Arrow Energy Pty Ltd., Dalby, Queensland, a 50-50 joint venture of Shell plc and PetroChina, signed a contract with Silver City Drilling for drilling in Surat basin, Queensland.
The $100 million, multi-year contract will see Silver City Drilling deliver up to 450 gas production wells as part of Arrow Energy’s 27-year Surat Gas Project (SGP).
“Since SGP construction began in late 2020, we’ve brought more than 275 wells online, increasing total production to 250 terajoules of gas per day,” said Arrow Energy chief executive officer Zhengxin Peng.
Through the next phase of the project with Silver City Drilling, Peng said, Arrow Energy plans to drill “an additional 450 wells over the coming years, including 250 as part of the Surat Gas Project North expansion, northeast of Miles.”
Under the agreement, Silver City Drilling will provide two rigs for an initial 3-year term, with options to extend for an additional 2 years.
The first rig is set to begin operations in March. The second rig is expected to mobilize in second-half 2025.
Arrow Energy has been producing natural gas in Queensland’s Surat Basin since 2004. The SGP, underpinned by a 27-year gas sales agreement with Shell Queensland Gas Co., will include up to 2,500 gas wells and produce 4,000 petajoules of gas (OGJ Online, May 18, 2020).
