Offshore gas drilling project companies continue to call for tenders

Companies involved in the PEP11 offshore gas drilling project continue to call for tenders, even though the Federal Minister for Resources and Water, Keith Pitt, has still not assessed or approved its licence extension.

BHP Energy has issued a call for tender for the provision of a Conductor and Surface Casing and associated services for the exploration well.

Local politicians gave assurances in April that they opposed the renewal of the PEP11 offshore exploration licence but the companies involved continue to issue preparatory tenders for the next stage of the project.

According to the National Electronic Approvals Tracking System (NEATS), the application for the extension of the PEP11 exploration permit was made by Asset Energy on February 4, 2021.

It has been 101 days since further information was requested by the regulator and the assessment of the application had not commenced as at July 13.

A spokesperson for Minister Pitt said the decision to extend the exploration licence was still under consideration and Coast Community Chronicle would be informed of any change.

The BHP call for tender, announced on July 5 by Director, David Breeze, was the second announced for the unapproved exploratory well in consecutive months.

In June, Asset Energy, a subsidiary of Advent Energy, issued a call for tender for the provision of subsea wellhead equipment, materials and associated services for the Baleen drilling program.

Breeze announced to the Australian Stock Exchange (ASX) that the well was planned to be drilled in 125 metres of water, approximately 26km offshore and 30km south south east of Newcastle.

“The drilling of the well is subject to funding and regulatory approvals and is expected to take around 40 days to reach Total Depth,” Breeze said.

He said the objectives of the proposed well were to target gas and evaluate carbon capture storage, subject to funding.

“When the well has reached Total Depth and has been fully evaluated, it will be plugged and abandoned as per regulatory requirements, in line with pre-drill planning as an exploration well, the wellhead and associated equipment will be removed from the seabed,” he said.

Advent Energy has an 85 per cent interest in PEP11 and Bounty Oil and Gas NL has 15 per cent.

Advent Energy is an unlisted oil and gas exploratory company and BHP Energy is one of its major shareholders.

According to the announcement to market, “Advent holds a strong portfolio of near term development and exploration assets spanning highly prospective acreage onshore and offshore.

“The offshore Sydney Basin offers the potential opportunity for NSW to make deep cuts in its CO2 emissions through Carbon Capture and Storage (CCS).

“CCS is part of a suite of solutions with the potential to mitigate greenhouse gas emissions and help address climate change,” the announcement said.

Jackie Pearson