NT supply base turns up gas competition

The Northern Territory has stolen a march on Western Australia by progressing plans for a supply base in Darwin for the oil and gas sector.

The NT government has named a private sector consortium led by ASCO Holdings as the preferred bidder to build, own and operate the Darwin support base.

The decision reflects the NT government’s vigorous push to capture work in the oil and gas field, particularly in the Timor Sea and Browse Basin off WA’s northern coast.

The NT government effectively snatched Inpex’s Ichthys gas project from WA, after it was able to provide an assured site near Darwin for the LNG plant, and is now competing to win work with a supply base for offshore developments.

The competing sites in WA include Broome, which has established infrastructure but is constrained by community concern over the scale of development in the area.

Broome Port Authority chief executive Captain Vic Justice said he was working to bring 54 hectares of land adjacent to Broome Port to project-ready status, and a number of logistics organisations had registered interest to establish commercial premises.

“Logistically, Broome offers everything required to support the Browse Basin proponents, including a fuel tank farm, lay-down areas, trucking services, logistics providers, hospital and medical support, fixed-wing and helicopter services,” he told WA Business News.

 “We are the closest port to the Browse Basin, which is important.” 

Another potential site is Derby, which premier Colin Barnett has previously named as the preferred site for a supply base.

Derby is understood to have community support, but would be a greenfields development with virtually no infrastructure, therefore requiring a large investment.

Inpex is evaluating all three sites – Darwin, Derby and Broome – as a supply base for its Ichthys development, which is scheduled to reach a final investment decision later this year.

Shell has announced it will be using Broome as a drilling and marine support base for its Prelude gas project, while also using Darwin for maintenance work.

The preferred bidder for the Darwin supply base is the ShoreASCO Consortium, which comprises ASCO Holdings, Macmahon Contractors and Capella Capital.

Aberdeen-based ASCO is an international oil and gas logistics company with 20 bases around the world. The Darwin base is due to be completed by the end of 2013.