OFFSHORE PETROLEUM EXPLORATION
ACREAGE RELEASE  AUSTRALIA 2014
Titleholder obligations
This fact sheet discusses the obligations of offshore
petroleum explorers and the rights and interests of others
that may apply to areas released for offshore petroleum
exploration. The obligations apply to both work program
and cash bid exploration permits.
It remains the responsibility of titleholders to ensure they
have complied with all relevant legislation and taken third
party considerations into account prior to commencing
offshore petroleum exploration activities.
Third party considerations
Section 280 of the Offshore Petroleum and Greenhouse
Gas Storage Act 2006 (OPGGSA) requires that all
offshore petroleum operations must be carried out in a
manner that does not unduly interfere with other users’
rights and interests. There is also a need to comply with
the requirements and standards set by Australian law.
All titleholders must have due regard for matters such as:

environment and heritage protection;

Native Title rights and interests;

resource management;

navigation and maritime safety;

fishing activities;

defence activities and submarine telecommunication
cables; and

all other users of the marine environment including
other petroleum and mineral explorers and
developers.
As well as general advice on the requirements that apply
to all release areas, the annual Offshore Petroleum
Exploration Acreage Release information package
contains General and Special Notices which outline
matters and requirements relevant to undertaking
petroleum exploration activities in specific areas.
www.petroleum-acreage.gov.au
The General and Special Notices are available at:
http://www.petroleum-acreage.gov.au.
Explorers should consider the General and Special
Notices relevant to individual areas released for bidding
when applying for an exploration permit, and throughout
the life of the permit. This information may be
supplemented from time-to-time through alerts in the
Australian Petroleum News publication.
Successful applicants are responsible for incorporating
these notices into their work program timeframe, and for
consulting with the relevant bodies prior to undertaking
exploration activities.
If you have any questions, or would like to receive the
Australian Petroleum News, please email:
petroleum.exploration@industry.gov.au.
Approval to undertake exploration
activities
Offshore petroleum exploration permits do not, of
themselves, authorise petroleum exploration activities.
Rather, an exploration permit grants the titleholder the
exclusive right, in the area for which the permit is granted,
to apply for permission to undertake exploration activities
that are judged by environmental and other regulators to
comply with the law.
Australia’s offshore petroleum legislation provides that all
titleholders must carry out operations in accordance with
good oil field practice, including carrying out operations in
a manner which is safe and prevents the escape of
petroleum into the environment. In order to retain a title,
conditions of work (where applicable) must be met, the
provisions of the legislation and regulations must be
adhered to and the annual titles administration levy paid.
All petroleum operations require specific approvals from
the National Offshore Petroleum Safety and
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DISCLAIMER: This fact sheet has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and
Guidelines available at: www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the legislation or regulations, the legislation or regulations
have precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of BHP Billiton Petroleum Pty Ltd.
Environmental Management Authority (NOPSEMA) before
the activity commences (e.g. acceptance of a safety case,
environment plan, and/or well operations management
plan), and may also require further environmental
approval. Details of approval requirements are set out in
the OPGGSA and associated regulations and the
Environment Protection and Biodiversity Conservation Act
1999.
Australia’s offshore petroleum regulatory regime places
the onus on the operator to demonstrate that exploration
for, and extraction of, petroleum resources is undertaken
in a safe and environmentally responsible manner.
The most common requirement for undertaking petroleum
exploration activities under a title is for companies to
ensure they hold the relevant approvals and notify the
relevant Commonwealth/state/territory government
department or organisation prior to the commencement of
a seismic survey and/or drilling of an offshore well.
Where appropriate, conditions may be included in an
exploration permit title. Failure to comply with conditions of
an exploration permit title may result in commencement of
permit cancellation proceedings.
Additional information is contained in:

the OPGGSA, as amended from time to time, the
associated Explanatory Memoranda and Second
Reading Speeches;

the Offshore Petroleum and Greenhouse Gas
Storage (Safety) Regulations 2009;

the Offshore Petroleum and Greenhouse Gas
Storage (Environment) Regulations 2009;

the Offshore Petroleum and Greenhouse Gas
Storage (Resource Management and Administration)
Regulations 2011 (includes requirements relating to
well operations, field development plans and data
management); and

