ConocoPhillips Plans to Drill Two Wells in Australia’s Otway in 2025
The Australian unit of ConocoPhillips Co. and its partner 3D Oil Ltd. have awarded a drilling contract to Transocean Equinox for two wells in Australia’s Otway basin toward the start of drilling in 2025.
ConocoPhillips Australia as the operator has commenced an environmental plan (EP) as part of the regulatory approval process for the exploration projects, 3D Oil said in a filing with the Australian Securities Exchange this week announcing the drilling contract.
“The EP proposes seabed surveys and the drilling of up to six exploration wells in exploration permits VIC/P79 and T/49P, located in Commonwealth waters offshore of Victoria and King Island, Tasmania”, the Australian exploration company added.
The environmental plan is targeted to be submitted to the National Offshore Petroleum Safety and Environmental Management Authority by yearend. The plan proposed December 31, 2028 as the latest finish date for the exploration campaign, according to the bourse disclosure.
“The Transocean Equinox is a harsh-environment, semi-submersible that is well suited to operating in locations such as the Otway Basin”, 3D Oil said.
“ConocoPhillips Australia continues to mature an exciting and highly prospective portfolio of drill targets that could be rapidly commercialized by the JV [joint venture] in the event of a discovery”, it said. “The drilling of two exploration wells with limited financial exposure to 3D Oil could be a transformational event for the company.
“This is an important step in 3D Oil’s ambition to be a significant East Coast gas producer.”
3D Oil holds a 20 percent stake in both the VIC/P79 and T/49P permits, which are operated by Texas state-based ConocoPhillips.
3D Oil had farmed out 75 percent of T/49P to the USA energy heavyweight, as announced by ConocoPhillips December 18, 2019. “If exploration is successful and the field were to move to production, our intention would be to supply the gas to the Australian east coast domestic gas market”, ConocoPhillips Australia president Nick McKenna said in that announcement.
In Australia, ConocoPhillips is also the majority shareholder in the Australia Pacific LNG joint venture with a 47.5 percent stake, including the operating rights for the Curtis Island facility.
But in 2020 it gave up its assets in the country’s west to redirect capital to other projects that it deems more profitable in the long term, as stated in ConocoPhillips’ first announcement of the sale agreement October 13, 2019. ConocoPhillips sold to local producer Santos Ltd. the subsidiaries that held its 56.9 percent stake in the Darwin LNG facility and Bayu-Undan field, its 50 percent interest in the Athena field, its 40 percent interest in the Poseidon field and its 37.5 percent interest in the Barossa project and Caldita field. ConocoPhillips announced the completion of the $1.39 billion divestments March 27, 2020.
“ConocoPhillips has more than two decades of local operations success in Australia and we look forward to continuing our presence in the nation with our Australia Pacific LNG project and exploration activities”, then executive vice-president and chief operating officer Matt Fox said.
Published: 14-07-2023
