PERTH (miningweekly.com) - The Australian Petroleum Production & Exploration Association (Appea) has welcomed the grant of two petroleum exploration permits in the Northern Territory, over Aboriginal land managed by the Northern Land Council (NLC).

The granting of the first two petroleum exploration permits over the NLC land followed extensive negotiations with three petroleum explorers, and would result in job opportunities for local residents, Chief Minister Adam Giles said this week.

“My government is committed to creating jobs in our regions and breaking the cycle of welfare dependency that has been crippling our communities,” Giles said.

“The resources industry is one key to that process and the granting of these permits is an important step in creating private sector employment opportunities.”

The first exploration permit was granted to ASX-listed Imperial Oil and Gas, while the second was jointly granted to Minerals Australia and Jacaranda Minerals.

In total, the companies plan to invest A$28-million in geophysical studies and test drilling to assess the viability of commercial oil and gas extraction.

A number of areas, mainly around waterways, have been excluded from exploration.

Appea director for Northern Territory Steven Gerhardy said the “historic agreement” between three petroleum explorers, the NLC and traditional owners in the McArthur basin could lead to significant benefits for local communities.

“This is a very positive development for an industry that has the potential to deliver much-needed jobs, investment and infrastructure in remote and regional communities throughout the Northern Territory,” Gerhardy said.

“Imperial Oil and Gas, for example, has already been working with government agencies and a Darwin-based Indigenous training organisation to provide accredited on-site training programmes for people living in remote Indigenous communities. 

“Benefits like these will only be realised if companies have access to land to carry out the exploration needed to develop new projects.”

Gerhardy said the oil and gas industry had been boosted last month by the Northern Territory government’s decision to reject calls for a moratorium on onshore gas development following the release of an independent report that showed the industry could be developed safely.