AUSTRALIA 2013
Offshore Petroleum Exploration Acreage Release
PETROLEUM LAW AND GOVERNMENT
This fact sheet provides information on the legal
framework within which petroleum exploration and
development activity takes place in Australia; including the
role of governments, petroleum law, offshore petroleum
titles, offshore greenhouse gas storage, onshore
petroleum exploration, the offshore safety and
environment regime and native title rights.

provide a regulatory framework for exploration,
development, safety, environmental assessment and
revenue collection;

reduce commercial risk in petroleum exploration by
collecting and disseminating geoscientific information;
and
Roles and Responsibilities of
Government

investigate ways to remove impediments to industry
competitiveness.
Australia’s system of government is founded in the liberal
democratic tradition and is one of the oldest continuous
democracies in the world. Australia is a representative
democracy where people eligible to vote elect
representatives to speak and make decisions on their
behalf. Australian citizens vote to elect representatives to
each of the three levels of government – federal, state or
territory and local.
The Constitution defines the responsibilities of the federal
government, which include foreign relations, trade with
other countries, defence and immigration. Governments
of states and territories are responsible for issues such
as transport infrastructure, health and education and local
governments are responsible for issues such as road
maintenance, garbage collection, public facilities etc. All
levels of Government adhere to the principles of
responsible government and Australian law.
Australian governments do not undertake commercial
petroleum exploration or development.
The governments’ roles in relation to the petroleum sector
are to:

establish the macroeconomic environment (broad
economic policy);
Both the national government (the Australian Government)
and the state and territory governments have roles in
facilitating petroleum exploration and development:

the Australian Government is responsible for broad
economic policy and international matters, including
personal and company income tax, the overall level of
government spending, foreign investment guidelines,
trade and customs, commercial corporations and
international agreements;

beyond the coastal waters (seaward of the first three
nautical miles of the territorial sea) to the outer limits of
Australia's continental shelf, petroleum rights are held
by the Australian Government, with titles
administration carried out jointly with the relevant state
or territory government; and

onshore and in coastal waters (effectively the first
three nautical miles from the coastline), the states
and territories own and allocate petroleum rights,
administer petroleum operations and collect royalties
on petroleum produced.
Because of their shared interest in the contribution of the
petroleum sector to national economic wellbeing, the
Australian and state and territory governments hold
regular formal consultations, with a view to ensuring
coordination of policy and regulatory requirements for the
sector.
www.petroleum-acreage.gov.au
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.ret.gov.au/offshoreresourceslegislation and www.nopta.gov.au/legislation. In the event that there is a discrepancy between this fact sheet and the
legislation, the legislation has precedence. Explorers should not rely solely on this information when making commercial decisions. Image courtesy of Woodside Energy Ltd.
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Under international law, Australia has sovereignty over the
territorial sea and sovereign rights for exploring and
developing mineral and hydrocarbon resources over the
Exclusive Economic Zone (EEZ), and the Continental
Shelf. This jurisdiction extends from the territorial sea
baseline to the outer edge of the Continental Shelf and
accounts for an area over 14.4 million square kilometres an area greater than Australia’s total land area and one of
the largest marine jurisdictions in the world. Petroleum
exploration and development in the Timor Sea Joint
Petroleum Development Area (JPDA) is governed by the
Timor Sea Treaty with Timor-Leste, which came into force
in April 2003 (further details are available on the RET
website at the Joint Petroleum Development Area and
Greater Sunrise section). Offshore petroleum acreage in
the JPDA is released and administered by the Timor-Leste
National Petroleum Authority on behalf of both countries.
The key matters covered in the legislation are:

issue of invitations to apply for exploration permits;

granting of permits to successful applicants and
determination of conditions of the title;

declaring locations where petroleum has been
discovered;

granting of retention leases over discoveries that are
not currently commercially viable but are likely to
become commercial within 15 years;

granting of production and pipeline licences;

granting of infrastructure licences for various
processing activities;
Petroleum Law in Australia

renewal of titles (where appropriate);
The legal framework within which offshore petroleum
exploration and development activity takes place in
Australia is a result of agreement on the division of
responsibilities between the Australian Government and
the state and Northern Territory (NT) governments under
the Offshore Constitutional Settlement.

