Rick Wilkinson
OGJ Correspondent
MELBOURNE, Feb. 7 -- Sydney-based Origin Energy Ltd. has acquired Woodside Petroleum Ltd.'s 62.5% interest in near-shore Otway basin Permit Vic/P37 off western Victoria for $13.6 million (Aus.). The deal brings Origin's interest in the permit to 100%.
The permit contains the yet-to-be-developed Halladale and Black Watch gas-condensate fields. They were discovered in 2005 and contain an estimated 55 petajoules of gas and condensate reserves.
The discoveries lie 4-5 km off western Victoria, about 6 km closer inland than Santos-operated Martha gas field and 20 km from the same company's further offshore Casino and Henry gas fields.
Importantly, Halladale and Black Watch are relatively near the Woodside group's onshore gas processing facilities for the Thylacine and Geographe gas-condensate fields in the Otway basin's deeper waters. Origin is a member of the Woodside consortium.
Origin says that Halladay and Black Watch can be developed using long-reach wells drilled from shore. That would provide an economic means of tying the fields in to new or existing pipelines feeding into the existing Thylacine-Geographe delivery system.
Although reserves are relatively small, Origin believes they will be a valuable addition to its existing portfolio of assets in Victoria and will provide added flexibility in managing its gas requirements in southeastern Australia. The anticipated reserves would be used to support Origin's proposed Mortlake power station in the region.
In addition, the fields have potential for use as gas storage reservoirs in the future to support winter peak demand requirements in Origin's gas and electricity retail businesses.
