projects' pipelines will also allow upstream gas field operations to continue when their liquefied natural gas plants are shut for routine maintenance. "We're spending less than $50 million on this, but we think it will generate savings over the long term of many times that," Rod Duke, Santos vice president of Gladstone LNG Downstream, told Reuters. "We expect that this will be just one of many mutually beneficial arrangements across the industry in the future," Duke said. Santos, BG, and Origin Energy are leading the construction of three separate coal seam gas to LNG projects on Queensland's Curtis Island at a total cost of more than A$60 billion ($54 billion) but have been criticized for failing to collaborate and save costs. Santos' Gladstone LNG project has seen its costs jump around 15 percent from $16 billion to $18.5 billion, while BG's Queensland Curtis Island LNG has seen a 36 percent blowout to $20.4 billion from $15 billion, mostly due to a strong Australian dollar. There may also be collaboration with Arrow LNG, a fourth coal seam gas to LNG project that is a joint venture between Royal Dutch Shell and PetroChina , although the project appears to have stalled. This year, Origin Energy offered Arrow the opportunity to work together on the expansion of its A$24.7 billion plant under construction on Curtis Island. ================ Entire Pakistan is talking of this Mega corruption carried out by hungry rulers from PML-N, but shameless brothers are least bothered.They are bent upon doling out such huge amounts of this poor cash starved country without any certification or Audits just in haste to fill their own pockets. The unfortunate part of this episode is that despite such hue & cry from all over the country on these payments, our Mr. Suo-Moto is sleeping as nothing is happening around. The mega corruption of Rs 100 billion in clearing circular debt By Shafiq Awan ISLAMABAD: PML N stalwart will earn Rs 100 billion as commission out of total payment of circular debt 500 billion. The said stalwart is a family member of Mian Nawaz Sharif and holds an important ministry at federal government. He is said to be the caretaker of Mian Nawaz sharif’s finnical interest. Sources disclosed that after this deal it was decided to clear all the circular debt. The political circles and financial experts were surprised to know how a huge amount of 500 billion rupees was set to clear within months. Later it was disclosed by a CEO of an energy company that this was decided after paying 20 percent commission. However he admitted that during past regime this commission was between 10 to 15 percent but PML N Government raised this ratio with the promise of more benefits to the companies. He was hopeful that through 20 percent commission their payments would not be held in future and they would be accommodated in rates as well. He further disclosed that this deal was struck during the recent visit of the Energy and the said Minister to UAE. Sources further disclosed that all the payments have been made in advance in UAE. The said CEO admitted the commission is a routine matter but 5 percent addition by the current regime is the only difference. Sources disclosed that a commission of 20 percent was settled between the Energy companies and PML N to clear the debt. The energy companies were insisting to fix the rate up to the 15 percent but later it was mutually agreed to 20 percent with the commitment that no more companies would not be asked to pay further amount to any government functionaries including ministers. Sources disclosed the Minister related to Energy and power Sector demanded the companies for his share but he was told this job is related to Finance Ministry so he could not be accommodated in this deal as it has nothing to deal with the production of electricity or fixing the rates. Later the said Minister was asked not to interfere in this matter. But his cronies continued pressurizing the energy companies after he was warned again and at a moment he was about to replaced but he was advised to behave and ultimately he decided to surrender. Sources disclosed that the said Minister interfered on the behest of family MNA of Sharifs. Talks underway with India over LNG imports News Comments (0) Online50 min ago | Comments (0) NEW DELHI - Talks between India and Pakistan to export natural gas from the former to the latter through a pipeline are underway. State gas utility GAIL’s Chairman and Managing Director B Tripathi proposed to lay a 110 km pipeline from Jalandhar to the Wagah border via Amritsar to supply natural gas to Pakistan. Gas in its liquid form (liquefied natural gas or LNG) will be imported via ports in Gujarat and will be moved through GAIL’s existing pipeline network till Jalandhar. The proposed line will ensure the transfer of gas from Jalandhar to Wagah. “Pakistan has demonstrated interest in taking LNG from us to meet its energy demand and the export is techno-commercially feasible. We can carry the process forward if the government of India approves it and if we can reach a commercial agreement,” Tripathi said. Pakistan initially wanted to import 1-1.5 million tonnes of LNG, however, pricing and other commercial negotiations are currently ongoing, he added. LNG imports to India currently range between $13 and 14 per million British thermal units after including customs or import duty, pipeline transportation charges and local taxes, thus the price upon delivery will be close to $21. Although Pakistan currently does not have an LNG import facility, it is willing to buy LNG from GAIL provided that India exempts it from taxes to bring down the cost.