Browse Basin Research Articles

An operational and scientific monitoring program (OSMP) for the Prelude and Ichthys fields: a case study from the Browse Basin

An OSMP is the principle tool for determining the extent, severity, and persistence of environmental impacts from an oil spill. The OSMP developed for the Shell Prelude and Inpex Ichthys gas fields has 13 operational monitoring programs (OMPs) and 12 scientific monitoring programs (SMPs) reflecting the complexity of the environment in which the developments are located. A partnership of organisations led by the Australian Institute of Marine Science (AIMS) will provide specialist expertise to help implement the OSMP. This unique multi-disciplinary partnership, comprising AIMS, CSIRO, University of Western Australia, Curtin University, WA ChemCentre, and Monash University, guarantees capability and capacity, reducing the level of risk incurred by individual organisations within the partnership. Fundamental to the success of any OSMP is the existence of adequate, fit-for-purpose baseline data against which post spill observations can be compared to determine the extent and severity of the spill and assess effectiveness of oil spill response. In addition, we believe adequate baselines with sufficient temporal resolution are essential for OSMP credibility and maintenance of the scientific reputations of partners. In committing capability to the OSMP implementation, AIMS and its partners have adopted a risk-based approach to assessing the adequacy of existing baseline data, to identify knowledge gaps, and assess the significance of those gaps and the feasibility of filling them. This extended abstract describes the structured approach taken to analyse the various risks and to develop a balanced suite of environmental baseline studies to address these risks.

Horizon Based Target Orientated Beam Demultiple with Examples from the North West Shelf, Australia

Complex inter-bed multiple in the North West Shelf, Australia, is a problem for depth velocity modelling and imaging of Jurassic reservoirs. Traditional Radon & 3D-SRME (3D Surface Related Multiple Elimination) demultiple techniques are now standard processes for removing long period and waterbottom related multiples. However, throughout the Browse Basin, deeper multiple generators and the small velocity discrimination between primary have rendered these techniques ineffective against inter-bed multiples. Beam Migration has specific advantages in its speed and high signal-to-noise levels that make it suitable for depth velocity modelling and final imaging. Wavelets can, based upon a combination of criteria, be weighted down or excluded from reconstruction. It is possible to reject wavelets that match a multi-dimensional multiple model. This model is based upon a combination of interpretation, normal moveout and spatial & temporal location. Data examples from the North West Shelf, Australia, illustrate the flexibility of this approach and demonstrate its effectiveness in the complex inter-bed multiple area of Browse Basin. Close interaction and good understanding of the objectives, especially between the imagers and the asset team is required for the project' success. Interactive or quick testing of multiple model scenarios (through combined depth velocity model building software) is necessary to aid this interaction.

Stratigraphic architecture of an Early–Middle Jurassic tidally influenced deltaic system (Plover Formation), Browse Basin, Australian North West Shelf

Understanding the internal stratigraphic architecture of sand-dominated deltas is critical to assessing the extent and distribution of petroleum reservoirs. The stratigraphic architecture and evolution of a major Early–Middle Jurassic fluvio-deltaic system (Plover Formation) on the Australian North West Shelf has been established through integrated analysis of core, borehole image logs and wireline logs for the Calliance field in the Browse Basin. Six facies associations identified in cored intervals are interpreted as tidally influenced channel- and tidal channel-fill complexes (FA1–FA2), crevasse-splay deposits and interchannel marshes (FA3), heterolithic mouthbars and sandflats (FA4), sandy mouthbars (FA5) and offshore transition to offshore (FA6). Therefore, the overall depositional system in the study area is proposed to be a tidally influenced deltaic system, in which FA6 represents prodelta deposits, FA5 and FA4 constitute distributary mouthbar deposits of the delta front and tidally influenced channel and interchannel deposits represent the lower delta plain (FA2, FA1, FA3). Analysis of image lithology and fabric are used to extend interpretation to uncored intervals and to identify intrusive and extrusive igneous units and associated volcaniclastic facies within the formation. Five third-order stratigraphic sequences (S1–S5) record progradational (S1, S2 and S4) and retrogradational (S3 and S5) phases of delta evolution. Paleocurrent indicators derived from borehole image logs indicate common southerly directed sediment dispersal in S2 and S3 and increasingly complex with westerly directions in S4 and S5. Two rift-related depositional phases are recognised separated by a phase of uplift between S3 and S4. The stratigraphic succession of S2 is consistent with the depositional pattern expected in a synrift setting and deposition of the over-thickened sandy succession (FA5 in S4), which is also the major reservoir interval, was most likely controlled by syn-tectonic faulting.

