BP executed an agreement with Cue Energy Resources to acquire equity in two North West Shelf exploration permits in the Carnarvon basin, offshore Western Australia.
Cue Energy Resources said in its statement on Thursday that BP will acquire 80 percent equity in the WA-409-P permit becoming the operator. In addition, the London-based giant will fund 100 percent of the work program under the permit for the first three years of the license renewal.
Following the completion of the transaction, subject to government approval, Cue Energy Resources will retain 20 percent equity in the WA-409-P exploration license.
BP has also secured an option to acquire 42.5 percent equity in WA-359-P, agreeing to fund 50 percent of the well drilling in the license as well as to assist Cue Energy Resources in securing partners for the WA-359-P exploration well drilling campaign scheduled for the first half of 2018.
A regional study has already been completed by Cue identifying the Ironbark prospect which straddles the two licenses, the WA-359-P and WA-409-P. The prospect has a technical estimate of 15 trillion cubic feet of recoverable gas resource in place.
Grant Warner , Cue executive chairmen said that “if Cue’s assessment is proven to be correct, Ironbark would be three times the size of the Scarborough, Wheatstone, or Pluto fields.”
Cue added that Wood Mackenzie estimates that the North West Shelf LNG plant and infrastructure will have spare capacity from 2021, noting that the Ironbark prospect provides a viable commercialization option due to its proximity to the North Rankin platform (North West Shelf LNG) and Pluto and Wheatstone LNG infrastructure.
BP holds a 16.7 percent non-operated interest in the North West Shelf joint venture. The Karratha Gas Plant, a part of the North West Shelf project, has an annual LNG export capacity of 16.9 mtpa.
LNG World News Staff