Victoria Launches First Petroleum Exploration Tenders Since 2018, Unveiling 12 New Blocks

Victoria has formally launched its first petroleum exploration tenders in over six years, unveiling 12 new exploration blocks across the Gippsland Basin and offshore zones near the Victorian coast. The tender process, administered by the Department of Energy and Climate Action, opens the door for international and domestic energy firms to bid for licenses to explore for oil and gas in previously restricted areas. The initiative is part of Victoria’s broader energy transition strategy, which aims to balance fossil fuel development with long-term decarbonization goals. While the state has historically focused on renewable energy, the new tenders provide a pathway to assess potential hydrocarbon reserves, particularly in underexplored offshore regions. Companies including BHP.AX, RPL.AX, and VST.AX are expected to participate, with the bidding period set to conclude in March 2026. Initial estimates suggest the tender could attract up to AUD 150 million in exploration commitments over the next five years. If successful, the program could lead to the discovery of new reserves, with preliminary geological assessments indicating potential for up to 150 million barrels of recoverable oil equivalent across the 12 blocks. The state government also plans to allocate a portion of revenue to regional infrastructure and environmental monitoring programs. The announcement has already prompted a positive reaction in energy markets, with VST.AX and RPL.AX posting gains of 3.2% and 2.8% respectively in early trading. International players such as ExxonMobil (XOM) have signaled interest, though no formal bids have been submitted yet. The development may also influence the broader Australian energy landscape, particularly as federal policy continues to shape exploration regulations across the country.