Browse to Bonaparte stratigraphic evaluation

After an initial 2010 stratigraphic, depositional environment and facies determination study of 75 wells in the Browse Basin, TGS has pushed this high-resolution project north into the Bonaparte Basin area. The study incorporates a further 165 wells located across the Ashmore Platform, Vulcan Sub-basin, Londonderry High, Malita and Calder Grabens, Sahul and Flamingo synclines, Laminara and Flamingo highs, Sahul Platform, Troubadour Terrace, and offshore Petrel Sub-basin areas. This multi-basin project has combined all the selected relevant public data into one interpretation study and is delivered in an integrated environment—wells are standardised and sequences interpreted. Once depositional environment and facies are allocated, multi-element maps are produced showing how the basin environments change through time and structural evolution. Stratigraphic interpretation has determined 37 sequences and 32 associated facies maps. Both Browse Basin (140,000 km2) and Bonaparte Basin (270,000 km2) are relatively less explored and at different ages in their exploration life-cycle. Both have proved to be oil and gas bearing across numerous different stratigraphic ages with a wide range of trapping and reservoir methods. This study aims to further aid North West Shelf exploration by delineating, among other facets, the presence or otherwise of rocks with reservoir and seal potential and by identifying structural elements such as the Petrel Sub-basin salt diapirs. This regional well data stratigraphic approach has been used across all the UK and Norway continental shelf hydrocarbon provinces. TGS sees the Australian North West Shelf as a province where this approach will further assist sub-surface understanding, and hence exploration success.

A petroleum geological overview of the 2013 offshore acreage release for petroleum exploration

The Australian Government formally releases new offshore exploration areas at the annual APPEA conference. The previous two releases were characterised by several large, gazetted areas in underexplored regions, a trend that is maintained this year with several frontier areas comprising more than 100 graticular blocks on offer. The recent uptake of new exploration permits in the Bight Basin, the offshore North Perth Basin, and the Roebuck Basin indicates a continuing strong industry interest in offshore frontier exploration. A total of 31 areas in 13 geological provinces are formally released in 2013, and work program bids are invited for two rounds closing on 21 November 2013, and 22 May 2014. Area gazettal was, again, well supported by industry nominations. The areas on offer are represented by an even mix of shallow and deepwater areas, as well as by areas close and distant to previous discoveries and producing fields. The Northern Carnarvon, Browse, and Bonaparte basins dominate new exploration opportunities in the 2013 release, while only four areas were gazetted in the North Perth, Otway, and Gippsland basins. These also deserve attention as they have exploration potential in underexplored parts of the basins and offer opportunities to test new play concepts. Data coverage varies from being excellent in more mature areas to sparse in underexplored areas such as the North Perth Basin. The Australian Government continues to assist offshore exploration activities by providing free access to a wealth of open-file geological and geophysical data.

PSDM for improved imaging under seafloor channels - Browse Basin, Australia case study

In the Browse Basin, as in many areas of the world, complex seafloor topology can cause problems of seismic imaging. This paper compares ways in which imaging can be improved under seafloor channels, using both time and depth domain processing. In the time domain, to improve on the standard PSTM we applied removable seafloor statics in order to reduce the push down effect under seafloor channels prior to migration. This allows for better event continuity in the seismic imaging below. However this approach does not fully tackle the problem still giving sub-optimal imaging, leaving amplitude shadows, and structural distortions. Only depth domain processing with a migration algorithm that honours the paths of the seismic energy as well as a detailed velocity model can provide good imaging under these seafloor channels, and give confidence in the structural components of the exploration targets in this area. We therefore performed depth velocity model building followed by PSDM, and produced a much improved result.

