Research into new drilling technique

A research program initiated by a Karratha-based company may result in the development of a new export product and the stimulation of petroleum exploration activity in Western Australia.

Mines Minister Gordon Hill said he had granted Mermaid Marine Group permission to conduct field research on a new drilling technique for onshore and offshore petroleum exploration.

He said the technique, known as ultra-slimhole drilling, had the potential to reduce significantly the cost of petroleum exploration activities, while facilitating exploration in logistically difficult areas such as shallow waters and remote onshore sites.

"Present regulations covering drilling operations in Western Australia do not accommodate the small calibre holes used in ultra-slimhole drilling," Mr Hill said.

"MMG is confident that a safe and reliable procedure for drilling ultra-slim holes can be developed."

Mr Hill said he had given Mermaid Marine's research proposal Scientific Investigation status under the Petroleum Act and the Petroleum Submerged Lands Act.

"This will allow the company to do the drilling work necessary to establish Australia-wide standards for petroleum exploration operations," he said.

"The Mines Department's Petroleum Division will work closely with MMG to ensure the techniques developed are safe and environmentally acceptable. The department will also ensure safe work practices are used."

The Minister said the project was potentially very significant for Western Australia.

"Aside from the benefits it may yield in increased and more cost-effective petroleum exploration, it may also generate income to the State through the export of drilling technology," he said.

"The department and MMG will work together to try to establish codes and standards which will allow this technique to be used safely throughout Australia, both onshore and in shallow waters."