COAG Energy Council Review of Petroleum Licensing Regulations
Publication date: Thursday, 29th March 2018.
Australia’s ability to continue to attract the large-scale investment required to support petroleum projects has been underpinned by sound petroleum development and production regimes both onshore and offshore.
However, concerns have been raised about the use of the retention lease provisions by the petroleum industry. Some large domestic gas users have argued the provisions can provide companies with a mechanism to schedule production for future export and use at the expense of domestic users now – a practice commonly referred to as warehousing.
The COAG Energy Council acknowledge that accelerated commercialisation of gas resources is a key part of ensuring security of gas supply to domestic consumers at affordable prices, particularly large industrial gas users.
In October 2017, the Senior Committee of Officials approved the Terms of Reference for the Review of Petroleum Licensing Regulations.
The Upstream Petroleum Resources Working Group (UPR) has progressed the data collection process for Phases 1 and 2. Noetic Group has been engaged to undertake Phase 3 of the review and prepare a report by mid-2018. UPR will then consider the report outcomes and prepare advice for the COAG Energy Council’s consideration.
Tasmania is observing this Review process.