A 15-YEAR petroleum retention licence scheme has been granted to an Australian oil and gas exploration company, marking a next step for significant investment in South Australia’s resource industry.

The agreement, reached between Senex Energy and the South Australian Government last week, covers a 10,000km2 tenement in the Cooper-Eromanga Basin and will allow the conversion of exploration licences into retention licences.

Senex managing director Ian Davies said the agreement increases operational flexibility and allows targeted capital expenditure.

“The scheme allows us to prioritise investment in our oil business according to prospective activity and therefore spend our capital efficiently to target the highest return investments for Senex and South Australia,” Mr Davies said.

Premier Jay Weatherill welcomed the agreement as a precursor to significant job creation and economic growth across the state.

“South Australia has vast reserves of oil and gas waiting to be unlocked which will lead to significant future jobs and investment,” Premier Weatherill said.

“The hundreds of millions of dollars to be invested by Senex will inevitably create jobs not only in the Basin, but in Adelaide and elsewhere in the state.”

The scheme includes an exploration and appraisal target of approximately $200 million over the term of the agreement.

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