The Australian Petroleum Production and Exploration Association said politicians and bureaucrats would be "living in fantasyland" if they believed world record oil prices in 2004 would crystallise the necessary exploration momentum to overcome Australia's looming reliance on imported oil stocks.
"It is the long-term trend price, not the volatile spot price, that impacts new exploration and development investment decisions," said APPEA executive director Barry Jones.
"Complacency on oil exploration and development because of the euphoric oil price levels is a policy option Australia's decision-makers cannot afford," he said.
Woodside Petroleum had yesterday warned that if approval was not given for the Sunrise LNG project in the Timor Sea in order to make a 2010 marketing window, it may be delayed until 2015 until the next forecast market opportunity arose. The partners need to commence design next year to make the 2010 deadline.
The NT’s Martin then proposed a one-off agreement for the Greater Sunrise gas reserves, independent of establishing a maritime boundary.
The proposal, which has been given serious consideration by East Timorese Prime Minister, Mari Alkatiri, would ‘de-link’ the development from boundary negotiations and remove the need for the East Timorese Parliament to ratify an international unitisation agreement.
Alkatiri said such a deal could be signed within 12 months. “We have been saying we need a creative solution to this issue,” he said.
