Six companies have been given a total of ten permits to explore for oil and gas in Australian waters off the Western Australia and South Australian coasts in areas open for bidding under the 2010 offshore petroleum acreage release.
The exploration work that follows will have a combined value of nearly $137 million over three years, with further investment possible depending on initial findings.
The Minister for Resources and Energy, Martin Ferguson AM MP, said broadening our geological frontiers stood to make Australia less reliant on fuel imports which, in turn, enhances energy security.
“Australia has a $16 billion trade deficit in crude oil, refined products and LPG. That figure may double within four years. So everyone who fills up at the bowser has a stake in future discoveries,” Minister Ferguson said.
“But we must meet our energy security requirements in a way that also ensures the safety of workers and the environment. By integrating the lessons of what happened at Montara, we are making sure our oil and gas industry continues to be among the best and safest in the world.
“Earlier this week the House of Representatives passed a package of bills that will further strengthen existing arrangements by establishing a single national offshore petroleum regulator consistent with the core recommendation of the Montara Commission of Inquiry.
“The exploration activities to be undertaken in the Bight region will also be subject to additional conditions, attached to the two permits, recognising the region’s importance in terms of tourism, agriculture and the marine environment.
“Local communities can have confidence that the highest and most stringent safety standards will apply to exploration, with any future work subject to further environmental and regulatory approval processes.”
In line with the deed of agreement between
PTTEP and the Australian Government additional conditions have been placed on the permit granted to
PTTEP Australasia (Ashmore Cartier) Pty Ltd in the Bonaparte Basin off Western Australia.
Detail of Granted Permits
WA-453-P (released as W10-16) in the Barrow Sub-basin of the Northern Carnarvon basin off Western Australia has been awarded to Apache Northwest Pty Ltd. The company proposes a guaranteed work program of 80 km2 3D seismic reprocessing and geotechnical studies to an estimated value of A$0.7m. The secondary work program consists of an exploration well and geotechnical studies to an estimated value of A$25.4m. There were no other bids for this area.
WA-454-P (released as W10-2) in the Joseph Bonaparte Gulf off Western Australia has been awarded to MEO Australia Limited. The company proposed a guaranteed work program of 300 km of new 2D seismic surveying, 750 km of 2D seismic data reprocessing, 400 km2 of new 3D seismic surveying and geotechnical studies to an estimated value of A$4.55m. The secondary work program consists of an exploration well and geotechnical studies to an estimated value of A$20.5m. There was one other bid for this area.
WA-455-P (released as W10-18) in the Barrow Sub-basin of the Northern Carnarvon basin off Western Australia has been awarded to Chevron Barcoo Pty Ltd. The company proposes a guaranteed work program of 600 km of new 2D seismic surveying, one exploration well and geotechnical studies to an estimated value of A$6.5m. The secondary work program consists of an exploration well and geotechnical studies to an estimated value of A$4.5m. There were three other bids for this area.
WA-456-P (released as W10-19) in the Barrow Sub-basin of the Northern Carnarvon Basin off Western Australia has been awarded to Chevron Barcoo Pty Ltd. The company proposes a guaranteed work program of two exploration wells and geotechnical studies to an estimated value of A$8.5m. The secondary work program consists of an exploration well and geotechnical studies to an estimated value of A$4.5m. There were two other bids for this area.
WA-457-P (released as W10-14) in the Dampier Sub-basin of the Northern Carnarvon Basin off Western Australia has been awarded to Flow Energy Limited. The company proposed a guaranteed work program of 322 km2 of new 3D seismic surveying, 403 km2 3D seismic reprocessing, 200 km 2D seismic reprocessing and geotechnical studies to an estimated value of A$4.3m. The secondary work program consists of one exploration well and geotechnical studies to an estimated value of A$22.8m There were two other bids for this area.
WA-458-P (released as W10-10) in the Dampier Sub-basin of the Northern Carnarvon Basin off Western Australia has been awarded to Flow Energy Limited. The company proposed a guaranteed work program of 242 km2 of new 3D seismic surveying, 335 km2 3D seismic reprocessing, 50 km 2D seismic reprocessing and geotechnical studies to an estimated value of A$3.45m. The secondary work program consists of one exploration well and geotechnical studies to an estimated value of A$22.8m. There were three other bids for this area.
AC/P54 (released as AC10-1) in the Vulcan Sub-basin of the Bonaparte Basin off Western Australia has been awarded to PTTEP Australasia (Ashmore Cartier) Pty Ltd. The company proposes a guaranteed work program of 300 km2 of new 3D seismic surveying, an exploration well and geotechnical studies to an estimated value of A$40.3m. The secondary work program consists of an exploration well, 300 km2 3D seismic reprocessing and geotechnical studies to an estimated value of A$35.7m. There was one other bid for this area.
AC/P53 (released as AC10-2) in the Vulcan Sub-basin of the Bonaparte Basin off Western Australia has been awarded to MEO Australia Limited. The company proposes a guaranteed work program of 150 km of new 2D seismic surveying, 500 km2 3D seismic reprocessing and geotechnical studies to an estimated value of A$0.85m. The secondary work program consists of an exploration well and geotechnical studies to an estimated value of A$25.5m. There were no other bids for this area.
