MEDIA RELEASE
Hon Wayne Matthew MP
Minister for Minerals & Energy
Minister Assisting the Deputy Premier
12th Floor SGIC Building
Victoria Square
ADELAIDE SA 5000
Thursday, 13 July, 2000
PETROLEUM INVESTMENT FOR
GREAT AUSTRALIAN BIGHT
Eyre Peninsula is set to benefit from nearly $90 million investment in petroleum exploration in the
Great Australian Bight, according to Minerals and Energy Minister, Wayne Matthew.
Three new petroleum exploration permits have been awarded in the Bight Basin following a
national release of eight offshore areas in April 1999. No bids were received for the remaining five
areas.
“The Great Australian Bight represents one of the last major frontier opportunities for Australia, and
the potential for large discoveries is substantial,” says Mr Matthew. “Any discoveries which could
result from the exploration signalled today, would have direct benefits for the Eyre Peninsula
economy through both investment and employment.”
All three exploration licences have been awarded to a consortium comprising Woodside Energy Ltd,
Anadarko Australia Company Pty Ltd and PanCanadian Petroleum Ltd.
Minimum guaranteed investment in the Bight, as a condition of exploration licences, is around $39
million. Overall however, the consortium is expected to invest $88.8 million in exploration over the
next six years, on exploration activities such as seismic survey work, office-based geological and
geophysical studies and well drilling.
Two of the permit areas intercept the Benthic Protection Zone of the Great Australian Bight Marine
Park. Any onsite exploration activities will need specific environmental clearance to ensure that the
values of the Park are protected.
The exploration permits lie in Commonwealth waters and will be jointly administered by the South
Australian and Federal Governments. The responsible Commonwealth Minister is Senator Nick
Minchin, Minister for Industry, Science and Resources.
“The South Australian Government is delighted with the confidence that the industry is showing in
the Bight region, and we are keen to support exploration in this area,” says Minister Matthew. “I
look forward to the exploration commencing, and hope for some positive results.”
A background note on the successful applicants is attached, with their proposed work programs and
location map.
Media Contact: Kate McShane 8303 2952 0417 864 127
www.ministers.sa.gov.au
BACKGROUND NOTE
The three exploration areas were included in the 1999 release of offshore petroleum exploration
acreage. The areas were offered under the work program bidding system of the Petroleum
(Submerged Lands) Act 1967, with a closing date for bids of 6 April 2000.
Exploration permits for the three areas have been awarded for a period of six years. 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.
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.
The three areas in the Bight Basin have been awarded to a consortium comprising Woodside Energy
Ltd, based in Perth; Anadarko Australia Company Pty Ltd, based in Houston, Texas; and
PanCanadian Petroleum Ltd, based in Calgary, Alberta.
In permit EPP28, the consortium has proposed a guaranteed work program over the first three years
comprising seismic survey work and geological/ geophysical studies at an estimated total cost of $5
million. The consortium has also proposed a secondary program, comprising additional seismic
work and studies, at an estimated total cost of $7 million.
In permit EPP29, the consortium has proposed a guaranteed work program over the first three years
of seismic survey work, geological/ geophysical studies and an exploration well at an estimated total
cost of some $27 million. The secondary program proposed comprises additional seismic work and
studies, at an estimated total cost of $11 million.
In permit EPP30, the guaranteed work program for the first three years proposed by the consortium
covers seismic survey work and geological/ geophysical studies at an estimated total cost in excess
of $6 million. The secondary program proposed by the consortium comprises additional seismic
work and studies and an exploration well, at an estimated total cost of more than $32 million.
The consortium will need to obtain clearances under the provisions of the Petroleum (Submerged
Lands) Act 1967 and the Environment Protection and Biodiversity Conservation Act 1999 before
any onsite exploration activities can be undertaken.
Contact:
Steve Ronson, Senator Minchin's Office
0419 432 664
Stephen Payne, Department of Industry, Science and Resources
02 6213 7928
Media Contact: Kate McShane 8303 2952 0417 864 127
www.ministers.sa.gov.au