MELBANA’S 100%-owned Beehive permit offshore Western Australia has seen its terms extended by a year by the offshore titles regulator. 

Under the terms of the National Offshore Petroleum Titles Administrator (NOPTA) Melbana was required to drill a well at its Beehive prospect this year, but after Santos chose not to take up its option for an 80% farm-in has had to delay those plans.  

NOPTA has allowed a 12-month suspension of the work program for year 3 in WA-488-P  which now ends December 21 next year. The permit term ends December 21, 2023.  

The permit holds the Beehive prospect which could hold up to 388 million barrels of oil equivalent on a best estimate basis  

Total completed a 3D seismic survey over the area but last year chose not to take up the option to farm in for a 40% share of the permit. Santos took over its option but had always said it would only take up the project if it could first find a farminee. When it hadn't by the deadline of early this year, the full interest moved back to Melbana.  

Santos has an 80% share of other permits nearby such as the Dorado oil project it shares with Carnarvon Petroleum (20%) and has said it will farm down the project when it is at a later stage of development.  

Melbana says permitting and preparation to drill an exploration well that will target the large carbonate structure is underway. The well was due to be drilled before the end of the year. 

Source: Energy News Bulletin

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