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Origin Energy says it will focus on hiring local staff, instead of fly-in-fly-out workers, when it resumes fracking in the Northern Territory's Beetaloo Basin.
Key points:
- Hundreds of direct jobs will be on offer, Origin says
- Exploration by Origin and Santos set to resume by 2019
- Origin says it has social licence, but agrees issue is divisive
The NT Government has lifted its moratorium on hydraulic fracturing, saying it will implement all 135 recommendations of an independent inquiry to regulate the industry.
In the wake of the announcement, Origin Energy said it would start exploration in the resource-rich Beetaloo sub-basin as soon as is practical.
The scale of the project and volume of gas will be assessed over the next two to three years, Origin unconventional exploration manager David Close told NT Country Hour.
"Certainly there's a material volume of gas there [Beetaloo sub-basin], so it could supply demand gaps that might exist in the domestic and or export facilities within the east coast and northern Australia," Mr Close said.
"And certainly lead to hundreds of jobs directly, and follow on we'd expect thousands of indirect jobs and opportunities that come with that really substantial investment."
Mr Close said "few as possible" fly-in-fly-out workers would be hired.
"There will be a huge focus by Origin and all industry participants to use local firms wherever possible," he said.
"We've had an opportunity over the moratorium to work with Territory-based civils companies to enable them to act as prime contractors rather than sub-contractors."
The Beetaloo sub-basin, about 500 kilometres south-east of Darwin, sits in the Sturt Plateau region, between Mataranka to the north and Elliott to the south.
About 70 per cent of the Territory's prospective shale gas resources are estimated to be in the Beetaloo sub-basin, and according to the NT fracking inquiry, recent shale gas discoveries in the region could increase Australia's global ranking of gas resources from seventh to sixth.
Federal Minister for Resources and Northern Development Matt Canavan recently said there was American and Japanese interest in gas there, and that there could be oil in the Beetaloo.
Mr Close said material exploration activity was likely to happen in 2019, and the rest of 2018 would see preparations, such as upgrades to infrastructure, water bores and baseline monitoring.
Gas company Santos also said it would also be "ready to go" in the 2019 dry season, but would implement the conditions for exploration by the end of 2018, to resume development by 2021.
"As soon we can get back to work, we will employ local people, engage local companies and resume royalty payments to host Traditional Owners," Santos said in a statement.
Origin says it has social licence
Hundreds of protesters descended on NT Parliament House on Wednesday, with many saying they felt betrayed by the Government which took the moratorium on fracking to the last election.
Opponents said they were concerned about the possible effects of hydraulic fracturing on the Territory's water, and an increase in greenhouse gas emissions.
Other members of the public, outside the protest, said they believed the economic benefits would be good for the Territory.
Mr Close agreed fracking in the Territory had been a divisive issue, but said the industry had also received support from the public.
"We certainly understand that some people have different views on the opportunity associated with gas development and we welcome the healthy debate," Mr Close said.
"Now we've got a decision based on science and a really detailed study, I think we're in a good place to move forward and win, certainly continue, to build the trust we have with the community and ensure that we do have that ongoing social licence to operate."
Last year, Origin's own environmental report for 10,000 square kilometres of the Beetaloo Basin warned drilling could pose a risk of causing aquifers under some properties to leak into each other, and potential exists for the deterioration in groundwater quality, which could impact existing groundwater users.
The company said once those issues were identified, it developed solutions to mitigate them.
The Pepper inquiry found the risks of fracking could be mitigated, and in some cases eliminated, if all 135 recommendations to regulate the industry were implemented.
Mr Close said Origin would comply with all regulations before going ahead with exploration and production.
"There's been a lot of effort that's gone into basing them [the recommendations] in science and I think the community should have confidence in the framework that comes from that report, and the Government's ability to implement that.
"Origin will comply with the regulations of the jurisdiction in which we are operating and we'll assess all projects on their feasibility, but certainly we'll be doing the right thing in terms of making sure we comply with all regulations, whatever they may be."
One recommendation states that gas companies should pay for water, which Mr Close said was fairly standard in other states and Origin accepted that.
Topics: oil-and-gas, industry, business-economics-and-finance, rural, nt
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