AUSTRALIA 2013
Offshore Petroleum Exploration Acreage Release
PETROLEUM–DISCOVERY
AUSTRALIA
A GREAT PLACE TO EXPLORE
Australia's economic performance is among the best
in the world and the outlook remains positive.
5th most resilient economy in the world in 2012. In
comparison, the US economy was ranked 23rd.
Australia's diverse, multicultural society has a very high
standard of living and a long-standing, democratic culture
based on the rights of the individual and the rule of law.
Australia is politically stable and enjoys a high degree of
social harmony and quality of life that is among the best in
the world.
In terms of real GDP, Australian economic growth in
2011-12 was 2.9 per cent and is forecast to reach 3 per
cent in 2012-13. Recent economic data suggests that the
resources and energy sector will continue to perform
strongly in terms of both volumes of exports and growth in
capital investments, with a peak in investment over the
next few years. Large expansions to gas, iron ore and coal
production capacity are currently underway and are
expected to contribute to robust growth in resource and
energy export volumes over the foreseeable future.
Australia is an attractive investment location with high
productivity, a stable business environment and close
proximity to the major markets of Asia, and access to
highly skilled workforce and innovative technology.
With a regulatory framework that keeps pace with financial
market developments, Australia possesses an
internationalised currency, no foreign exchange controls,
and a highly effective intellectual property rights regime.
Australia has enjoyed many years of uninterrupted
economic growth, including during the Global Financial
Crisis of 2008. Since a brief recession in 1991, the
Australian economy has experienced an average GDP
growth of 3.3 per cent per annum. Australia’s economy is
forecast to grow by an average of 3.3 per cent between
2013-14 and 2017-18.
Sound macroeconomic policies and structural reform
during this time increased Australia’s responsiveness to
shifts in the global economy and enabled Australia to
better withstand global economic pressures to maintain
strong economic fundamentals.
The Australian economy has continued to prove its
resilience throughout the recent global financial crisis, and
avoided dipping into recession due to well-timed and
effective fiscal stimulus packages and a continued
demand for commodities. Such resilience has seen the
IMD World Competitiveness Yearbook rank Australia the
Australia continues to be an attractive destination for
transnational corporations and in 2011 was the ninth
largest recipient of foreign direct investment (FDI) inflows
in the global economy. According to the United Nations
Conference on Trade and Development Global Investment
Trends Monitor, total FDI inflows to Australia in the first
half of 2012 grew by 16.4 per cent (year on year) despite
falls in global FDI inflows over the same period. The total
value of Australia’s FDI inflows for the first half of 2012
was US$23.5 billion or 3.5 per cent of global FDI inflows
for that period. Over the last five years, inward FDI stock
has increased by an average of 5.8 per cent per annum.
Australia is building on its position in the Asia-Pacific
region and has an established a network of Free Trade
Agreements (FTAs) with key trading partners in the region.
Australia currently has FTAs with New Zealand,
Singapore, Thailand, US, Chile and through the
Association of South East Asian Nations (ASEAN). The
countries covered by these FTAs account for 28 per cent
of Australia's total trade.
Australia concluded FTA negotiations with Malaysia in
May 2012 and the agreement is subject to domestic
approval processes. Further information is available at
http://dfat.gov.au/fta/index.html.
www.petroleum-acreage.gov.au
DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and
Guidelines available at: www.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the
legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd.
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General Facts – Australia
Area (kilometres2)
13 590 000 (land area – including Australian Antarctic Territory - 5.9m)
Offshore marine
jurisdiction
(kilometres²)
Population (million)
14 620 000 (marine area – including the Exclusive Economic Zone, Territorial Sea and
Extended Continental Shelf)
Official Language
English
GDP (current prices)
US$1 5586 billion (2012 exchange rates)
GDP per capita
(Current Prices)
Capital
US$68,916 (2012 exchange rates)
Main Cities
Sydney (4.6m), Melbourne (4.1m), Brisbane (2.0m), Perth (1.7m), Adelaide (1.2m),
Hobart (0.2m), Darwin (0.1m),
System of Government
Federation (Commonwealth) of:
23
Canberra (population 370 000)

six states – New South Wales, Queensland, South Australia, Tasmania, Victoria and
Western Australia;

three mainland territories – the Northern Territory, the Australian Capital Territory and
the Jervis Bay Territory; and
seven external territories – Ashmore and Cartier Islands, Australian Antarctic Territory,
Christmas Island, Cocos (Keeling) Islands, Coral Sea Islands Territory, Heard and
McDonald Islands and Norfolk Island.
Parliamentary democracy based on Westminster system; Federal Parliament consisting
of House of Representatives and Senate.