Temporal variability of the standing internal tide in the Browse Basin, Western Australia

We have investigated the seasonal evolution of the internal tide using a yearlong mooring record in the Browse Basin on the Australian North‐West Shelf. Using a modal harmonic‐decomposition technique, we studied the modulation of the semi‐diurnal kinetic energy, potential energy, energy flux, group velocity and sea surface height anomaly for different internal wave modes. A very coherent and energetic, locally generated internal tide dominated the mooring record during spring‐tide periods. Relationships amongst the wave variables suggest that the interaction of multiple waves formed a standing wave pattern. To assist in explaining the seasonal variability of this standing wave pattern, we used an analytical model of internal wave generation and propagation in a double‐shelf system, representative of the area, to highlight the effects of changes in the stratification and barotropic forcing. A comparison of the low‐mode wave energy indicated that the analytical solution overestimated the observed wave energy by a factor of two and failed to detect an apparent seasonal shift in the conversion rate. We discuss potential mechanisms for this discrepancy.

Browse Basin sequence stratigraphic study

In addition to the large gas fields already discovered in the Browse Basin, there is considerable scope for further exploration success because this basin holds an estimated recoverable reserve of 30 tcf gas. TGS has completed the Browse Basin Sequence stratigraphic study to specifically understand the many depositional environments of this basin by a comprehensive analysis of 75 key wells all tied to extensive 2D seismic interpretation. With a standardized lithostratigraphic and chronostratigraphic interpretation, each well has a full 3rd order sequence boundary record across all logged sections, and was subsequently assigned detailed gross depositional environments (GDE). Tied to the GDE’s are specific and highly detailed facies associations, displayed in 26 facies maps, thereby building a robust multi-sequence geological model constrained by sequences. These basin-wide facies maps delineate known source, reservoir and seal and propose where—within the robust geological model—potentially similar facies have been deposited and preserved. This extended abstract is delivered by the Facies Map Browser (FMB), a unique product, containing all data and interpreted maps. The Browse Basin FMB allows users to quickly understand the basin-wide depositional history and interpreted facies. With the multi-well and multi-source background database, the FMB product has proven to shorten the exploration cycle by its sheer level of detail and wide ranging interpretation.

Integrated approach to drilling dynamics challenges in the Browse Basin

The use of drilling dynamics measurements has traditionally focused on improving downhole tool reliability. This, however, is a limited scope and in recognition of this, drilling dynamics is approached as a process that starts early in the planning stage of a project and targets the performance of the complete drillstring. Failures or inefficiencies associated with drillstring dynamics continue to occur in spite of the sophistication of today's measurements, particularly in exploratory projects that extend the present drilling envelope. Several methodologies were integrated to address the challenges of drilling dynamics and overcome frequent failures observed on the initial exploratory work on the Browse Basin. A steep learning curve was achieved by accelerating the improvement cycle using advanced modelling techniques and obtaining optimum designs without the need of multiple trial and error cycles. This extended abstract also describes the use of real-time dynamics measurements to quantify the risks related to drillstring vibration, a critical need for the drilling environment observed in the basin that ties planning work into the execution stage. Finally, the project cycle is closed with the evaluation of drilling performance using data-handling tools that allow the effective use of large amounts of drilling data generated during the execution and feedback into a new planning cycle. The extended abstract describes the implementation of drilling dynamics modelling to assist performance improvement, but more importantly, the methodology to incorporate it into a real-time decision-making process that maximises the value of technology implementation.

