OFFSHORE PETROLEUM EXPLORATION
ACREAGE RELEASE  AUSTRALIA 2014
Work program commitments
This fact sheet highlights the Joint Authority’s expectations
in relation to the titleholder’s agreed work program
commitments. It does not apply to cash bid exploration
permits. It does not replace or amend the Offshore
Petroleum and Greenhouse Gas Storage Act 2006 (the
OPGGSA) or information provided in the Permit Condition
and Administration Guideline, which is the approved
Guideline upon which permit administration decisions are
based. All titleholders should be familiar with the
Administrative Guidelines available at:
www.nopta.gov.au/legislation.
Once a work program exploration permit has been granted
(or renewed) under the OPGGSA, there are a number of
standard conditions that apply to the continuing
administration of the permit.
The guaranteed work program
The minimum guaranteed work program (Years One to
Three) cannot be reduced once the exploration permit
has been awarded. Secondary work programs (Years
Four to Six for initial permit terms; Years Four and Five for
renewed permits) become guaranteed upon entry on a
year-by-year basis.
Titleholders must undertake each component of the
guaranteed work program in the permit area within the
prescribed year. Work program commitments undertaken
prior to an agreed year may be credited towards the
guaranteed work program – under such circumstances,
titleholders are advised to consult with the National
Offshore Petroleum Titles Administrator prior to the early
commencement of work.
Failure to complete guaranteed work program
commitments may result in the commencement of permit
cancellation proceedings.
www.petroleum-acreage.gov.au
Altering the work program
Prior to the end of the permit year, a titleholder may apply
for a variation of; a suspension and/or extension of; or an
exemption from compliance with the permit conditions
(e.g. work program commitments for that current year).
Titleholders are encouraged to carefully consider the
options available to determine the most appropriate option
for their circumstances. Titleholders are also encouraged
to lodge any application to alter the work program at the
earliest possible date to allow the Joint Authority sufficient
time to consider the application.
Circumstances where these applications may be
considered by the Joint Authority are described below.
Variations
Substituting or varying a proposed work program may
occur in two circumstances:

Substitution of an alternative work activity to meet an
agreed work program commitment (guaranteed or
secondary) – may be considered if the “alternative
work activity is a similar or superior technique and
meets or exceeds the objective of original
commitment”. Applications will be considered on a
case-by-case basis.

If there is “substantial and compelling evidence that
the work program should be varied on technical
grounds”, the titleholder may renegotiate the entire
secondary term prior to entering Year 4 or
renegotiate the work program on an annual basis
prior to entering any of the years in the secondary
term.
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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.
Suspension and/or Extension
The duration of a work program permit term, or individual
years within that term, may be altered if:


The ability of the titleholder to meet yearly work
program commitments is adversely impacted by an
event or effect that cannot be reasonably anticipated
or controlled (a force majeure situation). Titleholders
should note that commercial circumstances that are
common risks in the industry would not normally be
considered; for example, changes in oil prices,
difficulty attracting farm-ins, avoidable delays in
contracting a rig or vessel and/or disappointing
drilling results; or
If a titleholder applies to undertake new seismic
surveying (additional to the current work program) to
prove up a prospect to meet a drilling commitment.
Depending on the circumstances and evidence presented
to the Joint Authority, consent may be given to a
suspension, which will alter the term of the active year of
the permit only; or a suspension with a corresponding
extension, which will alter the term of the active year and
also trigger a corresponding change in the start and end
date of all subsequent permit years.
Exemption from compliance
The Joint Authority may grant an exemption from
compliance with a condition to which a permit is subject, or
an exemption from compliance with a corresponding
extension of the permit term, upon written application by a
titleholder.
An exemption will waive the requirement for the
titleholder to fulfil that specific condition (e.g. a work
program activity), with no alteration of the permit term or
active years.
Surrender of the permit in good standing may occur at the
completion of any guaranteed period (i.e. at the conclusion
of Year 3 or at the end of any given year in the secondary
term), provided all guaranteed work program commitments
have been satisfactorily completed.
In considering whether the titleholder has complied with
the conditions to which the permit is subject and the
provisions of the OPGGSA and of the Regulations, the
Joint Authority will take account of all relevant
considerations including:

The status of the permit (including fees and monies
due) and whether all due work program
commitments have been completed;

The reporting requirements contained in any
Directions given to the titleholder and whether all
reports and data have been lodged (for example,
reports on specified activities, quarterly reports,
annual reports);

The action taken by the titleholder to ensure that the
permit area is clear of all property or debris resulting
from operations and that all wells have been plugged
or closed to the satisfaction of the National Offshore
Petroleum Safety and Environmental Management
Authority; and

The action taken by the titleholder for the
conservation and protection of the natural resources
in the area and efforts taken to make good any
damage to the seabed or subsoil in the area resulting
from operations.
Failure to comply with the requirements of the surrender
above may result in additional annual fee payments.
An exemption with a corresponding extension will
waive the requirement for the titleholder to fulfil the
specific condition, and also extend the term of the permit.
The period of extension of the permit term cannot exceed
the period of the exemption.
Surrender
A titleholder may apply to the Joint Authority to surrender
an exploration permit prior to expiry of the permit term.
Consent to surrender a permit will only be given where the
titleholder has complied with all of the conditions to which
the permit is subject and the provisions of the OPGGSA
and associated Regulations.
www.petroleum-acreage.gov.au
AUSTRALIA 2014
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Offshore Petroleum Exploration Acreage Release