• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Energy

Australian oil & gas sector sees new decommissioning levy as ‘terrible precedent’

4 years ago
in Energy, highlights, Home, home-news, latest News
2 min read
0 0
0
52
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

As new details have emerged, APPEA, an Australian oil and gas industry association, has labelled a new levy by the country’s government related to decommissioning costs for Laminaria-Corallina oil fields as over the top, extreme, and a terrible precedent.

The Laminaria-Corallina oil fields are located in the Timor Sea and were producing through the Northern Endeavour FPSO until its operator, Northern Oil & Gas Australia (NOGA), went into liquidation in 2019.

As a result, the government was left with the task of decommissioning the FPSO vessel and the abandonment of oil fields. In May 2020, it was agreed for GR Engineering Services’ Upstream Production Solutions to operate and maintain the FPSO in lighthouse mode, which is the minimum required for safe operations, with no production and a small crew until a longer-term solution is determined.

Come May 2021 and the government stunned the oil industry with a levy to cover the estimated $200 million cost of removing facilities and cleaning up the area.

The move was announced in the government’s 2021-22 budget in mid-May 2021, but further details were revealed by the Department of Industry, Science, Energy, and Resources on 24 June, stating that the levy will apply at a rate of $0.48 per barrel of oil equivalent (BoE) produced, as measured at the well-head. The levy will start on 1 July 2021.

All entities with an ownership interest in a petroleum production licence issued under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 will be liable for the levy.

Must Read: Investors show no appetite for Chinese online grocery firms that just listed in the U.S.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

APPEA said on Tuesday that the new levy of $0.48 per barrel on all offshore oil producers was over the top and extreme.

APPEA Chief Executive, Andrew McConville, said the proposed Laminaria-Corallina oil fields and associated infrastructure levy will see a number of offshore oil and gas companies footing a massive bill for a project they have never been involved in, never benefitted from, and up to 3,500 kilometres away from their operations.

“To slug an entire industry $0.48 per barrel and not put an end date on it is over the top”, McConville said.

“Any levy is unreasonable in any form but one being so extreme will be a major disincentive for investment at a time when policy stability and certainty is critical.

“This is a terrible precedent and could have serious repercussions to Australia’s economy, to jobs and to our attractiveness as an investment destination when, as the global economy recovers, competition for investment capital will intensify.

“The government should systematically consider alternatives to reduce the costs of its own current management of the project, overall decommissioning costs and look at alternative decommissioning and cost-recovery measures.

The government also said that the levy will be paid on an annual basis, in arrears, and that the first payments, for the 2021-22 financial year, will be payable in the first half of 2022-23.

McConville added: “The Government should not be washing its hands of this through a blunt instrument like a levy, but working constructively and collaboratively with industry to minimise costs and explore all options being put on the table to get the best and most economically efficient outcome for the environment, the industry and the community”.

“More broadly the industry remains committed to working with the government the sensible development of a new decommissioning policy framework”.

Source: off-shoreenergy.biz
Via: norvanreports
Tags: Australian oil & gas sectorbarrel of oil equivalent (BoE)new decommissioning levyNorthern Endeavour FPSOOffshore Petroleum and Greenhouse Gas Storage Act 2006
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.