NT project pipeline outlookLuke Bowen, General Manager Investment Territory

Department of Trade, Business and Innovation

Territory GSP and SFD Growth

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

09 10 11 12 13 14 15 16 17 18 19 20 21 22 23Year ended June

SFD (Territory

GSP (Territory

Treasury Forecast

Investment Territory

Established as a recommendation of the ‘A plan for budget repair’ Report

• The Territory economy needs stronger economic growth than the 3.5 per cent currently forecast.

• Investment Territory has been set the ambitious goal of doubling the Territory’s growth rate to 5%.

• Reaching the growth rate target of 5% would see an additional $1 billion in the Territory economy and thousands more jobs.

• Achieving this is only possible through sustainable economic development, attracting private sector investment to create jobs.

Department of Trade, Business and Innovation

56% of the global population

lie within this region

Indo-Pacific Region

TheTerritory.com.au

15/03/19 Developing the North – challenges and opportunities

TheTerritory.com.au

Investor journey context

Department of Trade, Business and Innovation

Policy contextStrategy

developmentInvestment promotion

Investor engagement

Investor facilitation

Investor aftercare

The Territory is

a competitive

investment

environment with

policy settings

that support

investment

Investment

opportunities

(product

development),

needs and

priorities are

identified

There is an

awareness of

the Territory as

an attractive

investment

destination

Positive

experience

and interest in

investing in

the Territory

Commercial

propositions

converted into

real investment

and jobs

Project delivery

supported and

additional

investment

pursued

OU

TCO

MES

Developing bankable concepts

Economic agencies and Economic Innovation

Market Engagement Commercial facilitation

Gathering leads Closing and facilitating investment

Investment Territory

Department of Trade, Business and Innovation

Anne Tan

General Manager

Luke Bowen

General Manager

Hayley Richards

Senior Executive Director

Commercial Facilitation

Cathy White

Senior Executive Director

Shaun Drabsch

CEO

Sibylle Brautigam

Deputy CEO

Zoe McManus

A/CFO

Luke Bowen

Investment Territory

Wendy Pritchard

Market Engagement

Jason Howe

Oil & Gas

Jason Finlay

Facilitated Projects

Guy Boekenstein

Defence & National Security

Scott Wauchope

Priority Sectors and Trade

Giovian D’Alessandro

Shiplift Project

Shane Thornton

Local Jobs Fund

Hayley Richards

Commercial

Facilitation

Commercial Facilitation group takes a sales approach which

comprises:

• employing a pipeline management methodology

• triaging projects to establish support required with a focus on

projects ‘most likely to convert’ ; and

• Case Manager for all ‘real’ projects.

Department of Trade, Business and Innovation

Pre-FID projects:

capex value by sector

Agribusiness

Defence -Infrastructure

Defence - Sustainment

Horticulture

Maritime

Minerals

Oil and Gas -Downstream

Oil and Gas - Midstream

Oil and Gas - Service and Supply

Oil and Gas - Upstream Pastoral

Property Development -Residential

Services

Space

Tourism

Fisheries and Aquaculture

Renewable Energy

The pipeline

Department of Trade, Business and Innovation

Three broad tiers of assistance, customisable to need

Tier 1

Proposal is small to moderate in scale

and capable of being accommodated

through existing assessment and

approval processes.

Support: Initial advice through

assigned case manager.

Service could include:

• referral and introductions to relevant

internal expertise, other NTG

agencies, business networks, industry

groups

• negotiating with proponent and

referring to relevant agencies where

issues arise.

Tier 2

Proposal is non-standard, moderate to

large scale or complex proposal.

Likely to have significant capital

investment, employment, strategic

impact. (significant project)

Support: Assigned case manager to

assist with approval planning and

inter-agency coordination may include

formal documentation through

exchange of letters, MOU, PFA.

Tier 3

Very large or complex proposals that

have significant investment and

potential to create significant

employment with strategic importance

(major project, facilitated investment

project), typically will involve a PDA

Support: Case manager possibly

with team to assist with Government

related aspects in the Territory’s

interest.

