Helix, Petro Talaria eye Inpex, Santos gas assets

Petro Talaria and the US-based oil and gas company Helix Energy are understood to be homing in on Australian oil and gas assets, including both West Australian interests owned by Santos and Inpex and the company Northern Oil & Gas Australia.

While Jadestone was expected to be the group that would chase the Inpex assets in Australia’s West, it is now understood that they are in the cross-hairs of Petro Talaria, which has close ties to Helix.

Apparently, Helix Energy and Petro Talaria had been offered preferred bidder status earlier this year for what has been dubbed Project Sunflower.

On offer has been the Van Gogh, Coniston and Novara oil fields jointly owned by Inpex and Santos, a floating production facility, the Ravensworth oil field and the Scafell gas field which is yet to be developed.

The Van Gogh, Coniston and Novara oil fields are close to depletion with an estimated 2 million barrels remaining.

A further drilling campaign is needed on the assets and is expected to cost up to $US380m ($560m). This would create three wells to provide 7-9 m illion barrels of reserves. Inpex holds a 47.5 per cent interest in the projects, with Santos, the operator, holding the remainder.

It is now understood that Santos is also eager to sell out of the West Australian assets that it owns with Inpex and is working with investment bank Deutsche on the sale.

The assets carry remediation costs that are believed to be worth $US550m and it is understood that they will be sold for a nominal amount.

The oil reserves in the asset are declining.

Meanwhile, Northern Oil and Gas Australia is in the hands of accounting firm KPMG and has liabilities worth $US225m.

The company has the Laminaria-Corallina development in the Timor Sea, 550km northwest of Darwin and the Northern Endeavour double hulled floating production storage and offloading vessel, permanently moored between the Laminaria and Corallina oil fields in the Timor Sea.

Helix Energy is Texas-based and is listed on the New York Stock Exchange with a $US1bn market value while Petro Talaria is a recently launched company run by an Australian-based oil and gas specialist.