South Australian government paves new road to Innamincka oilfields

THE SOUTH Australian government will spend A$10 million to seal the Strzelecki Track, north of Lyndhurst, a vital supply link for South Australia’s oil and gas operators in the Cooper Basin.
South Australian government paves new road to Innamincka oilfields South Australian government paves new road to Innamincka oilfields South Australian government paves new road to Innamincka oilfields South Australian government paves new road to Innamincka oilfields South Australian government paves new road to Innamincka oilfields

Paul Hunt

Senior Journalist: Oil & Gas, Policy.

Paul Hunt

This morning the Marshall government announced it would begin the first 50-kilometres of the 472km road later this year. 

The road is expected to be completed by the end of 2021.

The South Australian Chamber of Mines and Energy (SAMCOME) has advocated for the upgrade for years, citing the importance of the "critical transport route for the resources sector." 

With the road in the state it is currently, it often floods during the wet season and makes oilfields within the Cooper Basin inaccessible due to flooding. 

"The recent release of South Australia's 20-year State Infrastructure Strategy recognised the resource sector's outstanding oil and gas resources, and the requirement for infrastructure solutions that provide efficient routes to market," SACOME chief executive Rebecca Knol said. 

It is particularly good news for ASX-listed junior explorer Red Sky Energy and major gas producer Santos, which own the Innamincka Dome project in South Australia. 

Red Sky Energy farmed out an 80% stake in its Innamincka project to Santos last September. 

The new road project will benefit the joint venture by providing greater accessibility. 

"This is a project that the resources sector, one of South Australia's biggest employers, has been crying out for over the last few decades," state energy minister Dan van Holst Pellekaan said in a statement today. 

"The Strzelecki Track will help open up supply chains between South Australian and Queensland for the resources industry." 

 

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