Western Australia had a growth spurt overnight and is now officially larger than before with State Parliament approving legislation to extend WA territorial waters to include three rocky outcrops in the gas-rich Browse Basin.
The boundary changes were prompted by Geoscience Australia classifying a number of new outcrops, discovered earlier this year on the Seringapatam and North and South Scott reefs, as “islands”, making them WA territory.
The hastily legislated re-drawing of the boundary means the State Government could make an additional $2.9 billion in royalties when gas production begins in the Browse Basin gas fields.
Western Australian Premier, Bill Marmion, was understandably tickled pink.
“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 breathlessly.
“It’s a very exciting development and potentially a great windfall for the state,”
The boundary changes will affect retention leases held by the Woodside Browse Joint Venture and the ConocoPhillips Browse Joint Venture.
“It is too early to speculate on the royalty potential of the Kronos and Poseidon fields but it could be significant.”
According to scientists the new “islands” discovered in the Seringapatam and North and South Scott Reefs earlier this year had their beginnings in 2004 when Cyclone Fay caused significant changes to the reef structure.
“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 and North and South Scott reefs as islands, making them WA territory.
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