Australia: Industry Minister Hails Record Investment in Offshore Exploration

New offshore petroleum exploration promises $580 million over the next three years following the granting of exploration permits in Commonwealth waters off Western Australia and South Australia.

Industry Minister Ian Macfarlane announced the new permits, as part of the second round of the 2012 Offshore Petroleum Exploration Acreage Release.

 “This record investment in offshore exploration shows that the resources sector in Australia remains strong.  The opening up of new oil and gas exploration areas like the Great Australian Bight will ensure that Australia has enough energy to meet our future needs. This shows that Australia is an attractive destination for investment in offshore exploration and sends a clear signal that Australia is open for business,” Macfarlane said.

The flow-on benefits of these permits will see up to a total of $730 million in exploration investment over the next six years.

The specific permits awarded include:

EPP43 (released as S12-1) located offshore South Australia in the Great Australian Bight approximately 350km west of Ceduna, has been awarded to Murphy Australia Oil Pty Ltd and Santos Offshore Pty Ltd. The joint venture proposed a guaranteed work program of 4,000km 2D seismic survey; 2D processing, interpretation and 3D planning with a 4,600km² 3D seismic acquisition and processing program, totalling $50 million. The secondary work program consists of 3D processing, interpretation, one exploration well and post well studies totalling $53 million. There were two other bids for this area.

EPP44 (released as S12-2) located offshore South Australia in the Great Australian Bight approximately 200km west of Ceduna, has been awarded to Chevron Australia New Ventures Pty Ltd. Chevron proposed a guaranteed work program of geological and geophysical studies, 9,000 km² 3D seismic acquisition and two exploration wells, totalling $237 million. The secondary work program consists of geological and geophysical studies, 1,000 km² 3D seismic acquisition, geological and geophysical studies and prospect review totalling $5 million. There were three other bids on this area.

EPP45 (released as S12-3) located offshore South Australia in the Great Australian Bight approximately 300km south-west of Ceduna, has been awarded to Chevron Australia New Ventures Pty Ltd. Chevron proposed a guaranteed work program of geological and geophysical studies, 12,000 km² 3D seismic acquisition and two exploration wells totalling $249 million. The secondary work program consists of geological and geophysical studies, 1,000 km² 3D seismic acquisition, geological and geophysical studies review totalling $5 million. There were two other bids on this area.

WA-495-P (released as W12-10) located offshore Western Australia approximately 360 km north-west of Exmouth, has been awarded to Shell Development (Australia) Proprietary Limited. Shell proposed a guaranteed work program of 1,650km 2D seismic acquisition and processing, geological and geotechnical studies and 1,260km² 3D seismic acquisition and processing totalling $19.2 million. The secondary work program consists of geological and geotechnical studies and one exploration well totalling $43 million. There was one other bid on this area.

WA-496-P (released as W12-6) located offshore Western Australia approximately 350km north-west of Broome has been awarded Woodside Energy Limited and Mitsui E&P Australia Pty Ltd. The joint venture proposed a guaranteed work program of 3,328km² 3D seismic survey, 3,328km² pre-stack depth migration processing of 3D seismic and geotechnical studies totalling $24.2 million. The secondary work program consists of geotechnical and engineering studies, one exploration well and geotechnical studies totalling $51.5 million. There were no other bids on this area.

Other areas released as part of round 2, NT12-1, T12-2, V12-3, V12-4, W12-7, W12-11 and S12-4 received no compliant bids, while NT12-2 is still under consideration. The Australian Government has obligations under the Perth Treaty to provide the Indonesian Government with three months notification prior to permits being awarded in the Perth Treaty area. At the conclusion of this three month period, the Joint Authority will make a decision.

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Press Release, October 24, 2013