Santos welcomes the announcement today by Queensland Treasurer Cameron Dick to implement a new petroleum royalty model (the Volume Model) that guarantees Queenslanders will receive a fair return for the use of their non-renewable resources now and into the future.
Santos and our partners in GLNG and southwest Queensland are continuing to invest nearly $2 billion per year developing coal seam gas resources, and in the Cooper we are investing more than $260 million this year to keep oil and gas flowing, and bring on new supplies. Despite record low product prices and the global pandemic, Santos continues to operate five drilling rigs in Queensland, providing ongoing local jobs and business opportunities in rural and regional communities.
Since 2016 Santos and our partners have paid nearly $305 million in royalties, including nearly $100 million for production in southwest Queensland.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the new royalty model provides a clean break from the administrative, technical and legal challenges of the past, as well as delivering the longer-term certainty that is so important for new investments. The new royalty model addresses past equity and integrity issues with industry participants now on a level playing field.
Santos has appreciated the open, transparent engagement with industry participants, the Office of State Revenue, Review Chairman Jay Weatherill, and current and former Queensland Treasurers, Cameron Dick and Jackie Trad. Santos looks forward to this continuing during consultation on implementation of the new model over the next few weeks.
“The new Qld royalty model is simple, efficient, equitable and transparent. It provides certainty to encourage ongoing investment in new gas supply and it will incentivise producers to innovate and reduce their cost of supply, which in turn will help put downward pressure on gas prices,” Mr Gallagher said.
“Queensland has a history of bipartisanship in supporting development of its oil and gas resources with a regulatory regime that allows Queenslanders to share in the benefits of the industry and ensures development occurs safely and sustainably, without harm to water resources or the environment. The result of bipartisan support has been thousands of local jobs, business opportunities, thriving regions, reliable and affordable energy, and prosperity for generations of Queenslanders. I want to see that continue for future generations as well.”
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About Santos Ltd
A proudly Australian company, Santos is a leading supplier of natural gas, a fuel for the future providing clean energy to improve the lives of people in Australia and Asia. Santos is already Australia’s biggest supplier of domestic gas and aims to be a leading Asia-Pacific LNG supplier. For more than 65 years, Santos has been working in partnership with local communities, providing Australian jobs and business opportunities, safely and sustainably developing Australia’s natural gas resources, and powering Australian industries and households. For more information visit www.santos.com
