Decision on gas field in future

Press, Volume CXVI, Issue 34044, 7 January 1976, Page 13

Decision on gas field in future

■Weir Zealand Press Association —Copyright SYDNEY. It would be some time before WoodsideBurmah Oil, N.L., and its partners decide the future of the North West Shelf gas field, said the deputy-managing director of Bocal, Ltd, (Mr R. Thomas), which is the operating company for the joint venture.

; Considerable progress hadi been made in the last few! months, when the project' had been discussed with the: Premier of Western Austra-! lia (Sir Charles Court) and; the State Energy Commission of Western Australia,' but a more intensive study j had to be undertaken before ; the construction phase of j the scheme could begin, Mr I Thomas said. ; “Any development scheme must not only be technically j feasible, but must also be I capable of servicing loan i funds, and securing for the ! producers a reasonable rei ward for the exploration j risks already incurred, and ; development capital which 'will be required.” The partners required firm I undertakings from purcha-1 I sers. This involved an appraisal of the domestic and, export markets. Agreements with financiers, and assurances from The Federal Government

and State Governments on such matters as exports, the movement of funds and the importing of materials and equipment were also required, he said. Although a full investigation would take considerable time, the over-all objective of producing and selling gas at the earliest possible date would be achieved much more speedily with Government support and encouragement. The news that officials from the Federal and Western Australian governments would meet next week to discuss the development of the gas fields was encouraging, Mr Thomas said. The company will not be involved with the talks, after the High Court ruling last month that the Federal Government should have sole responsibility for issuing exploration leases in offshore areas.