Western Australia has a large landmass and coastal area rich in oil and gas resources. It is a major global exporter of liquefied natural gas and minerals, with many international oil and gas companies based in Perth. Significant investments are being made in new liquefied natural gas projects, which are expected to triple Western Australia's natural gas production by 2020 and maintain its status as a top supplier of LNG globally. The state also has large untapped reserves of shale and tight gas, primarily in the Canning Basin, and is seeking more investment in developing its oil and gas resources and related industries.

1. Welcome to Western AustraliaWestern Australia’s
Oil and Gas Sector

2. THE BASICS (1)
• Landmass of 2.5m square kilometres; Coastline of 12,900 kms
• Population of 2.5m (10% of Australia)
• Economic growth of 6.7% in 2011-12; Unemployment rate of 5%
• Business investment of $75b (or 28% of Australia’s total)
• Resource projects UC or committed is $177b (53% of Australian total)
• Merchandise exports: A$117b (47% of Australia’s total)
• Minerals and energy exports: 57% of Australia’s total

3. THE BASICS (2)
• Home to 41% (896) of total listings (2,200) on ASX
• Home to 68% of resource companies (997) listed on ASX
• >50% of small / mid-cap resource companies on ASX are based in WA
• On the same time zone (+/- 2 hours) as 60% of world’s population
• Perth is 2.5 hours ahead of Mumbai
• Small population = major exporter of commodities
• Perth is one of the world’s most liveable cities (EIU)
• Multicultural population from over 200 countries

6. LNG PROJECTS (2)
PROJECTED GLOBAL PRODUCTION 2020
• Qatar 2012: 78mtpa 2020: 78mtpa
• Australia 2012: 18mtpa 2020: 92mtpa
• (WA 2012: 18mtpa 2020: 55mtpa)
• AU$3 billion per year for exploration
• Top finance deals for all sectors: Ichthys 1st, Australia Pacific 2nd, Wheatstone 9th (TR)
• 149 live titles onshore and within State Waters
• Geoscience Australia: estimate reserves of 103 Tcf conventional & 33 Tcf CBM
• 92% of conventional reserves are in Carnarvon, Browse, Bonaparte basins

13. SHALE & TIGHT GAS – WESTERN AUSTRALIA (1)
• USEIA: 437Tcf technically recoverable shale gas reserves in Australia (2012)
• Ranks Australia 6th behind China, USA, Argentina, Mexico, South Africa
• Estimated resource in Canning Basin is 229 Tcf in Goldwyer formation
o Twice the size of known Western Australia offshore resources
o Mitsubishi; ConocoPhillips; Hess; PetroChina; Alcoa
o Canning Basin State Agreement
• Perth Basin has an anticipated 71 Tcf
o Arrowsmith 2: AWE 44%, Norwest Energy 28%, Bharat 28%
• Total 280Tcf sufficient to supply WA gas needs for 500 years

16. SHALE & TIGHT GAS – WESTERN AUSTRALIA (2)
• ACLA: up to 27 Tcm in Canning basin (> entire Australian gas resource)
• Early exploration or proof of concept phase – production 5-10 years away
• “Fraccing” has been used for 780 wells since 1958 – no incidents
• Exploration Incentive Scheme – up to $400,000 for shale/tight gas
• Most IOC’s and Oilfield Service companies active in UCG are found in Perth

17. DEPARTMENT OF MINES & PETROLEUM (1)
Exploration Permit
• Initial 6 year permit term
• 2 subsequent 5 year renewals then terminated
• 50% relinquishment at end of each term
Production Licence
• Based on continued production
• Run for the life of the field plus 5 years
• Must seek permission to cease production
Royalties
• State - Royalty
o ~10 -12.5% of wellhead value of petroleum produced
• Federal - Petroleum Resource Rent Tax (PRRT)
o 40% of taxable profit of a given project
o Deductible against income tax
o A number of deductible costs for both of above

18. DEPARTMENT OF MINES & PETROLEUM (2)
Significant Taxes
• Based on continued production
• 30 % company tax rate
• 10% goods and service tax (GST)
Timelines
• From Close of Bids to Grant (including Native Title process)
o 2 years for an onshore EP
o 6 months for State Waters EP
Farm-in to Existing Titles
• Ownership changes via equity placements: www.dmp.wa.gov.au/WABS
Company Takeover
• Subject to Foreign Investment Review Board (FIRB) review
Geoscientific Data & Mapping
• Readily accessible & inexpensive

