ConocoPhillips’ hunt for gas offshore Australia continues as Asian firm jumps on the bandwagon

ConocoPhillips Australia (COPA), a subsidiary of the U.S.-headquartered energy giant ConocoPhillips, is getting a new partner for hydrocarbon exploration activities in the Otway Basin off the coast of Australia, where the firm and its partners will look for more commercially viable natural gas reserves.

Following the submission of a proposed Otway Exploration Drilling Program (OEDP), the Australian regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), gave its blessing to COPA for its offshore drilling campaign off the coast of Victoria and Tasmania.

As a result, seabed surveys and drilling activities for up to six exploration wells were to be undertaken in VIC/P79 and T/49P offshore titles in Commonwealth waters, adjacent to existing natural gas developments in the Otway Basin. Transocean’s Transocean Equinox semi-submersible drilling rig will start the drilling part of the work in Q3 2025.

Korea National Oil Corporation (KNOC) is the latest partner to join the Otway gas hunt in the two permits, according to ConocoPhillips’ partner, 3D Energi, a Melbourne-based oil and gas exploration player whose subsidiary, TDO, holds a 20% interest in both permits, while COPA has the remaining 80% stake.

Subject to regulatory approvals, 3D Energi will retain a 20% participating interest in both permits after COPA, which will continue as the operator, farms down its stake to 51%, with KNOC assuming a 29% interest. 3D Energi has underlined that the COPA well carry for up to $65 million in gross drilling costs remains in place.

Noel Newell, 3D Energi’s Executive Chairman, commented: “I believe it is incredibly encouraging that KNOC will join our Otway joint venture subject to regulatory approvals – it supports our view of the exceptional prospectivity in our permits and the overall commercial opportunity.

“KNOC is a fully integrated oil and gas company which operates globally. 3D Energi welcomes KNOC and looks forward to working with them as the Joint Venture progresses toward becoming a significant East Coast gas producer.”

The company emphasizes that this exploration program has been further bolstered with KNOC’s investment participation and exploration expertise, reinforcing the commitment to finding new natural gas discoveries to supply domestic gas to Australia.

This gas search is said to have the potential to enable the JV to become a key player in meeting Victoria’s and the broader East Coast’s future energy demands from 2028 and structural supply gaps from 2029.