$50 million in public money for NT gas could flow offshore

The Federal Resources Minister, Keith Pitt has today announced $50 million of government subsidies going to oil and gas companies in the Beetaloo basin, Northern Territory (NT).

Some oil and gas companies in the Beetaloo basin use offshore secrecy jurisdictions and shell companies to avoid scrutiny and allow their owners to hide in the shadows. This includes the part owner of Falcon Oil and Gas, Russian Oligarch, Viktor Vekselberg, who was sanctioned in 2018 over a number of matters including Russia’s invasion of Ukraine.

Falcon Oil and Gas and Sweetpea Petroleum also in the Beetaloo basin both have subsidiaries in the secrecy jurisdiction of Delaware, U.S.

Secrecy jurisdictions allow the owners of companies to remain secret, avoid tax contributions and regulations where they do business.

Clancy Moore, National Director of NGO coalition Publish What You Pay issued the following statements:

“The Federal Government must rule out subsidies going to companies in the Beetaloo basin using secrecy or low tax jurisdictions including Delaware U.S., and Ireland.”

“The Australian public should be alarmed that precious government money could be flowing to a Russian oligarch and anonymous company owners.”

“Any company that receive public subsidies must adhere to the highest levels of transparency and these companies are simply hiding in the shadows.”

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See Publish What You Pay and the Tax Justice Network Australia’s recent report, Lifting the veil of the companies that stand to benefit from Morrison’s gas plans.