Designing the world's largest semi-submersible central processing facility

What are the key design considerations driving the successful delivery of the world’s largest semi-submersible Central Processing Facility (CPF), to be installed at the Ichthys gas field in the Browse Basin, 200 km offshore North West Australia? Extreme cyclonic weather conditions, separating condensate from the gas stream, accommodating 150 personnel, and the sheer size of the gas processing unit at 110,000 tonnes, have created unprecedented challenges for the Ichthys design team. This extended abstract explores the design and planned construction of this massive piece of equipment. The CPF, measuring 110 m x 110 m, will be anchored to the seabed in about 250 m of water using 28 mooring chains. During the 40-year life of the project, the unit will collect gas from a network of up to 50 subsea production wells drilled into reservoirs 4,000–4,500 m beneath the seabed. From the CPF, condensate will be sent to a Floating Production Storage Offtake (FPSO) vessel moored nearby. The gas will be compressed and sent by an 885-km subsea pipeline to Darwin for processing into LNG, LPG and residual condensate. INPEX with its Ichthys joint venturer, Total, will be shipping 8.4 million tonnes of LNG and 1.6 million tonnes of LPG a year, as well as 100,000 barrels of condensate a day at peak. Successful delivery of the Ichthys Project will ensure INPEX achieves its goal of becoming the operator of a major LNG facility, while helping reach its target of producing 800,000 boe/d by 2020.

Petroleum geological summary of the 2012 offshore acreage release for petroleum exploration

The Australian Government formally releases new offshore exploration areas at the annual APPEA conference. In 2012, 27 areas in nine offshore basins are being released for work program bidding. Closing dates for bid submissions are either six or twelve months after the release date, i.e. 8 November 2012 or 9 May 2013, depending on the exploration status in these areas and on data availability. As was the case in 2011, this year’s Release again covers a total offshore area of about 200,000 km2. The Release Areas are located in Commonwealth waters offshore Northern Territory, Western Australia, South Australia, Victoria and Tasmania (Fig. 1). Areas on the North West Shelf feature prominently again and include under-explored shallow water areas in the Arafura and Money Shoal basins and rank frontier deep water areas in the outer Browse and Roebuck basins as well as on the outer Exmouth Plateau. Following the recent uptake of exploration permits in the Bight Basin (Ceduna and Duntroon sub-basins), Australia’s southern margin is well represented in the 2012 Acreage Release. Three new areas in the Ceduna Sub-basin, four areas in the Otway Basin, one large area in the Sorell Basin and two areas in the eastern Gippsland Basin are on offer. Multiple industry nominations for this Acreage Release were received, confirming the healthy status of exploration activity in Australia. The Australian government continues to support these activities by providing free access to a wealth of geological and geophysical data.

Jurassic–Cretaceous boundary ammonite Blanfordiceras (Mollusca: Cephalopoda) from Fortissimo-1 Wildcat Well, Browse Basin, Northwest Shelf, Australia

Jurassic–Cretaceous ammonites are particularly robust fossil tools in global stratigraphy and correlation. The successive evolution and extinction of these cephalopod mollusks was so rapid that many ammonite zones are no more than one million years in duration. A well-preserved ammonite specimen from the Fortissimo-1 core, Browse Basin, NW Australia is assignable to the widespread latest Jurassic dimorphic berriaselline genus, Blanfordiceras Cossmann, recorded previously from the Spiti area, Nepal, Tibet, Madagascar, Papua-New Guinea, Antarctica, and southern South America. This is the first report of ammonites of this age in the Australian region. The evolute shell of an estimated 90-100 mm diameter (when extrapolated) and pronounced ornamentation of variably bifurcating, curvilinear and flexuous ribs, intercalated with simple, non-bifurcating ribs, is consistent with Blanfordiceras wallichi (Gray, 1832), which has traditionally been restricted to the uppermost Tithonian Stage, ca. 146.5-145.5 Ma, but may well have survived into the earliest part of the Berriasian. The first recorded occurrence of this ammonite in Australia fills an anomalous absence in the paleobiogeographic distribution of Jurassic–Cretaceous boundary ammonites in the Indo-SW Pacific Subrealm with important implications for the calibration of offshore rocks and wells in Australia.