Australia’s Key Petroleum Regions
www.petroleum-acreage.gov.au
DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and
Guidelines available at: www.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the
legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd.
2
Why explore for oil and gas in Australia?
Some attributes that make Australia an attractive location
for offshore oil and gas exploration include:
The probability of finding a new petroleum province in
Australian waters remains high.

the regular release of new exploration acreage
covering a range of regions from mature to frontier;

access to high quality geoscientific data and analysis

continued government support of pre-competitive
geoscientific exploration, data acquisition and analysis;

a free market philosophy which welcomes foreign
investment - Australia has no mandatory local equity
requirements and no government-owned petroleum
companies;

close proximity to markets in the growing economies of
the Asia-Pacific;

an attractive policy and legal framework for oil and gas
development, conducive to companies of all sizes;

security of title with the right to retain and/or develop a
discovery, subject to meeting the specified terms of a
retention lease or a production licence;

transparent, predictable and practical regulatory
requirements covering all stages of petroleum
operations;

expanding physical infrastructure, sophisticated
technical and services support, a highly educated
workforce and pool of skilled petroleum professionals;

an internationally competitive profit-related tax system;

government assistance with project facilitation,
including fast-tracking of approvals processes for
declared major projects; and

an open and competitive economy, including
deregulated banking and foreign exchange
arrangements, a sophisticated capital market and a
good record of industrial harmony.
The first Australian exploration permit was granted in 1959
in the Gippsland Basin. As at April 2013, there are
currently 210 offshore exploration permits, 52 retention
leases and 89 production licences. From the first oil and
gas discoveries in Bass Strait, the North West Shelf and
the Timor Sea through to more recent discoveries in the
Carnarvon and Browse basins, there is no doubt that
offshore Australia is one of the world’s most highly
prospective areas for petroleum.
Australia is a gas-rich nation. The 2012 Australian Energy
Resources Assessment concluded that around 92 per cent
of Australia’s 158 trillion cubic feet of known conventional
natural gas resources are located in the Carnarvon,
Browse and Bonaparte basins off the north-west coast of
Australia. Known gas resources are also located in southwest, south-east and central Australia, along with large
coal seam gas (CSG) resources in the coal basins of
Queensland and New South Wales and the potential for
shale and tight gas resources in South Australia, Western
Australia and the Northern Territory. Despite this, much of
the continent and its offshore areas remain under, and in
some areas, unexplored, with over 40 onshore and
offshore basins awaiting in-depth exploration to determine
their full potential.
In 2008, the United Nations Commission on the Limits of
the Continental Shelf (UNCLOS) confirmed the location of
the outer limit of Australia’s continental shelf, which
resulted in the extension of Australia’s jurisdiction over an
additional 2.56 million square kilometres (km2) of seabed.
Australia now has more than 14.62 million km2 of
maximum seabed territory, which is in the top three largest
marine jurisdictions in the world along with the United
States of America and France. Australia is now custodian
to around 4 per cent of the world’s total seabed, an area
with significant untapped exploration potential.
Australia's geographic location ensures it is well placed to
meet the rapidly expanding energy needs of the
Asia-Pacific region.
The strong consumption growth of oil in non-OECD
markets and the sound outlook for liquefied natural gas
(LNG) in the Asia-Pacific region, together with relatively
resilient petroleum prices, provide the economic drivers for
ongoing investment in exploration in Australia. Increased
demand for energy with the industrialisation of China and
India, and other emerging Asian economies, underpins
these positive market conditions.
at low or no cost;
Australia – A resource rich nation with
further growth potential
Australia has an enviable history in the successful
development of its abundant natural resources.
According to the Australian Bureau of Resource and
Energy Economics (BREE), Australia’s energy and
mineral commodity resource export earnings reached
record levels in 2011-12, peaking at A$193 billion and
accounting for 83 per cent of Australia’s total value of
commodity exports. Export earnings in 2012-13 are
expected to decrease slightly to A$186 billion due to lower
prices for metallurgical coal relative to 2011-12, which will
be partially offset by gains in thermal coal (up 3 per cent),
LNG (up 36 per cent) and oil (up 8 per cent).
www.petroleum-acreage.gov.au
DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and
Guidelines available at: www.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the
legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd.
