PERTH (miningweekly.com) – The oil and gas industry has welcomed a A$50-million federal government grant to support and accelerate exploration in the Beetaloo basin, in the Northern Territory.
Minister for Resources, Water and Northern Australia Keith Pitt said the grants will be provided through the Beetaloo Cooperative Drilling Program.
“The program is expected to deliver approximately ten additional exploration wells in the Beetaloo by 2022, and bring forward at least A$150-million of private investment from companies.
“This Commonwealth grants program will support gas operators to speed up exploration and development of the Beetaloo basin,” Pitt said.
“These grants are a key component of our government’s agenda to bring gas from this world class resource into the market by at least 2025.
“The Beetaloo Cooperative Drilling Program is part of the Beetaloo Strategic Basin Plan and the government’s A$224-million commitment to the Beetaloo,” he said.
The Plan is expected to generate significant development in the Northern Territory, creating up to 6 000 jobs over the next 20 years and helping Australia remain a world leader in gas.
The Beetaloo Cooperative Drilling Program will provide grants of between A$750 000 and A$7.5-million, up to a total of A$50-million, to gas companies to support exploration that occurs before the end of December 2022.
The Australian Petroleum Production and Exploration Association (Appea) said the grants would particularly help smaller exploration companies to continue playing a critical role in the identification and development of new energy resources.
“The government’s new grants program will support natural gas exploration and development in the Beetaloo basin, which has world class reserves,” Appea CEO Andrew McConville said.
“Successful exploration is essential to bringing more gas supply to the domestic market and can deliver revenue for governments, jobs for workers and long-term energy security for Australia.”
McConville said there was a tremendous opportunity to continue to turn the Northern Territory’s existing and prospective natural resources – including in the Beetaloo basin – into long-term wealth and increase economic growth.
“The Northern Territory’s Beetaloo basin has world-class resources, and responsibly developing these resources will provide stable, secure and affordable energy for Australia for decades to come,” he said.