Gulf Energy Signs LOI For TS Jasper Jackup MODU
Gulf Energy Pty Limited (Gulf Energy) is pleased to announce that it has signed a non-binding Letter of Intent (LOI) with Titan Drilling LLC (Titan) of the USA for the services of the TS Jasper jackup MODU. Gulf Energy’s intention is to use the TS Jasper to drill its Lion Prospect, which has been independently assessed to have the potential to hold as much as 10 Tcf of estimated recoverable gas resources. It is currently intended to drill the Lion-1 exploration well in mid-2026, subject to several factors including receiving all necessary regulatory approvals.
Titan is a wholly owned subsidiary of Greenbond Group, registered in Delaware USA, with its HQ in Houston Texas. Greenbond is in the process of funding the purchase of the TS Jasper and plans to use it to develop a series of small fields of the NW Coast of Australia. The rig is currently in Singapore and is anticipated to be delivered by the end of 2025. It will be offered to the Australian market for approximately one year before deploying to the NW Coast to work as a MODPU. The TS Jasper is a KFELS N+ type and is one of the largest designs of jackup drilling rig available.
The LOI between Gulf Energy and Titan describes a number of conditions and milestones to be achieved including negotiating a drilling contract, which will begin shortly.
The signing of the LOI coincides with the recent policy announcement by the Commonwealth Government of its Future Gas Strategy is very encouraging and recognises that new sources of gas supply are needed to meet demand during the economy-wide transition.
In releasing the policy, Resources Minister Madeleine King said:
“Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities.”
“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.
“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions.
“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.”
The most recent forecasts by the Australian Competition & Consumer Commission (ACCC) and the Australian Energy Market Operator (AEMO) have forecast gas supply shortfalls in meeting predicted east coast Australian demand in the next few years. AEMO also predicts that early next decade there will be insufficient gas available in eastern Australia to supply LNG export contracts that Australia has with its Asian partners.
New sources of gas will be need and the Bamaga Basin, with an independently assessed high side potential to hold more than 35 Tcf of estimated recoverable gas resources, could be a major contributor to meeting Australia’s gas shortfall challenge.