Indonesia’s LNG imports are expected to be resilient despite COVID-19, with imports expected to hit 3.1 million tonnes (Mt) in the second half of 2020, a 1.2 Mt or 63 per cent increase year-on-year. Indonesia’s LNG consumption has continued to rise from the second quarter of 2020 at 1.1 Mt and appears to be well-cushioned against the impact of COVID-19. Reduced pipeline gas and low spot prices are likely to support Indonesia’s LNG demand. The government has also recently introduced a set of regulations aimed at lowering domestic gas price to US$6 per million British thermal unit (mmbtu) for seven key... more

Australia’s resources industry has welcomed the announcement by the South Australian Government to commence work on sealing the Strzelecki Track – a key transport corridor connecting the state’s far north-east. The State Government will invest $10 million to seal the first 50-kilometres of the 472-kilometre Strzelecki Track, starting north of Lyndhurst. 31 jobs are expected to be created over the life of the project, which will commence in the third quarter of this year, with expected completion in the last quarter of 2021, weather permitting. “Sealing the Strzelecki Track has been talked about ... more

Following feedback received from diving contractors and other interested parties, NOPSEMA has published for public comment a draft revision of its Diving guidelines - Complying with the diving safety regulations. The draft revision is the first step of a review process. During the drafting process, NOPSEMA identified a number of issues that would benefit from further industry discussion to see if consensus on approaches can be achieved. NOPSEMA will be engaging an independent diving subject matter expert to consult with the diving industry, international regulators and Australian government departments. T... more

According to analysis by Wood Mackenzie (Wood Mac), the oil price crash wiped US$1.6 trillion off the valuation of the global upstream industry. Andrew Pearson, vice president, upstream detailed that this figure captures the impact of Wood Mackenzie’s downgraded long-term Brent price assumption – now US$50/bbl (2020 terms), rather than the previous US$60/bbl – and much more. Since the crash: Global upstream development spend for 2020 is 30 per cent lower than Wood Mac’s pre-crash view. North America is hit hardest; along with Africa and Asia. These regions may never recover to pre-crash lev... more

The Federal Government has announced that it will be investing a further $125 million in an exploration-stimulation program that will expand its reach to cover the whole of Australia. The Government’s investment adds to the $100 million previously spent on Geoscience Australia’s Exploring for the Future (EFTF) program which uses a series of geoscientific techniques to map the geological structures. The retrieved data creates a better understanding of Australia's mineral, energy and groundwater systems and helps to realise Australia’s economic potential. Over the past four years, the EFTF has worked a... more

Following the continued cancellation of US liquefied natural gas (LNG) cargoes, Adrian Lara, Senior Oil & Gas Analyst at GlobalData, has offered his view on the current situation. According to Mr Lara, one of the reasons why the US is experiencing a high number of cargo cancellations has to do with the flexibility embedded in the selling of contracts, which is proving to be an advantage for LNG buyers. “The US tolling scheme establishes a penalty generally equal to agreed liquefaction fixed costs of US$2 to US$3 per million British Thermal Units (mmbtu), which is normally a lower penalty when compare... more

As a consequence of its ambition to become a net zero company by 2050, a review of its portfolio and its capital development plans, the COVID-19 pandemic having an enduring impact on the global economy and a possible weaker demand for energy for a sustained period, as well as a possible acceleration of transition to a lower carbon economy and energy system, BP p.l.c. (bp) has revised its long-term price assumptions. bp has lowered its long-term price assumptions and extended the period covered to 2050 to align with its ambition horizon. As part of its long-term strategic planning, and in the context of ... more