Progressing Tie-In of New Oil Trunkline to Moomba
Adelaide, May 25, 2012 AEST (ABN Newswire) - Beach Energy Limited (
ASX:BPT) has been informed by Santos Limited (ASX:STO) that the Tantanna pipeline will be permanently shut down on Friday, 1 June 2012. Santos, as operator of the pipeline between the Tantanna facility and the Gidgealpa facility, advised that the closure of the pipeline was due to integrity concerns.
Work in relation to the construction and tie-in of the new 15,000 barrels of oil per day ("bopd") trunkline (Beach 60% and operator, Senex (ASX:SXY) 40%), between the Lycium Hub and Moomba, is well advanced. This trunkline will replace the Tantanna pipeline and is expected to be operational in Q4 2012.
The closure of the Tantanna pipeline will not have a material impact on PRL 15 (Beach 40%, Senex 60% and operator) and PEL 91 (Beach 40% and operator, Drillsearch (ASX:DLS) 60%), due to the crude oil from these areas being transported to Moomba via haulage trucks. PRL 15 is producing approximately
4,800 bopd (1,900 bopd net), with production recently commencing from the Bauer Field in PEL 91 at 800 bopd (320 bopd net). Bauer production is expected to increase to 2,000 bopd (800 bopd net) following the full commissioning of the Bauer facility.
The PEL 92 (Beach 75% and operator, Cooper Energy (ASX:COE) 25%) pipeline, that transports oil to the Tantanna facility, remains fully operational with current capacity of approximately 6,000 bopd (4,500 bopd net). It is anticipated that the maximum trucking rate of crude oil from PEL 92 will initially be around 2,200 bopd (1,700 bopd net). To minimise the impact of the Tantanna pipeline closure, Beach is sourcing more haulage trucks (expected to be available early Q3 2012) and moving to 24 hour operations to increase rates.
Production is expected to initially decline to approximately 4,000 bopd (net), from current Western Flank production of approximately 7,000 bopd (net). Beach anticipates this reduction will result in total FY12 production of around 7.4 million barrels of oil equivalent (MMboe), down from 7.5 MMboe. Upon completion of the new trunkline into the Moomba facility, Beach anticipates a material increase in production to 10,000 bopd (net) during 2013.
Contact
Beach Energy Limited
T: +61-8-8338-2833
F: +61-8-8338-2336
WWW: www.beachenergy.com.au
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