In particular, one article suggested the oil shale producer was looking for $127 million in assistance - a figure that was nearly four times the assistance promised by Cabinet.

In a written statement to the market, SPP managing director James McFarland sought to clarify his company's position.

"The Federal Government's excise tax rebate arrangement for naphtha sales from the Stuart Project to Australian refineries, which was implemented in 1991, remains unchanged and is available for SPP to access," Mr McFarland said.

"The rebate applies to the Stage 1 technology project only, is capped at a maximum annual amount of around $36 million and is currently due to expire at the end of 2005.

"In May 2002, the Federal Government temporarily broadened that arrangement by providing SPP with the option of a sales grant during the next 12 months for naphtha sales that would otherwise not be eligible for the excise tax rebate.

"The existing excise rebate scheme continues to apply until the end of 2005. The recently announced grant provides SPP with the flexibility to obtain Federal Government support in all markets where the naphtha is sold.

"The grant does not provide an additional benefit, but rather is an available substitute for the excise rebate over the next 12 months.

"The excise rebate or sales grant is only payable if the Stuart project is successful in producing and selling naphtha and in this regard is a relatively low risk R&D incentive.

"The maximum annual amount of $36 million is payable if SPP is successful in producing and selling an annual amount of 667,000 barrels of naphtha, which together with a similar amount of light fuel oil produced in association with the naphtha, is the effective capacity of the Stage 1 plant.

"SPP is not currently seeking any further funding from the Federal Government beyond these existing excise rebate and sales grant arrangements, as incorrectly reported in the media," Mr Mcfarland said.