The Queensland Resources Council (QRC) has welcomed the partnership between Brisbane-based Armour Energy and Santos through the South Nicholson Basin Farmin Agreement.
QRC Chief Executive Ian Macfarlane said diversity in the State’s gas industry leads to smaller and larger operators using each other’s strengths to develop gas.
“This agreement is good news for the gas industry and demonstrates the collaborative approach in the development of gas fields in Queensland,” Mr Macfarlane said.
Under the agreement, Santos with a proven track record in safe and environmentally sustainable operations, will assume operatorship and has right to earn a 70 percent interest in Armour's South Nicholson Basin tenements in North Queensland and the Northern Territory. In return Armour will receive an upfront $15 million capital injection from Santos and a free carry on the proposed work program up to a total capped amount of $64.9 million.
Mr Macfarlane said Queensland remains a leader in responsibly developing gas which was good for all customers both domestic and international.
“Queensland’s gas industry invested $8 billion into the State’s economy last financial year, supported 37,984 full time employees and spent $2.7 billion with local businesses and community organisations,” he said.