Multi-well programme for several operators starting with ConocoPhillips could boost Australia’s energy security
Transocean’s semi-submersible rig Transocean Equinox has arrived in Australia’s Otway basin ahead of a multi-well campaign that will kick off with a ConocoPhillips-operated exploration campaign in offshore blocks Vic/P79 and T/49P.
Two firm wells are to be drilled this year as phase one of the programme, followed by up to four optional wells (phase two) between 2026 and 2028 on the two permits.
The initial wildcat is scheduled to commence in the third quarter depending on factors including the receipt of all regulatory approvals, and pending weather delays and any operational delays within the four-company operating consortium, said ConocoPhillips’ co-venturer ASX-listed 3D Energi.
Seabed surveys in Vic/P79 in commonwealth waters are scheduled to start this month — and expected to take four weeks to complete — ahead of exploration drilling, . The final selection of well locations is yet to be confirmed pending completion of subsurface 3D seismic interpretation studies across the two exploration permits.
The drilling campaign is focusing on low-risk gas prospects with direct hydrocarbon indicators in the offshore Otway basin, where proximity to existing infrastructure and Australia’s east coast gas market “further enhances the commercial viability of potential finds”, said 3D.
The company added the Otway exploration drilling programme (OEDP) is critical to the future gas needs of southern Australia, given the rapidly declining production from the Bass Strait and forecast shortfall risks from 2028 and structural supply gaps from the following year.
Australia’s independent regulator Nopsema in late February accepted the Environment Plan for ConocoPhillips’ OEDP that proposes up to six exploration wells in water depths ranging from 53 to 200 metres on the Vic/679 and T/49P permits in Commonwealth waters off the coasts of the states of Victoria and Tasmania, respectively.
Multiple wells for four operators
The harsh-environment drilling rig Transocean Equinox is contracted for a minimum of 16 wells offshore Australia through a consortium of four operators including ConocoPhillips.
The programme could keep the rig in the region until September 2027 if options are exercised.
The three other operators are Woodside, Amplitude Energy, and Beach Energy. Woodside contracted the rig for decommissioning work on the depleted Minerva gas field in the Otway basin.
Beach Energy plans to drill the Hercules-1 exploration well, while Amplitude also has at least one planned exploration well.
The initial firm charter for the rig through until March 2026 is at a dayrate of $485,000 with the dayrate for the priced optional wells through to September 2027 being $540,000, according to Transocean’s February 2025 fleet status report.
