Western Australia’s State Parliament has approved new legislation which could result in a potential $2.9 billion “spinoff” for the State and certainty for tenure for Browse Joint Ventures.
The new legislation means a significant boost for WA’s share of the Browse Basin gas field. The Petroleum Titles (Browse Basin) Bill 2014 affects retention leases held by the Woodside Browse Joint Venture and the ConocoPhillips Browse Joint Venture.
“I congratulate the Department of Mines and Petroleum on its work 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 WA territorial waters but promise increased petroleum royalties for the State when the gas fields are developed,” said Mines and Petroleum Minister Bill Marmion in a media release.
The Commonwealth offshore coastal waters boundaries were changed in May, after Geoscience Australia classified new outcrops on the Seringapatam and North and South Scott reefs as islands, which made them WA territory. The new islands had their beginnings in 2004 when Cyclone Fay caused significant changes to the reefs
“It is estimated the boundary changes could mean increases in State royalty collections of up to $2.9 billion over the life of the Torosa field alone. It is too early to speculate on the royalty potential of the Kronos and Poseidon fields but it could be significant,” Mr Marmion said.
“We are now working with clearly defined boundaries in the Browse Basin.”