approval of applications for the registration of legal
transactions, including farm-ins and transfers of titles;

granting of special prospecting
authorities, access authorities, and consents for
scientific investigations; and
Offshore petroleum operations beyond coastal waters
(i.e. greater than 3 nautical miles from the low tide
coastline) are governed by Commonwealth legislation
known as the Offshore Petroleum and Greenhouse Gas
Storage Act 2006 (OPGGSA) and associated Regulations.

variations of title conditions, exemption from title
commitments, surrender of titles by a titleholder and
cancellation of titles for non-compliance with the
conditions of the title or the Act or the regulations.
Within the OPGGSA legislative framework, the Australian
Government and the states/NT jointly grant petroleum
titles and exercise resource development functions
through a Joint Authority (JA) arrangement. Each JA
comprises the Australian Government’s Resources and
Energy Minister and the relevant state/NT Minister. In
addition, the OPGGSA makes the National Offshore
Petroleum Titles Administrator (NOPTA) responsible for
titles administration and data management functions. The
National Offshore Petroleum Safety and Environmental
Management Authority (NOPSEMA), as Australia’s
independent regulator of offshore petroleum operations, is
responsible for regulation of occupational health and
safety, structural integrity of facilities and wells,
environmental management and day-to-day operational
compliance. NOPSEMA is the regulator in
Commonwealth waters, and also in those coastal waters
jurisdictions where state and Northern Territory powers
have been conferred on NOPSEMA.
The legislation provides for the orderly exploration for, and
recovery of, offshore petroleum resources and sets out a
basic framework of rights, entitlements and responsibilities
of governments and industry.
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Except for environmentally sensitive areas (such as the
Great Barrier Reef Marine Park off the Queensland coast),
petroleum operations are permitted on most parts of the
continental shelf. More information on restrictions in
Commonwealth Marine Reserves can be found at:
http://www.environment.gov.au/marinereserves/.
Factors such as navigation, defence, native title rights,
fisheries and the marine environment are carefully
considered prior to the release of acreage by the Joint
Authority. Once titles are awarded, these issues are
managed via the environment plan that must be accepted
by NOPSEMA before a petroleum activity can be carried
out and by compliance with titleholder obligations under
the OPGGSA (for example, in section 280 OPGGSA).
Additional information on matters coming within the
Australian Government's responsibilities for offshore
exploration and development is set out in:

the OPGGSA, the associated Explanatory
Memoranda and Second Reading Speeches to the
original 2006 Act and the subsequent amendments;

the Regulations issued under the OPGGSA (notably
in relation to management of the environment,
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Offshore Petroleum Exploration Acreage Release
occupational health and safety, well operations, field
development plans and data management);
retention lease for the recovery of petroleum
following a commercial discovery;

the Offshore Petroleum and Greenhouse Gas
Storage (Registration Fees) Act 2006 and
Regulations;

Infrastructure Licence - granted to enable the
construction of offshore facilities for the storage and
conversion of petroleum; and

the Offshore Petroleum and Greenhouse Gas
Storage (Regulatory Levies) Act 2003 and
Regulations;

Pipeline Licence - granted for the construction and
operation of a petroleum transport pipeline.

the Petroleum Resource Rent Tax Act 1987 and
company taxation legislation;

Guidelines issued to assist with the administration of
the legislation; and

the International Unitisation Agreement (IUA) and
various treaties with neighbouring states including
the Timor Sea Treaty, the Treaty on Certain Maritime
Arrangements in the Timor Sea and the Perth Treaty,
which establish Australia’s northern maritime
boundaries and consequent rights and obligations of
the parties in regards to the exploration for, and
exploitation of, hydrocarbon resources.
An electronic compendium of current legislation,
regulations governing the offshore petroleum industry can
be found at: www.ret.gov.au/offshoreresourceslegislation;
associated guidelines are available at:
http://www.nopta.gov.au/legislation/guidelines.html
Industry may also subscribe to receive regular updates on
regulatory developments through the free occasional
e-newsletter, Australian Petroleum News by emailing your
details to petroleum.exploration@ret.gov.au.
Offshore Petroleum Titles
Petroleum industry activities may only occur in
Commonwealth offshore waters if an entity holds a valid
petroleum title or authorisation granted in accordance with
the OPGGSA. There are five types of petroleum titles
that may be granted depending on the activity to be
undertaken:

