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    Oz Senex Reduces Supply to GLNG Project

Summary

The gas will be diverted to the domestic market.

by: Shardul Sharma

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Oz Senex Reduces Supply to GLNG Project

Sydney-listed Senex Energy May 26 said it will reduce gas supply from Roma North project in Queensland to GLNG by around 1 petajoules (26.7mn m3) during June to August period at latter’s request, following currently lower LNG offtake requirements at the export project.

Senex and Santos-operated GLNG have agreed to re-direct these volumes to the Wallumbilla natural gas supply hub. Senex will market this gas, together with higher than expected production from Atlas project, to east coast gas customers as a part of its supply portfolio, it said.

Natural gas production continues to outperform at both Roma North and Atlas in the Surat Basin, with production now exceeding 34 terajoules/day (0.9mn m3/day), Senex said. Given continued production and reservoir outperformance, Senex said it will further reduce the number of wells to be drilled at Atlas project to 45 wells from 50 wells (previously reduced from 60 wells). Additional wells to maintain plateau production are to be drilled in the next campaign, it said.

Senex expects to complete the current drilling campaign in the coming weeks, with final wells to be brought into production during June 2020.

Meanwhile, the company has upgraded its FY2020 (July-June) production guidance “following strong production performance across its Surat Basin assets, and assuming continued normal operations in the current pandemic environment.” Senex has increased its full year production guidance to 2.0 – 2.1mn barrels of oil equivalent from 1.8 – 2.0mn boe earlier.