Minister for Resources and Energy, Martin Ferguson AM MP, today welcomed ExxonMobil and BHPBilliton's $1.4 billion investment in the Bass Strait Turrum Phase 2 gas and liquids project.
Minister Ferguson said:"Turrum is just the start of what I hope will be a new generation of oil and gas developments in Bass Strait. Since 1964, Bass Strait has contributed $2.2 billion annually to Australia's gross domestic product in real terms1 and it has contributed more than $300 billion in taxes as well as supported more than 50,000 jobs in Victoria for 44 years.
"The record of reserves replacement and extension of field life has been outstanding and with record energy prices and technology advances, there is a lot of life left in Bass Strait yet.
"It is worth noting that this is also a great venture between a home grown Australian company and a foreign investor - both of which are international corporate icons of the highest quality.
"Through its Mobil heritage, ExxonMobil has been a part of the fabric of Australian corporate life and resource development since 1895, not that long after BHP started its epic journey at Broken Hill in 1883. Australia's support of foreign investment is longstanding and non-discriminatory, particularly when it is in our national interest and facilitates the development of Australia's resources for the benefit of all Australians.
"We need to continue to provide an environment which encourages investment and unlocks Australia's resource wealth and the Australian Government is committed to doing just that."
Mr Ferguson highlighted the following petroleum sector reform being pursued by the Government:
- the Productivity Commission review of upstream petroleum industry regulation
- the Henry Taxation Review which will include consideration of the future policy framework for new sunrise industry investment in Australia's gas sector
- the retention lease policy review
- development of an exploration incentives package
- the National Energy Security Assessment
- the Energy White Paper
- carbon capture and storage legislation
- the Carbon Pollution Reduction Scheme.
"Here in Victoria carbon capture and storage is vital for the future of the coal and electricity industry in the Latrobe Valley and promising storage areas occur in and around the Bass Strait petroleum province.
"I am absolutely committed to the economic future of all three industries here in Victoria and therefore we have to get the balance right between protecting the existing rights of petroleum title-holders and providing a workable framework for carbon storage in the future.
"The Carbon Pollution Reduction Scheme Green Paper was released last week and I encourage the industry to make a considered and proper assessment about the implications of the policy proposal.
"The Government knows it is vital to get the Scheme right for Australian industry, exports, investment and jobs and therefore industry's contribution is very important.
"All of these initiatives are about achieving a stronger Australian resources and energy sector for the nation's future health and prosperity."
1 NPV5(2004) - note that historical tax numbers are also in real terms.