ConocoPhillips to drill six wells offshore Victoria
ConocoPhillips is planning to drill up to six exploration wells as part of the drilling programme in permits VIC/P79 and T/49P in the Otway basin offshore Victoria, 3D Oil, its partner in the project, announced on May 30.
The exploration drilling programme being proposed by the joint venture includes seabed surveys and the drilling of up to six exploration wells. ConocoPhillips Australia has initiated the preparation of an environment plan (EP) on behalf of the joint venture. However, the commencement of drilling activities is subject to regulatory approval and rig availability, 3D Oil said.
According to 3D Oil, the proposed activities are aimed at identifying commercially viable natural gas reserves “to contribute to Australia's energy needs”. 3D Oil holds a 20% interest in both exploration permits.
The initial step in the programme will involve a vessel-based seabed survey, which is expected to begin no earlier than January 2024. The timeline for subsequent drilling activities will depend on various factors, including the approval process and the availability of drilling rigs.
In June 2020, ConocoPhillips Australia formed a joint venture with 3D Oil by completing the farmout of an 80% interest in T/49P. As part of the agreement, 3D Oil received a cash payment of A$5mn. Additionally, they received a full carry on an area of at least 1,580 km2 for the acquisition of 3D seismic data. Moreover, there was a carry provision of up to $30mn in gross costs allocated towards the drilling of an exploration well.
Subsequently, in March this year, ConocoPhillips Australia entered into a second joint venture with 3D Oil. This agreement involved the farmout of an 80% interest in VIC/P79. As part of this deal, 3D Oil received a cash payment of $3mn. Furthermore, they will be carried for up to $35mn in gross costs specifically designated for the drilling of an exploration well.