Arrow lets contract for Surat basin CSM project

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 27 -- Arrow Energy Ltd., Brisbane, has appointed WorleyParsons as program manager for the front-end engineering and design study for its Surat basin coalseam methane project in Queensland.

The FEED contract will include preliminary engineering, design, procurement, and planning services to allow preparation of the FEED report as well as cost estimate and execution planning required for development of the upstream surface facilities.

The latter include wellhead infrastructure, gathering systems, gas compression, water treatment, and electric power generation.

Arrow says the contract will begin immediately in Brisbane and be concluded during first-quarter 2010.

The Surat project involves the staged development of about 1,500 production wells and associated infrastructure in Arrow’s existing CSM fields at Tipton West, Daandine, Stratheden, and Kogan North.

It will also extend into Arrow’s exploration areas running from Wandoan to Dalby and south to Millmerran and Goondiwindi.

The plan is to significantly lift gas production from the region for the ongoing supply of the Queensland domestic market as well as the proposed Fisherman’s Landing CSM-LNG plant near Gladstone in which the company has an interest.

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