House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Industry, Science and Resources, Senator the Honourable Nick Minchin)

Financial impact statement

As the Bill changes no detail of the Treaty arrangements other than the identity of the Treaty partner, there will be no direct financial impact. However, the Bill, once enacted, will provide continuity and certainty for existing and future commercial operators in the Zone of Cooperation, as well as to provide a flow of revenue to the Treaty partners. While it is not possible to provide accurate estimates of future revenues from the continued petroleum activities in the Zone, it is likely that several tens of millions of dollars per annum could flow to both Treaty partners for a period of 10 to 20 years.