PERTH (miningweekly.com) – Changes to the commonwealth offshore coastal waters boundaries could deliver an additional A$2.9-billion in state royalties from the Torosa field alone, Western Australian Mines and Petroleum Minister Bill Marmion said this week.
The state government this week approved legislation that would lift the state’s potential share of the Browse basin gas field, following in the wake of a May decision by the commonwealth government to change coastal water boundaries.
The boundary changes were prompted by Geoscience Australia classifying a number of new outcrops on the Seringapatam and North and South Scott reefs as islands, making them part of the Western Australian territory.
Marmion this week said that the Department of Mines and Petroleum had worked to expedite these changes, which involved extensive consultation across industry and government.
“Department officers also worked with Australian government agencies on the changes, which not only extend Western Australian territorial waters but promise increased petroleum royalties for the state when the gas fields are developed.”
Marmion noted that while the boundary changes would deliver some A$2.9-billion additional revenue from the Torosa field, it was too early to speculate on the royalty potential of the Kronos and Poseidon fields; but it could be significant.
The Torosa field was the biggest of three fields making up ASX-listed Woodside Petroleum’s Browse project, which has a resource of some 15.9-trillion cubic feet of gas and some 436-million barrels of condensate.
Woodside in August last year officially backed the floating liquefied natural gas technology as its preferred development method for the Browse project, after abandoning a A$45-billion onshore development at James Price Point, much to the dismay of the state government.
The Torosa retention leases are due for renewal on December 24.