Exploration Permit – a six year title (that may be
renewed for two periods of five years) that provides
rights to undertake exploratory activities such as
seismic surveys and drilling within the permit area;

Retention Lease – a five year title (can be renewed)
granted to the holder of an exploration permit or a
production licence where a discovery has been made
which is not currently commercially viable, but is
likely to become so within 15 years;

Production Licence – a life-of-field title that is
granted to the holder of an exploration permit or a
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Petroleum titles are awarded on a successive basis,
beginning with an exploration permit. If a discovery is
made and a location is declared, the titleholder may apply
for a production licence if the discovery is commercial or
for a retention lease if the discovery is not commercial but
is expected to become commercial within 15 years. From
a retention lease, the titleholder progresses to a
production licence once the discovery becomes
commercial. The chart overleaf outlines the basic offshore
title system.
Titles are awarded over areas comprising one or more
graticular blocks of 5 minute longitude and 5 minutes
latitude. Part blocks may exist where graticular sections
are bisected by a jurisdictional boundary, but they are still
treated for all purposes as “blocks”.
In areas not covered by titles, companies may apply for a
Special Prospecting Authority (SPA) to undertake seismic
or other geophysical or geochemical survey work (but not
to drill a well) in a particular area for a period of up to 180
days. A SPA provides a non-exclusive right to examine an
area prior to any potential invitation for applications for an
exploration permit. An SPA does not provide any rights in
relation to the award of a future exploration permit.
Existing titleholders (including SPA holders) who wish to
undertake petroleum exploration activities (other than
drilling a well) in areas proximal to their existing title may
apply for an Access Authority. An Access Authority may
provide access to a vacant area or an area covered by a
title to enable the applicant to fully explore the area over
which it is the titleholder. An Access Authority will remain
in force for the period specified in the authority, unless
surrendered or cancelled, and does not provide any rights
in relation to the award of a future exploration permit.
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Offshore Petroleum Exploration Acreage Release
2013 Offshore Petroleum Titles Process
Nomination
Areas nominated for release by industry, state/NT governments and Geoscience Australia.
Nominated areas are evaluated for inclusion in a release
Acreage Released
Annual Acreage Release areas announced by the Federal Resources Minister
Call for Bids
The Joint Authority invites explorers through the Government Gazette, to bid for areas in the
subsequent closing work program bidding rounds (usually 6 or 12 months)
subsequent closing work program bidding rounds (usually 6 or 12 months)
Bids are assessed by the Joint Authority
NOPTA, on behalf of the JA, offers permits to successful applicants.
Applicants have 30 days to advise of acceptance or rejection of offer
Exploration Permit Granted
NOPTA grants permit (on behalf of the JA)
6 year Exploration Permit in force


