GIPPSLAND—NEW POTENTIAL FROM A MATURE BASIN

Abstract

It is now 39 years since the first gas was discovered in Bass Strait’s Gippsland Basin. Advances in exploration and production technology mean that today Australia’s longest producing offshore basin is also one of Australia’s most prospective. Gippsland is now producing around 160,000 barrels of crude and 570 million cubic feet of gas per day. To date it has produced more than 3.5 billion barrels of oil and 5 trillion cubic feet of gas and the value of the infrastructure in place is estimated to be around A$16 billion.

Australia’s evolving energy market means that gas demand continues to grow. Following the re-structuring of energy markets in southeastern Australia and the installation of new pipeline infrastructure, Gippsland gas now flows to Victoria, NSW, Tasmania and will supply into South Australia from 2004. To meet this growing demand the Esso/BHPBilliton joint venture partners are investing heavily and utilising a vast array of 3D exploration technology to unlock new opportunities. In 2002 they conducted the largest 3D survey ever undertaken in Bass Strait and expect to conduct another in early 2003. A program of exploration drilling is expected to commence in late 2003. With expanded market opportunities and a gas resource base of more than 5 trillion cubic feet, the future looks bright for Gippsland.