AUSTRALIA —The Victoria state government has initiated new petroleum exploration tenders, marking its first acreage release in seven years as authorities respond to declining output from mature gas fields. Applications have been invited for two designated areas: VIC/25-1 in Victorian waters of the Otway Basin and VIC/25-2 in the onshore Gippsland Basin. Submissions will close on 11 February 2026.
The move follows mounting concerns over tightening gas balances in southeastern Australia, where legacy fields are depleting and replacement supply has lagged. According to international media reports, the acreage release is structured to prioritize domestic consumption rather than support liquefied natural gas exports.
Victoria plays a critical role in supplying gas to major demand centers including New South Wales and South Australia, where gas-fired generation remains integral to electricity reliability during peak periods and renewable intermittency. The tender round signals a policy recalibration aimed at stabilizing regional energy markets.
For upstream operators and service providers, the reopening of exploration acreage presents renewed entry opportunities in a historically restricted jurisdiction. For power generators and industrial consumers, additional discoveries could moderate supply risk and price volatility, influencing contracting strategies and infrastructure investment across Australia’s east coast gas market.
