Central Petroleum Ltd closed the deal to bring in Incitec Pivot Ltd to exploration permit ATP 2031-P. Incitec Pivot Queensland Gas Pty Ltd acquired 50% interest in the permit on 7 December 2018. The two companies entered a memorandum of understanding (MoU), when Central Petroleum was awarded the Taroom Trough permit, on 27 August 2018.  Under the MoU, which was announced on 25 June 2018.Â  Incitec had a period of exclusivity in which to discuss commercial opportunities for the acreage.Â  For Incitec to enter a 50:50 joint venture, it is expected to fund up to AUD 20 million of an exploration campaign within the acreage which is expected to start in 2019.   Incitec operates the Gibson Island facility in Brisbane which manufactures fertilizers. Incitec has reported that the impact of increasing costs of natural gas supply to the Australian East Cost could be as high as AUD 50 million through 2019 resulting in future uncertainties for the facility. Closure costs of the facility are estimated at around AUD 70 million. Incitec has entered ATP 2031-P to source economic gas for supply to the Gibson Island manufacturing facility. Short term gas supply arrangements expired on 31 December 2019.  ATP 2031-P was awarded for a period of 12 years and will expire, or be eligible for renewal, on 26 August 2030. Under the terms of the award, if a subsequent petroleum lease is granted over the permit area, any gas produced must be solely for the Australian domestic market. There is scope under the farm-in agreement for gas produced to be supplied to Incitecâs Gibson Island fertiliser facility.  The block was offered as PLR201718-1-1 alongside one other block in the 2017 Queensland State Acreage Release, which was open between September and December 2017. Central announced that it was preferred tendered for the block on 1 March 2018 and was subsequently awarded ATP 2031-P for nil consideration after the finalization of native title agreements.  ATP 2031-P, which covers an area of 77 sq km, was awarded to Central Petroleum on 27 August 2018. Central Petroleum has now completed a farm-down of 50% interest toÂ Incitec Pivot Queensland Gas Pty Ltd.
Central Petroleum Ltd closed the deal to bring in Incitec Pivot Ltd to exploration permit ATP 2031-P. Incitec Pivot Queensland Gas Pty Ltd acquired 50% interest in the permit 