Carnarvon Energy has confirmed that the next phase of exploration drilling in the Bedout sub-basin, operated by Santos offshore Western Australia, has been postponed to the first half of 2027 due to limited rig availability.
The Bedout sub-basin, regarded as Australia’s hottest new offshore exploration play, has yielded major discoveries including Dorado, Pavo, and Roc. Carnarvon chairman Robert Black told shareholders at the company’s annual general meeting on Friday that the joint venture aims to secure a drilling rig in 2026, but supply constraints have forced a delay.
“The lack of rig availability through 2026 has pushed back the drilling timeline,” Black said, adding that the joint venture has already begun procurement of long lead items for the upcoming exploration campaign. He also noted that public consultation on the environmental plan covering multiple well sites has commenced.
The Santos-led Bedout joint venture holds four exploration permits — WA-435-P, WA-436-P, WA-437-P, and WA-438-P — covering more than 11,000 square kilometres. Santos owns 80%, while Carnarvon Energy and OPIC Australia, a subsidiary of Taiwan’s CPC, each hold 10%.
Carnarvon reported that its net best estimate of contingent discovered resources within the Bedout sub-basin is 54 million barrels of oil equivalent. The company said the first exploration well is now expected to spud in the first half of 2027, subject to regulatory and joint venture approvals, with further drilling planned for 2028 and 2029.
The 2027 drilling campaign will focus on the Northern play fairway, where the largest identified prospects in the basin are located. The wells will test the same geological play system as Dorado while also evaluating potential new targets.
Seismic data from the Bedout Mega Merge Project, completed in July, is being analysed to finalise drilling locations and shape future exploration plans. Carnarvon noted that the enhanced dataset has revealed previously undetected structural and stratigraphic features, improving geological understanding of the basin.
Santos’ January decision not to proceed with acquiring a floating production, storage and offloading (FPSO) vessel for the Dorado Phase 1 liquids project prompted Carnarvon to diversify its strategy. The company has since invested A$86 million (US$56 million) in Strike Energy, acquiring a 19.9% stake and becoming its largest shareholder.
Carnarvon chief executive Philip Huizenga said the investment provides Strike with capital to advance its Perth Basin developments, including South Erregulla and West Erregulla.
