Petroleum Royalty Act 2023

All licensees and permittees with a licence or exploration permit in a project area are liable to pay to the Territory a royalty on petroleum produced from the project area in the royalty year at the rate provided in section 9.

For subsection (1), petroleum produced from a project area includes petroleum, produced from a production project area, that is used or lost through venting or flaring or other means.

For subsection (1), petroleum produced from a project area does not include any of the following:

petroleum used by the licensee, permittee or operator for incidental purposes;

petroleum used in the project area for processing or compression, or preparing petroleum for sale;

petroleum returned or reinjected into a natural reservoir in the project area from which it was extracted or recovered;

petroleum produced from an exploration project area that is used or lost through venting or flaring or other means.