MURPHY OIL - Offshore AC/P36 Browse Basin Exploration

Project Status

Australia-based Finder Exploration was awarded the exploration permit AC/P36, with an acreage of 4,064 square kilometres (sq km) on 18 October 2005. The permit, located in the northern part of the Browse Basin, is 20km north of the Adele gas discovery and 80km north of the giant Ichthys gas field in WA-285-P and lies in water depth of 250-550 metres (m).

According to Finder, preliminary evaluation of a number of major prospects in the Upper Cretaceous, Lower Cretaceous and the Middle Jurassic has indicated multi-Tcf (Trillion cubic feet) gas-in-place volumes with a significant upside.

Finder has proposed a work program of licensing 4064 sq km of 3D multi-client seismic data, and studies at an estimated cost of US$10.44 million (A$13.95 million). The secondary work program consists of one exploration well and studies at around US$7.6 million (A$10.2 million).

It added that the permit is entirely covered by 3D seismic data to which the company has full access. This has provided a technical advantage for prospect identification that has been not available to previous operators in the area. Finder has undertaken additional reprocessing and interpretation of the 3D seismic data over the main prospects/leads. Finder has also undertaken inversion work using Fugro-Jason technology.

If the exploration project is successful, Finder hopes to supply liquefied natural gas (LNG) in the Asia-Pacific region, where demand is projected to double by 2015 to 157 million tonnes per annum, or mtpa, from 88 mtpa in 2004. The probability of fast-tracking the development within the Browse Basin is high and increases the chance of commercialisation of any gas resources found in the permit area.

On 26 November 2007, Murphy Oil Corporation announced that its wholly-owned subsidiary, Murphy Australia Oil PTY LTD, has finalised an agreement to acquire a 40 percent interest and become operator of the AC/P36 exploration permit from Finder. This was followed by PTT Exploration and Production Public Company Limited  (PTTEP) entering into a Joint Participation Agreement with Finder for the acquisition of a 20 percent interest in Permit AC/P36 on 27 November 2008. Both agreements are subject to approval by Australian authorities.

The joint venture plans to drill an exploration well by the end of the first quarter of 2009. PTTEP said on 5 November 2008 that the joint venture intends to drill an exploration well by the end of 2008.

Murphy said on 28 January 2009 that a wildcat exploration well in the Browse Basin is drilling at an intermediate depth using the semi-submersible Stena Clyde rig in Permit AC/P36 after the well had spudded at the end of 2008.

The operator said on 26 February 2009 that it has completed drilling an exploration well on the Abalone Deep prospect in Block AC/P36. The well encountered non-commercial quantities of natural gas and is being plugged and abandoned.

Partner PTTEP said on 22 April 2009 key activities for this year include the drilling of the first exploration well, which operator Murphy completed in February 2009, and 3D seismic reprocessing covering 2,500 sq km. As of early November 2009, PTTEP has indicated that a key activity for the year is 3D Seismic reprocessing, covering 2,500 sq km in the Permit.

PTTEP said in June 2010 that the AC/P36 joint venture is working on 3D seismic reprocessing and will carry out geological and geophysical (G&G) studies in 2010.

In October 2010, PTTEP said that there has been no change in the planned work (3D seismic reprocessing and G&G studies) for Permit AC/P36.

Partner PTTEP has indicated in end January 2011 that the joint venture will make 3D seismic acquisition in Permit AC/P36 in 2011.

Jun 2012 Inpex gained a 50% stake in Block AC/P36 from Murphy Oil. (Topco)