More gas flows to Australian market as Beach Energy brings offshore duo on stream

Beach Energy (Operations) Limited, a subsidiary of Australia’s oil and gas player Beach Energy, has started production from two wells in the Otway Basin in Commonwealth waters, approximately 65 km southwest of the Victorian coastline at its closest point (Cape Otway) and 70 km south of Port Campbell. 

Beach Energy’s Phase 5 of the Otway Offshore Project, which started in February 2023, included the tying in of four new wells in the Thylacine field to the Thylacine A gas production platform and the commissioning of these wells, covering subsea installation and commissioning activities at the Thylacine North-1, Thylacine North-2, Thylacine West-1, and Thylacine West-2 production wells.

The Australian player connected Thylacine North 1 and 2 development wells to the Otway Gas Plant in May 2023 and started delivering gas into the East Coast market. However, the commissioning of two remaining well connections, Thylacine West 1 and 2, was delayed due to a failure of a flowline during pressure testing.

In a bid to sort out the issue, Beach Energy undertook subsea installation and commissioning activities to replace the failed flowline in Phase 5 of the Otway Offshore Project, allowing the remaining two wells to be brought online, and recover as much as possible of the failed flowline.

The installation and pressure testing of the Thylacine West flowline was completed after quarter-end, with the first gas expected by the end of October. Once online, the Thylacine West 1 and 2 wells were expected to provide a material increase in well deliverability for the Otway Gas Plant to service East Coast demand.

According to the company, the first gas from Thylacine West 1 and 2 development wells has been achieved following the connection to the Otway Gas Plant. These wells are located approximately 70 kilometers south of Port Campbell at a water depth of around 100 meters. The field is connected to the Thylacine subsea network via a 4.2 kilometer 8” flowline.

Commenting on first gas, Brett Woods, Beach Energy’s Managing Director and CEO, highlighted: “First gas from Thylacine West marks completion of the largest ever offshore drilling and development program in the Otway Basin, a major achievement for Beach. The Thylacine West development wells have provided a material increase in well deliverability for the Otway Gas Plant.

“With the market regulator AEMO continuing to forecast gas supply shortfalls on the East Coast in the near-term, Thylacine West is a critical and timely source of new gas supply for our customer and domestic users. This project is another important step toward delivery of Beach’s near-term growth objectives. I thank our staff, contractors and valued stakeholders for the safe completion of the Thylacine West development.”

Beach Energy, which acquired the Otway Offshore Project assets in January 2018, is the project’s operator and continues the development of the Otway Basin natural gas reserves, ensuring ongoing production at the Otway Gas Plant, which supplies natural gas to Victoria.

The activities for the project have run over several phases, beginning with seabed assessments, and then drilling exploration and production wells in the Geographe and Thylacine gas fields, and installation of seabed infrastructure to support the tie-in of the wells to the existing Thylacine A platform and Otway Gas Production Pipeline (OGPP).

Another oil and gas player, ConocoPhillips, plans to start an exploration program in the offshore Otway Basin to find commercially viable natural gas reserves and help meet Australia’s energy needs. To this end, the Transocean Equinox semi-submersible drilling rig was booked on a two-well drilling contract, signed as part of a 2025 exploration drilling program, pending regulatory approval.

Vessels from Sea1 Offshore, former Siem Offshore, have been booked to support the project, according to ConocoPhillips’ partner, 3D Energi.