Retention Leases act as holding titles and are awarded for non-commercial discoveries. Applicants must demonstrate the discovery is not currently commercially viable but is likely to become so within the next 15 years for petroleum and geothermal energy, or within 10 years for greenhouse gas storage. The initial term of a Retention Lease is five years and may be renewed provided it still meets the non-commerciality criteria. A greenhouse gas Retention Lease cannot be renewed more than once.
Depending on circumstances, further exploration work may be undertaken. However, the lessee is obliged to undertake re-evaluation studies on the commercial viability of the discovery as required from time-to-time by the Minister.
When the discovery is deemed commercial, the Retention Lease must be converted to a petroleum or geothermal energy Production Licence, or a greenhouse gas Injection Licence.
Print this page
