(Oil Price) – The Queensland government has appointed its preferred tenderers to explore for oil and gas in the Taroom Trough, in a move to potentially open Australia’s first new major hydrocarbon province since the 1970s.
The Queensland government announced on Tuesday it is awarding exploration rights to Omega TN Pty Ltd, Tri-Star Stonecroft Pty Ltd, and Drillsearch Energy Pty Ltd to drill for oil and gas in the Taroom Trough exploration tenement, which is roughly the size of Singapore.
If any natural gas is found and produced from the Taroom Trough, it would occur under the Australian Market Supply Condition, meaning that gas supply would go first to Australian households and businesses.
“We’re sending a clear message that Queensland is open for business, and this new exploration area is a critical step in boosting Queensland’s domestic energy supplies to put downward pressure on energy prices,” Dale Last, Minister for Natural Resources and Mines, said in a statement.
“This area is emerging as a real prospect to become Australia’s first major oil province since the 1970s, with serious potential to revitalise a domestic oil production industry.”
Since coming to power in 2024, Queensland’s government led by David Crisafulli has prioritized affordable energy supply to reduce energy bills for industry and households.
Last year, Queensland, home to one of the world’s largest coal reserves, abolished a previous state government decision to close all its coal-fired power plants by 2035, as it vowed to pursue a sensible and pragmatic plan to meet its energy needs.
“The former Labor Government’s ideological decision to close coal units by 2035, regardless of their condition, is officially abolished,” Queensland Treasurer and Minister for Energy David Janetzki said in October.
“Queensland’s coal-fired fleet is the youngest in the country and state-owned coal generators will continue to operate for as long as they are needed in the system and supported by the market.”
By Tsvetana Paraskova for Oilprice.com
