In a sign that interest in Australia's potential for liquefied natural gas exports is growing, Hess has offered a $US387.3 million financial commitment for the six year term of the lease.
The block lies south-west of the giant Io-Jansz field, which is held by the Gorgon partners, Chevron Australia, Shell Development Australia and ExxonMobil.
Hess’ winning bid set new Australian work and financial obligation records. Under the terms of the award, the company must acquire 3135 sq.km of new 3D seismic and reprocess 2000km of existing 2D in year one. In year two it must drill four exploration wells; in year three, it must drill 12 exploration wells; and in year five it must reprocess 3135 sq km of 3D seismic.
Geotechnical studies are required in each of the six years of the license.
The previous highest bid for acreage off Western Australia was set by Shell in January 2006 when the company won the 1001 sq.km Browse Basin block WA-371-P, a lease adjacent to the Inpex-held Brewster/Ichthys gas/condensate complex, for a financial obligation of $US100 million, including 12 wells over three years.
