Australia Awards Nine Offshore Petroleum Exploration Permits

Australia has handed out nine new offshore permits that will open the door to petroleum exploration investment worth 380 million Australian dollars (US$380.8 million) and may benefit the country's long-term energy security, the federal government said Friday.

"Liquefied natural gas is forecast to be Australia's fastest-growing energy export," Martin Ferguson, minister for resources and energy, said in a statement. "On the other hand, Australia has a A$16 billion trade deficit in crude oil, refined products and LPG (liquid petroleum gas), which is also rising."

Permits to explore waters off Western Australia state were awarded to Woodside Petroleum Ltd. (WPL.AU), Royal Dutch Shell PLC (RDSA RDSB), Mitsui & Co.'s (8031.TO) Mitsui E&P Australia, Cottesloe Oil & Gas Pty. Ltd. , Strike Energy Ltd. (STX/AU), WHL Energy Ltd. (WHN.AU) and Santos Ltd. (STO.AU).

The government said 33 bids were received for 12 areas in the second round of the 2010 Offshore Petroleum Exploration Acreage Release, which closed on May 12. Of the nine permits awarded, Woodside received seven permits, one alone and the others in partnership with either Shell or Mitsui.

"Continued exploration of offshore areas is required to maintain a robust offshore petroleum industry," Ferguson said. "These permits add greater momentum to offshore development, potentially reducing our dependence on fuel imports and strengthening our energy security."

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]