The Australian Government has said there will be no petroleum exploration off the New South Wales coast, blocking plans for a well proposed in the region by a joint venture headed by Perth-based Advent Energy Ltd. Prime Minister Scott Morrison made the announcement while in the area, saying the government was taking steps to protect local communities and the environment by blocking the renewal of offshore permit PEP 11, offshore between Sydney and Newcastle.
The permit expired in February 2021 and the Advent Energy JV has been waiting 10 months for federal and New South Wales state authorities to approve its renewal application so it could begin its proposed drilling program. The JV had planned to drill wildcat well Seablue-1 in 125m of water, 26 km off the coast.
Advent, owned by three companies (BPH Energy Ltd., MEC Resources Ltd., and Grandbridge Ltd.), said it had yet to receive official notification of refusal to renew the permit from the National Offshore Petroleum Title Authority (NOPTA) and would make no comment until then. Once the notification is given, NOPTA will grant the JV 30 days in which to respond. But it seems clear the drilling will not take place. Prime Minister Morrison said that the drilling project will not proceed “on our watch.”
“Gas is an important part of Australia’s current and future energy mix, but this is not the right project for these (coastal NSW) communities and pristine beaches and waters,” he said.
The offshore sector of the Sydney basin has been a controversial destination for a number of decades because of its close proximity to large populations and a pristine coastline. Although some seismic surveys have been run and several prospects with mid-Permian targets delineated, no drilling has occurred. The prospects are thought to be gas prone.
Historically the offshore sector has been covered by a single permit, PEP 11, covering about 4,580 sq km. Permit holders hoping for renewal are Advent, with 85%, and Bounty Oil and Gas NL, 15%.
