Oil and Gas Developments in Australia in 1986

Abstract

A marked reduction in petroleum exploration and development activity was the direct consequence of the worldwide collapse in the price of crude oil at the beginning of 1986. Drilling in all categories was reduced to a level not seen since 1980, and geophysical activity (except for a dip in marine seismic coverage in 1983) was also at its lowest level since 1980. The downturn also resulted in a heavy loss of human resources to the industry. Most discoveries, albeit small ones, were made in the onshore Eromanga/Cooper basin region, where about half of the 1986 Australian wells were drilled. Offshore, more sizable reserves were indicated in multiple pays of gas and some oil in the Gippsland basin Kipper 1 discovery. Along Australia's North West Shelf, appraisal wells at previous discoveries (Saladin in the Barrow subbasin and Challis in the Vulcan subbasin) have substantiated significant accumulations. The Goodwyn condensate field in the Dampier subbasin, now believed to contain about 200 million bbl of recoverable condensate, will contribute substantial reserves to the nation's inventory as Gippsland basin fields become depleted. An appraisal well in the Palm Valley gas field in the onshore Amadeus basin, drilled directio ally into the axial fracture system of the structure, had an open-flow rate of 137 MMCFGD. This field is now linked by a 1,520-km pipeline to the Northern Territory capital city, Darwin, in the nation's newest pipeline project. With production declining in the Kingfish and Halibut oil fields, the Gippsland basin share of the nation's total oil and condensate production dropped from 86% to 81%. This also reduced the Australian average daily production of crude oil and condensate from the high of 565,000 b/d in 1985 to 515,000 b/d in 1986, even though production of oil and condensate was higher from all other producing areas. Two offshore fields on the North West Shelf came on-stream: Harriet and Jabiru, at modest rates of 8,000 BOPD and 14,000 BOPD, respectively. At year end, contracts were being let to begin an enhanced oil recovery project for the Cooper basin Tirrawarra and Moorari fields.