Oil giants to spend $303m on new acreage

The federal government has granted some of the world’s largest oil and gas players, including Woodside Petroleum and BHP Billiton, the right to drill new permits off the coasts of Western Australia and Victoria, stimulating more than $300 million in exploration over the next three years.

Resources and Energy Minister Martin Ferguson said a total of 46 bids were received for 16 release areas in the first round of 2011 offshore petroleum exploration release, with eight companies receiving exploration permits.

Woodside Petroleum, BHP Billiton and US giant Hess Corporation were awarded a series of permits in the Northern Carnarvon Basin, which the companies will collectively invest around $205 million in seismic processing, geotechnical studies and exploration wells over the next three years.

US-based oil and gas company, Murphy Oil Corporation, was also awarded a permit in the Northern Carnarvon Basin, proposing to conduct $1.8 million in seismic processing and geotechnical studies.

Off the Victorian Coast, Perth-based junior WHL Energy will kick off $62.1 million of drilling and exploration in the Otway Basin, while Bass Strait Oil Company will perform $3.5 million in studies and surveys in the Gippsland Basin.

Mr Ferguson said the new permits would ensure the continued growth of investment in oil and gas exploration.

“We already export $11 billion of LNG, making Australia the third-largest LNG exporter in the Asia-Pacific region and the fourth largest LNG exporter in the world,” Mr Ferguson said in a statement.

“With these new permits, we hope to see discovery of new oil and gas reserves, which could translate into more jobs and growth for our economy.”