Chevron Secures Australia Permit

Australia has awarded Chevron a permit to explore an oil and gas area offshore Western Australia for which the latter has paid A$3mn (US$2.3mn), the government said February 20.

The award was made as part of the Australian government’s process of releasing offshore areas for future oil and gas exploration. “The new permit is in a gas-rich part of the Northern Carnarvon Basin very close to the Gorgon Gas project and Pluto LNG, offshore of Western Australia between Onslow and Dampier,” minister for resources and Northern Australia senator Matt Canavan said.

Matt Canavan, minister for resources and Northern Australia senator (Credit: Australian government)

This was the first cash bid permit to be awarded since the process was re-introduced in 2014. The cash-bid auction for the 2016 Offshore Petroleum Exploration Acreage Release was held on February 2, 2017. Two companies pre-qualified for the auction. At the close of the auction one bid was received for release area W16-7. As a result, Exploration Permit WA-526-P was awarded to Chevron Australia.

The remaining cash bid areas, W16-22 and W16-25, did not receive bids and have reverted to vacant acreage, the government said. The final round of the 2016 Offshore Petroleum Exploration Acreage Release will close on March 23, 2017.  

Shardul Sharma