ConocoPhillips signs LOA for Otway basin exploration drilling rig
ASX-listed 3D Oil on July 12 announced that its joint venture partner, ConocoPhillips Australia, has secured the Transocean Equinox drilling rig through a letter of award (LOA) for an exploration drilling program in the Otway basin. This program will take place in exploration permits VIC/P79 and T/49P, in which 3D Oil holds a 20% interest.
The letter of award grants permission for the drilling of two firm exploration wells, with the option for an additional 120 days of drilling. However, the exact timing of the drilling depends on the availability of the rig, which is expected to arrive in the first quarter of 2025.
ConocoPhillips Australia, as the operator of the joint ventures in VIC/P79 and T/49P, is responsible for preparing an environment plan (EP) for regulatory approval from NOPSEMA, the Australian offshore regulator.
The EP outlines the proposed seabed surveys and up to six exploration wells to be drilled in the Commonwealth waters offshore of Victoria and King Island, Tasmania. The submission of the EP to NOPSEMA is scheduled for 2023, and the exploration drilling campaign is expected to conclude by December 2028.
In June 2020, ConocoPhillips Australia formed a joint venture with 3D Oil by completing the farmout of an 80% interest in T/49P. As part of the agreement, 3D Oil received a cash payment of A$5mn. Additionally, they received a full carry on an area of at least 1,580 km2 for the acquisition of 3D seismic data. Moreover, there was a carry provision of up to $30mn in gross costs allocated towards the drilling of an exploration well.
Subsequently, in March this year, ConocoPhillips Australia entered into a second joint venture with 3D Oil. This agreement involved the farmout of an 80% interest in VIC/P79. As part of this deal, 3D Oil received a cash payment of $3mn. Furthermore, they will be carried for up to $35mn in gross costs specifically designated for the drilling of an exploration well.