Page 11 - AsianOil Week 18

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Queensland reopens exploration bid round
The state’s government is eager to kick-start upstream activity as it struggles with the economic fallout from COVID-19
COMMENTARY
WHAT:
The government will offer 12 blocks covering 6,804 square km this month.
WHY:
The Queensland economy is in the doldrums and the government is eager to spur activity wherever possible.
WHAT NEXT:
The results should be revealed in September.
THE Australian state of Queensland has announced plans to restart its 2020 explora- tion tender, which was suspended as the coun- try ramped up its response to the coronavirus (COVID-19) pandemic.
With the state’s government being one of the first in the country to relax social distancing restrictions, as the federal government itself calls for the country to return to work, Brisbane is now looking to breathe new life into its upstream sector.
Upstream lift
The state said in February that it would offer 12 blocks covering 6,804 square km in April, but then had to suspend the auction in March as tougher quarantine measures were gradually introduced. The federal government, for exam- ple, banned gatherings of more than two people on March 29.
The Queensland government said on May 6, however, that the auction would proceed this month, would close in June and the results would be revealed in September. The blocks include coal-bed methane (CBM), uncon- ventional gas and conventional oil and gas
exploration opportunities. In addition to the oil and gas acreages, which are located in the Bowen and Surat basins, the government will also release two coal exploration licences in the Bowen Basin.
Brisbane said in February that the blocks would produce gas for both liquefied natural gas (LNG) export projects and the local mar- ket. Bids will be evaluated on a range of criteria that include the tenderer’s proposed exploration work programme and its technical and finan- cial capability to deliver on its proposed work commitments.
Queensland also said on May 6 that it was reviewing relief measures to help the upstream weather current market volatility.
Measures under consideration include a rent waiver for exploration permit holders whose rent is payable between April 1 and September 30; the removal of application fees for certain upstream work programmes; capping all other fees and charges under the resource acts at financial year 2019-2020 rates, and allow explorers to vary work programmes or even relinquish their assets. The govern- ment said in addition to fast-tracking the
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