Sounds like Eric may have been at this get together ..."Oil...

Sounds like Eric may have been at this get together ...

"Oil execs seek tax concessions
March 25 2003


A summit meeting of Australia's top oil executives yesterday stepped up the pressure on the Federal Government to develop an energy policy that would continue our high self sufficiency in oil.

Because of heightened security concerns, the meeting of the 30 executives was held behind closed doors at the Australian Petroleum Production & Exploration Association annual conference at the Melbourne Convention Centre.

But after the two-hour session the executive director of APPEA, Barry Jones, said the message to the Government was loud and clear: Australia faced serious oil supply problems if the tax system was not changed to encourage investment by world travellers like ExxonMobil, Shell, ChevronTexaco and BP.

Mr Jones said the oil majors had to be encouraged through the tax system to take "expensive risks here, otherwise they will make their investments elsewhere."

He blamed Treasury in Canberra for its "inability" to recognise rigidity in the taxation system as a problem.

Mr Jones said taxation of the industry was designed as if all future developments were like the Bass Strait field.

He said that there had to be recognition that deepwater exploration, where the remaining big finds were expected to be made, was a high-risk business.

Those attending yesterday's closed summit included Santos chief executive officer, John Ellice-Flint, BHP Billiton Petroleum CEO, Phil Aiken, and Origin Energy CEO, Grant King.

The industry's concerns were also set to get an airing at a Macquarie Bank oil barons' dinner last night to which the Federal Resources Minister, Ian Macfarlane, was invited.

The minister also addresses the APPEA conference today on the Government's policy.

Also yesterday the CEO of oil and gas group, Mosaic, Howard Brady, called for the creation of a viable secondary market for the trading of exploration acreage. He said big companies hanging on to idle ground was hampering exploration.

Barry FitzGerald "