APPEA has welcomed the South Australian Government’s move to provide relief to oil and gas explorers by deferring costs and work program commitments linked to exploration licences as the industry confronts the challenges posed by the COVID-19 pandemic.
The Government has implemented an immediate deferral of annual petroleum fees due in the next six months. These licence fees will now not be due until 31 December 2020.
APPEA chief executive, Andrew McConville, said the measures would particularly help smaller exploration companies that continue to play a critical role in the identification and development of new energy resources.
“Current economic conditions have the potential to irreparably damage oil and gas exploration in Australia unless steps are taken to provide short term relief to allow companies to remain in business until the economy has moved through the worst of the downturn,” Mr McConville said.
“The relief that SA has announced today will help exploration companies weather the storm and continue to play a critical role in discovering new sources of supply. This is important in the gas dependent states of South Australia and Western Australia but also right across the tight East Coast gas market.”
Mr McConville said the Australian oil and gas industry is responding to the personnel and operational challenges posed by the COVID-19 pandemic to protect the health and safety of our workforce and host communities, while ensuring vital energy supplies are maintained.