Senex Energy Limited (Senex) has reached agreement with Beach Energy Limited (Beach) to construct an oil export flowline to the Moomba processing facility from the Growler oil field.
The project comprises the construction of two flowlines:
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a six inch, 70 km liquids flowline with an initial capacity of 8,000 barrels of oil per day from the Growler oil field to the Lycium oil field; and
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an eight inch, 74km liquids flowline with an initial capacity of 15,000 barrels of oil per day from Lycium to the liquids plant at Moomba.
Senex will hold a 60% interest in the Growler to Lycium flowline and a 40% interest in the Lycium to Moomba flowline at a combined net cost to Senex of approximately A$20 million, with Beach holding the remaining interests.
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The flowlines will be constructed and operated by Beach, and orders have been placed for the manufacture of the six inch and eight inch pipe and other long lead items.
It is expected that the construction and commissioning of the flowlines will be completed by June 2012, subject to SACB Joint Venture agreement to the tie-in of the flowlines into the Moomba facility.
Construction of the flowlines will provide the Growler oil field participants with significant benefits when compared to existing trucking arrangements, including:
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providing certainty of oil production transportation to market;
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significantly improved transportation economics;
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economic upside as planned development and exploration activities provide additional reserves and production; and
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potential for further economic benefits through third party oil transportation.
Senex and Beach have agreed the principal terms of the project and will now commence the negotiation of formal documentation.
Senex's managing director, Ian Davies said: "The Western Oil Flowline Project continues our significant investment in the western flank of the Cooper Basin.
"We have a substantial exploration and development program planned for the Growler oil field and adjacent areas in the coming year which is expected to significantly increase reserves and production.
"The flowlines will provide major benefits to the Company as it continues to grow," he said.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
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