Spending falls on oil and gas hunt

spendingWA’s petroleum exploration spending dropped more than 10 per cent in the September 2013 quarter, according to the latest WA Resources and Economics Report.
Released last month by the WA Chamber of Minerals and Energy and accountancy firm KPMG, the report found combined mineral and petroleum exploration spending was down 6.2 per cent on the June 2013 quarter.
“The decline in total exploration spend is driven by the decrease in petroleum exploration which fell by 10.6 per cent from the previous June quarter to $752 million,” the report said.
Woodside’s withdrawal from four permits in the Browse Basin and Exmouth Plateau during the September quarter was cited as a cause for the spending decline.
According to the report, LNG export value leapt 21.2 per cent for the quarter to $3.232 billion, while LPG value dropped 12.5 per cent to $163 million.
In the September quarter LNG, gas and oil projects accounted for 81 per cent of committed expenditure in WA, reaching $121.8 billion.
Projected capital expenditure on energy projects declined 6.3 per cent on the April quarter, while expected spending on minerals and infrastructure projects dropped 22.5 per cent and 63.5 per cent, respectively.
Nine of the state’s 24 committed resource projects were in LNG, oil and gas.
The $5 billion Woodside-operated North Rankin B gas project and the $1.5 billion BHP Billiton and Apache Energy Macedon gas project were among the eight projects completed in the quarter.
While LNG only accounted for two of the 50 projects at feasibility stage, it made up 36 per cent of the total indicative value of all projects at that stage. Iron ore dominated the feasibility projects, with 18 now registered in the state.