DEVELOPMENT OF THE OIL AND GAS INDUSTRY:

THE AUSTRALIAN GOVERNMENT PERSPECTIVE

Thomas Bernecker

Australian Government, Department of Industry, Geoscience Australia

Australian Government ResponsibilitiesAustralian Government (federal) National policy and regulation:

Allocation of offshore petroleum titles Fiscal, monetary and taxation policy Foreign investment and trade Environmental approvals

State/Territory Governments (regional) Regional regulation:

Allocation of onshore petroleum and mining titles

Collection of onshore royalties Also responsible for coastal waters

(3-mile zone)

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1

Petroleum Industry SnapshotNatural Gas

158 Tcf / 4.5 Tcm of conventional gas

+235 Tcf / 6.7 Tcm of coal bed methane

400 Tcf / 11.3 Tcm of shale gas (US EIA)

3rd largest global LNG exporter

LNG exports of 24 mtpa (A$14 billion)

Seven LNG projects under construction

1,100 PJ of dom-gas production (260 PJ of CBM)

Oil and Condensate

Currently a net oil importer

Significant condensate and shale liquids potential

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1

Image courtesy of Woodside Energy Ltd

LNG Project Overview

North West Shelf Venture, Darwin LNG, Pluto LNG

Combined production capacity of over 24 mtpa

Customers in Japan, China and Korea

Projects under Construction:

Conventional Offshore LNG: Gorgon LNG, Wheatstone LNG, Ichthys LNG

Floating LNG: Prelude FLNG

FLNG projects in planning: Bonaparte, Scarborough, Browse

CBM-LNG: Queensland Curtis LNG, Gladstone LNG, Australia-Pacific LNG

Combined production capacity of over 60 mtpa

Total capital investment of over A$180 billion

www.petroleum-acreage.gov.au

Operating Projects:

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Key Investment Considerations Proximity to key Asian markets

Strong economic resilience and world class business environment

Stable objective-based petroleum regulatory regime Security of title with clear role of Government,

regulators and industry

Pre-competitive data and analysis available at cost of transfer

Ongoing efforts to reduce regulatory burden

Highly prospective acreage Near record levels of petroleum activity

31 offshore areas released for work program bidding in 2013

Proposed 2014 release to include areas for cash bidding

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1

Round 222 May 2014

Proposedfor Release

(cash bidding)

Round 121 Nov 2013

Re-Release22 May 2014

CurrentPermit

Proposedfor Release

(work program)

North Perth Basin Permit WA-481-P awarded in August 2012 to:

Murphy Oil / Kufpec / Samsung

Guaranteed work program $80 mio, including 3 exploration wells

Large scale exploration since 2012:

4 permits operated by BP/Statoil

3 new permits awarded in 2013 to Murphy Oil/Santos and Chevron

2 large areas available:

12,400 km2 (163 grat. blocks)

6,540 km2 (87 grat. blocks)

Proposed for Release:

25,765 km2 (360 grat. blocks)

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1

Round 222 May 2014

Proposedfor Release

(cash bidding)

Round 121 Nov 2013

Re-Release22 May 2014

CurrentPermit

Proposedfor Release

(work program)

N-Carnarvon Basin• 73% of Australia’s total

hydrocarbon production

• 1.2 Tcf of gas and 108 MMbbl of liquids produced in 2012 (APPEA, 2013)

Oil, condensate, gas

Big gas

W13-6

W13-7 W13-8

New streamlined acreage release documentation with emphasis on regional geology

Short geological summaries of gazettal areas Supplementary compilation of published reports (USB) New set of stratigraphic charts (DVD) Comprehensive open file data package at cost of transfer

2.5 TB of data

www.petroleum-acreage.gov.au

The 2013 Acreage Release Product

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Development of the Oil & Gas IndustryKey Priorities Stable regulatory regime with ongoing

streamlining and improvement Best and safest offshore petroleum operations

in the world Environmentally sustainable development Attractive new investment opportunities to

support ongoing exploration and development Select cash bidding areas from 2014

Key Challenges Regulatory duplication Skills and labour Infrastructure capacity constraints Productivity

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1

Further information TEAM AUSTRALIA Business Seminar (supported by AACC),

Monday 3 Feb, 5.30pm, Post Oak Hilton

AUSTRALIA Booth (No. 1047), International Pavilion, NAPE 2014

2013 Acreage Release: www.petroleum-acreage.gov.au

National Offshore Petroleum Titles Administrator: www.nopta.gov.au

National Offshore Petroleum Safety and Environmental Management Authority: www.nopsema.gov.au

Geoscience Australia: www.ga.gov.au

Australian Petroleum News eNewsletter: petroleum.exploration@industry.gov.au

www.petroleum-acreage.gov.au

AACC Energy Conference, January 2014 – Workshop 1