HANSARD
SITTING CALENDAR
SEARCH
LIVE BROADCAST
Hansard Dynamic Subject Index
Legislative Council - Fifty-First Parliament, Second Session (51-2)
2007-11-14 Daily Xml
Contents
Pdf Xml

PETROLEUM EXPLORATION

The Hon. J.M. GAZZOLA (14:41): I seek leave to make a brief explanation before asking the Minister for Mineral Resources a question about petroleum exploration in the Maralinga Tjarutja lands.

Leave granted.

The Hon. J.M. GAZZOLA: There has been little exploration for petroleum resources within South Australia outside the very active Cooper Basin and, to a much lesser extent, the Otway Basin in the South-East of the state. I understand that this is changing, with exploration currently under way in the Maralinga Tjarutja Lands in the state's Far West. Will the minister advise what petroleum exploration is happening in the Maralinga Tjarutja lands and indicate how it affects the local indigenous community?

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning) (14:42): I thank the honourable member for his question. With the current world price for oil, the matter of oil and gas exploration and supply is very topical. Several weeks ago there was an announcement of a major oil find in the Cooper Basin by Innamincka Petroleum. This was potentially one of the largest finds in the whole Cooper Basin and was, of course, most welcome news for the explorer and, indeed, for the state as a whole. Not only does the state benefit from royalties and jobs, but the find stimulates further interest in the basin and the state for further oil search.

Over the past several decades there has been little on-the-ground exploration for oil and gas outside the Cooper Basin in the north-east of the state or the Otway Basin in the south-east of the state. Whilst there have been some 30 applications for petroleum exploration licences outside these basins, over the past few years there has been limited action in getting arrangements in place to grant these licences and get action on the ground. Some of the delays have been for commercial reasons, where prior economic conditions were not essentially favourable to exploration in such frontier petroleum basins.

However, over the past 12 months there has been a significant change in the situation. In the past year 11 applications have been finalised and licences granted, following successful negotiation for the land access with native title parties or traditional landowners, where applicable. These cover parts of the Officer Basin in the Far West, the Arckaringa Basin in the Far North and the St Vincent Basin north of Adelaide. In these basins there has been no petroleum exploration for over 20 years or more, so it is really pleasing to see this changing as I speak.

Officer Basin Energy was granted two licences in the Officer Basin in June this year on the Maralinga Tjarutja lands. This followed successful ground-breaking negotiation of an access agreement for petroleum exploration and development between OBE and the Maralinga Tjarutja people. The agreement includes business opportunities for the Maralinga Tjarutja, particularly focusing on their capacity for earthmoving. Maralinga Tjarutja owns a bulldozer, grader and other earthmoving equipment and has skilled people to operate such. They were keen to be able to competitively bid for tenders for site works.

The first phase in Officer Basin Energy's exploration program involves 1,250 kilometres of seismic survey, most of this requiring preparation of new but temporary access tracks for seismic trucks. Maralinga Tjarutja was successful in bidding for the line preparation for this program. This exploration program started on 4 October following cultural and environmental inductions of the crew. The seismic recording crew started acquisition of seismic data on these lines on 25 October, and it will take several months for this program to be completed. Not only does this represent a substantial business contact for Maralinga Tjarutja and a track record for future work, but it is a major employment and training opportunity for many Maralinga Tjarutja people from the local community.

While it is recognised as a rank frontier province, the Officer Basin is also recognised as Australia's onshore province with the greatest potential for major oil and gas resources. Officer Basin Energy has committed about $30 million for exploration in its two licences. In its first year, Officer Basin Energy is undertaking 1,250 kilometres of seismic survey. A similar amount is committed in the second licence year to define drilling targets. In the third year a well is programmed to be drilled.

In all these phases Maralinga Tjarutja has the opportunity to be involved in commercial business undertakings such as earth moving contracts. Each of these activities also involves a work area clearance by a cultural heritage team of Maralinga Tjarutja people led by an anthropologist to ensure that cultural sites are avoided by the exploration activities. With the extent of the considerable seismic programs in the first two years, such clearances require a substantial amount of time and effort to undertake, for which the clearance team is reimbursed by Officer Basin Energy. These clearances also provide a wide scope for the documentation of their heritage and cultural sites for the benefit of the Maralinga Tjarutja people, in addition to direct employment opportunities as part of the cultural heritage team.

Under the Maralinga Tjarutja Land Rights Act 1984 there is provision for allocation of prescribed royalties from mineral and petroleum resources that may be developed. One-third of the prescribed royalties goes to the Maralinga Tjarutja community directly; one-third of prescribed royalties goes to the Minister for Aboriginal Affairs and Reconciliation for the health, welfare and advancement of the Aboriginal community in the state generally, and the remaining royalties go to the state. Hence, there is a significant incentive for the Maralinga Tjarutja community to want exploration in their lands to be successful. I certainly wish Officer Basin Energy well in its exploration program and look forward to a successful drilling program in the future that will hopefully lead to significant benefits to the explorers, the Maralinga Tjarutja community directly and, of course, the state in general.

PARLIAMENTARY BUSINESS
MEMBERS
GET INVOLVED
ABOUT PARLIAMENT
VISIT
LEGISLATIVE COUNCIL
HOUSE OF ASSEMBLY
CONTACT