US energy giant Chevron has abandoned oil exploration plans in the Great Australian Bight, citing a focus on more commercially viable North West gas.

Chevron follows BP in exiting the remote and environmentally sensitive region off South Australia, where it holds offshore acreage of more than 32,000sqkm.

The company acquired the two deepwater exploration permits off South Australia in 2013, spending hundreds of millions of dollars on development costs.

It said, while the bight was one of Australia’s most prospective regions, it could not compete for capital in Chevron’s global portfolio under low oil prices.

“This is a commercial decision and was not due to government policy, regulatory, community or environmental concerns,” Chevron Australia managing director Nigel Hearne said.

“Offshore Western Australia is a global focus area for Chevron where we have access to vast natural gas resources and existing infrastructure.”

Mr Hearne said billions of dollars had been spent commercialising the large gas resource base there through the Chevron-operated Gorgon and Wheatstone LNG projects and domestic gas facilities.

“Through greater collaboration with other producers in WA, Chevron is also pursuing opportunities to accelerate the commercialisation of our gas resource base through non-operated LNG facilities.”

The bight decision follows the company last week bolstering its North West gas acreage by acquiring three exploration blocks spanning 23,170sqkm in the Northern Carnarvon Basin off Dampier.

BP a year ago called off nearly $1.4 billion of drilling in the bight, saying the project would not be able to compete for investment in its global portfolio.

Greenpeace says it was the right decision by Chevron and has called on Norwegian oil company Statoil to also stop potential exploration work in the area.

“The news Chevron has given up on drilling in the Bight means the coastal communities of Southern Australia have dodged another bullet,” Greenpeace Australia spokesman Nathaniel Pelle said.

“Chevron’s announcement shows the only sane thing to do is for the Federal Government to terminate all oil leases in this area.”

The decision reflects the challenges of the wider oil market, the Australian Petroleum Production and Exploration Association said.

“With the oil price halving over the last three years, exploration activity around the world is at very low level,” director Matthew Doman said.