BP withdraws from Great Australian Bight
The South Australian Chamber of Mines and Energy (SACOME) understands the difficult decision by BP today to withdraw from drilling in the Great Australian Bight. Competition in the resources industry is a careful balancing act between development of greenfield sites in frontier regions and maintaining a strong economic portfolio to do so.
SACOME Acting Chief Executive, Dr Nigel Long said “While it is disappointing to see BP withdraw, those in the industry will understand and acknowledge the difficult decisions that have to be made in the current commodities climate”
Competitiveness in new frontiers against existing fields is always difficult and the economic conditions need to be right for companies to invest. This decision should not take away from the fact that this region is still highly prospective for oil and gas and will no doubt be explored in the future.
“It is our hope that once the competitiveness of frontier regions improves that BP will return to better understand the prospectivity and eventually develop a new oil or gas field for South Australia” said Dr Long.
“BP has shown themselves to be an honest and active participant in communities around the project area. Their commitment to staying in the region to work out alternative arrangements to honour prior obligations and commitments highlights to this fact” said Dr Long.
The South Australian Chamber of Mines and Energy (SACOME) understands the difficult decision by BP today to withdraw from drilling in the Great Australian Bight. Competition in the resources industry is a careful balancing act between development of greenfield sites in frontier regions and maintaining a strong economic portfolio to do so.
SACOME Acting Chief Executive, Dr Nigel Long said “While it is disappointing to see BP withdraw, those in the industry will understand and acknowledge the difficult decisions that have to be made in the current commodities climate”
Competitiveness in new frontiers against existing fields is always difficult and the economic conditions need to be right for companies to invest. This decision should not take away from the fact that this region is still highly prospective for oil and gas and will no doubt be explored in the future.
“It is our hope that once the competitiveness of frontier regions improves that BP will return to better understand the prospectivity and eventually develop a new oil or gas field for South Australia” said Dr Long.
“BP has shown themselves to be an honest and active participant in communities around the project area. Their commitment to staying in the region to work out alternative arrangements to honour prior obligations and commitments highlights to this fact” said Dr Long.
