Australian independent Beach Energy has been dealt a blow at its Thylacine-Geographe gas project in the Otway Basin offshore Victoria, Australia, where one of three newly installed Thylacine flowlines failed a hydro pressure test and will need to be repaired or replaced.
“The fact that one of the Thylacine flowlines needs to be replaced is disappointing news, however we remain on schedule to connect two of the four wells in the coming months,” said Beach chief executive Morne Engelbrecht.
The Thylacine West-1 and -2 well connections are to be delayed pending the flowline repair or replacement however the Thylacine North-1 and -2 well connections remain on schedule for connection by mid-2023, confirmed Beach.
Earlier this year, the operator has received approval of its environmental plan for installation of the four Thylacine development wells and the DOF vessel has arrived on location for the subsea installation work. Also, Beach has completed the required modifications at its Thylacine platform to handle the new wells.
However, in April a flowline hydro pressure test failure occurred during testing of one of the flowlines, which will impact connection of the Thylacine West-1 and -2 wells.
No hydrocarbons were released and there has been no impact to current production at the Otway gas plant, which is to receive gas from the four new wells.
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“Activity to connect the Thylacine North-1 and -2 development wells is continuing. Targeted first gas from these wells in mid-2023 remains unchanged,” said Beach.
“[However], connection of the Thylacine West-1 and -2 development wells will be delayed pending flowline repair, or a replacement being secured. Updates on timing and activities will be provided following review of the hydro test failure and confirmation of the approach to connect these wells.”
Enterprise-ing progress
Meanwhile, Beach is progressing the development of its nearshore Enterprise field — also offshore Victoria — and is targeting first gas in the middle of the 2024 financial year, subject to receipt of land access approvals. Progress to date this year for Enterprise includes completion of pipeline construction, completion of tie-in activity at the Otway gas plant and the start of pipeline testing.
Beach’s third quarter 2023 production was impacted by a planned 10-day shutdown of the Otway gas plant to perform tie-in activities for the Thylacine and Enterprise wells while including turbine maintenance.
Lower customer nominations also contributed to the production decline in the three months ended 31 March, noted the operator, with average gas production of 78 terajoules per day gross from the Otway gas plant compared to 89 TJ per day gross in the previous quarter.