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There were significant increases in export earnings across
a range of commodities in 2011-12 including offshore
petroleum products.
Australia has over 300 crude oil fields with most
production coming from six major basins: the Carnarvon,
Browse, Bonaparte and Perth Basins offshore Western
Australia and the Gippsland and Bass Basins off
south-eastern Australia.
Australia’s identified oil resources have been estimated at
30 794 petajoules (PJ), made up of 16 170 PJ
(2 750 million barrels (mmbbl)) of condensate; 8 414 PJ
(1 431 mmbbl) of crude oil; and 6 210 PJ (1 475 mmbbl) of
liquefied petroleum gas (LPG).
In 2011–12, Australia’s exports of crude oil and
condensate declined 2 per cent year by volume (year on
year) to 121 million barrels. The value of exports
increased 5 per cent to A$13.6 billion due to higher oil
prices. Production is forecast to increase by 13 per cent by
volume in 2012-13 following the scheduled start-up of
several new smaller projects, with a rise in value of 5 per
cent. A significant rise in production is forecast from 2017
with the commencement of condensate production
associated with the Prelude and Ichthys LNG projects.
In 2011-12, Australians exports of LPG and petroleum
refinery products totalled approximately 13.3 mmbbl and
7.3 mmbbl respectively.
Global trade for LNG has more than doubled in the past
decade. Australia currently supplies 8 per cent of the
world’s exports and is the fourth largest LNG exporter in
the world behind Qatar, Indonesia and Malaysia.
In 2011-12, Australia exported 19.3 million tonnes (mt) of
LNG, down 4 per cent on the previous year due to planned
maintenance at the North West Shelf and Darwin LNG
projects. Despite this decline, LNG export earnings rose
18 per cent in 2011-12 to A$12 billion. In 2012-13, exports
are forecast to increase 26 per cent by volume to 23 mt
and 36 per cent in value to A$16.2 billion (year on year).
Exports volumes are projected to increase at an average
annual rate of 36 per cent to reach 88 mt by 2017-18.
Current production is supported by Australia’s world-class
LNG export facilities that utilise the large quantities of
natural gas found off Australia's north-west coast. In
addition to our three operating projects (North West Shelf,
Darwin LNG and Pluto Train 1), Australia currently has
seven LNG projects under construction with capital
expenditure of over A$180 billion including three
conventional gas-based projects: the Gorgon project
(15.6 mtpa), the Wheatstone project (8.9 mtpa), and the
Ichthys project (8.4 mtpa); the Prelude floating LNG
project (3.6 mtpa); and three coal seam gas-based LNG
projects: the Queensland Curtis LNG project (8.5 mtpa),
the Gladstone LNG project (7.8 mtpa), and the AustraliaPacific LNG project (9.0 mtpa).
www.petroleum-acreage.gov.au
AUSTRALIA 2013
With these major LNG investment projects currently
underway, the Reserve Bank of Australia has forecast that
Australia’s LNG sales could triple in the next five years.
This rate of investment is the second highest in the world
and is set to continue through Australia’s close links with
Asia and an industry push to increase production capacity.
As a result, Australia could become the largest LNG
exporter in the world by 2020.
Realising Australia’s Petroleum
Potential
Offshore Petroleum Exploration
Australia has the potential for further discoveries of oil and
gas, with many offshore basins remaining largely, or
entirely, unexplored. This potential has been grasped by
companies with A$2.3 billion spent on private offshore
petroleum exploration in Australia in 2011-12.
Only around 20 per cent of Australia’s offshore basins are
currently covered by petroleum titles. Although exploration
activity is primarily focused on finding resources close to
existing discoveries to improve the economics of proposed
projects, frontier exploration is growing. Australia’s
underexplored frontier basins hold the greatest promise of
making a major new discovery. To encourage exploration
in these areas and help reduce the risk of exploration,
Geoscience Australia through Australia’s Offshore Energy
Security Program has undertaken a series of programs
aimed at providing pre-competitive and geological
information aimed at improving the understanding of the
petroleum prospectivity and resource potential of frontier
basins.
In general, offshore petroleum exploration activity in
Australia has remained steady in recent years. As at
mid-2013, approximately 1,500 offshore exploration wells
have been drilled in Australian waters with an average of
around 60 exploration wells drilled per year since 1995.
Offshore Petroleum Development
The Australian petroleum industry is entrepreneurial,
innovative and has achieved significant success as recent
development projects under consideration and under
construction show (see below table). It is made up of a
number of small, medium and large companies, many of
whom operate on the international scene. Australia's
modern legal framework, petroleum tenement system,
favourable taxation regime and economic environment
explain Australia's consistent high ranking in international
investment surveys.
