Senex welcomes the Queensland Government’s announcement today that petroleum royalties would be calculated using a volume-based model.
The stability provided by this decision supports further investment and jobs in Queensland’s natural gas industry and manufacturing customers that are major users of gas.
Managing Director and CEO Ian Davies said Senex and its partners had invested $400 million in Queensland over the past 18 months and was keen to secure and develop more acreage for the domestic gas market.
“We congratulate Queensland’s Treasurer Cameron Dick on his decision to create a more equitable and transparent system for the calculation of petroleum royalties,” Mr Davies said.
“This new approach will make investment decisions easier. On top of that, five years of royalty stability will enhance the attractiveness of investments that support jobs in rural and regional Queensland.”
Last December Senex produced first sales gas from Project Atlas, which is the first acreage in Australia dedicated to domestic gas supply. Atlas was created by the Queensland Government’s successful policy approach to domestic gas exploration and production.
Senex’s customers include CleanCo Queensland, the State Government’s new cleaner energy provider; CSR Limited, the building products manufacturer; and the food and beverage container makers Orora Limited and O-I Australia. Our manufacturing customers have facilities, and employ hundreds of Queenslanders, in Brisbane.
Phone: +61 400 776 937
NOTE TO EDITORS: Royalties are a payment to the people of Queensland for petroleum produced, which is owned by the state. The volumetric method calculates the royalty payable based on the volume of gas produced, superseding a complex calculation incorporating various costs and sales.