Korean energy firm hunts for gas off Australia’s East Coast

SOUTH KOREA’S state-owned energy company has partnered with ConocoPhillips in a new offshore gas drilling campaign off Australia’s East Coast.

The Korea National Oil Corporation (KNOC) is joining forces with the US company, along with Melbourne-based oil and gas explorer 3D Energi, to look for offshore gas in the Otway Basin in Victoria.

KNOC has established sites in the UK, US, UAE and Peru. However, the project marks its first exploration venture in Australia; until now, its operations in the Asia–Oceania region have been limited to Vietnam and Kazakhstan.

Noel Newell, executive chairman of 3D Energi, said: “It is incredibly encouraging that KNOC will join our Otway joint venture. It supports our view of the exceptional prospectivity in our permits and the scale of the opportunity ahead.”

KNOC will have a 29% stake in the two exploration permits led by ConocoPhillips, who will retain a 51% stake as the operator, with 3D Energi taking the remaining 20%.

ConocoPhillips has agreed to fund the first US$101m of drilling costs, with the remaining investment being split between KNOC and 3D Energi.

Victoria exploration

Australia is one of the largest exporters of liquified natural gas (LNG) in the world behind Qatar and produced around 3,732bn ft3 of conventional gas in 2023 – with 247bn ft3 coming from Victoria, according to data published by the industry body Australian Energy Producers.

However, like the rest of Australia, production numbers in Victoria have declined, with the Australian Energy Market Operator projecting that Victoria’s east coast will face supply shortfalls by 2029.

ConocoPhillips has joined a consortium of four operators in Australia, alongside Woodside, Amplitude Energy and Beach Energy, in securing a 16-well drilling rig, called the Transocean Equinox, in the Otway Basin to explore new gas sources.

Drilling activities for the whole project are expected to occur this year and next, with ConocoPhillips’ exploration of its two wells in the Essington and Charlemont fields to begin in the third quarter of this year, reports news site Upstream.