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Australian Consulate-General, Guangzhou
Media Release PD22/07 Date: 06/07/2007
Australia Releases 34 New Offshore Petroleum Explorati On Areas
Australia is a prime source of oil and gas for the Asia-Pacific energy market as take-up of acreage jumps to 90% and planned investment reaches $1 billion over 6 years
At the APPEA (Australian Petroleum Production & Exploration Association) Conference held recently, Australian Resources Minister, Ian Macfarlane announced the 2007 release of 34 new offshore petroleum exploration areas. This forms part of the Australian Government's key strategy to encourage investment in petroleum exploration.
The 2007 release areas are located across six basins off the Northern Territory, Western Australia, Territory of Ashmore and Cartier Islands and Victoria and will be awarded to successful bids for an initial term of six years.
This year's release includes six Designated Frontier Areas which are eligible for the exploration tax incentive of 150% uplift for exploration expenditure.
Minister Macfarlane told the Conference that "Global explorers are attracted by Australia's low sovereign risk and the large-volume 'big gas' opportunities that are ideally located to serve the Asia-Pacific energy market.
Bids for 17 of the new areas close on 18 October 2007, with the remaining 17 areas closing on 17 April 2008.
This new acreage release follows the Australian Government's announcement earlier this month of 12 new offshore petroleum exploration permits for exploration areas off Western Australia, Tasmania and the Territory of Ashmore and Cartier Islands. This bidding round attracted a record 52 bids for 20 of the 22 areas on offer.
These successful bids are expected to bring more than A$1 billion worth of investment over the next six years with explorers pursuing Australian oil and gas opportunities.
This strong growth in interest by petroleum explorers in Australia has seen the take-up rate of acreage released in Australian waters jump from 50% in 2002 to 90% for the 2005 release. In addition, borrowings of pre-competitive data used by explorers to define the best drill locations from GeoScience Australia have tripled between 2004 and 2006.
Investment in Australia's upstream petroleum sector is also supported by a strong legal framework; secure mining and petroleum tenement systems.
Under the work program bidding system, applicants are required to nominate a guaranteed minimum 'dry hole' exploration program for each of the first three years of the permit term and a 'secondary' program for the remaining three years. Each component of the program must be completed in the designated year or earlier. Permits are awarded for an initial term of six years and may be renewed twice for periods of five years.
Explorers are responding positively to the range of Australian Government measures to encourage offshore petroleum exploration. These include more favourable tax rates for petroleum companies exploring in frontier areas, the setting of frameworks to make it more attractive for seismic operators to provide valuable data to the industry, and Government funding of a further $134 million for pre-competitive data gathering by Geoscience Australia.
Australia’s upstream petroleum industry has made some of the largest gas discoveries in the world, as well as a number of small to medium commercially attractive oil discoveries.
Australia's LNG industry is growing rapidly. A number of new projects are under active consideration and existing projects, such as the North West Shelf, are being expanded. The industry is set to grow from its present capacity of 16 million tonnes per annum (mtpa) to well over 50 mtpa within the next decade, with the primary focus on LNG export markets in the Asia-Pacific Rim.
Details of the 2007 acreage release is available from www.industry.gov.au/petexp . Maps and descriptions of the permit areas can be found at www.industry.gov.au/acreagereleases/2006/ .
For further information contact:
Nicola Watkinson, Senior Investment Commissioner for Europe, Invest Australia, Department of Industry, Tourism and Resources tel: + 49 69 9055 8201 e: nicola.watkinson@investaustralia.gov.au
Fred Welz, Senior Investment Commissioner for North America, Invest Australia, Department of Industry, Tourism and Resources tel: +1 415 243 2076 e: fred.welz@investaustralia.gov.au
Bob Pegler, General Manager, Offshore Resource Branch, Department of Industry, Tourism and Resources tel: +61 2 6213 7928 e: bob.pegler@industry.gov.au
For further information, contact Ellen Chen, Public Affairs Officer on（020）3814 0183.