The Santos-led joint venture's next offshore exploration drilling campaign in the Bedout sub-basin has been delayed to the first half of 2027, a postponement from the originally planned mid-2026 start. The primary reason for this delay is a lack of drilling rig availability throughout 2026.

Joint Venture and Bedout Sub-Basin Significance

The Bedout sub-basin is described as Australia's most exciting new offshore exploration play, known for the large Dorado oil and gas discovery, as well as other finds like Pavo and Roc. The joint venture holds four exploration permits covering over 11,000 square kilometres. The partnership consists of operator Santos with an 80% interest, Carnarvon Energy with 10%, and OPIC Australia, a subsidiary of Taiwan's CPC, also holding 10%. Carnarvon's net best estimate contingent discovered resources in this acreage are 54 million barrels of oil equivalent.

Progress and Planning for the Drilling Campaign

Despite the delay, preparatory work is advancing. The joint venture has begun procuring long lead items for the exploration campaign, and public consultation on the environment plan for multiple well locations has already commenced. The venture aims to contract a drilling rig in 2026. The first well is expected to be spudded in the first half of 2027, pending government and joint venture approvals, with further drilling planned for 2028-2029.

Exploration Targets and Seismic Data

The 2027 drilling campaign is planned to target the Northern play fairway, which hosts the largest identified prospects within the basin. This campaign will test the same play system as the Dorado discovery and potentially new play types. The finalization of exploration targets is being guided by the ongoing evaluation of survey results from the recently completed Bedout Mega Merge Project seismic surveys. This enhanced seismic dataset has enabled the identification of previously undetected structural features and stratigraphic trends, enriching the understanding of the region's geological potential.

Carnarvon's Strategic Diversification

A significant strategic shift for Carnarvon was triggered by Santos' decision in January not to proceed with the purchase of a floating production, storage and offloading vessel for the Dorado Phase 1 liquids project. In response, Carnarvon has diversified its portfolio by investing A$86 million (US$56 million) in onshore basin operator Strike Energy for a 19.9% shareholding. This investment makes Carnarvon Strike's largest investor and increases its exposure to Western Australia gas markets. The partnership is intended to provide funding for Strike to develop its high-quality Perth Basin assets, including South Erregulla and West Erregulla.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Ting Nan Wang. All rights to the original text and images remain with their respective rights holders.