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Sunday, 12 October, 2008, 12:20 GMT | more prices >>

Oz drillbits slow, but costs rise in 2007



By Upstream staff 

Australian statistics for 2007 highlight a modest decrease in offshore and onshore exploration drilling, but a significant increase in expenditure, according to the Australian Petroleum Production & Exploration Association (APPEA).

The number of wells and exploration metres drilled dropped, but explorers’ outlay increased by around A$1 billion (US$910,000), representing a 70% year-on-year rise, said APPEA.

"This is a stark illustration of the impact of rising costs and equipment shortages," said APPEA boss Belinda Robinson, although the petroleum exploration expenditure of A$2.6 billion includes a significant amount of seismic acquisition.

“These results highlight the need to be very cautious when making generalisations about exploration activity based on the level of, or movements in, expenditure. In particular, the dramatic rise in the level of exploration expenditure can be attributed to rising costs," said Robinson.

APPEA's annual conference begins in Perth on 6 April and "is an important forum for us as an industry to discuss the hard policy issues behind these figures and to provide information to policymakers considering how Australia can best use its petroleum resources to enhance our nation’s prosperity”, added Robinson.


Thursday, 03 April, 2008, 02:18 GMT  | last updated: Thursday, 03 April, 2008, 03:53 GMT

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