Consultation: Northern Territory Petroleum Royalty Review
A new petroleum royalty scheme for the Northern Territory has been developed to ensure it keeps pace with development of the onshore petroleum industry.
This industry is expected to grow as the Territory has highly prospective onshore gas resources, with the Beetaloo Basin being one of the most promising shale gas resources in the world.
Royalty payments are made to the Northern Territory Government, as the resource owner, in consideration of a right granted to extract and remove petroleum.
A draft Bill outlines the recommended new royalty scheme including:
- royalties calculated at a rate of 10 per cent of the gross value at the wellhead.
- allowable deductions, record keeping and payment obligations and objection rights, and provides a transparent, uniform framework for all industry participants.
- investment certainty, transparency and equity to stakeholders in the petroleum industry.
- discounts in royalty payable for petroleum directed for Territory use and downstream industries, including power generation, or for refinement into a higher value product
The Department of Treasury and Finance is seeking feedback on the draft Bill.
Consultation is open from Wednesday 1 June 2022 until COB Friday 15 July 2022.
Visit Have your say to provide your feedback.