The South Australian Chamber of Mines and Energy (SACOME) has welcomed BP and Chevron’s commitment to invest almost $60 million in oil and gas exploration projects in South Australia.
BP and Chevron have honoured their Good Standing Agreements (GSAs) with the Commonwealth Government to invest a total of $116.5 million nationally, with at least half directed to projects in South Australia.
BP will invest $40.6 million nationally by October 2022 and Chevron $75.9 million by September 2022. Both parties are finalising contractual negotiations for a range of regional studies with third party proponents.
The GSAs follow BP and Chevron ceasing their programs of exploration in the Great Australian Bight in 2016 and 2017 respectively, and represent a redirection of exploration commitments.
“SACOME is delighted to see BP and Chevron honour their Good Standing Agreements with the Commonwealth Government, and we are grateful a portion of these funds will be spent in South Australia,” SACOME CEO Rebecca Knol said.
“These are welcome investments in oil and gas exploration that will be of direct benefit to the South Australian resources sector and the broader State economy.
“Building the exploration investment pipeline creates good outcomes for South Australia and supports the State Government’s ambitious 3% growth agenda.
“Last week, the State Government’s Mid-Year Budget Review anticipated a $155 million increase in royalty revenues over the forward estimates off the back of higher petroleum production volumes and prices. BP and Chevron’s investment commitments add to this momentum.
“South Australia is home to the world class Australian School of Petroleum at the University of Adelaide, where joint entry scholarships for Petroleum Engineering have recently opened for applications.
“Today’s announcement further highlights the State Government’s commitment to facilitating the growth of a sector critical to the economic health of South Australia.
“In addition to employing over 26,000 people directly and indirectly, the resources sector now delivers $5.8 billion in exports, $6.4 billion in production value and $1.3 billion in royalties for South Australians.”