Aluminium Industries

[?]e Volume of Papuan Gas

Artling Possibilities In Oil And

By a Staff Writer

It would be unwise, at this stage, to assume that the joint iterprise of the oil companies in Papua is finished.

DSE who have been pessimisti aliy assuming that Papua has leen dealt a severe economic should make a study of the ts on operations issued hly over the past three years lustralian Petroleum Co. Ltd. ey will discover that, while is now a possibility hor ror oil will cease next year, is more than a possibility mat it flow of gas, tapped by the ires in 1956 and 1957 will be issed for commercial purposes, 3 great profit of the Territory.

The Facts

! APC reports always have presented in carefully chosen , and no conclusions were of drawn therefrom. These the facts the reader could his own conclusions, re have been references in ; months to a notable flow from Barikewa bore, and an ntal reference to a gas emis rom the bore at Kuru No. 1. has to go back to the begin ►f 1956 to discover the signifi of these gas flows. r as in January, 1956, that gas pped in Kuru No. 1, and there •eferences to it in subsequent ly reports. ; not generally realised that wed out of Kuru No. 1 at the nenal rate of 30 million cubic sr day; that it took APC ex six months (until the middle 6) to shut off that colossal md that any flow of gas from exceeding three million cubic 3r day is regarded as having srcial value. imably, that gas reservoir at No. 1 is now under control ady for exploitation.

Impressive Reservoir

as late 1957 before another sive gas reservoir was tapped •ikewa, about 50 miles from No. 1. (These are two of a of bores put down by APC jungle, across the top of the f Papua).

"ts who have studied the APC have said to PIM: “There ot seem to be the slightest that gas is there in huge y, capable of commercial ation —if use can be found

for it”.

At first glance, there is no use for this gas.

Actually, it is possible that it may be of great value, as a means of refining to aluminium the great masses of oxide ore discovered in 1957 at Weipa, near the base of York Peninsula, in Northern Queensland.

The British Aluminium Company, and other connec ed interests, pro pose to work the Weipa bauxite deposits. The original plan (see p. 20 of PIM of June, 1957) was to mine and partially treat the de posits at Weipa, and probably also the deposits at Arnhem Land (in Northern Territory) and then ship

the resulting alumina across Torres Straight for refinement in Papua.

(Continued on page 145)

The smelting of alumina calls for a massive electricity supply. It was proposed to harness the Purari River at some point between the central mountains of New Guinea, end the Gulf of Papua; produce hydro-electric power, which would be carried some 300 miles across c * u T x 17 to the deep-water harbour of Hall Sound (between Yule Island and the mainland of Papua;) and biuld a huge refinery and safe port at Hall Sound.

During 1957, and up to the present time, engineers have been examin ing the problem of harnessing the Purari River; and studying, also, the alternatives of carrying the power by land-line across to Hall Sound or to some other suitable port which perhaps could be constructed on the coast of Papua, nearer to the Purari River.

But, in the meantime, there ob viously have been important new developments. They include: • Realisation that gas may be present underground in such quantities at the top of the Gulf of Papua that it could provide the motive power for the generation of River ICty ’ instead of the Purari • The announcement by the American section (Vacuum) of the combined oil companies that it did not wish to proceed further with wie joint boring operations in Papua, on which approximately £3O million Australian has been spent over the past 20 years. P • The apparent embarrassment of the British section of the com bined oil companies (British Pet roleum Ltd. and Oil Search Ltd.) m trying to decide what to do in relation to further oil boring, after

the American unit drops out, late this year. • The obvious concern of the Australian Commonwealth Govern ment at the possibility of the oil boring programme in Papua being discontinued.

The following known facts have a bearing upon this general situa tion ; At the present, the oil production of the world is in excess of the world’s demand for oil. This must have a bearing upon any considera tion of the Papua boring pro gramme.

The oil companies concerned are to meet in London in June or July to decide upon the future boring programme, if any.

It has been announced that the piesent boring programme will be completed by about the end of 1958; and that the companies do not wish to surrender the area in which they had struck a flow of gas.

Would Stop Boring

It has been presumed that the British section would not seek another partner to take the place of Vacuum, and would agree to dis continuance of boring.

However, Australia displayed a lively interest in the situation, and the Minister for Development, Senator Spooner, was sent to Papua to make a survey. He issued a state ment, phrased in language as care ful as that employed in recent years by APC, but into which can be read the possibility of some in teresting developments. (See PIM Financial Editor’s Comment, April).

If there should be international disturbance, Australia could be shut off from oil supplies in Indonesia, the Persian Gulf and the Middle East areas.

It is believed that, if there is still a possibility of bringing in an oilfield in Papua, Australia might be prepared to join with British Petroleum (in place of Vacuum) to provide the funds necessary to con tinue the boring programme. The fact that the world, for the moment, is over-supplied with oil does not affect Australia’s strategi cal need for an oilfield.

Decision Soon

Some decision in relation to these lacts, and following the discussions between the Australian Govern ment and the oil companies, prob ity will be made in London shortly.

Meanwhile, there has been a perceptible slowing-down of all activities by APC —which, of course, plans its boring programme at least a year ahead, and lines up staff and supplies accordingly.

Now, back to the bauxite situa tion. ke taken as certain, on the face of it, that the possibility of using that Papuan gas as a

source of power for the smelting of alumina from North Australia, is being seriously examined.

It would appear that the big aluminium interests have three alternatives in seeking massive elec tric power for smelting, namely— 1. The harnessing of the Purari River, to produce hydro-electric power. 2. The use of Papuan gas, for the running of engines and generators. 3. The burning of Blair Athol coal, for the running of steam en gines, for generating electricity. (The fact that the aluminium in t erests have taken an option over the Blair Athol coalfield, in North ern Queensland, has been pub lished) .

It is believed that, of these; alternatives, gas would be cheapest, and coal the moo pensive.

Some people have suggestea it might be possible to ge: massive electric power fro* Papuan gas and send it by un cable to York Peninsula, for ing purposes. This does not' practicable, but may be unde sideration.

Another suggestion is tha gas can be treated in such that is could be condenses cylinders, to be sent across to; Peninsula, to provide motivef there.

In either case it would seenr a question of which would be<

oical the sending of the la from Weipa to the Papuan or the sending of the gas or c power from Papua to Weipa. a word has been said for time by any of the interests ned about these interesting lities, but some announce may be expected soon.