BP and Chevron have committed to investing a total of $116.5 million in oil and gas exploration activities, with at least half directed to projects in South Australia with a view to increasing energy supplies in the state and south-eastern Australia.

Minister for Resources and Northern Australia Matt Canavan and South Australian Minister for Energy and Mining Dan van Holst Pellekaan jointly announced the commitments today, following the conclusion of Good Standing Agreement negotiations with both parties after their decisions to cease petroleum exploration in the Great Australian Bight.

“BP and Chevron ceased their programs of exploration in the Great Australian Bight in 2017 and 2018 respectively. Australia’s offshore oil and gas policy ensures that companies which commit to a program of exploration deliver on that commitment under the Government’s Good Standing Agreement policy,” Minister Canavan said.

“In rare cases where commitments are not met, companies are encouraged to re-direct exploration investment within Australia.

“This is an important policy that maintains the exploration investment pipeline in Australia, supporting new petroleum discoveries and our future energy security and I welcome these commitments from BP and Chevron.”

Minister for Energy and Mining Dan van Holst Pellekaan said he was pleased the Australian Government supported his request that half of the Good Standing Agreement be discharged in South Australia.

“It is excellent news for the South Australian resources sector that almost $60 million will be invested in our state as a result of the Good Standing Agreement,” Minister van Holst Pellekaan said.

“This investment will help tap the immense promise of South Australia’s resources sector driving  job creation , investment and royalties in South Australia.

“Australia’s offshore oil and gas policy ensures that companies who commit to a program of exploration deliver on their investment commitments.”

Both companies now have three years to deliver on their investments, with BP set to invest $40.6 million by October 2022 and Chevron to invest $75.9 million by September 2022. Both parties are finalising contractual negotiations for a range of regional studies with third party proponents.