Mr BALDWIN - 1996-10-16
Offshore oil and gas exploration is an area of industry that offers the prospect of trade opportunities to the Territory. What is the latest news of developments in this area?
ANSWER
Mr Speaker, there is some exciting news relating to the waters to the north-west of Darwin in the Timor Sea. On Monday, BHP Petroleum announced yet another successful exploration discovery in those waters. A well tested at a very substantial rate of 11 790 barrels per day. Apparently, this result ranks with some of the best oil discoveries in the Timor Sea. The well has been named Buffalo 1. A press release by BHP designates its location as approximately 7 km south east of the Laminaria East oil discovery and it is in 27 m of water. It is interesting that the discovery represents the eighth successful oil and gas find over the last 2 years out of 24 exploration wells drilled in the Timor Sea area. That is a phenomenal success rate. It is greater than 30%. I have been advised that the industry worldwide is happy with a strike rate of 10%. Certainly, a great deal of activity is being rewarded with success.
BHP is one of at least 7 major companies that is exploring actively in the area. The important point for the Territory is that all the major operations in the Timor Sea have been conducted using Darwin as a supply base. It is estimated that, over the next 5 years, $1000m will be spent on exploration and a further $2000m on development. It is worth while noting that exploration successes have resulted already in a $900m field development proceeding. At peak production, this field is expected to provide one-third of Australia's total oil production.
There is no doubt that these discoveries have attracted the industry's attention worldwide. It is estimated that 30 exploration wells will be drilled over the next 3 years. Obviously, if the current success rate continues, it could be expected that a further 9 discoveries will be made. For Territorians, this means more opportunities for economic growth, for jobs and for prosperity. Through previous mines ministers, going back to self-government, the government has actively encouraged and supported exploration and development in the oil and gas area. It has done that because the industry makes a positive contribution. It provides activity and growth and that means jobs for our young people. It means a sustained economy. All members of this House and the community in general are well aware that, since self-government, this administration has continued to maintain the best performing economy in Australia. Activities of this kind do not happen simply of their own accord. Ministers have
to get out and about actively and encourage and advertise what is happening in the Territory. As the Chief Minister said, imagine how hamstrung we would be if we could not sit down and accept hospitality from Shell or BHP when we are trying to talk up the Territory, talk up economic activity and talk up exploration of this kind.
The advice that I have received is that some 10% of total industry expenditure goes at present through our local economy. Thus, over the next 3 or 4 years, there could be at least a $300m boost to our economy. Members on this side will continue actively to attract more businesses to operate in the Territory, and to encourage more operators, both onshore and
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offshore, to see what is happening here and to maximise their operations in the Territory for the benefit of all Territorians.
Page 1698
ANSWER
Mr Speaker, there is some exciting news relating to the waters to the north-west of Darwin in the Timor Sea. On Monday, BHP Petroleum announced yet another successful exploration discovery in those waters. A well tested at a very substantial rate of 11 790 barrels per day. Apparently, this result ranks with some of the best oil discoveries in the Timor Sea. The well has been named Buffalo 1. A press release by BHP designates its location as approximately 7 km south east of the Laminaria East oil discovery and it is in 27 m of water. It is interesting that the discovery represents the eighth successful oil and gas find over the last 2 years out of 24 exploration wells drilled in the Timor Sea area. That is a phenomenal success rate. It is greater than 30%. I have been advised that the industry worldwide is happy with a strike rate of 10%. Certainly, a great deal of activity is being rewarded with success.
BHP is one of at least 7 major companies that is exploring actively in the area. The important point for the Territory is that all the major operations in the Timor Sea have been conducted using Darwin as a supply base. It is estimated that, over the next 5 years, $1000m will be spent on exploration and a further $2000m on development. It is worth while noting that exploration successes have resulted already in a $900m field development proceeding. At peak production, this field is expected to provide one-third of Australia's total oil production.
There is no doubt that these discoveries have attracted the industry's attention worldwide. It is estimated that 30 exploration wells will be drilled over the next 3 years. Obviously, if the current success rate continues, it could be expected that a further 9 discoveries will be made. For Territorians, this means more opportunities for economic growth, for jobs and for prosperity. Through previous mines ministers, going back to self-government, the government has actively encouraged and supported exploration and development in the oil and gas area. It has done that because the industry makes a positive contribution. It provides activity and growth and that means jobs for our young people. It means a sustained economy. All members of this House and the community in general are well aware that, since self-government, this administration has continued to maintain the best performing economy in Australia. Activities of this kind do not happen simply of their own accord. Ministers have
to get out and about actively and encourage and advertise what is happening in the Territory. As the Chief Minister said, imagine how hamstrung we would be if we could not sit down and accept hospitality from Shell or BHP when we are trying to talk up the Territory, talk up economic activity and talk up exploration of this kind.
The advice that I have received is that some 10% of total industry expenditure goes at present through our local economy. Thus, over the next 3 or 4 years, there could be at least a $300m boost to our economy. Members on this side will continue actively to attract more businesses to operate in the Territory, and to encourage more operators, both onshore and
Page 1697
offshore, to see what is happening here and to maximise their operations in the Territory for the benefit of all Territorians.
Page 1698
Last updated: 09 Aug 2016