In a statement to the media, the company said it was seeking only "clarification" from the Government on existing excise arrangements on naphtha production.

"Newspaper reports that it (SPP) is facing a cash crisis are incorrect. The company has in excess of $20 million in available funds plus access to a further $20 million which has been recently offered to the company," said SPP managing director, Mr Jim McFarland.

Due in part to a concerted campaign by Greenpeace, SPP is having great difficulty marketing its oil product with inventories building at a rate of $800,000 a week. Mr McFarland said Greenpeace pressure had already resulted in two refiners, BP and Shell, deciding not to buy its products.

Greenpeace said it believes the production of shale oil is more greenhouse gas intensive and opposes the Stuart project on environmental and health grounds.

In other company news, SPP reported the operational and environmental performance at the Stage 1 demonstration plant continued to improve with 68,000 barrels of oil being produced from 19 December 2001 to 20 January 2002. This brought first quarter production to around 97,000 barrels, which surpassed the previous best full quarter result of 88,000 bbls.

SPP also said Stage 1 now meets the strictest Australian and international odour standards. The company embarked on an investigation and mitigation program in 1999 after complaints from the local community about the emissions from the plant.