Oil and gas giants will be hit with a $6 billion tax hike over the next decade following years of concern that Australia has been hemorrhaging lucrative revenue to multinationals.

The decision was made after an 18-month wait for the Coalition's response to a landmark review into the sector, which heard Australia would eclipse Qatar as the world's top gas exporter by 2020 but receive just $800 million revenue compared to Qatar's $26.6 billion.

Treasurer Josh Frydenberg. Credit:Alex Ellinghausen

One Nation had demanded a crackdown on multinationals in exchange for supporting company tax cuts, but reneged when it became clear that the Turnbull government would not meet its demands for a Qatar-style royalty scheme.

The government went further than some in the industry were expecting on Friday by declaring current projects would have previous exploration concessions used to offset future profits crimped from 2019, despite industry threats that would put investment at risk.