3 year guaranteed primary work program
3 year secondary work program (guaranteed upon entry into particular year)
Discovery Made
Exploration Permit Renewed
Apply to JA for a Renewal of
exploration permit
 50% relinquishment of permit area
 Renewal for 5 years
 Maximum 2 renewals
Discontinued
The exploration program is successful
and a discovery is made. The
titleholder can make a submission to
the JA for the declaration of a location
Permit does not continue due to:
 Permit surrendered (conditional to
work commitments)
 Permit cancelled
 Permit expires - not renewed
Location Declared
JA declares location over field.
Within requisite timeframe, explorer can apply
to JA for a retention lease or production
licence
Not yet Commercial
Retention lease can be granted over the
block(s) in the location if the discovery is
not currently commercially viable, but is
likely to become so within 15 years
Retention Lease in Force
Retention Lease gazetted by
NOPTA and in force.
 For 5 years with work program
 Can reapply for further Retention
Leases but have to prove not
commercially viable, but likely to
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Commercially viable
Production licence can be granted
over the block(s) covering a
commercial discovery; a field
development plan is also required
Production Licence in Force
Production Licence gazetted by
NOPTA and in force
 For life of field while producing
 May be terminated if production
ceases for more than 5 years
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Offshore Petroleum Exploration Acreage Release
Exploration Permits
Prospective offshore exploration areas are released
annually by the Offshore Petroleum Joint Authority for
bidding under a work program system.
Under the work program bidding system, an applicant is
required to propose an exploration strategy that has the
potential to significantly advance the assessment and
understanding of the petroleum potential of the permit
area. The exploration strategy should be supported by a
technical assessment of the release area and the work
program proposed for the six year permit term.
The first three years of the program, known as the primary
(minimum guaranteed) work program, cannot be reduced
once the permit has been awarded. Secondary work
programs (years four, five and six for initial permit terms;
years four and five for renewed permits) become
guaranteed on a year-by-year basis. Failure to complete
guaranteed work program commitments may result in the
commencement of permit cancellation proceedings
Titleholders must undertake each component of the
guaranteed work program within the permit area in 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 NOPTA prior to the
early commencement of work.
Recognising the need for flexibility in exploration
programs, a titleholder may, during the life of the permit,
apply to the Joint Authority for a variation or suspension
and/or extension of the permit conditions (e.g. work
program commitments). Circumstances where these
applications may be considered by the Joint Authority can
be found in the Permit Conditions and Administration
Guideline.
All applications for exploration permits are initially
assessed against published selection criteria by NOPTA,
who advises the relevant Joint Authority. In assessing a
bid, NOPTA and then the Joint Authority considers the
technical merit of the proposed exploration work program,
along with the technical and financial competence of the
applicant to undertake the proposed work. Further
information on the selection criteria and assessment
process, including an application checklist is available at
www.petroleum-acreage.gov.au.
Exploration permits are issued for an initial six year term
and in most circumstances may be renewed for two further
terms of five years. At each renewal 50 per cent of the
permit area must be relinquished. Special provisions
apply to permits with six or fewer graticular blocks and
permits of only one block cannot be renewed.
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If a discovery is made and a location is successfully
declared over a petroleum discovery, then blocks which
the discovery covers will be exempt from the 50 per cent
relinquishment requirement (see below for further
information regarding discoveries).
Cash Bidding
The OPGGSA also provides for a cash bidding system.
In November 2012, the Australian Government announced
its decision to incorporate cash bidding into the offshore
petroleum acreage release from 2014 onwards.
A cash bidding system will be used to allocate offshore
petroleum acreage in mature areas or areas containing
known petroleum accumulations. The existing work
program bidding system will be maintained for all other
areas.
The Government is currently reviewing policy and
administration pertaining to cash bidding and will
consulting with industry on the proposed changes.
Further news on the process will be advised through
the Australian Petroleum News e-newsletter.
Cash bidding is expected to prevent over-exploration in
areas where none or little may be required and ensures
the release of these areas is equitable, economic and
efficient. The Government recognises that in a global
context, most of Australia’s petroleum basins have been
lightly explored and for these areas the existing work
program bidding system will continue.
