Santos and Beach Energy, through its subsidiary Drillsearch Energy, have been selected as the preferred bidders for three new gas exploration areas in Queensland's Cooper-Eromanga basin. The blocks, covering nearly 7000 square kilometres, are strategically located near existing joint venture infrastructure, which would allow for rapid commercialisation of any discoveries.

Strategic Importance and Industry Response

The award aligns with the companies' strategy to increase domestic gas supply. Beach Energy's CEO highlighted that the blocks enhance the joint venture's exploration portfolio and cover multiple exploration prospects. Santos welcomed the government's action to unlock new supply. The industry association Australian Energy Producers hailed the move as a critical step towards strengthening future gas supply, easing market pressures, boosting long-term energy security, and sending positive signals to investors.

Government Perspective and Future Plans

The Queensland government stated the exploration investment, spanning an area almost three times the size of the Australian Capital Territory, is part of its plan to meet future energy needs, support regional industries, create jobs, and relieve energy pressures. The government is preparing to release further areas later in the year, following industry consultation.

Acreage Release Process Reforms

Acknowledging past stakeholder concerns about the efficiency, transparency, and predictability of the acreage release system, the government is implementing reforms in two phases. Initial administrative improvements will be applied to the 2026 onshore acreage release, with longer-term reforms to consider alternative release methods. The goal is to establish a faster, clearer, and more predictable approvals framework to accelerate responsible development and maintain Queensland's attractiveness for energy investment.