Oil and Gas News

Vali JV given gas marketing opportunity

The Australian Competition & Consumer Commission (ACCC) has granted authorisation for Vintage Energy, Metgasco and Bridgeport to enter into joint gas marketing arrangements.

The three companies are the joint venture partners at the Vali field, and is in the early stages of development, located in the Queensland Cooper-Eromanga Basin.

The ACCC’s authorisation enables the parties to jointly market gas produced from the Vali field for five years and, within this period, to enter into gas supply agreements with customers on common terms and conditions for terms of up to 15 years.

ACCC chair Rod Sims said the joint marketing is likely to result oil public benefits by enabling earlier development of the Vali field to bring new gas supply to the market sooner.

“Current estimates suggest the annual production from the Bali field will be 0.5 per cent of the annual domestic gas demand in the east coast market,” he said.

“Given the small amount of gas relative to the size of the overall market, this proposed joint marketing is unlikely to adversely affect competition.”

Vintage Energy operate the authority to prospect 2021 Value field and holds a 50 per cent interest in the project. Metgasco and Bridgeport each hold a 25 per cent interest.

Under the joint venture agreement between the parties, Bridgeport may reserve 50 per cent of its share of gas for sale to Brickworks.

At the start of the month Vintage reported that it had reached a total depth of 3240 metres at the Vali-2 well without any safety incidents.

The drilling of the well was lead by the Schlumberger rig team and the contractor group as a whole.

A number of gas shows in the Toolachee and Patchawarra formations and Tirrawarra Sandstone were observed during drilling and these are currently being evaluated by the wireline logging program.

Vintage advised that the primary objectives of Vali-2 were to assess the potential for gas in the Toolachee Formation four-way dip closure, that was not tested in Vali-1 ST1, and to appraise the extent of the Patchawarra Formation gas accumulation discovered in Vali-1 ST1.