Internal tide dynamics in a topographically complex region: Browse Basin, Australian North West Shelf

[1] Field observations and numerical circulation modeling revealed the spatial variability of the tidally driven dynamics in the topographically complex, continuously stratified, macrotidal environment of the Browse Basin on the Australian North West Shelf. Internal wave generation occurred at a number of discrete topographic features, and the resultant interaction of multiple waves led to a spatially variable internal wave climate. The generation of baroclinic energy was most intense in regions where the barotropic tide was aligned with steep topography. Generation of low-mode internal waves occurred at the inner-shelf break, where the ratio of tidal excursion distance to topographic length scale was large. In contrast, generation of high-mode beam-like internal waves occurred at the outer-shelf break, where the ratio of tidal excursion distance to topographic length scale was very small. The most efficient conversion from barotropic to baroclinic energy occurred at the outer-shelf break. The internal waves generated at the inner- and outer-shelf breaks interacted to produce a partly standing internal wave, resulting in a large along-shelf energy flux, and discrete locations with small ratios of horizontal kinetic energy to available potential energy. This phenomenon is likely to occur in other regions with semienclosed topography and multiple generation sites.

Seismic geomorphology and growth architecture of a Miocene barrier reef, Browse Basin, NW-Australia

The Cenozoic succession of Browse Basin is characterized by a carbonate system, that developed from a non-tropical ramp in Eocene-lower Miocene times to a tropical rimmed platform in the middle Miocene. The evolution of the platform was unraveled through the interpretation of the seismic geomorphology and borehole data of the middle Miocene tropical reef system. The first reef structures developed during the early middle Miocene as narrow linear reef belts with an oblique orientation with respect to shelf strike direction. Subsequently, they prograded toward the platform margin to form a barrier reef with a minimum length of 40 km. The barrier reef itself comprises three distinct ridges separated by progradational steps. The second and third step are separated by a karstified horizon, which is interpreted to represent the global sea-level fall shortly before the Serravallian/Tortonian boundary. The following third ridge formed in a slightly downstepped position during the sea-level lowstand and initial transgressive phase. Further sea-level rise during the early Tortonian first drowned the barrier-reef system and subsequently also the patch reefs and relic atolls that had established in a backstepped position in the platform interior. The similar evolution of the Browse Basin reef system and other contemporaneous carbonate systems indicates a strong impact of eustatic sea-level changes. Relatively large subsidence rates in the study area possibly augmented the eustatic sea-level rise in the Tortonian and hence contributed to the drowning of the reef system. However, the initiation and final demise of the reef system was also governed by global and regional climate variations. The first seismically-defined reefs developed simultaneous to a maximum in the transport capacity of the Indonesian throughflow, which brings warm low-salinity waters to the North-West Shelf. Reef drowning followed the restriction of this seaway close to the middle to early Miocene boundary. This near closure of the Indonesian seaway possibly led to a regional amplification of the global middle to late Miocene cooling trend and hampered the potential of the reef system to keep up with the rising sea-level.

New insights into reservoir sand provenance in the Exmouth Plateau and Browse Basin

A pilot study to determine if zircons present in reservoir facies of the North West Shelf can be used to identify provenance and sediment transport pathways has analysed samples from three wells: Guardian–1 and Hijinx–1 (Carnarvon Basin), and Burnside–1 (Browse Basin). Operating companies Chevron, Santos and Hess collected 3–5 kg of cuttings from sandstone bodies intersected in the three wells. Samples were sent to Geoscience Australia for zircon separation and analysis at the Geochronology Laboratory on a sensitive high-resolution ion microprobe (SHRIMP). To provide a statistically meaningful representation of ages in each sample, 70–80 grains were randomly selected for analysis. During the past 20 years, Geoscience Australia and the state geological surveys of WA, NT, Queensland and SA, together with the ANU, UWA and Curtin University, have analysed zircons found in igneous and sedimentary rocks that outcrop in WA and central Australia. This analysis has been done to determine the ages of emplacement, extrusion or maximum depositional ages. This dataset permits the ages of potential onshore provenance areas to be differentiated; hence, correlations can be made between zircons contained within the transported sands and their potential source regions from onshore Australia. In this extended abstract, the spectrum of ages in each sample will be shown, and potential provenance and sediment transport pathways will be discussed. The abstract concludes with the outline of a 2–3 year project to obtain a dataset that will provide a regional stratigraphic and spatial coverage of the North West Shelf for provenance studies.

