PETROLEUM EXPLORATION

The Hon. I.K. HUNTER (14:45): My question is to the Minister for Mineral Resources Development.

The Hon. R.I. Lucas interjecting:

The PRESIDENT: Order!

The Hon. I.K. HUNTER: Thank you, sir, for your protection. Will the minister outline developments in the process of streamlining the regulatory approval process in South Australia for petroleum explorers and producers?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:45): South Australia recently granted the first petroleum exploration licence since a milestone land access agreement was reached with native title claimants in the Cooper Basin. Petroleum exploration licence (PEL) 96 within the Cooper Basin has been granted to a consortium comprising Strike Oil Ltd and Australian GasFields Ltd after the licensees accepted the provisions of the conjunctive petroleum indigenous land use agreement. The conjunctive petroleum ILUA was a first for this state and was Australia's first such agreement covering a proven petroleum-producing region.

To provide a little bit of background to members of this process, the conjunctive ILUA means the agreement covers not just the exploration phase but also the production phase. That means companies that are successful in their exploration do not have to repeat the process of negotiating with the native title parties when they want to translate their exploration lease into production. Such a conjunctive agreement should reduce both the time and money involved in negotiating land access and provide greater certainty to explorers and producers as well as the relevant native title parties. That should translate in greater returns to the native title parties, who do not have to re-engage in the negotiation process every time an explorer applies to upgrade production. However, it also means that producers can dedicate their resources towards developing their wells.

The granting of petroleum exploration licence 96 to Strike Oil is the first in which the licensee has accepted the provisions of the indigenous land use agreement reached with the Yandruwandha and Yawarrawarrka people of the state's far north-east. The acceptance of the conjunctive ILUA by a licensee represents an evolutionary step in streamlining the process that will enable the grant of licences for petroleum exploration and production in South Australia, while also protecting rights that flow from the native title act. This acceptance is an excellent outcome that manifests trust in the processes that both protect native title but also enable upstream petroleum operations in South Australia.

The goodwill established since the implementation of native title land access arrangements in South Australia in 2001 has been continued through the acceptance of this agreement. Negotiations to reach further conjunctive ILUAs are continuing to make progress in South Australia. Five Cooper Basin exploration licences were recently offered to the market through a competitive bidding process, with bids due to close on 15 October 2009. This process provides for successful bidders to similarly accept the conditions of a conjunctive petroleum indigenous land use agreement where such an agreement has been formalised. I look forward to further positive outcomes through the conjunctive ILUA process in the very near future.