Australian State calls for quicker approvals of new oilfield

Queensland, Australia's state, said on Wednesday that it would urge the federal government to streamline approvals of a 'potentially' first new oilfield Australia has seen in decades. It argues that faster development is necessary to boost fuel security.

Taroom Trough, a frontier basin that may contain large unconventional gas reserves, could also hold significant oil. This is after Australian junior Omega Oil and Gas found oil unexpectedly in 2025.

David Crisafulli said that Shell has also started to produce small amounts of oil in the field.

Crisafulli stated in a press release that "unlocking the Taroom trough is crucial to locking in future fuel security for our nation." Since the U.S. and Israel attacked Iran, the Strait of Hormuz was all but shut off. According to the most recent government figures, Australia only had 29 days' worth of diesel in stock.

Rick Wilson, CEO of Energy Quest, stated on Wednesday that the development of Taroom was at an early stage, and explorers still "have to fully determine the nature of reservoir".

Shell QGC Vice-President Krishna Venkatesan stated that Shell operates the Queensland Curtis Liquefied Natural Gas plant in Gladstone, supplied by coal seam gas from local sources. Shell began producing liquid condensate at a rate of 200 barrels per day seven weeks ago. Crisafulli stated that the liquid condensate was sent to a refinery in Gladstone for conversion into diesel. Queensland awarded three oil parcels to be developed in February. It also announced that it would speed up the construction of roads and trunk infrastructure under a Taroom Trough development plan. The state has also allocated a number of gas acreage parcels. Crisafulli stated that the goal was to streamline the process, coordinate infrastructure and get the project off the ground faster.

Murray Watt, the Environment Minister of Queensland, said that the federal government has not received any proposals from Queensland regarding Taroom.

He said, "We are open to any good ideas that are put forward to build our sovereignty capability as long as they work economically and environmentally."

Australia is a major LNG supplier, but it imports the majority of its crude oil as well as refined fuels due to low refinery capacities and a lack of oil resources in comparison to its abundant gas. Helen Clark, reporting from Perth; editing by Lincoln Feast.

(source: Reuters)