Chevron secures new acreage off Australia

US-based energy giant Chevron, has paid A$3 million (Approx: US$2.3 million) for a cash bid permit to secure the right to explore an area off the Western Australian coast for the next six years.

The award was made as part of the Australian government’s process of releasing offshore areas for future petroleum (oil and gas) exploration.

Minister for resources and Northern Australia senator Matt Canavan said this was the first cash bid permit to be awarded since the process was re-introduced in 2014.

“The new permit is in a gas-rich part of the Northern Carnarvon Basin very close to the Gorgon Gas project and Pluto LNG, offshore of Western Australia between Onslow and Dampier,” Canavan said.

The cash-bid auction for the 2016 offshore petroleum exploration acreage release was held on February 2, with two companies prequalified for the auction. At the close of the auction, one bid was received for release area W16-7, from Chevron Australia New Ventures.

The remaining cash bid areas, W16-22 and W16-25, did not receive bids and have reverted to vacant acreage. The final round of the 2016 offshore petroleum exploration acreage release will close on 23 March 2017

1 AUD = 0.767572 USD