Chevron has become the second big oil company to abandon plans to drill for oil in the Great Australian Bight off the South Australian coast, a year after BP cancelled its plans to drill.
Oil companies say the Bight has similar potential to the Gulf of Mexico, site of the Deepwater Horizon oil spill of 2010, which was the largest marine oil spill in history and killed 11 people.
Norwegian oil and gas company Statoil has taken over two exploration permits from BP and plans to begin drilling for oil in the Great Australian Bight by late next year.
Statoil and BP have signed a swap agreement covering four offshore petroleum titles. Under the deal Statoil transferred its 30% equity in two of its permits to BP and exited the licences. In return, BP has given its 70% equity in two other permits to Statoil and relinquished those licences.