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PERTH (miningweekly.com) – The South Australian government would invest some A$40-million in the resources sector, State Treasurer Tom Koutsantonis announced this week.
Over the next three years A$32.2-million would be spent on a new State Drill Core library and A$4-million has been earmarked, over four years, for the Mining and Petroleum Services Center of Excellence.
Furthermore, the government would spend some A$4-million in 2014/15 to construct an air strip at Innamincka, to better service the oil and gas exploration in the state’s far north.
Meanwhile, the South Australian government has also deferred royalty payments for unconventional gas, in an effort to accelerate investment and job creation in the sector.
Koutsantonis has previously said that the South Australian resources sector would create some 35 000 additional jobs in the next 15 years.
“By accelerating development of unconventional gas resources alone, almost 4 000 jobs can be created and A$2.8-billion a year invested in the state’s economy,” Koutsantonis said.
“We are with the resources sector every step of the way because we recognise its critical role in generating jobs and investment in South Australia.”
The Australian Petroleum Production and Exploration Association (Appea) on Friday said that the budget would enhance the state’s attractiveness for onshore oil and gas investment.
Appea COO for the Western Region, Stedman Ellis, said the state's strong reputation among oil and gas companies had been boosted.
“The respected Fraser Institute Global Petroleum Survey consistently ranks South Australia as the most attractive Australian state for oil and gas investment and this budget builds on that already strong reputation,” Ellis said.
“The South Australian economy is set to benefit from the state government’s commitment to new training opportunities and exploration incentives. The new Onshore Petroleum Centre of Excellence training facility at Tonsley is strongly supported by industry and will help develop and maintain the skilled workforce required here in South Australia and elsewhere.”
Ellis noted that the deferral of royalty payments for shale and tight gas projects should also help accelerate investment and job creation in what is potentially a significant new industry.