AUSTRALIA PACIFIC LNG PROJECT AWARDS CSG DRILLING CONTRACT TO TITAN ENERGY RIG BUSINESS
Australia Pacific LNG, the joint venture between ConocoPhillips, Sinopec and the local Origin Energy, awarded a long-term rig contract for drilling at coal-seam gas wells in Queensland. The deal for Titan Energy Services is connected with the development of Australia's largest CSG reserves, held by Origin and its partners in the Surat and Bowen basins, and to be transported by a 530-kilometres pipeline to the LNG plant under construction on Curtis Island, near the port of Gladstone.
APLNG is one of three CSG-to-LNG projects under development on Curtis Island. Each will require several thousand producing CSG wells over the life-span of the liquefaction plants.
Titan said the rig contract was for six months with a six-month option and without the renewal would still be worth more than $5 million. Titan Managing Director Jim Sturgess said Titan subsidiary Atlas Drilling would execute the contract with a SchrammTXD rig and it's expected to be operational by next month.
"This is another significant agreement for Titan and Atlas Drilling and enhances the business's reputation as a valued partner to the major CSG companies," Sturgess said.
"While this new agreement will not affect our guidance for the year, it provides a level of earnings certainty and highlights the great progress Atlas and Titan have made in a relatively short period of time," he added.
LNG Journal 26/11/2012
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