Geological overview of the 2011 offshore acreage release for petroleum exploration

The Australian Government formally releases new offshore exploration areas at the annual APPEA conference. In 2011, 29 areas in eight offshore basins are being released for work program bidding. Closing dates for bid submissions are either six or 12 months after the release date (i.e. 13 October 2011 and 12 April 2012)–this depends on the exploration status in these areas and on data availability. The 2011 Release is the largest since the year 2000 with all 29 areas located in Commonwealth waters offshore NT, WA, Victoria and Tasmania, covering about 200,000 km2. The producing hydrocarbon provinces of the Carnarvon, Otway and Gippsland basins are represented by gazettal blocks that are located close to existing infrastructure and are supported by extensive open file data-sets. Other areas that are close to known oil and gas discoveries lie in the Caswell Sub-basin (eastern Browse Basin) and on the Ashmore Platform (northwestern Bonaparte Basin). A particular aspect of the 2011 release is provided by 13 areas in under-explored regions offshore NT and WA–all of which range from 100–280 graticular blocks in size. These areas, located in the Money Shoal, outer Browse, Roebuck, northeastern Carnarvon, Southern Carnarvon and North Perth basins, offer new opportunities for data-acquisition and regional exploration. The release of three large areas in the Southern Carnarvon and North Perth basins is supported by new data acquired and interpreted by Geoscience Australia as part of the Offshore Energy Security Program, which selected results are being presented at this year’s conference.

Shell's integrated quantitative interpretation workflow

Shell Development Australia is a major asset holder in the Browse Basin and the Carnarvon Basin in the North West Shelf of Australia. In 2007, Shell Development Australia embarked on an integrated quantitative seismic interpretation project related to the Triassic Mungaroo Formation in the Carnarvon Basin. The main objective was to constrain the uncertainties in using seismic data as a predictor for rock and fluid properties of fields and prospects in the basin. This project followed a workflow that has been proven in other basins around the world, whereby the vertical and lateral variability of rock properties of both reservoir and non-reservoir lithologies are captured in general trends. The calculated trends are based on well log extractions of end member lithologies and the input of petrographic information and forward modelling. In combination with a regionally consistent 3D burial model for the estimation of remaining porosity, these established rock trends then allow for a prediction of various acoustic responses of reservoir and pore fill properties. The comparisons between the pre-drill predicted rock properties and the properties encountered after drilling at different reservoir levels have lead to a general confidence that the reservoir properties can be derived from seismic data where well data are not abundant. This increased confidence will play a major part in Shell’s attitude towards appraisal activities and decisions on various development options.

A sound exposure level study near the Camden Sound area, Browse Basin

A common approach to environmental risk assessment when assessing the level of risk to marine animals during marine seismic surveys is to compare either measured or modelled estimates of underwater sound levels to a known sound level threshold criteria. Over the years, a number of measures have been used to calculate and characterise underwater sound thresholds, including: sound pressure level (SPL), a root mean square (RMS) calculation, and—more recently—sound exposure level (SEL). SEL was suggested in 2007 by an expert panel of researchers as an appropriate measure to reduce the risk of temporary threshold shift (TTS) occurring in marine animals. Petroleum Geo-Services (PGS) commissioned an SEL study in preparation for a large MultiClient 3D seismic survey planned for the environmentally sensitive Camden Sound area, Western Australia, in late 2010. The Centre for Marine Science and Technology (CMST) at Curtin University built a comprehensive bathymetric model of the Camden Sound area and used two seabed geoacoustic models, with sand/limestone—as worst case, most reflective—and silt—as best case, least reflective. Acoustic propagation modelling over the frequency range of 8–1 kHz was used to build 3D maps of sound levels throughout all areas relevant to the seismic survey. The CMST SEL modelling results were integrated with other airgun array and SEL modelling pursued by PGS, and represent part of a broader environmental management strategy by PGS. Discussion is also given to other variants of SEL modelling.

