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NOPTA reports "marked upturn" in drilling activity

Proof is in the pudding as confidence finally returns

NOPTA reports "marked upturn" in drilling activity

 

NOPTA noted a "marked upturn" in exploration drilling activity, a sign that industry was recovering from the oil price downturn over recent years but hasn't returned to previous levels yet.

"Significantly, while the number of wells drilled is still relatively low, the success rate is high, reflected in the number of discoveries in 2018 - 2019," NOPTA said.

Over the 12 months just over six exploration wells were drilled in Australian waters, down dramatically from 2013 - 2014 when more than 25 exploration wells were drilled, but up on the past two years.

NOPTA also noted that while there had been no new locations found in 2018-2019, there were six new discovery notifications and one new retention lease grant. This would indicate some discoveries were a result of appraisal drilling.

Along with an uptick in exploration drilling, there was also an increase in appraisal and development drilling activity as industry moved to a new phase of resource maturation.

"As industry moved into this new phase, NOPTA has worked closely with other industry bodies and companies to "optimise stewardship of late life resources," it said.

It said it has pressured industry to continue incremental oil and gas production prior to entering field abandonment.

It has also noted increasing new developments across the Bonaparte, Carnarvon, and Browse basins in Western Australia.

"New development opportunities continue to be matured across Australia's north coast, particularly with regard to large scale gas resource and LNG export projects," NOPTA said.

Production trends were also revealed by the department, which found a continuing trend of declining oil production was offset by increased condensate and LPG production from new gas developments.

"Overall, total liquids production continued to decline," NOPTA said.

This echoes analysis from consultancy firm EnergyQuest in May this year.

At the 2019 APPEA Conference, EnergyQuest CEO Graeme Bethune warned Australia was not replacing its 2P reserves, though CSG LNG developments were on the rise.

The biggest gas producing basins were the Carnarvon, followed by the Gippsland and then Otway basins.

Over the last 12 months, NOPTA received 646 title applications from oilers, up from 444 the previous year.

Applications and submissions increased, but they also became easier to apply for with an online submission system established over recent months.

NOPTA will release its new strategic plan on January 1.

The plan will focus on six priorities: integrating data and technology, resource management, collaboration and engagement, external compliance, internal capability, and optimisation of performance.

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