Rick Wilkinson
OGJ Correspondent
ADELAIDE, Apr. 18 -- Bass Strait's future as a major oil province will continue for some years, according to operator ExxonMobil. The company's lead country manager Mark Nolan said he is confident that the area's 140,000 b/d of liquids output can be held steady.
Speaking at the APPEA Conference in Adelaide, Nolan said ExxonMobil and its 50% partner BHP Billiton were under constant production pressure because of Bass Strait's annual 20%-plus natural production decline rate.
Thanks to high oil prices, however, production from wells flowing as little as 1,000 b/d has become attractive.
After completing a $100 million (Aus.) 3D seismic program early this decade, ExxonMobil has carried out extensive infill drilling in Bass Strait.
Nolan said the company was still working with BHP Billiton on proposals to develop Scarborough gas field on the Exmouth Plateau off Western Australia. The project has not been affected by California's rejection of BHP's proposals to build an LNG terminal at Cabrillo Port off Malibu, he said.
ExxonMobil also is working towards development of the huge Gorgon LNG project on Barrow Island with partners Chevron and Shell as well as the Papua New Guinea LNG scheme announced earlier this month (OGJ Online, Apr. 11, 2007).
On a broader note, Nolan said ExxonMobil is implementing a strategy to reverse the perception that the company is a climate-change sceptic. He said there is increasing evidence that the Earth's climate has warmed during the 20th Century and that many global ecosystems are being affected, particularly the polar areas.
ExxonMobil's response has been to focus on improving efficiency at its refineries and chemical plants and investing heavily in energy-efficient cogeneration.
