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SOUTHERN GAS PIPELINE - FULFILLING a NEED for TWO Fig

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SOUTHERN GAS PIPELINE - FULFILLING a NEED for TWO Fig MINISTER’S STATEMENT he Bracks Labor Government was elected with a clear view of the importance of the energy and resources sector and the particular challenges that must be met if the industry is to continue to make a valuable Tcontribution to the wealth and wellbeing of all Victorians. Oil and gas make a significant contribution to the Victorian and the national economies. It has been a remarkable year for Victoria's petroleum industry since the last Victorian supplement was released. The outstanding record of success, with five back-to-back gas discoveries in the onshore Port Campbell region by Santos, was followed by the offshore successes at Thylacine-1 (just in Tasmanian waters) and Geographe-1 by the Origin consortium. Esso/BHP Billiton has also discovered gas at the East Pilchard-1 well in the Gippsland Basin. This year has been pivotal for the State. These new discoveries provide some real opportunities for significant changes in the southeastern Australian gas market structure. New potential markets and customers, both in Victoria and interstate, are developing, in turn leading to development projects and stimulating high exploration activity levels. The Bracks Government remains committed to its reform agenda in the oil and gas sector. The Pipelines Act General Discussion Paper has been released for comment on the objectives and purpose of regulation of the pipeline industry and on other specific issues. Encouragement of exploration and establishment of new sources of supply will ultimately enhance security of gas supply to Victoria. Victoria is also continuing to support responsible exploration and development of the industry through the Victorian Initiative for Minerals and Petroleum. Provision of basic and value - added information and its preservation for future explorers remains a priority. That policy and the development of the region's gas markets is stimulating the upstream and midstream gas sector. Last fiscal year (2000/1) witnessed the greatest investment in exploration expenditure for a decade (over $75 M). That investment has already been eclipsed at mid year in 2001/2. An estimated $165 M has been spent by the end of January 2002 on exploration work and the completion of a busy year is projected. The largest ever offshore 3D seismic acquisition program in the southeastern Australian region is being conducted by the Esso/BHP Billiton joint venture at the time of writing. In 2002 it is anticipated that the first new producer in the Gippsland Basin, OMV, will be supplying gas from the Patricia Baleen field. The gas pipeline to Tasmania is also under construction, linking that state to the Bass Strait fields and ultimately to the rest of the nation. Gas development and pipeline projects valued at up to $2 Billion are planned for the next five to six years. Articles in this supplement will provide greater detail as to the scope and timing of these projects. Victorian acreage, released at the 2002 APPEA conference, will again be accompanied by the comprehensive technical reports that supplement the national release and also cover the areas exclusively under the State's jurisdiction. The successes in the Otway Basin have highlighted this region internationally and it is anticipated that there will be considerable interest in the offshore Otway areas. I am confident that the three offshore areas offered in Australia's historically most prolific Gippsland Basin, will also be closely considered by the industry. The Bracks Government is developing a petroleum industry that contributes substantially to the wealth and wellbeing of all Victorians, while meeting contemporary community expectations for social and environmental outcomes. I would like to extend thanks to the industry contributors to the supplement. With the Department summaries I trust it will provide a useful reference for both those companies already established in Victoria, as well as those who are new to the State. Candy Broad Minister for Energy and Resources, Minister for Ports, Minister Assisting in State Development I Minister's Statement IFC IContentsMPV Division Structure 3 IMinister'sMPV PetroleumStatement. .Regulation . .Unit . IFC Lakes Oil HoracioExploration Haag Activities in Victoria Update 4 I Major Projects Reflect Renewed Confidence Lakes Oil GeoffNL . Collins. 105 Petroleum Branches of E&M Division. 1 I Petroleum Web Site BASIN STUDIESGeoff CollinsGROUP UPDATE 5 IINFRASTRUCTURE2001 Release of Exploration Areas Dr Mike Woollands,Dr Mike Woollands David Wong And Dr Tom Bernecker Surgein inHighlights Infrastructure Otway Development Basin Potential to Tap Gas Discoveries Otway Basinand . .Andrew . .Constantine . 