Four offshore petroleum exploration permits, representing $297 million in new investment, have been granted in Commonwealth waters off Western Australia as part of the second round of the 2014 Offshore Petroleum Exploration Acreage Release.
Three of these new permits are located on the northwest shelf, while the fourth permit will extend the search to uncover a new petroleum province in the Great Australian Bight.
“The long-term growth of the oil and gas industry depends on exploration as an essential step in the discovery and development of natural resources. Australia’s oil and gas industry directly employs 24,000 people and tens of thousands indirectly. New exploration will continue to strengthen Australia’s highly-skilled workforce,” Resources Minister Josh Frydenberg said.
“In total, the 2014 Offshore Petroleum Exploration Acreage Release has resulted in 10 new exploration permits being awarded, with possible investment of $473.6 million over the six-year life of the permits.
“At the end of October, the Government will call for bids for round one of the 2015 Acreage Release to continue the strong pipeline of exploration investment into the Australian economy.”
The specific permits awarded from the 2014 Offshore Petroleum Exploration Acreage Release Round Two are:
WA-517-P (released as W14-19) located approximately 400 km east of Esperance, awarded to Santos Offshore Pty Ltd and JX Nippon Oil and Gas Exploration (Australia) Pty Ltd (Santos JX). Santos JX proposed a $3.1 million guaranteed work program comprising 2000km 2D seismic reprocessing, a seepage survey and geological and geophysical studies. The secondary work program comprises 2000km-squared 3D seismic acquisition, geological and geophysical studies and one exploration well totaling $104.1 million. There was one other bidder on this area.
WA-518-P (released as W14-10) located approximately 250 km offshore of Onslow, Western Australia has been awarded to Hess Australia (Karratha) Pty Ltd (Hess Karratha). Hess Karratha proposed a $61.75 million guaranteed work program comprising 885 km-squared of 3D seismic data purchase, reprocessing and inversion studies as well as one exploration well and geological and geophysical studies. The secondary work program comprises well data analysis, geological and geophysical studies and one exploration well totaling $53 million. Hess Karratha was the sole bidder on this area.
WA-519-P (released as W14-12) located approximately 200 km offshore of Onslow, Western Australia has been awarded to Hess Australia (Pilbara) Pty Ltd (Hess Pilbara). Hess Pilbara proposed a $4.5 million guaranteed work program comprising 257 km-squared of 3D seismic data reprocessing and inversion studies as well as geological and geophysical studies. The secondary work program consists of one exploration well and geological and geophysical studies totaling $33.8 million. Hess Pilbara was the sole bidder on this area.
WA-520-P (released as W14-17) located approximately 100 km north of Exmouth, Western Australia, has been awarded to Finder No 10 Pty Ltd (Finder). Finder proposed a $6 million guaranteed work program comprising 1,280 km-squared new 3D broadband seismic data acquisition, processing and interpretation, as well as geological and geophysical studies. The secondary work program comprises 500 km-squared of 3D seismic data inversion, geological and geophysical studies and one exploration well totaling $31 million. There were three other bidders on this area.
Area W14-1 attracted one bid; no offer of a permit was made. The area has been re-released for work program bidding.
Areas W14-3 (Re-release), W14-8, W14-9, W14-11, W14-13, W14-14 (Re-release) and W14?18 did not receive bids and have reverted to vacant acreage.
Areas AC14-1 and W14-6 did not receive bids and were re-released for work program bidding.
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