Department of Trade, Business and Innovation

• Offshore gas reserves > 30 Tcf

• Onshore P50 Gas-In-Place Resource for the Velkerri B-Shale alone of > 500 Tcf across the Beetaloo Sub-basin

• The Velkerri resource is 4 x Ichthys Field,using an estimated ultimate recovery of 10%

• Santos’ 4-stage vertical hydraulic stimulation at Tanumbirini-1 returned ‘better than expected gas flow rates’

• Origin completed horizontal sidetrack at Kyalla 117 N2 - initial results demonstrate ‘good reservoir continuity…and continuous gas shows’

Gas resources to support the Vision

4/03/20 Oil & Gas Industry Roundtable

21

Location, Market Access

• Strategic location provides access to boutique export markets

• Gas fields within 500 km of Darwin

Affordable Gas Supply

• Significant resources offshore and onshore

• Need efficient production, collection and transportation

Policy & Investment Settings

• Globally competitive environment

• Reviewing policy levers & options

• Facilitating competitive investment e.g. NAIF

4/03/20 Oil & Gas Industry Roundtable

Land,Infrastructure,

Services

Efficient Market Access

Policy & Investment

Settings

Affordable Gas Supply

Critical NT Industry Development Factors

Land, Infrastructure, Services

• Gas Manufacturing and Processing Precinct

• Enabling infrastructure

• Common user model

22

4/03/20 Oil & Gas Industry Roundtable

Northern Gas Manufacturing and Processing Precinct

East Arm Logistics Precinct

WharfMarine Supply Base

Ship LiftLight Industry

Supporting

Industry

Petrochemicals

Methanol

Gas to Liquids

Strategic

Minerals

Utilities

Ammonia

Cluster

CCS Hub

LNG

LNG

Power

Station

Potental

LNG /

Petrochemicals

• Development model based on concept of industrial ecology e.g. Kwinana Industrial Estate

• Diversification options include condensate processing, methanol and ammonia

23

Offshore Projects

4/03/20 Oil & Gas Industry Roundtable

Project Scope Cost Status

1. Barossagas field

Field and pipeline

US $4.7b • FID Q2 2020

2. Darwin LNG refurbishment

Major renovations to existing plant

US $600m • FID Q1 2020

3. Bayu-Undandecommissioning

Remove offshore infrastructure

US $700m • Approx. 2023

4. Evans Shoal gas field development

Field and pipeline

US $5-6b • Pre-FEED for DLNG backfill

5. Petrel gas field development

Field development and pipeline to Darwin

> US $1b • Acquiring 3D seismic

24

Onshore Projects

4/03/20 Oil & Gas Industry Roundtable

Project Scope Cost Status

1. Beetaloo Sub-basin - Kyalla wet gas- Velkerri dry gas

Appraisal

Appraisal

A$30m

A$30m

• Origin plan to drill Kyalla 117 N2 and Velkerri 76 S2 in 2019/20

• Santos drilling, hydraulic fracturing and flow testing Tanumbirini-1 2019 Inacumbaand Tanumbirini-2 2020

2. McArthur Basin Exploration

Production

Farm-in

Exploration

tbc

A$95m

• Imperial plan at least one exploration well in 2020

• Armour preparing production licenceapplication at Glyde gas discovery

• Santos agree to $95m farm-in to Armour QLD and NT permits

• Pangaea, SweetPea and Minerals Australia also active in Beetaloo/ McArthur Basin

3. Amadeus Basin Exploration

Exploration

Exploration

A$10m

A$51m

tbc

• Santos/Central suspend Dukas-1 well in 2019 due to significant over-pressure, plan to re-enter in 2021

• Central to spend $51 m in 2020 supported by asset farm-out

• Black Rock seeking board approval for exploration program

2.1.

Onshore projects map

3.

25

Gas Manufacturing and Processing Projects

4/03/20 Oil & Gas Industry Roundtable

Project Scope Cost Status

1. CoogeeMethanol Plant

350,000t p.a.methanol plus oxygen, nitrogen and argon gases

A$500m • Under feasibility• FEED decision 2020• FID 2021

2. Darwin Clean Fuels

Condensate processing plant

A$1.2b • BFS and pre-FEED underway • FEED decision Q2 2020• FID 2021

3. BMT Waste Management Facility

Treatment of mercury and NORM waste

A$30m • Addressing long term waste storage solutions

4. Micro LNG LNG for remote energy users

A$100m • In FEED

Laverton methanol plant (Coogee)

Loading truck at micro LNG plant Kwinana

26

Darwin Ship Lift

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