Overview
- The state invited bids for two areas — VIC/25-1 in the offshore Otway Basin and VIC/25-2 onshore in the Gippsland Basin — with applications due by 11 February 2026.
- For the offshore block, bids that rely on existing seismic data and avoid new seismic testing will be preferred.
- The government signaled that any new resources are intended for the domestic market rather than exports, according to reporting of the announcement.
- Australian Energy Producers welcomed the release as a step to avert potential shortfalls, warning shortages could appear as soon as 2027, while environmental groups condemned the plan over seismic, groundwater and climate risks.
- The Gippsland area sits next to Ninety Mile Beach Marine National Park and the Otway block lies near Bay of Islands Coastal Park, as the state notes residential gas use has been falling in recent years.