25 February 2014
ABC News
The Northern Territory Government has approved its first onshore petroleum licence in more than 30 years.
The Surprise oil field in the Amadeus Basin was discovered two years ago.
Central Petroleum has been given a 25-year production licence to extract oil from the site near Kintore, west of Alice Springs.
The Central Land Council, acting for traditional owners of the area, approved the project in December.
The company says it will produce about 400 barrels of Tapis quality crude oil a day.
The oil will be shipped to a refinery in Singapore.
Central Petroleum says it will give preference to local Indigenous people for employment and training.
The Surprise-1 well will use conventional extraction methods, not fracking.
Central Petroleum managing director Richard Cottee says operations will commence early next month.
Mines and Energy Minister Willem Westra Van Holthe says it is a significant milestone for the Territory.
“We believe … [it] heralds the start of an exciting new chapter in the development of what should be a substantial oil and gas industry in the Northern Territory,” he said.
Since the 1960s, mining companies have known that areas of the Amadeus Basin are prospective for oil.
Until now, the isolation of the area and uncertain oil prices have discouraged the establishment of wells.
Courtesy of ABC News