Korea National Oil Corporation Joins Joint Venture for Otway Exploration
Korea National Oil Corporation (KNOC) is set to partner with 3D Energi Limited and ConocoPhillips Australia (COPA) in a joint venture focused on the Otway exploration permits VIC/P79 and T/49P, located offshore Victoria, Australia, pending regulatory approvals. Under the terms of the agreement, 3D Energi will maintain a 20 percent stake in both exploration permits, while COPA will hold a 51 percent interest, and KNOC will take on a 29 percent share. COPA will continue to act as the operator of the joint venture, as stated in a recent press release. Furthermore, COPA’s commitment to cover up to $65 million in gross drilling expenses remains intact, according to the announcement.
Exploration Aims to Secure Natural Gas Supply
The joint venture is engaged in exploration efforts targeting natural gas within the Otway Basin, which is situated near existing natural gas wells off the coast of Victoria. The primary objective of the drilling initiative is to uncover feasible natural gas reserves that can cater to the East Coast market and bolster Australia’s current and future energy requirements. This will ensure a stable supply for power generation, industrial applications, and home heating, as previously noted by 3D Energi.
Importance of the Project Amid Energy Crisis
3D Energi emphasized the significance of this venture, particularly in light of the diminishing production from the Bass Strait gas fields and the ongoing energy crisis on the east coast. The company highlighted that the project plays a crucial role in maintaining the natural gas supply to Victoria and the larger east coast region. The close proximity to existing energy infrastructure and the east coast gas market greatly enhances the potential profitability of any discoveries made.
Phased Drilling Program to Uncover Reserves
The Otway exploration drilling initiative will be executed in two distinct phases. The first phase includes the contracting of two definite wells, while the second phase may see the addition of up to four optional wells, as per the statement. 3D Energi’s Executive Chairman, Noel Newell, expressed optimism regarding KNOC’s decision to join the Otway joint venture, pending regulatory approvals, stating it underscores the promising potential of the permits and the overall commercial prospects. He noted that KNOC is a fully integrated oil and gas entity with a global operational footprint.
NOPSEMA Approves Drilling Environment Plan
In late February, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) of Australia completed its review and approved COPA’s environmental plan for the drilling operations. This plan permits up to nine seabed surveys and allows for drilling up to six exploration wells. Newell remarked on the significance of this approval for the joint venture, noting that obtaining environmental plan approvals involves extensive stakeholder engagement and submission of detailed technical and process information. He expressed pride in being part of such a comprehensive and high-caliber assessment.
Exciting Future for 3D Energi
Newell further stated that this approval sets the groundwork for an exciting drilling campaign with the Transocean Equinox, which is currently transitioning from the Northwest Shelf to the Otway Basin. This drilling campaign has the potential to be a transformative event for a company of their size, unlocking considerable value for shareholders. 3D Energi identifies itself as an oil and gas exploration firm headquartered in Melbourne, Victoria, with projects located in both Victoria and Western Australia.
