KNOC to Join JV for Otway Exploration Project Offshore Victoria

Korea National Oil Corporation (KNOC) is joining the joint venture with 3D Energi Limited and ConocoPhillips Australia (COPA) for the Otway exploration permits VIC/P79 and T/49P offshore Victoria, Australia, subject to regulatory approvals.

3D Energi will retain a 20 percent participating interest in both permits, with COPA dropping down to 51 percent and KNOC assuming a 29 percent interest. COPA will retain operatorship of the joint venture, 3D Energi said in a news release.

COPA’s carry for up to $65 million in gross drilling costs remains in place, according to the release.

The joint venture is undertaking exploration activities for natural gas in the Otway Basin offshore Victoria near existing natural gas wells. The drilling program aims to identify viable natural gas reserves to supply the East Coast market and support Australia’s current and future energy needs, ensuring reliable power generation, industrial processes, and residential heating, 3D Energi said in an earlier statement.

“With rapidly declining production from the Bass Strait gas fields and the east coast energy crisis, this project is increasingly important for ensuring the continued supply of natural gas to Victoria and the broader east coast market. Proximity to existing infrastructure and the east coast gas market significantly enhances the commercial viability of any potential discoveries,” 3D Energi said.

The Otway exploration drilling program will be completed in two phases. Two firm wells have been contracted for phase 1, followed by up to four optional wells in phase 2, according to the statement.

3D Energi Executive Chairman Noel Newell said, “I believe it is incredibly encouraging that KNOC will join our Otway joint venture subject to regulatory approvals – it supports our view of the exceptional prospectivity in our permits and the overall commercial opportunity. KNOC is a fully integrated oil and gas company which operates globally. 3D Energi welcomes KNOC and looks forward to working with them as the joint venture progresses toward becoming a significant East Coast gas producer”.

In late February, Australia’s National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) completed its assessment and has accepted COPA’s environment plan for the drilling program. The EP allows for a maximum of nine seabed surveys and the drilling of up to six exploration wells.

Newell said in an earlier statement, “It cannot be overstated how important a milestone [that] the approval is for the JV. EP applications these days require extensive stakeholder consultation and the provision of comprehensive technical, environmental and process information. We at 3D Energi are extremely proud to be part of this outstanding and world-class assessment”.

“This approval sets the stage for our incredibly exciting drilling campaign with the Transocean Equinox, which is currently moving from the NW Shelf to the Otway Basin to ultimately commence a drilling campaign which can provide a transformational event for a company our size, with potential to unlock significant value for shareholders,” he added.

3D Energi describes itself as an oil and gas exploration company based in Melbourne, Victoria, with projects offshore Victoria and Western Australia.

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