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Offshore Petroleum Exploration Acreage Release
Australia’s LNG Development Projects
Project
Participants
Location
Basin
Plant
Targeted
Start up
LNG
Capacity
(Mtpa)
Capital
Cost
(A$)
Woodside, Shell, BP,
Chevron, BHP Billiton,
MIMI, CNOOC (gas
and associated liquids)
WA
Existing
16.3 mtpa
5 trains
$27b
(2009 $)
ConocoPhillips, ENI,
Santos, INPEX, Tokyo
Gas & TEPCO
NT
3.6 mtpa
$1.75b
Conventional Gas
In Operation
North West Shelf
Darwin LNG
Carnarvon Basin
Karratha
Existing
JPDA
1 train
Darwin
Pluto Train 1
Woodside, Tokyo Gas,
Kansai Electric
WA
Existing
Carnarvon Basin
4.3 mtpa
$14.9b
1 train
Karratha
Under Construction
Gorgon LNG
Prelude FLNG
Wheatstone LNG
Ichthys LNG
Chevron, Shell,
ExxonMobil, Osaka
Gas, Tokyo Gas,
Chubu Electric
WA
Shell, INPEX, KOGAS,
OPIC
Browse Basin
Chevron, Shell,
Apache, Kufpec,
Kyushu Electric, PE
Wheatstone
WA
INPEX, Total, Tokyo
Gas, Osaka Gas, Toho
Gas, Chubu Electric
WA
2014-15
Carnarvon Basin
Barrow Island
15.6 mtpa
$52b
5 trains
2016-17
floating LNG
2016
Carnarvon Basin
Onslow
1 train
Not
publicly
available
8.9 mtpa
$29b
3.6 mtpa
2 trains
2016
Bonaparte Basin
8.4 mtpa
$34b
2 trains
Darwin
Coal Seam Gas
Under Construction
Queensland
Curtis LNG
BG Group, CNOOC,
Tokyo Gas
QLD
2014
Bowen and Surat
Basins
8.5 mtpa
$20.4b
2 trains
Gladstone
Gladstone LNG
Santos, Petronas,
Total, KOGAS
QLD
2014
Bowen and Surat
Basins
7.8 mtpa
$18.5b
2 trains
Gladstone
Australia-Pacific
LNG
Origin, ConocoPhillips,
Sinopec
QLD
Bowen and Surat
Basins
2015
9.0 mtpa
$24.7b
2 trains
Gladstone
www.petroleum-acreage.gov.au
AUSTRALIA 2013
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Offshore Petroleum Exploration Acreage Release
Australia’s Domestic Gas Market
References
The Australian domestic gas industry has strong
growth potential, paralleling growth in the industrial,
minerals processing and electricity generation
sectors.
Australian Bureau of Statistics, Cat. No. 3235.0
Population, Regions of Australia, 2010.
In 2011-12, Australia’s total gas production was 51 billion
cubic metres (bcm) or 1 900 petajoules (PJ) and is
forecast to increase by 20 per cent in 2012-13 to 60 bcm
as several new projects commence production. Around
half of this production is exported as LNG with the
remainder meeting domestic demand. Australia’s gas
production is projected to increase at an average annual
rate of 11 per cent over the period 2014-15 to 2017-18.
Over the last 20 years, Australia’s domestic natural gas
industry has grown from a relatively small base of 688 PJ
in 1989-90 to being the third most significant domestic
energy source after coal and oil. In 2011-12, Australia’s
domestic gas production was a record 1 101 PJ, up 6 per
cent year on year. The increasing share of natural gas in
Australia’s energy consumption is expected to continue
with future demand for natural gas estimated to reach
2 575 PJ in 2029-30.
Domestic gas market reform over the past decade has
increased transparency and competition in the sector, as
well as brought industry regulation under the national
energy framework in line with electricity. Ministerial
Council on Energy initiatives such as the National Gas
Law and National Gas Rules, National Gas Market Bulletin
Board and the Short Term Trading Market for gas have
provided a framework for greater transparency and
promoted the use of natural gas for domestic consumption
across Australia.
Australian Petroleum Production and Exploration
Association, State of the Industry 2012
Australian Trade Commission, Data Alert, 14 November
2012
Australian Trade Commission, International Data
Comparisons, September 2011
Bureau of Resource and Energy Economics, Energy in
Australia 2011
Bureau of Resource and Energy Economics, Resources
and Energy Quarterly, March 2013
Geoscience Australia, Australian Energy Resource
Assessment 2012
Geoscience Australia, Oil and Gas Resources of Australia
Geoscience Australia, Petroleum Wells Database
IMD World Competiveness Yearbook, 2012
Reserve Bank of Australia, Bulletin, September Quarter
2012
United Nations Conference on Trade and Development,
Global Investment Trends Monitor (No. 10)
Significant expansion and integration of Australia’s
domestic gas transmission and distribution network in
recent years, particularly in south-eastern Australia, has
facilitated growth in established gas markets and
introduced gas into new regional centres.
This is enhancing basin-on-basin competition on the
supply of gas that will be beneficial to gas consumers
while also encouraging the development of new industries
and increasing opportunities for suppliers to
commercialise gas discoveries.
New offshore domestic gas projects are currently under
development in Western Australia and in the Gippsland
and Otway Basins off southern Victoria. In addition, there
are a number of gas pipeline projects underway in South
Australia, Victoria, Queensland and New South Wales
which will further integrate the pipeline network and enable
gas from new upstream developments to be transported to
domestic gas markets as appropriate.
www.petroleum-acreage.gov.au
DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and
Guidelines available at: www.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the
legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd.
6