administrative guidelines issued to assist with the
administration of the legislation.
An electronic compendium of legislation and regulations
and associated guidelines governing the offshore
petroleum industry is available at:
www.nopta.gov.au/legislation/guidelines.html
Offshore safety and environment regime
National Offshore Petroleum Safety and
Environmental Management Authority
The National Offshore Petroleum Safety and
Environmental Management Authority (NOPSEMA) has
regulatory responsibility for occupational health and
safety, structural integrity of facilities, wells and wellrelated equipment, environmental management and day-
www.petroleum-acreage.gov.au
AUSTRALIA 2014
to-day operations of offshore petroleum facilities in
Commonwealth waters, and in coastal waters where state
and Northern Territory powers have been conferred.
NOPSEMA is accountable to the Commonwealth Minister
for Industry.
NOPSEMA has published guidelines for offshore
operations, which are available on its website,
http://www.nopsema.gov.au
Safety case regime
Safety in the Australian offshore petroleum industry is
regulated under a safety case regime underpinned by the
Offshore Petroleum and Greenhouse Gas Storage
(Safety) Regulations 2009.
The objective based regime is founded on the principle
that the legislation sets the broad safety goals to be
attained; the operator of the facility develops the most
appropriate methods of achieving those goals for their
facility; with the ongoing management of safety being the
responsibility of the operator, not the regulator. The role of
the regulator is to assess whether the operator’s proposed
measures are appropriate and to monitor and enforce
compliance with duties of care.
Current best practice in offshore safety regulation involves
the operator of an offshore facility preparing a safety case
to manage occupational health and safety at a facility.
The safety case describes the facility, identifies hazards
and risks, how the risks are controlled and describes the
safety management system in place to ensure that
controls are effectively and consistently applied to
maintain health and safety.
The safety case is submitted to the regulator (NOPSEMA)
for assessment. Operations must not be carried out at a
facility without an accepted safety case in force. Once a
safety case has been accepted by the regulator, it forms
the “rules” with which the operator must comply in
operation of the facility and against which the operations
will be audited by the regulator.
For further information on offshore safety matters contact:
NOPSEMA
GPO Box 2568, PERTH WA 6001
Telephone: +61 8 6188 8700
Website: www.nopsema.gov.au
Manager – Environment, Safety & Security
Resources Division
Department of Industry
GPO Box 1564
CANBERRA ACT 2601
Telephone: +61 2 6243 7802
Website:
http://www.industry.gov.au/resource/UpstreamPetroleum/Offs
horePetroleumSafety/Pages/default.aspx
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Offshore Petroleum Exploration Acreage Release
Offshore facility security
Preventive security arrangements for Australian offshore
facilities are regulated under the Maritime Transport and
Offshore Facilities Security Act 2003 and the Maritime
Transport and Offshore Facilities Security Regulations
2003. Consolidations of this legislation may be found at:
www.comlaw.gov.au.
This legislation provides a framework for operators of
certain offshore facilities, ports, and ships, and a range of
associated service providers, to undertake security risk
assessments and implement preventive security plans.
Security plans set out the security measures and
procedures to be implemented to safeguard maritime
transport and offshore facilities against acts of unlawful
interference. Security plans also identify security
measures to be used when different maritime security
levels are in force. The Office of Transport Security within
the Department of Infrastructure and Regional
Development is responsible for assessing and approving
these plans.
Organisations involved with offshore petroleum production
need to be aware of this legislation. In particular, these
organisations should assess at an early stage whether any
of their activities are likely to be covered by the
requirement to prepare and submit a security plan.
Approval of security plans can take up to 90 days, and it is
an offence for an offshore industry participant to operate
without an approved security plan in force when one is
required. Even if an industry participant is not required to
have its own plan it may be affected by another’s plan.

Protection of the Sea (Prevention of Pollution from
Ships) Act 1983; and

Historic Shipwrecks Act 1976.
Of particular relevance to the oil and gas industry are the
complementary requirements of the OPGGSA and the
EPBC Act. Under these two Acts, there are four main
environmental approvals that may be required for
petroleum industry activities:

an Environment Plan under the Offshore Petroleum
and Greenhouse Gas Storage (Environment)
Regulations 2009 is required for every petroleum
activity;

approval under Chapter 4 of the EPBC Act to
undertake an activity that is likely to have a significant
impact on a matter of National Environmental
Significance;

permits under Chapter 5, Part 13, of the EPBC Act to
undertake activities that may potentially affect
protected species, in particular cetaceans (whales and
dolphins); and

permits under Chapter 5, Part 15, Division 4, of the
EPBC Act to carry out activities in a Commonwealth
Marine Reserve.
For further information on environment related titleholder
obligations please see:
http://www.industry.gov.au/resource/UpstreamPetroleum/
OffshorePetroleumEnvironment/Pages/default.aspx and
http://www.comlaw.gov.au/Series/C2004A00485
Further information on offshore facility security matters is
available at
www.infrastructure.gov.au/transport/security/oil_and_gas/i
ndex.aspx or by contacting the Office of Transport
Security: Transport.Security@infrastructure.gov.au with
attention to “Offshore Oil and Gas”.
Telephone
Security:
From outside Australia:
Cabotage:
From outside Australia:
1300 307 288
+61 2 6274 8187
1300 307 761
+61 2 6274 8189
Environment protection requirements
Australian Government legislation relevant to
environmental management of offshore petroleum
exploration and development activities includes:

OPGGSA;

Environment Protection and Biodiversity Conservation
Act 1999 (EPBC Act);

Environment Protection (Sea Dumping) Act 1981;
www.petroleum-acreage.gov.au
AUSTRALIA 2014
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Offshore Petroleum Exploration Acreage Release