May 13, 2010In an effort to help maintain current levels of domestic oil production, the
Australian Competition and Consumer Commission (ACCC) has issued a draft decision proposing to authorise Santos QNT and ten other oil producers to jointly market their oil produced in the Surat Basin and Denison Trough in Queensland.
According to the ACCC, it is likely a number of these producers would cease oil production (crude and condensate) without approval of such marketing arrangements.
The producers transport oil from the Surat Basin and Denison Trough to the Lytton storage facilities in Brisbane.
“Oil production from these regions represents a very small proportion of total oil production in Australia (around 0.3 percent), with some of the producers producing as little as a few barrels of oil per day,” the ACCC says.
“Given the small volume of oil covered by the arrangements, as well as the significant influence of global oil prices on domestic oil supply contracts, the ACCC considers there is minimal, if any, anti-competitive detriment likely to be generated by the joint marketing arrangements,” it says.
The ACCC previously granted conditional interim authorisation to the arrangements on March 24, which will remain in place until the ACCC’s final determination comes into effect, or unless revoked.
