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 towards the start of drilling in 2025.
ConocoPhillips Australia, as the operator, has initiated an environmental plan (EP) as part of the regulatory approval process for 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 off the coast of Victoria and King Island, Tasmania “, the Australian exploration company added.
The environmental plan is scheduled to be submitted to the National Offshore Oil Safety and Environmental Management Authority at the end of the year. The plan proposed Dec. 31, 2028 as the latest end date for the exploration campaign, according to stock market information.
“The Transoceanic Equinox is a harsh environment semi-submersible that is well suited to operating in places like the Otway Basin,” said 3D Oil.
“ConocoPhillips Australia continues to mature an exciting and highly prospective portfolio of drilling targets that the JV could rapidly commercialize. [joint venture] in case of discovery,” he said. “The drilling of two exploration wells with limited financial exposure to 3D oil could be a transformative event for the Company.
“This is an important step in 3D Oil’s ambition to be a major East Coast gas producer.”
3D Oil has a 20 percent interest in the VIC/P79 and T/49P permits, which are operated by Texas-based ConocoPhillips.
3D Oil had delivered 75 percent of T/49P to the US energy heavyweight, as announced by ConocoPhillips on December 18, 2019. “If exploration is successful and the field goes into production, our intention would be supply the gas to Australia’s domestic east coast gas market,” ConocoPhillips Australia president Nick McKenna said in the announcement.
In Australia, ConocoPhillips is also the majority shareholder in the Australia Pacific LNG joint venture with a 47.5% stake, including operating rights to the Curtis Island facility.
But in 2020 it gave up its assets in the west of the country to redirect capital to other projects it considers more profitable in the long term, as indicated in ConocoPhillips’ first announcement of the sale agreement on 13 October 2019. ConocoPhillips sold local producer Santos Ltd. subsidiaries that held its 56.9 percent stake in the Darwin LNG facility and the Bayu-Undan field, its 50 percent stake in the Athena field, its 40 percent stake in the Poseidon field and its 37.5 percent stake in the Barossa project and the Caldita field. . ConocoPhillips announced the completion of the $1.39 billion divestments on March 27, 2020.
“ConocoPhillips has more than two decades of successful local operations in Australia and we look forward to continuing our presence in the nation with our Australia Pacific LNG project and exploration activities,” said then-Executive Vice President and Director of operations Matt Fox.
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