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New Victorian offshore petroleum exploration permits awarded.



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Joint Media Statement

 

Senator Warwick Parer,

Federal Minister for Resources and Energy

 

Patrick McNamara

Victorian Minister for Agriculture and Resources

 

DPIE98/309PJ

 

30 April 1998

 

NEW VICTORIAN OFFSHORE PETROLEUM EXPLORATION PERMITS AWARDED

 

The Federal Minister for Resources, Senator Warwick Parer, and the Victorian Minister for Agriculture and Resources, Patrick McNamarra, today announced the names of the successful bidders for three new petroleum exploration permits in the Gippsland Basin.

Permits are being awarded to the following consortia and companies:

 

Area V97-G1 to a consortium led by Amity Oil NL

 

Area V97-G2 to Eagle Bay Resources NL

 

Area V97-G3 to Bass Strait Oil Company Pty Ltd

 

During the next six years, an estimated $60 million will be spent on exploration in these areas including at least 6 exploration wells. The three new permits are in the general vicinity of the major producing oil and gas fields in Bass Strait.

 

Both Ministers commented on the aggressive work programs and new exploration ideas proposed by the successful applicants.

 

"This augurs well for the next phase of exploration," Senator Parer said.

 

Background notes regarding the successful applicants and their proposed work programs are attached.

 

 

Further information:

 

Senator Parer's office

Bob Baudino (02) 6277 7440

 

DPIE

Geoff Furnell (02) 6272 4695

 

Victorian Dept of Primary Industries and Resources

Kathy Hill (03) 9412 5639

 

BACKGROUND NOTES

 

Application for these permits were invited in April 1997 under the Petroleum (Submerged Lands) Act 1967 and closed on 27 November 1997.

 

Under the work program bidding system, applicants are required to nominate a guaranteed minimum 'dry hole' exploration program for each of the first three years of the permit term and a 'secondary' program for the remaining three years. Each component of the program must be completed in the designated year or earlier. The permits are being awarded for an initial term of six years.

 

Petroleum exploration and development activity in this area will benefit from the application of the profits-related resource rent tax. Royalty and crude oil excise will not apply.

 

In area V97-G1 , awarded to Amity Oil (NL), Latrobe Oil & Gas Pty Ltd and Pan Pacific Petroleum NL, the consortium have proposed a guaranteed work program for the first three years of 800 km of seismic reprocessing, 150 km2 of 3D seismic acquisition and the drilling of one exploration well for an estimated expenditure of $9.7 million. The consortium has also proposed a secondary program of data review and one exploration well for an estimated expenditure of $7.4 million. There were three other bids for this area.

 

In area V97-G2 , awarded to Eagle Bay Resources NL, the company has proposed a guaranteed work program for the first three years of data review, 500 km of 2D seismic acquisition and the drilling of one exploration well for an estimated expenditure of $3.7 million. The company has also proposed a secondary program of the 200 km of 2D seismic acquisition, one exploration well and data review for an estimated expenditure of $3.4 million. There was one other bid for this area.

 

Area V97-G3 has been awarded to the Bass Strait Oil Company Pty Ltd. The company has proposed a guaranteed work program for the first three years of data review, 200 km2 of 3D seismic acquisition, 750 km of 2D seismic acquisition and two exploration wells for an estimated expenditure of $22.7 million. They have also proposed a secondary program of data review, 500 km of 2D seismic acquisition and one exploration well for an estimated expenditure of $13 million. There were no bids for this area.

 

There were no bids for Area V97-G4.

 

 

 

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