The federal government has unlocked more than 9300 square kilometres of area for new gas exploration near the Twelve Apostles.
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The area is among 21 sites released nationally for oil and gas companies to bid for in the federal government's annual Offshore Petroleum Exploration Acreage Release.
"I would welcome and encourage industry bidding on the released areas," Federal Resources Minister Keith Pitt said.
"This year's release provides opportunities in established oil and gas provinces with existing infrastructure as well as under-explored areas offshore Victoria."
Maps show two areas have been unlocked near Port Campbell in the Otway Basin.
One area of 1718 square kilometres is east of three existing gas wells kilometres from the coastline. A bigger 5964 square kilometre area has been released more than 50 kilometres offshore.
Corangamite Shire mayor Ruth Gstrein said the council was only made aware of the new areas, which are in Commonwealth waters, on Tuesday.
"This council doesn't have a position on it because we haven't had a chance to discuss it," Cr Gstrein said. "I dare say we will be discussing it at the first opportunity."
Environmental advocacy group the Wilderness Society criticised the "mindless release" and called for an "urgent and complete rethink", stating one of the areas was just five kilometres from the Twelve Apostles.
"Auctioning off the ocean facing the Twelve Apostles to the oil and gas industry shows that nothing is off-limits," society campaigner Jess Lerch said.
Last month, the International Energy Agency found the world should avoid funding new oil and gas fields if it was to meet the Paris Climate Agreement's goal of limiting temperature rises to 1.5 degrees.
Ms Lerch said the industry had passed its use-by-date.
But Minister Pitt said in a statement the continued release of areas for exploration was important to providing a steady supply of energy for the future.
"It is vitally important that Australians have access to reliable and affordable energy both now and in the future," he said.
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