13 December 2018
BHP today announced approval to develop the western dome of the Barracouta (West Barracouta) gas field in Bass Strait, Victoria Australia. The investment of approximately AUD$200 million (BHP share) is in line with the company’s commitment to meeting Eastern Australian gas demand and maximising resource value.
The project will see the development of one of the largest remaining sweet gas reservoirs in Bass Strait, through a two well brownfield tieback into existing Gippsland Basin Joint Venture infrastructure.
General Manager BHP Petroleum Australia Graham Salmond highlighted the ongoing significance of the Bass Strait to the Australian domestic market and the BHP portfolio.
“The West Barracouta project is an important investment, underpinned by strong economics and rates of return, that will unlock a high quality, new gas resource and help offset Bass Strait production decline at a vital time for the east coast market.”
“The Gippsland Basin Joint Venture has played a central role in reliably meeting the needs of the Eastern Australia domestic gas market for 50 years.”
“We are also assessing other potential development opportunities in the Bass Strait to bring new supply to the domestic market.”
The West Barracouta development is expected to achieve first gas from 2021 and demonstrates the Gippsland Basin Joint Venture’s commitment to maintain Bass Strait as a substantial contributor in meeting future domestic gas demand.
“BHP is actively engaging with a diverse range of customers for future Bass Strait gas supply,” said Mr Salmond.
BHP and Esso Australia Resources Pty Ltd (operator) each have a 50 per cent interest in the Gippsland Basin Joint Venture.