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Australia's Upstream Exploration Spend Surges on Asian Demand

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Australia's quarterly petroleum exploration expenditure reached a decade high of 471 million Australian dollars ($324.9 million), propelled by growing regional gas demand and geopolitical disruption, according to new official government data.

Driven by rising gas demand across Asia, and an improved investment framework, the urgency to secure long-term supply volumes has been compounded by geopolitical risks exposed by the Iran war.

On a seasonally-adjusted basis, there was a 4.8% drop to $466.6 million Australian dollars while the increase to 470.7 million Australian dollars reflected a 6.1% spending increase.

The surge underscores a strategic shift toward both unproven onshore plays and capital-intensive offshore projects.

The exploration push is currently concentrated across three highly prospective asset corridors.

The Northern Territory's Beetaloo shale sub-basin remains a primary area of focus, with government estimates pinning contingent resources at over 7 trillion cubic feet of gas.

In southwestern Queensland, exploration is targeting deep, unconventional structures within the Taroom Trough.

Investment is also flowing into established basins near existing infrastructure in the Southern and Eastern Infrastructure Corridors to offset looming domestic shortfalls.

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