BPH Energy’s investee company Advent Energy has welcomed the Federal Government’s gazetting of an area of the Pacific Ocean area off NSW as Australia’s second official offshore wind energy zone.

Asset Energy – the wholly-owned subsidiary of Advent – added that following a seismic review over its PEP 11 permit and drill data from the Seaclem 1 well, it found that the Declared Wind Area, which intersects the permit to the northeast, does not materially impact on its main target areas.

Importantly, the location of the planned Seablue-1 well – located about 26km offshore in water depths of about 125m – is a significant distance to the southwest of the designated area.

BPH Energy (ASX:BPH) noted that Asset and its joint venture partner Bounty Oil & Gas welcomed the gazettal as it reinforced their belief that decarbonising the global energy system will require the use of a mixture of technologies encompassing renewable energy resources, carbon sequestration and natural gas.

Asset pointed out that there will be offshore areas where wind, gas and carbon sequestration activities will overlap and that a holistic approach should and will be taken to ensure that clean energy is produced in a reliable and cost-effective manner.

It has carried out preliminary discussions to explore synergies with one of the wind technology companies who are planning to tender for and develop part of the Declared area and has scheduled further consultation.

 

Permit extension and Seablue-1 drilling

Meanwhile, Asset continues to progress the JV’s applications for the variation and suspension of work program conditions and related extension of PEP-11.

While these applications are being considered by NOPTA (National Offshore Petroleum Titles Administrator), it is investigating the availability of a mobile offshore drilling unit to drill the proposed Seablue-1 well on the Baleen prospect that would take about 35 days to complete.

Asset is in communication with drilling contractors and other operators who recently contracted rigs for work in the Australian offshore beginning in the first half of 2024.

Seablue-1 targets gas and will also evaluate encountered formations for their potential to store greenhouse gases.

Gas remains in demand in Australia with the Australian Competition & Consumer Commission (ACCC) noting that there would be a material shortfall in supply in the East Coast market from 2026.

Besides support from Federal Government ministers, outgoing Reserve Bank governor Dr Phillip Lowe has also noted that “increased supply of gas and electricity in the domestic market would be helpful to combat rising energy prices”.

 

 

This article was developed in collaboration with BPH Energy, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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