AUSTRALIA SEEKS BIDS ON MORE OFFSHORE TRACTS

Australia has asked for bids on 13 exploration permits off its west, north, and south coasts. Included in Australia's second acreage release this year are: Ten permits off Western Australia-five in the Browse basin, two in the Carnarvon basin, and three in the Eyre subbasin. Two permits in the Bonaparte and Browse basins in the Territory of Ashmore and Cartier Islands. One permit in the Otway basin off Tasmania.

Dec. 9, 1991

2 min read

Australia has asked for bids on 13 exploration permits off its west, north, and south coasts.

Included in Australia's second acreage release this year are:

Ten permits off Western Australia-five in the Browse basin, two in the Carnarvon basin, and three in the Eyre subbasin.
Two permits in the Bonaparte and Browse basins in the Territory of Ashmore and Cartier Islands.
One permit in the Otway basin off Tasmania.

Australian officials said the government's second acreage release for 1991 will ensure efficient exploration of the country's continental shelf. Most of the areas have been explored in the past, but more work is needed to fully assess petroleum potential.

The government is releasing two of the areas under cash bidding provisions of the commonwealth petroleum law for submerged lands: AC91-1 in the Timor Sea off northern Western Australia and W91-19 in the Indian Ocean off Western Australia's southern coast.

The remaining 11 permits will be subject to the petroleum act's modified work program bidding system.

Primary terms of both types of agreements will be 6 years.

Australia will consider applications filed before 4 p.m. Apr. 3, 1992.

Officials said exploration and development in the most recent areas offered will benefit from application of a resource rent tax based on profits. Royalty and crude oil excise will not apply to future production from the areas.

BIDDING DETAILS

Under Australia's cash bidding system, the government awards acreage to the highest bidder satisfying specified financial and technical criteria.

Exploration permits covering areas AC91-1 or W91-19 will expire after one 6 year term. Permits can be continued in areas where an application has been filed for a location, production license, or retention lease.

Under the commonwealth's modified work program, applicants are required to nominate a guaranteed minimum dry hole exploration program for each of the first 3 years of permit term and a secondary program for the remaining 3 years. Each component of the guaranteed dry hole program must be completed in the designated year or earlier.

For areas covered by modified work programs, Australia will choose successful bidders on the basis of the guaranteed minimum dry hole exploration program, taking into account the applicant's financial and technical resources.