The Australian government has awarded seven new offshore exploration permits with Shell Australia being the major beneficiary.
Shell was awarded two permits in the Browse basin and one in the Timor Sea. Other awards went to BP Australia with a permit on the Exmouth Plateau, while Japan’s Inpex Corp. secured a permit in the Canning basin south of its Ichthys field development. Perth-based Carnarvon Petroleum Ltd. was awarded a permit in the Timor Sea and Adelaide company Cooper Energy Ltd. won a permit in the Gippsland basin of Victoria.
In more detail, Shell’s new permits are:
• AC/P64 in the Ashmore Cartier region of the Timor Sea where the company guarantees a $76.5-million (Aus.) work program including reprocessing of 478 sq km of 3D seismic data and one exploration well in the first 3 years and a secondary work program that includes one well in the second 3 years.
• AC/P65 in the Browse basin off Western Australia with a guaranteed work program of $30.5 million (Aus.) for reprocessing and acquiring 3D seismic data in the first 3 years. One well is programmed for the second 3 years of the permit life.
• WA-534-P is adjacent to AC/P65 where Shell proposes a $10.6-million (Aus.) work program of 3D seismic in the first 3 years and acquisition of 3D seismic and one well in the second half of the permit life.
BP’s permit is WA-535-P on the Exmouth Plateau off Western Australia where the company proposes an initial work program of 3D seismic and the drilling of one well in the second half of the permit life.
Inpex’s Canning basin permit is WA-533-P north of Broome where the company guarantees acquisition of 5,000 km of 2D seismic and 1,035 sq km of 3D seismic acquisition. One well is to be drilled during the second 3 years.
Carnarvon’s AC/P63 is in the Timor Sea and the company has proposed a modest $4.25 million (Aus.) for 3D seismic work in the first 3 years and one well in the second 3 years.
Cooper’s Vic/P72 is southeast of Lakes Entrance where the company plans to drill one well in the first 3 years and a second well in the last half of the permit’s life.
Only the three permits awarded to Shell received any competitive bid, while two other permits received one bid each, but were not accepted by the government. Two other permits received bids with applications there still being assessed.
