The ACCC has granted interim authorisation for
At the same time, the ACCC issued a draft determination proposing to grant final authorisation to the arrangements and is inviting submissions in response.
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Authorisation will enable the parties to jointly market gas produced from the Odin field for 5 years. Within this period, the parties will be able to enter into gas supply agreements with customers on common terms and conditions including price. Those gas supply agreements may be for a term of up to 15 years.
Without authorisation from the ACCC, these joint marketing arrangements would risk breaching competition laws.
"The ACCC's preliminary view is that joint marketing is likely to result in public benefit by enabling this new gas supply from the Odin field to reach the market sooner," ACCC Commissioner
"The proposed joint marketing arrangement is unlikely to adversely affect competition, given the amount of gas to be jointly marketed from the Odin field is relatively small compared to the overall size of the east coast gas market."
"Interim authorisation will allow the parties to begin engaging with potential customers immediately but any long-term agreements they enter into with customers are conditional on the ACCC's final determination," said
The ACCC is seeking submissions from interested parties in relation to the draft determination by
The draft determination and more information on how to make a submission are available on the ACCC public register at
Background
The Odin field lies within the area covered by Petroleum Retention Licence 211 (PRL 211) granted by the South Australian Government, and Authority to Prospect 2021 (ATP 2021) granted by the Queensland Government. Both licences are owned by the PRL 211 and ATP 2021 joint venture participants in the following proportions:
The Odin field is estimated to hold 40 petajoules of 2C Contingent Resources.
Notes to editors
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Section 91 of the CCA allows the ACCC to grant interim authorisation when it considers it is appropriate. This allows the parties to engage in the proposed conduct while the ACCC is considering the merits of the substantive application.
The ACCC may review a decision on interim authorisation at any time, including in response to feedback raised following interim authorisation.
Broadly, the ACCC may grant authorisation when it is satisfied that the likely public benefit from the conduct outweighs any likely public detriment.
In
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(C) 2023 M2 COMMUNICATIONS, source