116 IGeoffGippsland Collins . .Basin: . Potential. .and . .Opportunities . 2 D. Wong, D. H. Moore & Dr T. Bernecker 9 I Exploration Activities in Victoria GippslandMaher Basin . Megallaa. 1211 Feasibility Studies in Progress for New Offshore Otway Basin Fields WoodsideOffshore Energy Otway .Exploration . Enters. .New . Phase. 2 News fromOrigin Basin Energy Studies & .Woodside . 15 Strike's Otway Gas Opportunity Coming Together Strike Oil Nl SouthernBusy Year Gas Planned Pipeline for - FulfillingSantos with a NeedIncreased for TwoExploration States’ inPipeline Otway Basin PETROLEUMSANTOS RESOURCES Ltd & PRODUCTION DukeOil Energy and Gas International Opportunity. in. Bass. .Straight . 3 Eagle Bay Resources Melville Upside Potential of 251mmb in Golden Beach Sub-Group PetroleumBass Resources, Strait Oil Production Company and Drilling Activities In Victoria SEA Gas Project Set to Flow in Late 2003 Dr Kourosh Mehin . 16 IAustraliaPetroleum National Resources Power. and. .Operational . Activities. Update. 4 Dr Kourosh Mehin 18 I Tuna / West Tuna M-Sand Outstanding PETROLEUM INFORMATION EXPLORATION ACTIVITIES Performance from a 12 m Oil Rim Esso Australia Ltd. 19 Petroleum Information Group Update IAcreagePetroleum Release Information and Industry Group Activities Update in Victoria Bob HarmsBob. Harms. 1820 IMaherMPV Megallaa Reports. .Listing . 5 21 I EMD Reports Listing . 19 GippslandList of 3DTenements Seismic Survey - A Boost For The Northern Fields Life 22 IEssoTenements Australia Pty and Ltd Pipelines. Map. 6 List of Tenements . 20IBC I Otway Seismic Line OBC New Otway2002 Horizons Tenements and Pipelines Map . IBC Santos Ltd. 7 Santos’ 3D Map, TWT for Top Waarre . OBC Otway/Sorell Basin New Seismic Fugro Multi Client Services (formerly Seismic Australia) and Fugro Geoteam . 9 ENERGY & MINERALS DIVISION Richard Aldous Executive Director Energy and Minerals Ph: +61 3 9412 4508 Fax: +61 3 9412 4183 Email: richard.aldous @nre.vic.gov.au Energy and Minerals is a division of the Department of Natural Resources and Environment. It seeks to deliver the lowest sustainable energy prices for Victorian consumers with assurance of safety and security of supply. It promotes and regulates mineral and petroleum exploration and extraction; administrates and reforms policies related to these activities, including mining and transmission pipelines. Kathy Hill Manager Petroleum Development Ph: +61 3 9412 4208 Fax: +61 3 9412 5156 Email: [email protected] Responsible for facilitation of petroleum exploration and development, acreage marketing, geological studies, data management, reservoir engineering and legislative policy reform. Rob King Manager Minerals and Petroleum Regulation Ph: +61 3 9412 5069 Fax: +61 3 9412 5152 Email: [email protected] Responsible for establishment of technical aspects of licence conditions and approvals of drilling programs, pipelines, health, safety and environment monitoring. Also responsible for granting Petroleum Development Managers renewal and administration of licences and fees. Mike Woollands Kourosh Mehin Manager Basin Studies Manager Petroleum Resources Ph: +61 3 9412 5135 Fax: +61 3 9412 5156 Ph: +61 3 9412 5082 Fax: +61 3 9412 5156 Email: [email protected] Email: [email protected] Basin Studies have developed a knowledge of Victorian Basins and produce Petroleum Resources monitors the level of reserves within Victoria and regional geological reports to assist with the assessment of acreage. The provides geological/technical advice in respect of drilling programs and group also funds studies and acquisition of data where this will promote tenement applications. the acreage. Geoff Collins Maher Megallaa Manager Petroleum Projects Manager Acreage Release Ph: +61 3 9412 5095 Fax: +61 3 9412 5156 Ph: +61 3 9412 5081 Fax: +61 3 9412 5156 Email: [email protected] Email: [email protected] Provides assistance in liaising with government agencies for all projects Handles the co-ordination of acreage release processes and the marketing including new transmission pipelines. of gazetted acreage, including the preparation of promotional data. Bob Harms Minerals & Petroleum Regulation Manager Information Services Ph: +61 3 9412 5053 Fax: +61 3 9412 5156 Horacio Haag Email: [email protected] Manager Petroleum Regulation Unit In Victoria data is required to be submitted to the government. Information Ph: +61 3 9412 5101 Fax: +61 3 9412 5152 Services manages this data and, after confidentiality periods, handles Email: [email protected] distribution to companies requesting the data. Responsible for the management of the Petroleum Tenements, assessment and acceptance of safety cases, environmental management plans, approvals of seismic, drilling, and Workover operations. Department of Approvals relating to pipeline construction and operations.
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