Under the deal Santos divested its operated interests in the onshore Basin including a 90% interest in the exploration permit EP 154(a) and (b), a 100% interest in the exploration permit EP153 and commensurate interests in several production permits, all pipeline infrastructure and the Heytesbury processing facility.
The tenements are contiguous with Origin’s existing production licence PPL 8, surround the area of the Iona gas storage facility, and cover the geographic area in which the Thylacine, Geographe, Minerva and Casino gas discoveries in the offshore Otway basin will be brought ashore and processed.
“Origin has a long history of exploration and production activity in the Otway Basin. We
are constantly seeking to optimise our portfolio of assets in this area, which includes existing onshore production and exploration, significant offshore exploration licences and the major Thylacine and Geographe offshore gas development project,” said Origin’s managing director Grant King.
The SEA Gas pipeline to Adelaide in South Australia and the South West pipeline to Melbourne also emanate from this area.
Net production out of these fields is approximately 15 terajoules per day (TJ/d), with proved and probable (2P) reserves of approximately 5 petajoules (PJ). The exploration tenements cover around 1,900sq.km.
In addition to the value associated with the production and exploration acreage, Origin attributes value to the potential of the depleted fields for gas storage operations.
“With this acquisition we are able to add to our onshore production and exploration
activity, and will have the ability to convert depleted gas fields in the area into a gas storage project in the future,” added King.
Santos has been producing natural gas from the onshore Otway Basin for Victorian industrial, commercial and residential customers since 1999. The sale of these assets continues Santos’ divesture of non-core assets to focus on growth areas such as offshore Otway and Western Australia, Indonesia, Timor Sea, the USA, the Middle East and North Africa.
“Origin is pleased to be able to continue to support the development of a significant local energy industry in this area of south western Victoria. The region is expected to form a long term hub for gas operations, with the combination of major offshore gas resources, onshore gas fields, storage potential, and interconnection to both the South Australian and Victorian gas markets.”
