The Western Australian Department for Mines and Petroleum (DMP), as the delegate for the Joint Authority (the Commonwealth Minister for Resources and Energy and the WA Minister for Mines and Petroleum), today issued notices of intent to grant seven Browse retention lease renewals (WA-28-R to WA-32-R) in the Commonwealth Adjacent Area plus two Western Australian retention lease renewals (R-2 and TR-5). The Browse joint venture partners are Woodside, BHPBilliton, BP, Chevron, and Shell.
DMP also advised the North West Shelf Venture (Woodside, BHPBilliton, BP, Chevron, Shell, and Japan Australia LNG) yesterday of the Joint Authority's decision not to renew the Dixon retention lease (WA-9-R) in the North West Shelf Project Area.
The Commonwealth Minister for Resources and Energy, Martin Ferguson AM MP, said: "Both decisions reflect the long-standing intent of the Offshore Petroleum and Greenhouse Gas Storage Act 2006Â to achieve commercial development of Australia's vast offshore gas resources at the earliest possible time. This is also the clear desire of the Australian and Western Australian governments."
The Browse renewals carry a condition that the Browse Joint Ventures agree a development theme for the project within 120 days of the notice of intent to grant the retention lease renewals and that the Joint Ventures work towards a final investment decision in the third year of the retention lease period.
The Western Australian Minister for Mines and Petroleum, Norman Moore, said: "We encourage the Joint Ventures to work together to achieve the earliest possible commercialisation of the Browse resources and we look forward to seeing this significant resource being developed for the benefit of both the Browse Joint Venture and the Australian community, in particular Western Australians and regional Indigenous communities."
The Dixon decision means that, from the date of refusal, the North West Shelf Venture has 12 months to apply for a production license and an additional five years to commence petroleum recovery operations, consistent with the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Minister Ferguson said: "We are committed to ensuring that Australia's offshore petroleum resources are commercially developed at the earliest possible time.We are also mindful of the efficiency of development, for example, optimisation of existing, proximate infrastructure."
In 1990, less than 4 per cent of the Commonwealth's offshore gas titles were held under retention leases, but by 2000, this figure had grown to 29 per cent. Last year, more than 40 per cent of the titles were held in retention leases.
Minister Ferguson said: "We have an obligation to unlock the wealth of Australia's vast petroleum resources for the benefit of all Australians.
"Australia's gas resources are important to supply affordable and reliable energy for Australian industry and households, and also to supply the growing clean energy needs of our neighbours in the Asia Pacific.They are key not only to Australia's energy security, but to the region's energy security.
"The challenge we face is to ensure the national interest is aligned with the commercial interests of investors. The Australian Government remains strongly committed to an open and transparent investment regime, but we have to get the balance right."