LONDON -- Petrofac Ltd.'s resources division has farmed into 10% of permit NT/P68, 300 km (186.4 mi) offshore northwestern Australia. MEO Australia Ltd. owns the remaining 90% of the permit.
Permit NT/P68 extends over 12,070 sq km (4,660 sq mi) and contains several hydrocarbon bearing zones, Petrofac says, the most significant of which are in the Darwin formation.
The terms of the farm-in require funding a portion of two appraisal wells to be drilled in 2007. Petrofac will become operator for any follow-on delineation, development, and production periods.
Subject to the results of the appraisal program, Petrofac anticipates the accumulations in the block could be of sufficient size to be commercialized either by pipeline to the mainland or to the Tassie Shoal LNG project.
"This farm-in commitment provides Petrofac with a low risk opportunity to gain an operator position in a potentially significant offshore development, which may incorporate an LNG facility. We look forward to bringing our engineering and operating capabilities to this exciting development," says Amjad Bseisu, chief executive of Petrofac Resources.
The investment is conditional upon approval by the relevant governmental authorities.