'Use it or lose it' rule could apply to exploration leases in NT

Glyde Point has been named by the Northern Territory Government as a potential site for a petrochemical plant, the ABC has reported.

Chief Minister Adam Giles also announced plans for ‘use it or lose it’ rules to ensure oil and gas companies develop exploration leases or lose them within a given time frame. Speaking at an oil and gas industry conference in Darwin, Giles said these rules would prevent companies from just banking the leases.

“We want to get to an environment where we develop those exploration leases, not just continue exploring,” Giles said.

As part of early investigations into an NT petrochemical plant, Territory Infrastructure Minister Peter Styles will inspect a petrochemical plant in Singapore. A petrochemical plant near Darwin could boost the NT economy and create thousands of jobs, Styles said.

The South East Asia Australia Offshore Conference (SEAAOC), held in Darwin, focuses on major oil and gas projects in northern Australia, industry prospects and market developments. It has attracted around 1000 delegates.

Territory Mines Minister Willem Westra Van Holthe says the big players in oil and gas will be able to sit down and discuss potential projects with government geologists.

“This is all a part of a strategy to attract investors and companies who want to explore the Northern Territory,” he said.

“This gives them the opportunity to come here and learn about the prospectivity of the Northern Territory, so that they have got a better understanding of how far their investment dollars will go and where they want to spend their money.”

Santos Vice President for NT and WA John Anderson says the company is developing four major projects in Australia.

“We have got one LNG plant online, which is here in Darwin; we’ve got two being built at the moment which, for a company of our size, is quite remarkable,” Anderson said.

“Then there is a fourth project ... offshore [of the] Northern Territory, which has not been sanctioned yet ... Bonaparte LNG, which we hope will be the fourth project to come through.”

Read the full ABC article here.