Petroleum and gas sector to benefit from new reforms

Queensland’s petroleum and gas sector now has greater investment certainty with the Newman Government delivering important reforms to the tenure framework.
 
Minister for Natural Resources and Mines Andrew Cripps said the tenure reforms built on the Newman Government’s strong plan to encourage the next generation of projects in the petroleum and gas sector, to deliver a brighter future for rural and regional Queensland.
 
“The Newman Government committed at the 2012 election to support and grow resources as one of Queensland’s four economic pillars,” Mr Cripps said.
 
“Industry expressed concerns about the current regulation for petroleum and gas tenures, describing it as cumbersome, duplicative, inflexible and overly-prescriptive.
 
“Unlike the former Labor Government, we are reducing red tape and regulation to encourage industry to invest in new projects and create jobs.”
 
Mr Cripps said the immediate reforms to the Petroleum and Gas (Production and Safety) Act 2004, which passed through the Queensland Parliament last week, would deliver significant benefits to the industry.
 
“We are extending the term of all current Authority to Prospect exploration work programs from four to six years, with the associated relinquishment of 33 per cent of the tenure also deferred to the end of the extended 6 year period,” he said.
 
“Industry will benefit from more flexible relinquishment arrangements and the ability to amend a work program for an Authority to Prospect.
 
“We will also speed up the granting of petroleum lease applications by requiring a statement about the presence of commercial quantities of gas instead of the current mandatory requirements for 20 per cent of discovered petroleum to be classified as proven and probable reserves.”
 
Mr Cripps said the changes would allow companies to get on with business of developing new projects with the certainty required to invest new capital. 
 
“Queensland is open for business and we are in the resources business,” he said.
 
“My Department of Natural Resources and Mines is currently undertaking a broad and comprehensive review of the tenure framework, as it applies to the whole-of-life cycle for resource projects, including petroleum and gas, minerals and coal.
 
“The benefits of these reforms will allow companies to get on the ground faster with tenures that are more flexible and meet their commercial needs. 
 
“This is good news for regional and rural communities that benefit from resource projects going ahead and don’t want economic development delayed by unnecessary red tape and regulation.”