Hundreds of millions ready to be invested in NT

THE Australian Petroleum Production and Exploration Association has recommended the Economic Reconstruction Commission recognise the opportunities that exploration activities can bring to the Territory

Kyalla 117, 600km south-east of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be drilled and fracture stimulated to help determine the potential of the resource in the Beetaloo Basin. SUPPLIED

THE Australian Petroleum Production and Exploration Association (APPEA) has recommended that the Chief Minister’s Economic Reconstruction Commission recognise the immediate job creation and economic stimulus opportunities that exploration activities can bring to the Northern Territory.

In addition to the long-term benefits of developing gas projects resulting in a long-term employment boost of 6300 full-time positions in the NT, APPEA recommended the commission recognise exploration activity’s significant role in delivering immediate jobs and investment opportunities to the Territory.

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“APPEA member companies stand ready to invest millions in Territory businesses through this exploration phase,” the submission says.

It said the Beetaloo Sub-basin can play a role in delivering immediate jobs and investment opportunities to the Territory.

Kyalla 117, 600km south-east of Darwin, between Daly Waters and Elliott, is the first of two new Origin Energy appraisal wells to be drilled and fracture stimulated to help determine the potential of the resource in the Beetaloo Basin. SUPPLIED

The submission points out that prior to COVID-19 there were approximately 200 people directly working on the exploration program and more than 25 per cent of those workers were Territorians.

“Immediate benefits are delivered to small and medium businesses in the Northern Territory through the numerous goods and services they provide to exploration activities,” the submission said.

“This includes civils and construction, machinery hire, food supplies, vehicle hire, mechanical services, tyre services, engineering services, waste management services, medical and health service to name but a few.”

APPEA estimates that up to $150m in contracts per year were active with local Territory businesses undertaking exploration and exploration support activities, supporting numerous employees.

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These locally sourced contracts included a wide range of business and have a combined value in the millions of dollars.

“In this regard, there are a number of actions that can be undertaken by the Territory government to support the resumption of exploration activities to drive immediate jobs and investment across the next 12-18 months,” APPEA said.

The industry faces challenging market conditions in the short-term, the long-term demand for gas remains promising, it said.

“As recognised in the first report of the Economic Reconstruction Commission, the long-term benefits from developing natural gas is significant. In terms of both direct economic contribution and employment and as an enabler of other industries.”

Regulatory changes required, says APPEA

LOCAL WORK CONTRACTS

• Silver City Drilling – which drilled its 14th water bore for Santos since late 2018 — including one for the landholder under the Land Access Agreement. Its head office and workshop in Alice Springs.

• Rusca Brothers in Darwin who were supplying the civil works for Santos’ wells, and MS contracting in Humpty Doo is supplying the camp.

• Arnhem Earthmoving and Mechanical together with Phillips Earthmoving is providing Origin with civil work associated with the company’s next two proposed exploration wells.

• Triple P from Elliott has a contract to provide monitoring services for Origin at all existing well locations as well as maintenance works for the Daly Waters airstrip.

• KD Machinery Hire, Broadmere Station, provided earthmoving equipment for seismic line clearance and rehabilitation on Imperial Oil and Gas’ recent seismic survey.

• Allwell, Howard Springs, provided water well drilling for Imperial Oil and Gas’ 2020 Carpentaria-1 well.

APPEA recommends the Economic Reconstruction Commission recognises the opportunities exploration activities can bring to the Territory.

APPEA WISHLIST TO THE ECONOMIC RECONSTRUCTION COMMISSION

1. Government commits to consistent implementation of regulatory framework for hydraulic fracturing;

2. The Beetaloo sub-basin Strategic Regional Baseline Assessments (SREBA) continues to be prioritised to collect essential baseline data that is cost effective, relevant, reasonable, and measurable;

3. Unnecessary, excessive, and overlapping regulatory costs that result in delays in approvals are identified and minimised;

4. Approvals for exploration and appraisal activities are actively facilitated and championed by a single point of contact in the government;

5. Engagement with government department annual policy work programs as they relate to gas activities. This includes the departments of Primary Industry and Resources, Environment and Natural Resources, and Trade and Business Investment.

6. Tenure arrangements are amended to support ongoing investment in exploration and allow lower relinquishment terms in recognition of the investment and exploration performed to date.