Victoria opens first petroleum exploration tenders since 2018

Core Viewpoint - The state of Victoria has initiated its first petroleum exploration tenders since 2018 to address gas supply risks due to declining production in existing fields [1] Group 1: Exploration Tenders - Tender applications are invited for two areas: Area VIC/25-1 offshore the Otway Basin and Area VIC/25-2 onshore the Gippsland Basin, with submissions open until 11 February 2026 [1] - The petroleum industry indicates that these areas have the highest interest for exploration [1] Group 2: Domestic Market Focus - The new exploration projects are aimed at supplying the domestic market rather than supporting exports, as part of a strategy to meet increasing electricity demand in New South Wales, Victoria, and South Australia [2] - The Australian Energy Market Operator forecasts that gas demand on the east coast will exceed supply starting in 2028 [2] Group 3: Environmental Concerns - Environmental organizations have opposed the government's decision on new gas exploration tenders due to potential climate impacts, citing risks such as seismic blasting and groundwater drawdown [3] - Environment Victoria has expressed that the government has overlooked community concerns regarding the environmental impacts of these tenders [4] Group 4: Industry Response - Australian Energy Producers have welcomed the Victorian Government's decision, viewing it as a crucial step in unlocking new domestic natural gas resources [6] - The director of Australian Energy Producers Victoria emphasized that the announcement demonstrates the government's commitment to addressing future energy challenges [6]