Energy giants BP and Chevron pour $116.5million into oil and gas exploration in Australia - potentially creating hundreds of well-paid jobs

Energy companies BP and Chevron have committed $116.5 million to oil and gas exploration, with at least half to be directed to projects in South Australia.

Federal Resources Minister Matt Canavan and South Australian Minister for Energy Minister Dan van Holst Pellekaan have jointly announced the spending following the conclusion of negotiations with both groups after they pulled out of exploration in the Great Australian Bight.

'This investment will help tap the immense promise of South Australia's resources sector driving job creation, investment and royalties,' Mr van Holst Pellekaan said.

'Australia's offshore oil and gas policy ensures companies who commit to a program of exploration deliver on their investment commitments.'

Both companies now have three years to conduct the exploration work, with BP to spend $40.6 million by October 2022 and Chevron to invest $75.9 million by September 2022.

They are currently finalising contractual negotiations for a range of regional studies.

The commitments also follow the environmental approval for Norwegian Energy company Equinor to drill an oil exploration well in the Bight, about 400kms off the SA coast.

Source: Daily Mail