Major boost for WA share of Browse gas fields

This week marks a resources milestone for Western Australia, with State Parliament approving legislation which significantly lifts the State's potential share of the Browse Basin gas field.

  • Potential $2.9 billion spinoff for State

  • Legislation provides certainty of tenure for Browse Joint Ventures

This week marks a resources milestone for Western Australia, with State Parliament approving legislation which significantly lifts the State's potential share of the Browse Basin gas field.

Mines and Petroleum Minister Bill Marmion said the Liberal National Government had moved quickly, after major changes to Commonwealth offshore coastal waters boundaries in May.

"I congratulate the Department of Mines and Petroleum on its work to expedite these changes, which involved extensive consultation across industry and Government," Mr Marmion said.

"Department officers also worked with Australian Government agencies on the changes, which not only extend WA territorial waters but promise increased petroleum royalties for the State when the gas fields are developed."

The boundary changes were prompted by Geoscience Australia classifying a number of new outcrops on the Seringapatam and North and South Scott reefs as islands, making them WA territory.

"It is estimated the boundary changes could mean increases in State royalty collections of up to $2.9 billion over the life of the Torosa field alone," the Minister said.

"It is too early to speculate on the royalty potential of the Kronos and Poseidon fields but it could be significant."

While the new legislation promises good news in the future for Western Australian taxpayers, it also backs the Liberal National Government's commitment to minimising sovereign risk in the mining and petroleum sectors.

"We are now working with clearly defined boundaries in the Browse Basin," Mr Marmion said. 

The Torosa retention leases are due for renewal on December 24.

      Fact File

  • The Petroleum Titles (Browse Basin) Bill 2014 affects retention leases held by the Woodside Browse Joint Venture and the ConocoPhillips Browse Joint Venture

  • Affected gas fields are Torosa, Kronos and Poseidon

  • The new islands had their beginnings in 2004 when Cyclone Fay caused significant changes to the reefs

 Minister's office - 6552 6800