Hon Robin Chapple asks about royalties due to WA from the Browse Basin gas reserves, both for onshore and offshore processing. The Minister confirms royalties are payable but the exact amount is difficult to determine due to fluctuating factors.

AnsweredQoN 3Legislative Council
Asked
11 April 2013
Portfolio
State Development

QuestionView source ↗

BROWSE LNG
PROJECT — ROYALTIES
3. Hon ROBIN CHAPPLE to the Leader of the House
representing the Minister for State Development:
My question relates to the receipt of royalties from offshore
gas reserves.
(1) Are there any royalties due to WA in the development of
the Browse Basin gas reserves?
(2) If yes to (1), what is the dollar value of such royalties
if these gas reserves are processed onshore?
(3) If yes to (1), what is the dollar value of such royalties
if these gas reserves are processed offshore?
(4) If no to
(1), are there any royalties due to the commonwealth; and, if so, what is the
financial benefit to WA from the administration of such royalties?

AnswerView source ↗

I thank the honourable member for some notice of the
question.
(1) Royalties
will be payable to Western Australia from the development of Browse Basin gas
contained within state waters.
(2)–(3)
The state royalty is normally set at between 10 and 12.5 per cent of the
wellhead value of petroleum produced. The wellhead value of petroleum recovered
is calculated by deducting post-wellhead costs, as agreed or determined, from
the arms-length gross value of petroleum. Consequently, the exact dollar amount
is difficult to determine as it will depend on when, and the rate at which,
these reserves are developed and the prevailing value of gas at the time.
(4) Not
applicable.

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