Royal Dutch Shell Plc Dotcom
The Australian: Japanese lobbying fails to nail exploration acreage: Shell announced yesterday it had been awarded exploration rights to a block in the Browse Basin....”: “Shell's chairman in Australia, Tim Warren, said that the decision to bid for the Browse Basin acreage had been driven by the demand for liquefied natural gas.”: Wednesday January 18, 2006
Nigel Wilson, National energy writer
INTENSE lobbying by the secretive Japanese exploration group, Inpex, has failed to secure it exploration acreage next to extensive gas reserves it controls off the West Australian coast.
Shell announced yesterday it had been awarded exploration rights to a block in the Browse Basin about 450km northwest of Broome adjacent to the giant Ichthys/Brewster gas discoveries.
Inpex, one of the biggest holders of undeveloped gas reserves in Australian waters, is the operator of the Ichthys/Brewster field, which according to West Australian government data, contains about 6 trillion cubic feet of gas and 230 million barrels of condensate (light oil).
The Australian understands Inpex was eager to secure the acreage known as permit WA-371-P when it was offered by the federal Government's exploration acreage release last year.
The lobbying was so intense the Japanese embassy was involved in direct discussions with federal Resources Minister Ian Macfarlane.
Mr Macfarlane is overseas and could not be contacted yesterday.
It is understood the Japanese representatives were told that Australia had a transparent system covering bids for oil and gas permits which was handled within the bureaucracy. Under this system there is no capacity for ministerial intervention.
The competition for the field marks a return to full-blooded exploration efforts by Shell in Australia which, after its aborted $10 billion takeover for Woodside in 2001, essentially withdrew from active exploration in Australia. Last year Chevron, as operator jointly with Shell, bid successfully for four deepwater blocks with significant natural gas potential in the Carnarvon Basin, which contains the Gorgon gas reservoirs.
Unlike that bid, Shell is the operator of the latest permit.
Shell's chairman in Australia, Tim Warren, said that the decision to bid for the Browse Basin acreage had been driven by the demand for liquefied natural gas.
"The re-emergence of strong growth in Asia-Pacific LNG demand has promoted us to look again at acreage where previously we would have been about the commercial potential.
"Now we believe the permit area WA-371-P could be a significant contributor to the supply of LNG to the Asia-Pacific market," he said.
Click here to return to ShellNews.net/ ROYAL DUTCH SHELL PLC DOTCOM HOME PAGE