Otway

Commentary

Offshore exploration in the Otway is supported by east coast gas shortages, while onshore activity faces state restrictions. Federal gas-market intervention and safeguard-mechanism costs remain barriers. Outlook: Neutral.

Updated

October 7, 2026

Location

Description

The Otway Basin is one of the best known and most actively explored of the series of Mesozoic rift basins that span the southern coastline of Australia, which has been shown to be analogous to basins such as the Tucano–Reconcauo Basin of Brazil and the Gabon and Cabinda basins of the west coast of Africa, which contain some of the world’s largest oil fields.

Summary

Good-quality modern seismic now covers the offshore and most of the onshore basin, and exploration has revived to address the east-coast gas shortfall. ConocoPhillips' Essington-1 well (November 2025) found gas in the Waarre A and C reservoirs, the first Otway discovery since 2021, about 12km from existing infrastructure. However, the operator indicated that regulatory approval for development could take four to six years.