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Global Oil And Gas News Updates

Posted on August 13, 2009

Royal Dutch Shell PLC said it has struck gas in the Browse Basin offshore Western Australia state, possibly supporting its plans to build what could be Australia's first floating liquefied natural gas plant. The discovery was made at the Concerto-1 well in Shell's fully owned permit WA-371-P, which is close to the Prelude gas field. It is the 10th well in a 12-well drilling campaign in that permit and follows the initial Prelude-1 discovery there in 2007, made 16 kilometers away. The news comes just days after Shell Australia Chairman Russell Caplan reiterated that Prelude remains a "strong contender" to be the first major Shell development using new floating LNG technology.

China PetroChemical Corporation (Sinopec Group) said Wednesday its wholly-owned subsidiary Sinopec International Petroleum Exploration and Production Corporation (SIPC) is to sell a 40 percent interest in an offshore oil and gas exploration block in Australian waters to CPC Corporation, Taiwan. The deal is the second cooperative Australian venture between the two companies. They previously took an interest in Italian energy giant Eni's offshore oil block AC/P21 in 2004. SIPC, focusing on overseas oil exploration and production for its parent company, won a bid for an interest in NT/P76 block in Australia in 2008. SIPC and CPC negotiated interest transfer in Singapore in June and reached a consensus. CPC said the deal was a major step for the company in expanding its ownership of oil resources and would improve its energy supply sustainability. Located in Bonaparte Basin 300 kilometers north of the Australian city of Darwin, the block covers 4,715 square kilometers and is estimated to have a natural gas reserve of 13 trillion cubic feet.

PT Hess Indonesia said it believed it has found a huge gas reserve in the Semai V field in the Arafuru sea off Papua. The Semai V field may hold gas reserve as big as that of Tangguh, Hess operation superintendent Joseph Witjaksono said. The Tagguh gas field in the Bintuni Bay of Papua has a reserve of 14 trillion cubic feet, the country's largest gas reserve being operated by BP. Witjaksono said geological basin in Semai is similar to that of the Tanggug block indicating the reserve could be the same in size. He said Hess Indonesia will soon carry out feasibility study to determine the proven reserve of the block. Hess was awarded the block through a tender defeating a number of other major bidders including Shell, Total, Inpex, Marathon and Exxon as well as state oil company PT Pertamina. Hess plans to spend US $143 million for explorations in three years and paid US $40 million bonus to the government, the newspaper Investor Daily said.

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