Discovery of Petroleum
A petroleum pool is defined as a naturally occurring,
discrete accumulation of petroleum. Within 30 days of
finding a petroleum pool in a permit area, the titleholder
must give written notification to NOPTA detailing the
graticular block(s) that contain the discovery.
Notification of the discovery is the first step; the second
step is submitting an application for the declaration of a
location over the block(s) within the permit that cover the
discovery, which is required prior to applying for a
production licence or retention lease. The Declaration of a
Location is a Joint Authority decision.
A location is not a petroleum title and is attached to the
underlying exploration permit. During the life of the
location, exploration activity continues within the permit in
accordance with the exploration title work program and
conditions. As knowledge about the discovery improves,
the titleholder may apply to add a block to the location, or
to revoke the location if the discovery is considered to be
non-commercial. It is also important to note that if a
location is granted, a production licence or retention lease
must be applied for within two years, or up to four years in
special circumstances. If this does not occur, the block(s)
within the location are removed from the permit on expiry
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Offshore Petroleum Exploration Acreage Release
of the two (or four) year location period. Those blocks
return to open acreage at that time.
Retention Leases and Production, Infrastructure and
Pipeline Licences
If the discovery is considered by the titleholder to be
commercial, they may apply for a production licence. The
titleholder has two years after the declaration of a location
(or a possible further two years in special circumstances)
in which to apply for a production licence. The application
must provide details of all potential development proposals
for the area, including domestic gas development. Once
granted, a licence may be terminated if no production
occurs for a continuous period of at least five years.
Where production facilities require a pipeline to transport
petroleum to shore or to other facilities, a pipeline licence
may be granted. This licence has an indefinite term but
may be terminated if no construction occurs or the pipeline
is not used for a continuous period of at least five years.
An infrastructure licence is only required in certain
circumstances and enables a company to carry out
specific petroleum activities at an offshore facility, such as
conversion of gas to Liquefied Natural Gas or methanol. It
also allows a company to construct and operate offshore
infrastructure which lies outside the production licence
area or which are held under a different ownership
structure to the underlying production licence.
If a titleholder makes a non-commercial discovery that is
assessed as likely to become commercially viable within
the next 15 years, an application for a retention lease may
be made. The titleholder has two years after the
declaration of a location (or a possible further two years in
special circumstances) in which to apply for a retention
lease. The application must provide a thorough
assessment of the commercial prospects of all potential
development concepts and outline work and expenditure
commitments to address the identified barriers to
commerciality.
Retention leases are issued for five years, with renewal
periods of five years. Upon application and at each
subsequent renewal application, the titleholder must
demonstrate that the discovery is not commercially viable
at the time of application, but is likely to become so within
15 years. Should the Joint Authority reject a retention
lease application on the basis that the development is
currently commercial, the titleholder has one year from the
date of refusal of the lease in which to apply for a
production licence.
The Government is currently reviewing policy and
administration pertaining to retention leases and will
consult with industry on proposed changes. Further news
on the process will be advised through the Australian
Petroleum News e-newsletter.
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Titleholder Obligations
Australian offshore petroleum legislation provides that all
titleholders must carry out operations according to good
oilfield 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 must be met and the applicable annual
titles administration levy paid.
All petroleum operations require specific approvals from
the National Offshore Petroleum Safety and
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 the associated regulations, and the
Environment Protection and Biodiversity Conservation Act
1999 (EPBC Act).
Australia’s offshore petroleum regulatory regime places
the onus on the operator to demonstrate that all
exploration for, and extraction of, petroleum resources is
undertaken in a safe and environmentally responsible
manner. For example, prior to companies undertaking
petroleum exploration and development drilling in
Australian waters, they are required by law to have an
approved Environment Plan (EP), which contains an Oil
Spill Contingency Plan, along with appropriate levels of
insurance to cover clean-up costs or remediation of any
petroleum escape.
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);

