The Queensland Government has announced the formation of a new competitive cash bidding process that will apply to companies seeking the right to explore on highly prospective coal, petroleum and gas resources tenements.

 

State Minister for Natural Resources and Mines, Andrew Cripps, outlined the new tender process in the delivery of  his keynote address at the 2012 Australian Petroleum Production and Exploration Association Coal Seam Gas Conference.

 

“This new strategic approach will result in better stewardship of our resources, more certainty for industry and the community, and better economic returns for all Queenslanders,” Mr Cripps said.

 

“The new framework will involve both the controlled and competitive release of land for coal, petroleum and gas exploration and may include a cash bidding process that reflects the potential in-ground value of the resource for certain areas that are released.

 

“Through competitive cash bidding, companies will bid for the right to explore highly prospective land made available through tender and a ‘preferred tenderer’ will be identified through a rigorous assessment process.

 

“Preferred tenderers will still have to meet the same stringent environmental and tenure approval requirements before exploration tenure is granted.

 

Mr Cripps said he anticipated the first round of petroleum and gas areas available under the new competitive cash bidding process would be released for tender in the near future.