George Cash

George Cash

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    Applications sought for award of 10 offshore exploration permits

    3/11/1994 12:00 AM
     

    3/11/94

     

    The Federal Minister for Resources, David Beddall and the Western Australian Minister for Mines George Cash, today announced that applications were being invited for the award of 10 offshore petroleum exploration permits.

     

    The Ministers said three were in the Petrel Sub-basin, three on the Londonderry High/Sahul Syncline and four in the Carnarvon Basin off the Western Australian coast.

     

    Although the areas have been the subject of exploration in the past, additional work is required to fully assess their petroleum potential.

     

    Applications for areas W94-5 to W94-14 can be lodged with the Western Australian Department of Minerals and Energy until 4.00 pm on Thursday, May 4, 1995.

     

    The areas are being released under section 20 of the Commonwealth Petroleum (Submerged Lands) Act 1967 and will be subject to the modified work program bidding system.

     

    Under the modified 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 of the permit term.  Each component of the guaranteed 'dry hole' program must be completed in the designated year or earlier.

     

    The successful bidders will be chosen on the basis of the guaranteed minimum 'dry hole' exploration work program, taking into account the financial and technical resources available to the applicant.

     

    Where a clear distinction between bidders cannot be drawn on this basis, additional discretionary criteria will be used to select the successful bidder.  Exploration permits over the areas will be awarded for initial terms of six years.

     

    Petroleum exploration and development activity undertaken in the areas being released will benefit from the application of the profit-related resource rent tax.  Royalty and crude oil excise will not apply to any future production from the areas.

     

    Further information about the areas on offer, available technical information and details of the bidding systems is available from the Assistant Secretary, Exploration and Development Branch, Petroleum and Energy Division, Department of Primary Industries and Energy, GPO Box 858, Canberra, ACT 2601 or the Director, Petroleum Operations Division, Department of Minerals and Energy, 100 Plain Street, East Perth, WA 6004.

     

    Media contacts:  Tony Robertson (09) 222 9595 or Ian Fraser (09) 222 3291