the Offshore Petroleum and Greenhouse Gas
Storage (Regulatory Levies) Act 2003 and the
Offshore Petroleum and Greenhouse Gas Storage
(Registration Fees) Act 2006, and associated
regulations; and

administrative guidelines issued to assist with the
administration of the legislation.
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Offshore Petroleum Exploration Acreage Release
An electronic compendium of current legislation,
regulations governing the offshore petroleum industry can
be found at: www.ret.gov.au/offshoreresourceslegislation;
associated guidelines are available at:
http://www.nopta.gov.au/legislation/guidelines.html
In addition to the above obligations, prospective applicants
should also have due regard for the Special Notices that
are set out in the 2012 Acreage Release bidding and
assessment documents.
Petroleum producers’ rights to use GHG for enhanced
petroleum recovery remain unchanged and can be
undertaken under a petroleum production licence.
Petroleum explorers may be able to develop commercial
arrangements with the holders of any overlapping
greenhouse gas assessment permits with a view to
developing shared work programs which could reduce
total exploration costs.
Interaction with Petroleum Exploration Titles
Special Notices relating to the release areas highlight
issues that have been raised in consultation with third
parties who may have rights and interests in marine areas
either within the areas being released or in the vicinity.
These documents also detail specific information relating
to certain release areas, such as key fishing industry
zones, that will need to be taken into account when
developing a work program bid and may result in special
conditions being placed on an exploration title.
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.
Information on the area Specific Notices is available at:
http://www.petroleum-acreage.gov.au/exploring.html
Offshore Greenhouse Gas Storage
The Offshore Petroleum and Greenhouse Gas Storage
Act 2006 also legislates the storage of greenhouse gas
substances (GHG), including carbon dioxide, in geological
formations in Commonwealth offshore waters.
Major features of the legislation include:

the provision of access and property rights through a
title system similar to that used for petroleum;

ensuring safe and secure storage;

mechanisms for managing interactions with the
petroleum industry; and

site closure and the treatment of long term liability.
The legislation provides the petroleum industry with
additional options for the storage of any carbon dioxide
that may be produced through petroleum operations. Prior
to finalisation of the above legislation in November 2008,
any carbon dioxide produced as a result of petroleum
operations could only be permanently stored in the
production licence area from which it originated. With
these amendments, petroleum titleholders can bid for
storage acreage in other locations which might better fit
their development plans.
One important feature of the legislation deals with the
management of interactions between the petroleum
industry and the greenhouse gas storage industry. In
some circumstances, one activity could impact on the
other activity.
To manage this, the legislation distinguishes between precommencement petroleum titles and post-commencement
petroleum titles. Pre-commencement titles are the titles
that were in existence before the amendments came into
effect in November 2008; all subsequent titles are postcommencement titles (petroleum titles awarded as part of
the 2013 Offshore Petroleum Exploration Acreage
Release will be post-commencement titles).
Pre-commencement Titles
Petroleum titles awarded before November 2008 are precommencement titles. Rights under these titles are
protected through a ‘significant impact test’. Under this
test, an activity under a greenhouse gas title cannot be
approved unless the responsible Commonwealth Minister
is satisfied that the activity does not pose a significant risk
of a significant adverse impact on a pre-commencement
petroleum title or that there is a commercial agreement
between the two title holders.
Post-commencement Titles
All petroleum titles awarded after November 2008 are
post-commencement titles. If there is no agreement
between a petroleum and a greenhouse gas title holder,
and the two operations cannot coexist, the responsible
Commonwealth Minister will make a decision on which
operation should proceed in the public interest. However,
once granted, a post-commencement petroleum
production licence is protected through the significant
impact test.
Further information on the legislative framework for
greenhouse gas injection and storage operations in
Australia can be found at: www.ret.gov.au/ccs or obtained
by emailing ccs@ret.gov.au.
Onshore Petroleum Exploration
In Australia's onshore areas and within coastal waters,
petroleum operations are governed by the legislation of
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Offshore Petroleum Exploration Acreage Release
states and the Northern Territory. A two-stage system of
exploration permit and production licence has generally
been adopted in these areas. However, the minimum
area, initial term of the permits, and charges and royalties
levied vary from jurisdiction to jurisdiction. Further
information can be obtained from the relevant state or
territory Department.
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 dayto-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 Resources and Energy.
NOPSEMA has published guidelines for offshore
operations, which are available on its website,
http://www.nopsema.gov.au
Safety Case Regime
Safety in the offshore petroleum industry in Australia 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
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operation of the facility and against which the operations
will be audited by the regulator.
For further information on offshore safety matters contact:
National Offshore Petroleum Safety and Environmental
Management Authority
GPO Box 2568
PERTH WA 6001
Telephone: +61 8 6188 8700
Facsimile: +61 8 6188 8737
Website: www.nopsema.gov.au
Manager – Environment, Safety & Security
Offshore Resources Branch
Resources Division
Department of Resources, Energy and Tourism
GPO Box 1564
CANBERRA ACT 2601
Telephone: +61 2 6276 1800
Website:
http://www.ret.gov.au/resources/upstream_petroleum/offshore
_petroleum_safety/Pages/OffshorePetroleumSafety.aspx
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 Transport 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.
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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:
Native title is a pre-existing right or interest that may be
present over land and water even if there is no court
determination or native title claim. Native title can also
exist offshore.
Native Title Act 1993
In summary, the Native Title Act 1993 (NTA):
recognises and protects native title;

