The Australian state of Victoria has released two new petroleum exploration acreage tracts for competitive bidding, marking its first such release since 2018. The release targets the state's primary gas-producing regions, identified by industry as highly prospective.

Released Acreage Details

The release comprises two areas: offshore block VIC/25-1 in the Otway basin and onshore block VIC/25-2 in the Gippsland basin. VIC/25-1 covers 54 square kilometres approximately 250 kilometres west-south-west of Melbourne. It is adjacent to the Halladale and Speculant gas fields and is partly covered by existing 3D seismic data. Although no exploration wells have been drilled on the block, the 2005 Halladale-1 discovery well nearby successfully encountered gas-bearing structures.

Onshore block VIC/25-2 covers 199 square kilometres approximately 220 kilometres from Melbourne. It is adjacent to several gas discoveries and near the Golden Beach gas field. Four exploration wells have been drilled on the block, and processed seismic data, regional interpretations, and prospectivity assessments are available.

Geological Context and Need

The Gippsland basin is a significant hydrocarbon province, with major offshore discoveries. Onshore, gas has been found but not commercially produced. The acreage release is framed as a response to an anticipated gas shortfall in Victoria as soon as 2027, with legacy fields from the Bass Strait in decline. Industry representatives hailed the move as an essential first step to unlock new domestic gas resources, ensure energy security, and called for regular, preferably annual, releases to rebuild investment confidence.

Environmental and Community Opposition

The announcement faced strong opposition from environmental groups and communities. Critics warn that exploration and production activities would cause grave environmental impacts, including from seismic blasting, marine ecosystem damage, and groundwater drawdown. They argue that new fossil fuel projects undermine Victoria's climate targets and the transition away from gas. Community consultation on the permits reportedly received a damning response, with opponents accusing the government of ignoring public sentiment and bowing to industry pressure under a false pretense of a gas crisis.

Tender Process and Requirements

The tender process is now open under specific state petroleum acts. The government emphasized it is a competitive process requiring applicants to demonstrate industry experience, technical skills, financial capacity, and a clear exploration plan meeting environmental and community expectations. For the offshore block, applications that do not propose new seismic testing and rely on existing data will be preferred. The application deadline for both tracts is 11 February 2026.