From Australia (RW): The Western Australian Parliament has approved legislation to increase its share of Browse Basin gas fields following reclassification of the state’s offshore boundaries.
The Petroleum Titles (Browse Basin) Bill 2014 that ratifies the boundary changes was passed last week.
The move has followed Geoscience Australia’s classification of a number of outcrops, on the North and South Scott reefs and on the Seringapatam reef 23km further north, as islands. This makes them Western Australian territory and will mean significant changes to federal offshore coastal waters boundaries.
GA found in its recent survey that the newly-discovered outcrops were above the high water mark on the Scott Reef group which is a series of atoll-like reefs on the edge of the continental shelf in the Timor Sea.
The changes will mean that should the gas fields in the region be developed WA will be able to claim an estimated 50-65% share of royalties, while the federal government’s share drops to an estimated 35-50%. The original proportion within the old state water boundaries was 5-15%.
The fields within the new borders include the Woodside-operated Torosa gas-condensate field, one of three fields that are part of the proposed Browse Basin floating LNG (SEN, 31/17) scheme and the ConocoPhillips-operated Poseidon and Kronos gas-condensate fields, due to be included in any Greater Poseidon (31/8) area development.
WA Mines & Petroleum Minister Bill Marmion says the Torosa re-zoning could result in an increase in the state’s royalty collection by up to A$2.9bn. He added that it was too early to speculate on the royalty potential of Poseidon-Kronos, but it could be significant as well.
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