Oil and gas partnership to build on industry growth

The Federal Government has announced it will establish an Oil and Gas Industry Innovation Partnership (OGIIP), with its headquarters in Perth and connections around the country.

According to the Australian Petroleum Production & Exploration Association (APPEA), the announcement comes at a time when Australia’s oil and gas industry is looking to build on a period of unprecedented growth, investment and job generation.

The partnership will focus on how to utilise collaborative innovation and R&D to improve the competitiveness of the Australian oil and gas industry, as well as to improve construction productivity, gas technology developments in areas such as floating LNG, computational geosciences and subsea production.

The OGIIP will be led by Australian petroleum exploration company Woodside, guided by an industry advisory group and supported by more than 250 small-to-medium enterprises.

APPEA chief executive David Byers said around $200 billion is currently being invested in oil and gas projects in Australia, which has more than half of the gas liquefaction plants that are now under construction or firmly committed around the world.

“Australia is on track to become the world’s largest LNG exporter by the end of this decade,” Mr Byers said.

“In the order of $180 billion worth of additional projects are under evaluation but at risk due to international competitive pressures and questions about Australia’s attractiveness as a place for investment.

“The industry-led partnership can make an important contribution to more competitive supply chains, increased productivity, advances in cutting-edge oil and gas technology and a greater understanding of the social impact and contribution of the industry in Australia.”

APPEA also welcomed the announcement of the establishment of a National Floating Systems Research Centre to be based in Perth and led by the CSIRO and Australian Institute of Marine Science. Western Australia already hosts a range of floating systems and consolidating and building on this capability will be an important strategic investment in the nation’s future.