EPP41 (released as S10-1) straddling the Duntroon and Ceduna Sub-basins of the Bight Basin off South Australia has been awarded to Bight Petroleum Corp. The company proposes a guaranteed work program of 768 km2 of new 3D seismic surveying, bathymetry survey, geochemical sampling survey, an exploration well and geotechnical studies to an estimated value of A$63.625m. The secondary work program consists of 1969 km2 of new 3D seismic surveying, two exploration wells and geotechnical studies to an estimated value of A$156.2m. There was one other bid for this area.
EPP42 (released as S10-2) straddling the Duntroon and Ceduna Sub-basins of the Bight Basin off South Australia has been awarded to Bight Petroleum Corp. The company proposes a guaranteed work program of 235 km of new 2D swath seismic surveying, bathymetry surveying, geochemical sampling surveying and geotechnical studies at an estimated value of A$3.975m. The secondary work program consists of an exploration well, 405 km of new 2D swath seismic surveying and geotechnical studies to an estimated value of A$49.9m. There were no other bids for this area.
Additional Conditions
In addition to the standard exploration permit terms and conditions, the permits awarded to Bight Petroleum Corporation are subject to the following conditions:
- a well-design and integrity-monitoring plan to assure well integrity within each well drilled, to include detail of maintenance for the active life of the well including quarterly compliance reporting;
- independent certification by the original provider, prior to installation, that each blowout preventer has been satisfactorily tested to design pressures;
- a report detailing hydrocarbon spill mitigation technologies and risk mitigation processes that it will deploy throughout the drill and maintain for the active life of the well; and
- a report delineating relevant operational risks identified and associated risk mitigation strategies and processes that will be deployed by the permittee and any third party contractors involved in the drilling operation.
All offshore petroleum permits operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd are subject to the following additional conditions:
- Within three months from the award of the title and prior to commencement of any offshore petroleum operational activities, the titleholder must lodge with the Regulator, governance processes that will be applied by the titleholder, including how those processes will be applied to any contractor carrying out offshore petroleum activities, throughout the life of the title.
- All well casing and cement design is to be undertaken by an appropriately qualified and experienced engineer.
- Prior to and for a period of up to two months following the completion of the drilling operation, the Regulator may request that a peer review of the drilling operation, including the project management team established for that particular drilling operation, be undertaken. The peer review will be undertaken at the discretion and to the satisfaction of the Regulator.
- Prior to the physical commencement of each drilling operation within the title, in addition to the standard reporting and monitoring plans required by legislation, the titleholder must lodge with, and have approved by, the Regulator:
- a well-design and integrity-monitoring plan to assure well integrity within each well drilled. It is to include details of the steps that will be taken to ensure that barrier integrity is maintained for the active life of the well, including but not limited to quarterly compliance reporting;
- a report detailing hydrocarbon spill mitigation technologies and risk mitigation processes that must be deployed throughout the drilling and for the active life of the well;
- a report delineating relevant operational risks identified and associated risk mitigation strategies and processes that must be deployed by the titleholder and any third party contractors involved in the drilling operation; and
- a report detailing authorities, personnel responsibilities and accountabilities for each drilling operation.
- The titleholder must lodge with the Regulator, an independent compliance audit, prior to the start of the drilling campaign, and annually thereafter, to ensure each blowout preventer to be used is fit for purpose and compliant with Original Equipment Manufacturers specifications and maintenance schedule. Prior to each time the blowout preventer is installed it must be satisfactorily tested to meet well design pressures by the rig contractor and verified by the titleholder.
- The titleholder must ensure that all facets of each drilling operation, and all other offshore petroleum operational activities, within the title, are undertaken by appropriately qualified and experienced individuals.
- The titleholder must provide to the Regulator, at the time of providing a field development plan and/or upon request detail of the qualifications and certification of all key managerial personnel involved in any offshore petroleum operation; and
- Prior to and for a period of up to two months following completion of an offshore petroleum operation in the title area, the Regulator may request that a peer review of any offshore petroleum operation be undertaken. The peer review will be undertaken at the discretion and to the satisfaction of the Regulator.
- Where cement around well casing is acting as a well-integrity barrier for hydrocarbons, as soon as practicable after completion of the well cementing operation, and prior to commencement of the following activities; drilling deeper, or set another production casing, or set production liner, or well testing, or well completion, or temporary suspension or abandonment on that well, the titleholder will conduct a Cement Evaluation Log to demonstrate the effectiveness of the cement acting as a barrier behind well casing. The titleholder must lodge a report on the Cement Evaluation Log results with the Regulator as soon as practicable after completion of the activities on that well.
- The titleholder agrees that the Regulator may, at their discretion, and at cost to the titleholder, seek independent expert verification of the titleholder’s compliance with any of the requirements specified in the above conditions.
- The titleholder agrees that it will meet all costs incurred in complying with the requirements specified in the above conditions.