Esso Deepwater Gippsland Pty Ltd (Esso Deepwater Gippsland) has commenced a brand new offshore exploration drilling program in the Gippsland Basin to search for new sources of gas.

Esso Deepwater Gippsland is drilling two exploration wells, known as Baldfish and Hairtail, on the VIC/P70 block as part of its investment program to find and bring online new gas supplies. This permit, VIC/P70, is the first new exploration acreage that the Company has acquired in the Gippsland Basin in over two decades.

Esso Deepwater Gippsland currently holds 100 per cent interest in the VIC/P70 block, which is located approximately 90 kilometres off the East Gippsland Victorian coast. Diamond Offshore’s Ocean Monarch semi-submersible drilling rig is also set to commence drilling the wells, which is forecast to take several months. Moreover, Chairman Richard Owen said this ambitious exploration drilling program adds a new, exciting chapter to the exploration in the area.

“The two wells will be drilled in water depths ranging from 350 to 700 meters, amongst the deepest water depths drilled in the Gippsland Basin,” Mr Owen said, “these wells are targeting gas prospects, with the objective of proving up resources for timely development and contribution to the Australian domestic gas market.”

“This $120 million exploration drilling program demonstrates our commitment to bringing new gas supplies to the domestic market,” Mr Owen shared.

Further to this, the recent announcement stated that ExxonMobil Australia is also actively considering a potential LNG import project to bring additional supply to the east coast gas market. More information on this announcement can be found here.