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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-02-26 Daily Xml
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Oil and Gas Sector

Mr GEE (Napier) (14:50): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house of recent activities undertaken by the Mining Industry Participation Office to support South Australian companies to seize opportunities in the oil and gas sector?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:50): I am not sure of the views on the oil and gas sector of Ms Kirsten Alexander, sir, but I assume she has the same views as the opposition. I thank the member for his question and for his ongoing interest in the energy revolution taking place in this state's oil and gas sector. The government is steadfastly committed to unlocking the full potential of our state's energy sector. Vast opportunities have been created in the Cooper Basin as new technologies allow oil and gas producers to extend the life of this onshore province.

In the most recent financial year, the value of South Australia's mineral and petroleum produced surged by $1.3 billion to a record $7.5 billion. Companies, including BP, are also investing billions of dollars in the search for oil and gas in the Bight Basin in our state's Far West. This government, through is economic priority No. 1, aims to ensure that, as much as possible, this investment benefits companies and workers here in South Australia. To achieve that aim, we established the Mining Industry Participation Office within the Department of State Development. MIPO has been working diligently to maximise opportunities for our South Australian companies to gain a greater share of local, national and international markets and petroleum supply chains.

One of the areas in which MIPO is focused is capacity building. To this end, MIPO has been conducting a series of oil and gas supplier study trips for South Australian businesses. The first of these successful study trips was conducted in February last year, with a follow-up tour recently returning from the US. MIPO also organised a tour last year to Sweden to examine that country's mining services sector.

Mr Speaker, these international tours have resulted in positive outcomes for participating companies and I would like to share with you some of their stories. One local company diversified from drilling to now providing gas well completion, maintenance and work over services. A local laboratory is now extending its capability to include the testing of proppant, which is used in hydraulic fracturing operations (which I am sure the member for Mount Gambier is very excited about). A local consultancy is now providing services to a company that it met on the study tour.

Nine participants from eight organisations attended the most recent study tour to the US from 1 to 10 February this year. The tour introduced South Australian businesses to international suppliers in Texas and Pennsylvania and provided perspective on the scale, depth and life cycle opportunities offered by developing shale gas resources. The tour also highlighted the significant differences between the United States and Australia and that many of these differences provided new opportunities for supply chain development in South Australia.

Without mentioning all of the companies, I want to mention one in particular, that is, Advanced Focus, a service provider based here in Cumberland Park, and I quote from their feedback:

I have eight leads to follow up that may lead to future business, new capabilities and global partnerships. There were several other insights that I will share with other South Australian SMEs that would benefit their business.

Mr Speaker, it just simply isn't good enough to sit back and live in hope that local companies will secure supply contracts in the highly competitive oil and gas services sector by just putting their hands up. We need to make sure that they have the skills and knowledge to anticipate what is required as well as the right business connections so that they are in the best possible position to secure the pipeline of work being generated in this state. MIPO is assisting local companies to do just that.

We commend the work of MIPO to the house and urge members opposite, and members on the government benches, if they have local firms in their electorates, to make them known to MIPO so they can take full advantage of the oil and gas revolution taking place in South Australia.

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