Multi-user infrastructure package to improve Port of Broome facilities approved

30/12/99
The State Government has approved a $4 million multi-user infrastructure package to improve facilities at the Port of Broome to support growing activity in the region by the offshore oil and gas industry.
Transport Minister Murray Criddle said that the move to upgrade the port followed decisions by exploration companies to drill more than 60 wells in the Browse and Bonaparte Basin over the next five years.
"Broome now has the opportunity to capitalise on the new offshore activity by establishing itself as a major supply and maintenance base, a task which would otherwise go to Darwin," Mr Criddle said.
Resources Development Minister Colin Barnett said the offshore oil and gas fields in the North-West of the State had already emerged as a highly prospective area and this would be bolstered with the release by the Commonwealth of a further 28 permit areas in the Browse and offshore Canning Basins.
"These infrastructure improvements are essential to ensure the significant long-term benefits of servicing the offshore oil and gas industry are credited to Western Australia," Mr Barnett said.
"Broome's proximity to the new offshore exploration permit areas and the petroleum provinces of the North-West of Australia, makes it the ideal onshore base from which companies can supply their rigs and carry out vital maintenance tasks."
The Government's commitment to the Broome infrastructure package follows a study by BHP Engineering analysing the ability of Kimberley ports to service the offshore oil and gas industry.
Sponsored by the Department of Resources Development and the Kimberley Development Commission, the study showed that most of the requirements for an effective support base already existed, with upgrades of other necessary services either planned, or undertaken at relatively low cost.
It also found that by operating support vessels out of Broome instead of Darwin, companies exploring in the Browse Basin could achieve annual savings of up to $1.25 million per rig.
Mr Barnett also said today's announcement followed on from the State Government's recent commitment to develop new multi-user infrastructure worth $30 million on the Burrup Peninsula to support the emergence of a gas processing industry.
Mr Criddle said the private sector was already involved in the development of Broome as an offshore supply base.
"Mermaid Marine Australia Ltd, is proceeding with engineering design for a new maritime facility and supply base at the port and is expected to commence the first support activity for petroleum exploration in the next three months," he said.
A joint venture between marine fuel supply companies, Fremantle Oil Distributors and West Kimberley Fuels had almost completed installation of a new $800,000 pipeline at the famous Broome wharf to supply fuel to rig tenders and other vessels at rates of 120 tonnes per hour.
"Using Broome as a support base for the offshore oil and gas industry will bring considerable benefits to the Kimberley regional economy," Mr Criddle said.
Drilling commitments in the Browse Basin will result in an estimated 75 supply vessel visits per annum to the Port of Broome in 2000-01, increasing to 150 the following year.
"This logistical support from Mermaid Marine's supply base will boost small business in the region including transport, light engineering and a variety of maritime services," Mr Criddle said.
"Crew changes through Broome will also provide a similar boost to the aviation and hospitality industries.
"Shipments into Broome of materials to support exploration of the Browse Basin will commence in January, followed by the first rig tender vessels in March.
"The improved port infrastructure will also benefit other regional industries that rely on the port - namely pearling, cattle export, fishing and marine-based tourism."
Media contacts: Doug Cunningham, Minister Criddle, (08) 9321 7333
Justine Whittome, Minister Barnett (08) 9222 9699