Exploration in Australia 2000–2010: reviewing a decade of growth

Oil and gas exploration in Australia, both on and offshore, has been centred on a small number of proven petroleum provinces and—given the extent of prospective basinal area that exists—it remains relatively under-explored to this day. Since the 1970s, companies have progressively spent a smaller proportion of their exploration budgets on onshore and shallow water targets, where discoveries have been regular yet unspectacular, in favour of the deeper waters, where higher risks are involved but the potential exists for significantly higher returns. This activity has led to the discovery of more than of 150 Tcf of gas in the North Carnarvon, Browse and Bonaparte basins, the majority of which sits in deepwater areas. An absence of infrastructure and a lack of an adequate market meant that these huge discoveries lay undeveloped; however, with developments in technology and demand for gas in Asia set to surge into the next decade, these previously stranded fields are set to move into development, underpinning economic growth in Australia and ensuring that the country moves to the forefront of the LNG industry worldwide. This paper will examine upstream activity, both on and offshore, in Australia since 2000, a decade in which the country has become one of the most prominent destinations for exploration expenditure in the world. Following the exploration cycle from acreage release through to discovery, it will look at how trends and activity have changed over time and examine how successful the industry has actually been. It will explore the factors driving activity and the effects external forces such as regulatory changes, oil price and prevailing economic conditions have had on activity levels. No post-Conference paper is available for this presentation. No post-conference paper is available for this presentation.

PESA 2010 production and development review

2010 was another busy year for Australian hydrocarbon production and development. Natural gas production was the standout performer with both domestic gas and LNG production increasing by about 5% compared to 2009. Domestic gas output was strong with significant growth in production from the Gippsland Basin, coal seam methane in the Surat-Bowen Basin, and the start-up of the Blacktip gas project in WA. Domestic gas output is set to reach record levels again next year and has strong growth prospects in the future with final investment decisions being taken on coal seam gas projects in Queensland and the Macedon project in WA. Australian LNG production increased 4.5% in 2010 accounting for 34% of Australian hydrocarbon production. LNG production will grow further in 2011 with first gas expected from Pluto LNG project during the year. Oil production was steady in 2010; however, it is set to increase in 2011 with a full year of production from the Van Gogh and Pyrenees projects. Production levels only tell part of the Australian hydrocarbon story. In addition to the proposed domestic gas and oil projects, the combined value of committed and potential LNG projects in Australia has surpassed $100 billion. A highlight of 2010 was the final investment decision on the A$15 bn Queensland Curtis LNG Project (QCLNG). The first phase of QCLNG will consist of two LNG trains with a combined capacity of 8.5 million tonnes per annum, with first LNG exports expected in 2014. QCLNG is the first of many proposed coal seam gas to LNG (CSG-LNG) developments in Queensland. Other CSG-LNG projects reached significant milestones this year. Of particular note is the federal environmental approval of Gladstone LNG and state environmental approval of Australia Pacific LNG. In WA, the Browse LNG project complied with all Browse Basin retention lease conditions and remains on track for a targeted final investment decision in 2012. Other major LNG projects including Ichthys and Wheatstone also continue to make positive progress towards a final investment decision in the next 24 months. Sunrise, Prelude and Bonaparte LNG set a technology milestone in the industry with all three selecting floating LNG (FLNG) as their preferred development concept. 2010 has also seen the emergence of further new technologies in the form of small scale LNG projects for resources previously considered un-commercial. This has opened the door for South Australia and New South Wales to enter the LNG export market in the future. The Australian hydrocarbon industry continues to grow and its global importance, particularly in LNG, reflected by the increasing number of foreign companies entering Australia. In 2010, Shell and PetroChina increased their involvement in the Australian industry purchasing Arrow Energy for A$3.5 bn. CNOOC has increased its involvement in a number of areas, including purchasing a 5–10% stake in QCLNG and investment in CSM exploration through Exoma Energy. GDF Suez and Total have reinvigorated their interests in offshore WA and Petrobras made their first entry into Australia acquiring an interest in exploration acreage offshore WA. 2010 was an active year for Australian hydrocarbon production and development–continued success depends on the successful execution of committed and proposed projects. Escalation of development costs and a looming skills shortage remain the largest risks to the Australian hydrocarbon industry as multiple projects attempt to move forward simultaneously.