Emperor Energy Ltd (ASX:EMP) recently welcomed completion of the pre-front end engineering design (pre-FEED) study for its Judith Gas Field offshore Victoria and is now focused on establishing a farm-in partner for the critical Judith 2 Exploration/Appraisal Well.
The design basis for the pre-FEED is 80 million standard cubic feet per day of sales gas across a 25-year project life with gas processing to meet the AS4564 gas sales specification.
Scope of the pre-FEED included:
- Design for a Gas Processing Plant, Subsea Pipeline and Export Pipeline to connect to the Eastern Gas Pipeline;
- Refinement of indicative project cost estimates and project scheduling; and
- A budget estimate for a front-end engineering design (FEED) or feasibility study.
The pre-FEED was completed by APA Group and is the first stage of work to be progressed from the Memorandum of Understanding (MoU) established between the companies in October 2019.
Eastern Gas Pipeline connectivity
Design of the Judith processing plant is based on using available space adjacent to the existing Orbost gas processing plant to construct a separate gas train tailored to the Judith gas composition.
Sales gas would be delivered through an 11-kilometre x 250-millimetre Nominal Bore export pipeline running in parallel with the existing Orbost export pipeline.
This would then deliver gas to an upgraded Newmerella gas metering station connecting into the Eastern Gas Pipeline.
The Eastern Gas Pipeline is a key gas supply artery between the Gippsland Basin in Victoria and NSW and transports natural gas to demand centres in Sydney, Canberra and Wollongong as well as a number of regional centres.
Project execution and scheduling
The pre-FEED study provides a Project Execution Plan laying out the basis for project delivery organisation, procurement strategy, contracting strategy, fabrication methodology, logistics, construction methodology, commissioning and testing.
This study has indicated that a final investment (FID) could be achieved 14 months after commencing the project front end engineering (FEED) otherwise referred to as a full feasibility study.
Commercial operation could then be achieved within a further 38 months of the FID.
A budget estimate of the cost of the FEED has been forecast at A$9 million.
Extension of Vic/P47 permit term
On December 30, 2020, the company announced that the National Offshore Petroleum Titles Regulator (NOPTA) had approved its application to suspend and extend the primary term of the Vic/P47 exploration permit to August 22, 2023.
Approval from NOPTA extends the timing for drilling of the Judith 2 Exploration Well by 30 months from February 2021 to August 2023.
The company’s application for an extension is primarily based on the imminent availability of new seismic data that will be generated from the Multi-Client 3D seismic acquisition completed across the Offshore Gippsland Basin.
It has also taken into consideration the impact of COVID-19 on the petroleum exploration industry.
The additional time will allow Emperor to accurately assess the new seismic data, further develop planning of the well and progress securing an exploration and development partner for the project without the threat of a pending permit deadline.
Location of VIC/P47 offshore Gippsland Basin showing regional permits along with oil and gas fields.
Establishing farm-in partner
Emperor’s focus going forward continues to be the establishment of a farm-in partner for the Judith 2 Exploration/Appraisal Well.
To date, the company reports an encouraging level of interest from potential partners and is confident that the Judith Gas Field is a highly sought after opportunity in a proven hydrocarbon province.
The opportunity now also exists to kick off the feed or feasibility study early and commence the project approval process with the relevant government authorities to reduce the longer-term risk of approval delays.