"The six new permits cover three petroleum prospect areas with an expected resulting expenditure of some $84 million over the next six years," said Mr Macfarlane.
The permits have been awarded as follows: Permit WA-334-P in the Carnarvon Basin, Barrow Sub-basin has been granted to Apache North West and Tap (Harriet); Permit WA-335-P in the Carnarvon Basin, Exmouth Sub-basin has been granted to Apache North West; Permits WA-336-P in the Perth Basin has been granted to Petroz NL; Permits WA-337-P in the Perth Basin has been granted to Kerr-McGee NW Shelf Australia Energy; Permit WA-338-P in the Browse Basin has been granted to Santos Offshore and Korean-based SK Corporation; WA-339-P in the Perth Basin has been granted to Santos Offshore and Kerr-McGee NW Shelf Australia Energy.
The Minister said the Browse Basin and Carnarvon Basins are proven petroleum and gas provinces with existing major oil and gas fields and associated infrastructure. However, new discoveries like the neighbouring Cornea discovery, suggest there is still much to learn about this area.
The Perth Basin is a relatively under-explored region which has attracted new exploration interest in the last 12 months, following commercial oil discoveries. It is hoped that new exploration in this region will uncover new oil and gas reserves on the doorstep of Western Australia's largest city.
"Further exploration of these areas is essential to deliver the competitive and reliable energy supplies essential to the future of Australia," said Mr Macfarlane.
"The exploration programs proposed in these permit areas will significantly advance our understanding of this strategically important energy resource.
"The granting of these six permits is a welcome indication that Australia continues to fight the world-wide decline in petroleum and gas exploration rates."
Applications for the areas were invited under the Petroleum (Submerged Lands) Act 1967 and closed on 24 October 2002.
Under the work program bidding system, applicants are required to nominate a guaranteed minimum 'dry hole' exploration program for each of the first three years of the permit term and a 'secondary' program for the remaining three years. Each component of the program must be completed in the designated year or earlier. Permits are awarded for an initial term of six years.
Petroleum exploration and development activity in these areas will benefit from the application of the profits-related petroleum resource rent tax. Royalty and crude oil excise will not apply.
CarnarvonBasin
Permit WA-334-P (originally released as area W02-13 in the Barrow Sub-Basin) has been awarded to Apache North West (80% - operator) and Tap (Harriet) 20%, which proposed a guaranteed program for the first three years of one well and geoscience studies at an estimated cost of $5.45 million. The companies also propose a secondary program of one well and geoscience studies at an estimated cost of $4.1 million. The permit was awarded on 17 December 2002. There was one other bid for the area.
Permit WA-335-P (originally released as area W02-15 in the Exmouth Sub-Basin) has been awarded to Apache North West (100% - operator), which proposed a guaranteed program for the first three years of 550 sq.km 3D seismic survey, 1050 sq.km 2D seismic survey, one well and geoscience studies at an estimated cost of $26.5 million. The company also proposes a secondary program of one well and geoscience studies at an estimated cost of $16 million. The permit was awarded on 17 December 2002. There were no other bids for the area.
PerthBasin (Houtman and Abrolhos SubBasins)
Permit WA-336-P (originally released as area W01-20) has been awarded to Petroz NL (100% -operator), which proposed a guaranteed program for the first three years of 1225km 2D seismic survey, purchase of additional 1364km 2D seismic survey and geoscience studies at an estimated cost of $2.4 million. The company also proposes a secondary program of one well, 500km 2D seismic survey and geoscience studies at an estimated cost of $13.85 million. The permit was awarded on 18 December 2002. There was one other bid for the area.
Permit WA-337-P (originally released as area W01-26) has been awarded to Kerr-McGee NW Shelf Australia Energy (100% - operator), which proposed a guaranteed program for the first three years of 1100km 2D seismic survey and geoscience studies at an estimated cost of $2.3 million. The company also proposes a secondary program of 1000km 2D seismic survey and geoscience studies at an estimated cost of $2.2 million. The permit was awarded on 15 January 2003. There were no other bids for the area.
Permit WA-339-P (originally released as area W01-21) has been awarded to Santos Offshore (50%) and Kerr-McGee NW Shelf Australia Energy (50%), which proposed a guaranteed program for the first three years of 1000km 2D seismic survey and geoscience studies at an estimated cost of $2.6 million. The company also proposes a secondary program of 1000 km 2D seismic survey and geoscience studies at an estimated cost of $2.6 million. The permit was awarded on 15 January 2003. There was one other bid for the area.
Browse Basin
Permit WA-338-P (originally released as area W01-5) has been awarded to Santos Offshore (71.5% operator) and SK Corporation (28.5%), which proposed a guaranteed program for the first three years of 350km 2D seismic survey and geoscience studies at an estimated cost of $1.55 million. The companies also propose a secondary program of one well and additional geoscience studies at an estimated cost of $4.4 million. The permit was awarded on 15 January 2003. There were no other bids for the area.