19. AVERAGE NATURAL GAS PRICES

20. OIL & GAS INDUSTRY – WESTERN AUSTRALIA (1)
• 6 of top 7 global IOC’s have national HQ in Perth
• > 320 international companies service WA’s O&G sector
• > 50 operating fields (50% in Commonwealth waters)
• Perth: 11th for global energy company presence (Platt’s Top 100)
• Perth: foundation member of World Energy Cities Partnership (WECP)
• Perth hosts:
o Chevron Global Technology Centre; GE Oil & Gas Technical Training Centre
o IBM Petroleum Solution Centre; Shell FLNG Training & Research Centre
o Australian Resources Research Centre (ARRC)
o CSIRO Petroleum Division
o CRC’s for Deep Exploration Technologies & Integrated Hydrometallurgy

21. OIL & GAS INDUSTRY – WESTERN AUSTRALIA (2)
• University of Western Australia & Curtin University of Technology
• Courses include petroleum geology, geophysics & engineering
• Western Australia is THE global resource centre of excellence:
o Mining innovation and technology leader
o Operational HQ for BHP Billiton and Rio Tinto
o Alcoa, Newmont, Barrick, IBM, First Quantum, Cristal, BASF, Tronox, Iluka, Cliffs,
Mitsui, FMG
o Produce global market share of >12 commodities
o >50 minerals; >500 commercial projects; 999 operating mines
• In 2011 O&G services contributed $4.3bn to Australia’s economy
• MOU: India's DG of Hydrocarbons and WA's Industry and Resources (DOIR) re cooperation
and understanding on oil- and gas-related issues (2008)
• Perth: host triennial LNG series - LNG 18 – in April 2016

22. DOWNSTREAM INVESTMENT OPPORTUNITIES (1)
• Subsea & Marine
o Geotechnical / geophysical surveying
o Expanded ROV operator capacity
o Deep sea engineering and processing
o Baseline marine systems
o Subsea flexible pipe technology
o Offshore supply, operation and maintenance vessels
• Unconventional Gas
o Front End Engineering & Design (FEED)
o Onshore pipeline development
o Horizontal drill rig expertise and maintenance
o Micro-seismic monitoring
o Water management consultancies
• Operations & Maintenance (30-50 years)
o Services to LNG projects
o Inspection services
o Management and production functions
o On-location 24/7 support services
o Specialised inspection and auditing services
o Production allocation expertise for sharing LNG facilities

23. DOWNSTREAM INVESTMENT OPPORTUNITIES (2)
• Engineering, Design and Fabrication
o Brownfield engineering
o Specialist engineering (process control, process safety, safeguarding)
o Front End Engineering & Design (FEED)
o Centre of Excellence in LNG Design for region
• Transport & Logistics
o WA leads the nation in rotary aviation but lacks training and facilities
o FIFO research/facility hub to expand WA’s global pre-eminence
o Debottlenecking of public infrastructure
o LNG conversion to land-based vehicles
• Laboratory & Testing Services
o Specialist common use facility (wave dynamics or water quality steam)
o Geoscience reserve certification expertise
• Emergency Response & Safety
o Competency-based training, and high end workshops
o Safety, risk analysis and assurance expertise
o Industry specific onsite emergency support and medivac expertise
• Research and Innovation
o Mini/micro LNG facilities
o Floating LNG
o Hydraulic fracturing
o Intelligent operations (automation; command/control)

24. DOWNSTREAM INVESTMENT OPPORTUNITIES (2)
• Engineering, Design and Fabrication
o Brownfield engineering
o Specialist engineering (process control, process safety, safeguarding)
o Front End Engineering & Design (FEED)
o Centre of Excellence in LNG Design for region
• Transport & Logistics
o WA leads the nation in rotary aviation but lacks training and facilities
o FIFO research/facility hub to expand WA’s global pre-eminence
o Debottlenecking of public infrastructure
o LNG conversion to land-based vehicles
• Laboratory & Testing Services
o Specialist common use facility (wave dynamics or water quality steam)
o Geoscience reserve certification expertise
• Emergency Response & Safety
o Competency-based training, and high end workshops
o Safety, risk analysis and assurance expertise
o Industry specific onsite emergency support and medivac expertise
• Research and Innovation
o Mini/micro LNG facilities
o Floating LNG
o Hydraulic fracturing
o Intelligent operations (automation; command/control)

27. Perth
Indonesia
Singapore
India
Europe
Middle East China
South Korea
Japan
India — Mumbai
Bhanu Rahoni – Manager
Govt. of Western Australia
Trade & Investment Office
93 Jolly Maker Chambers No 2
Nariman Point
Mumbai - 400 021, India
Tel: +91 22 6630 3973
E Mail: bhanu.rahoni@dsd.wa.gov.au
Website: www.watoindia.in
Africa
WESTERN AUSTRALIA TRADE AND INVESTMENT OFFICE