What this class covers
ANZSIC class 0700 classifies Australian businesses primarily engaged in extracting crude oil, natural gas, and condensate from underground reservoirs. This includes operations that locate, drill, and produce from oil and gas deposits, both onshore and offshore. The classification encompasses the initial extraction phase but excludes downstream processing activities like refining or fuel manufacturing.
In practical Australian terms, this includes companies operating oil and gas fields across regions like the Bass Strait, Cooper Basin, Carnarvon Basin, and the Northwest Shelf. Typical operations involve exploration drilling, well development, production facility operation, and initial separation of extracted materials. The classification applies regardless of whether operations are conducted by major energy corporations or specialized extraction contractors.
Examples of businesses in this class include:
- Offshore platform operators extracting natural gas from underwater reserves
- Companies operating coal seam gas fields in Queensland
- Firms engaged in shale oil extraction and processing
- Contractors providing specialized drilling services for oil and gas wells
- Operations recovering condensate (natural gas liquids) from gas streams
Primary activities in plain English
Businesses classified under 0700 typically engage in one or more of the following activities:
- Extracting natural gas from underground reservoirs through drilling operations
- Producing liquefied natural gas (LNG) through cooling and compression processes
- Mining and processing oil shale to extract hydrocarbon materials
- Drilling for and producing crude petroleum oil from geological formations
- Operating extraction facilities that separate gas, oil, and condensate
These activities represent the initial production phase of hydrocarbon resources before they undergo significant manufacturing or refining processes.
Exclusions and nearby codes
This class specifically excludes operations that transform extracted materials into finished petroleum products. The refining of crude oil into petroleum fuels, blending of petroleum products, or manufacturing fuels from liquefied petroleum gases falls under ANZSIC Class 1701: Petroleum Refining and Petroleum Fuel Manufacturing.
Other related classifications include support activities for oil and gas extraction (which fall under different ANZSIC classes), and mining of other energy resources like coal (Division B, various classes). The corresponding BIC code for statistical purposes is 7000, which aligns with this extraction classification.
Practical guidance
When registering an ABN, businesses engaged in oil and gas extraction should select this classification to accurately describe their primary activity. This classification affects how businesses are categorized for statistical purposes, tax reporting, and regulatory compliance.
For taxation purposes, businesses in this sector may need to consider specific regimes like the Petroleum Resource Rent Tax (PRRT) in addition to standard company tax obligations. Detailed record-keeping of exploration, development, and production expenditures is essential for tax compliance.
Workers' compensation classifications for this industry typically reflect high-risk categories due to the hazardous nature of extraction activities. Premiums are calculated based on industry risk factors and payroll amounts. Businesses should also be aware of environmental regulations and reporting requirements specific to resource extraction activities.
When applying for grants or industry assistance, this classification helps identify eligibility for programs specific to the resources sector. Accurate classification ensures proper reporting to agencies like the Australian Bureau of Statistics and compliance with industry-specific regulations.