Oil and Gas News

Beach Energy sets sights on new target

Otway offshore

Beach Energy released its investor update this week, in which it outlined its low-risk strategy targeting 28 million barrels of oil equivalent (MMboe) in the second half of 2024. 

Targeted growth represents a compound annual growth rate of 13 per cent and incorporates Beach’s sustainability focus to deliver a 25 per cent emissions reduction from 2018 by 2025. 

Beach Energy is also aspiring to reach net zero emissions by 2050. 

Beach Energy managing director and CEO Matt Kay said the company’s diversified base business is slated to deliver material gas production growth in the near-term through the recently completed Kupe Inlet Compression project.

“Beach’s corporate strategy focuses on filling our gas plants and supplying gas into the tightening Australian East Coast, New Zealand gas and international LNG markets,” Kay said. 

“The successful delivery of first gas from the Kupe Inlet Compression project and the recently signed HOA with hp for all our marketed Waitsia Stage 2 LNG volumes represent the first run on the board as we look to deliver our growth strategy.” 

The Offshore Otway wells and Waitsia Stage 2 Gas Project are expected to provide significant production uplifts in the future, with the first offshore Otway wells on track for connection in early 2022. 

Kay added the company had completed front end engineering design (FEED) studies for the Moomba carbon capture and storage (CCS) project, led by joint ensure participant Santos. 

“This is a nation-leading project, which represents a true step-change opportunity in our emissions reduction agenda,” he said.

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