Oil & Gas
Download the PDF version of this document: Oil & Gas Fact Sheet (PDF, 875.87 KB)
A world-class petroleum province
Victoria, Australia, is a world renowned oil and gas province with significant opportunities for explorers in new areas or through farm-in, underpinned by world-class pre-competitive information and ready access to existing infrastructure and markets.
Victoria is a significant contributor to Australian oil and gas production, with proven potential for further exploration and development. Each year gas produced offshore in Victoria is worth about A$1.5 billion, and crude oil production is valued at over A$2 billion.
More than 80 per cent of eastern Australian conventional gas reserves are located in the waters between Victoria and Tasmania, the majority within the Gippsland Basin offshore from Victoria.
During the last decade, the market for gas has expanded beyond the Victorian State border through pipeline networks connecting the surrounding eastern states. This growing customer base, both wholesale and retail, together with an increasing number of gas supply sources is increasing market depth and enhancing security of supply.
Proven resource potential
At greater than one billion barrels (original oil recoverable), Kingfish, in Victoria’s Gippsland Basin in Bass Strait, is Australia’s largest oil field. Nearly four billion barrels of oil and eight trillion cubic feet (Tcf) of gas have been produced from the Gippsland Basin to date. These volumes demonstrate the existence of a world-class working hydrocarbon system.
Remaining developed liquids reserves are estimated at about 400 million barrels and gas reserves are estimated at five Tcf in the Gippsland Basin.
In the Otway Basin, reserves are estimated at one Tcf.
Victoria has a significant ‘yet to find’ hydrocarbon potential. In the state’s gas-prone Otway Basin, a recent study estimated that 1.8 to 3.7 Tcf of gas remains undiscovered*.
In the Gippsland Basin, it is likely that 0.6 to 2 Tcf of gas to remains undiscovered, with up to 600 million barrels of liquids.
Key reasons to invest in Victoria:
- The Gippsland Basin is a well established, multi billion barrel oil and gas province with proven play systems at multiple levels.
- Victoria is under-explored in the offshore Gippsland where interbedded sands and shales beneath the regional seal and in deep water areas come with liquids potential, both as oil and as condensate.
- Victoria also offers potential for unconventional gas exploration including onshore tight and shale gas which are emerging as alternatives to conventional gas supply in a market that is seeing increasing domestic demand.
- The offshore Otway Basin appears to be gas prone but exploration has been focussed around the original 1990 discovery onshore and there may be potential if a reservoir can be identified away from that area.
- The Victorian Government actively supports and wants to further develop a strong earth resources sector.
- Victoria boasts political and economic stability and low sovereign risk.
- Victoria features easy access to sophisticated infrastructure, established markets and export pathways.
- Victoria has an enviable lifestyle in a secure environment with world class facilities and services.
The Victorian Government is committed to economic development.
The Victorian Government provides a positive business environment, efficient regulation and security of tenure for explorers and developers.
The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) can lower your investment risk by providing:
- prospectivity assessments of acreage release for bidding (Oil and gas acreage release)
- regional assessments of basin setting to put your preferred option into a regional context
DEDJTR offers advice and information to assist investors, including:
- A 3D model that can be used to analyse resource potential, predict the location of undiscovered earth resources and allow the development of 4 dimensional resource management frameworks (online store)
- An online tool to create customised scientific maps in real time or to view, download or interrogate geoscientific databases, including geology, drill holes and geochemistry (GeoVic)
- Free digital geoscience maps, reports and data, including geological, geochemical, geophysical, regolith, minerals and open file tenements (online store)
- Free access to DEDJTR’s knowledge, advice and expertise on obtaining approvals for earth resource projects; and
- Pre-competitive data, information and knowledge accumulated over 155 years of exploration and mining
*O’Brien, G. W. & Thomas, J. H., 2007. A technical assessment of the yet-to-find hydrocarbon resource inventory, offshore and onshore Otway Basin, Victoria, Australia. Victorian Initiative for Minerals & Petroleum Report 90, Department of State Development Business and Innovation. Download free from the online store.