THE State Government will throw petroleum company Beach Energy another multi-million-dollar sweetener to expand its operations in South Australia.
Beach – which is ramping up its gas exploration and production in the South East – will consolidate its national operations and move up to 80 new jobs into South Australia.
This follows the company’s $1.6b purchase of Lattice Energy, which will see it expand its oil and gas assets into Victoria, Queensland, Western Australia and New Zealand.
Beach Energy South East regional manager Glenn Toogood said yesterday the move would have no “direct” impact on the South East.
Energy Minister Tom Koutsantonis confirmed taxpayers would contribute around $11m to the deal between the government and the expanding energy company.
“Jobs are Labor’s number one priority and this agreement with Beach ensures this leading company will stay, and grow, in South Australia,” Mr Koutsantonis said.
“Not only will Beach Energy retain the 150 people already based in its Adelaide head office, its corporate functions will be consolidated by transferring jobs from interstate to South Australia, creating up to 80 new jobs.”
He said this was the type of economic activity the government wanted to see in South Australia.
“A local company growing and creating exciting, high-value jobs that will both attract expertise to SA and provide exciting employment opportunities for our young people,” Mr Koutsantonis said.
He revealed the top two ASX-listed companies in South Australia were now oil and gas companies, between them employing thousands in this state and investing hundreds of millions of dollars each year.
“Yet it is these businesses that will be worst affected by Steven Marshall’s policy to ban gas developments in the South East, which would hurt jobs and drive up gas and electricity prices,” the minister said.
Beach Energy chief executive office Matt Kay welcomed the agreement.
“Following the transformational acquisition of the Lattice assets, this agreement provides an excellent opportunity for Beach to consolidate its Australian operations in Adelaide,” Mr Kay said.
“This will see up to 80 additional full-time positions created in South Australia.
“I want to thank the SA Government for its support in helping Beach continue to expand its presence in South Australia.”
The State contribution comprises an initial grant from the Economic Investment Fund and a separate grant from the Department of Treasury and Finance, payable in 2019/20 upon confirmation of Beach Energy achieving specified targets.
Indirect contributions comprise in-kind support including the relief of stamp duty on the settlement of the Lattice Energy merger.
In turn, Beach Energy commits to retaining its Adelaide headquarters for the next decade.
The State Government’s total contribution to the deed is $11m.
The deal is encapsulated in a deed, similar to the previous arrangement with South Australia’s largest company SANTOS.