validates some acts done in the past which may have
been invalid because of the existence of native title;
Environment Protection (Sea Dumping) Act 1981;

confirms the extinguishment of native title in some
circumstances;
Protection of the Sea (Prevention of Pollution from
Ships) Act 1983; and

creates a ‘future act’ regime which sets out conditions
for the doing of acts affecting native title lands or
waters (for example, the grant of a license to produce
petroleum);

enables the relevant parties to enter ‘Indigenous Land
Use Agreements’ to settle any native title issues; and

provides a process by which claims for native title and
compensation can be determined.
OPGGSA;

EPBC Act;


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:

Native title is the recognition in Australian law that
Indigenous people had a system of law and ownership of
their lands before European settlement. Where that
traditional connection has been maintained, and where
acts have not extinguished it, native title can be
recognised by the law.



Native Title Rights
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.ret.gov.au/resources/upstream_petroleum/openvironment/Pages/index.aspx and
http://www.comlaw.gov.au/Series/C2004A00485
www.petroleum-acreage.gov.au
AUSTRALIA 2013
Offshore Native Title
In 2001, the High Court of Australia handed down its
decision in Commonwealth v Yarmirr (the Croker Island
Sea Case). The High Court held that native title can exist
offshore within the limits of Australia’s territorial sea. It is
unclear whether native title can exist in waters seaward of
Australia’s territorial sea.
The High Court held that offshore native title can only be
non-exclusive. This means that native titleholders will not
have the right to exclude others from accessing the sea or
sea bed in the waters where native title exists. The future
act regime also applies to acts done offshore, for example
the grant of a permit to produce petroleum.
Consistent with the High Court’s decision in the Croker
Island Sea Case, in July 2008 the Attorney-General
announced that in the determination of native title rights
and interests, the Commonwealth was willing to recognise
that non-exclusive native title rights can exist in territorial
waters up to 12 nautical miles. However, such recognition
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Offshore Petroleum Exploration Acreage Release
does not affect or amend obligations arising under the
future acts regime.
Native Title and the OPGGSA
The OPGGSA requires that offshore petroleum operations
Complying with the NTA
The NTA allows future acts to be done offshore, as long
as the procedural requirements of the future act regime
are complied with. In most cases, native title parties must
be provided with the same procedural rights as other
parties who hold non-native title interests in the offshore
area. In some cases this will amount to a right to be
notified about the proposed grant of a mining or petroleum
tenure. However, it is important to note that the ‘right to
negotiate’ provisions in the NTA do not apply offshore.
Where an act that affects native title has been done, the
native titleholders for the relevant area may be entitled to
compensation. On the current state of the law, it is not
possible to predict the likely quantum of any
compensation.
be carried out in a manner that does not unduly interfere with
other rights and interests, including native title rights and
interests. To this end, the Australian Government consults
with native title parties regarding Acreage Releases. It is
recommended that companies initiate their own consultative
processes to develop good working relationships with the
Indigenous people in the area.
For further information about the NTA contact:
Principal Legal Officer, Future Acts Team Native Title Unit
Attorney-General’s Department
3-5 National Circuit
BARTON ACT 2600 AUSTRALIA
Telephone:
+61 2 6141 4715
E-mail:
native.title@ag.gov.au
Web Page:
www.ag.gov.au
National Native Title Tribunal
GPO Box 9973 Perth WA 6848
PERTH WA 6000 AUSTRALIA
Telephone:
+61 8 9268 7272
E-mail:
enquiries@nntt.gov.au
Web Page:
www.nntt.gov.au
www.petroleum-acreage.gov.au
AUSTRALIA 2013
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Offshore Petroleum Exploration Acreage Release