A Transformational Drilling Campaign on the Horizon
ConocoPhillips Australia (COPA), a subsidiary of the U.S. energy giant ConocoPhillips, has just cleared a major hurdle in its quest to unlock Australia’s offshore gas reserves. With the green light from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), the company’s Otway Exploration Drilling Program (OEDP) is set to kick off in 2025. This ambitious project, conducted in partnership with Swiss offshore drilling contractor Transocean, could be a game-changer for Australia’s energy landscape.
The program will utilize the state-of-the-art Transocean Equinox semi-submersible rig, currently en route from the Northwest Shelf to the Otway Basin. The campaign will target up to six exploration wells across two offshore permits, VIC/P79 and T/49P, in water depths ranging from 53 to 200 meters. The stakes are high, with the potential to tap into commercially viable natural gas reserves that could help address Australia’s growing energy demands.
Why the Otway Basin Matters
The Otway Basin, located off the coasts of Victoria and Tasmania, is no stranger to energy exploration. Known for its rich hydrocarbon potential, the basin has already seen significant natural gas developments. However, with production from the Bass Strait gas fields declining rapidly, the need for new discoveries has never been more urgent.
ConocoPhillips and its partner, 3D Energi, are banking on the Otway Basin’s proven track record. The exploration program will focus on low-risk gas prospects with direct hydrocarbon indications (DHI), leveraging existing infrastructure to enhance commercial viability. As Noel Newell, Executive Chairman of 3D Energi, puts it, “This drilling campaign could be transformational for our company, unlocking significant value for shareholders and securing a future role as a reliable gas supplier in the region.”
A Milestone for Energy Security
The approval of the environment plan (EP) marks a critical step forward for the joint venture. The EP, which underwent extensive stakeholder consultation and rigorous technical assessments, outlines a comprehensive strategy to minimize environmental impacts. Continuous monitoring and adaptive management measures will ensure that any emerging concerns are swiftly addressed.
With the EP in place, the focus now shifts to obtaining well operations and safety approvals from NOPSEMA. This involves submitting a well operations management plan (WOMP) and revising the safety case, both of which will guide the operational and safety protocols for the drilling program.
The timing of the Phase 1 drilling program hinges on several factors, including the arrival of the Transocean Equinox rig and the operational schedules of other consortium members. However, the current timeline points to a 2025 start, with 3D Energi carried by COPA for up to $65 million in gross drilling costs for the first two wells.
A New Chapter for Australia’s Energy Future
The Otway Exploration Drilling Program isn’t just about finding gas—it’s about securing Australia’s energy future. With the east coast energy crisis looming, this project could play a pivotal role in ensuring a steady supply of natural gas to Victoria and beyond.
As ConocoPhillips and 3D Energi gear up for this high-stakes campaign, the energy industry is watching closely. Success in the Otway Basin could not only transform 3D Energi’s fortunes but also position it as a key player in meeting the energy demands of Australia’s east coast.
