OFFSHORE PETROLEUM EXPLORATION
ACREAGE RELEASE  AUSTRALIA 2014
Bidding for an exploration permit
Acreage release process
The annual Offshore Petroleum Exploration Acreage
Release (the Acreage Release) is a key part of the
Australian Government's strategy to increase petroleum
exploration in Australia’s offshore waters.
The regular release of acreage provides explorers with
new opportunities to invest in Australia’s oil and gas sector
and enables industry to undertake longer term planning to
support the ongoing investment in, and development of,
Australia’s offshore petroleum exploration industry.
The Acreage Release also ensures access to
comprehensive pre-competitive geological and
geophysical datasets, and ensures the provision of quality
information on third party issues that may impact on
successful applicants.
The Acreage Release is underpinned by Australia's stable
economic environment and well-established, objectivebased regulatory framework which seeks to balance
environmental, social and economic considerations in the
development of Australia’s natural resources.
The main steps in the acreage release cycle are:


Stakeholder nomination of vacant offshore acreage
to be considered for inclusion in the Acreage
Release. A nomination period of between two and
three months for the following year’s release opens
immediately after the Acreage Release launch.
Once potential areas have been identified, the
Australian Government undertakes an extensive
stakeholder consultation process with agencies in
Commonwealth and state jurisdictions. This process
involves consideration of factors such as maritime
boundaries, environmental and fisheries impacts,
defence and communications, maritime safety,
marine parks and native title.
www.petroleum-acreage.gov.au

Industry is advised of shortlisted areas proposed for
the subsequent year’s Acreage Release through the
December edition of the Australian Petroleum News
eNewsletter. These areas are provisional and subject
to change until officially launched by the Minister.

The Acreage Release is launched by the
Commonwealth Minister for Industry. This
announcement generally coincides with the
Australian Petroleum Production and Exploration
Association Conference, held in April/May each year.

Industry is formally invited to place bids for each
release area via a notification in the Australian
Government Gazette. The Gazette notice details
application and submission requirements.
The release of areas is supplemented by detailed
pre-competitive geological information and analysis on the
areas and other support material available at
www.petroleum-acreage.gov.au/2014 and through
domestic and international information seminars. The
website also contains information on how to submit a bid,
the bid assessment criteria applied by the Joint Authority
and other investment considerations and contacts.
Industry is strongly advised to consider the 2014 Acreage
Release General and Special Notices before placing a bid.
Bidding for an exploration permit
The Joint Authority invites work program bids and cash
bids for the 2014 Offshore Petroleum Exploration Acreage
Release. Areas are clearly identified as either a “work
program area” or a “cash bid area”.
Work program permits
The Joint Authority seeks to grant a work program
exploration permit to the applicant most likely to most
likely to achieve the fullest assessment of the petroleum
potential within the permit area in the primary (minimum
guaranteed) period of the permit (Years 1-3).
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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.
Applicants are required to propose an exploration strategy
that has the potential to significantly advance the
assessment 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.
Cash bid permits
From 2014, a cash bidding system will be selectively used
to allocate offshore petroleum exploration permits in
mature areas or areas known to contain petroleum
accumulations.
For cash bid exploration permits, a sealed bid auction will
be run by the National Offshore Petroleum Titles
Administrator (NOPTA). Cash bid permits will be awarded
to the applicant that first satisfies the prequalification
criteria and then, once invited by the Joint Authority,
places the highest cash bid for the area that exceeds the
reserve price.
Application submission
Closing dates
Applications for areas in the 2014 Offshore Petroleum
Exploration Acreage Release must be received by NOPTA
by 4.00pm local standard time on the relevant dates
below. Late applications will not be considered.
Work Program Round 1 (14 areas)
Thursday 2 October 2014
Areas: NT14-1, NT14-2, NT14-3, AC14-2, AC14-3,
AC14-4, W14-2, W14-3, W14-4, W14-5, W14-7, W14-14,
W14-15, W14-16.
Cash Bid Round (4 areas)
Prequalification: Thursday 30 October 2014
Cash Bid*: Thursday 5 February 2015
Areas: W14-20, W14-21, W14-22, W14-23
*Only prequalified applicants will be invited to submit a cash bid.
Further information on submitting a bid, including
application checklists and bid assessment criteria, is
available at www.petroleum-acreage.gov.au/2014.
Preparing your application
Work Program Round 2 (12 areas)
Thursday 2 April 2015
Areas: AC14-1, W14-1, W14-6, W14-8, W14-9, W14-10,
W14-11, W14-12, W14-13, W14-17, W14-18, W14-19.
Before submitting a bid for an exploration permit,
applicants should familiarise themselves with the Offshore
Petroleum and Greenhouse Gas Storage Act 2006 and
the processes and requirements contained in the following
guidelines available at
http://www.nopta.gov.au/legislation/guidelines.html.
Lodgement of applications (work program and
cash bid prequalification)
Work Program Permit Applications:
Applicants that satisfy the prequalification criteria will be
invited by the Joint Authority to submit a cash bid. The
invitation will provide details on how to submit the bid.

Requirements of Bid and Renewal Applications;

Assessment of Bid and Renewal Applications; and

Permit Conditions and Administration.
Applicants are also encouraged to research recent work
program exploration permit awards in the relevant
sub-basin to ascertain the standard of winning work
program bids in the region. Title instruments and work
program activities for offshore petroleum titles are
available on the National Electronic Approvals Tracking
System (NEATS) website at: https://neats.nopta.gov.au/
Applications must be submitted to NOPTA by the deadline
and in the manner specified in the relevant gazette notice.
Lodgement of applications (cash bid)
Re-release of areas
Work program areas: The Joint Authority may at its
discretion re-release an area that does not receive any
bids. An area that is not re-released remains vacant
acreage.
Cash bid areas: If there are no bidders on a cash bid area,
the area will be passed in and remains vacant acreage.
Areas offered for cash bidding will not be re-released.
Cash Bid Permit Applications:

Cash Bidding Guideline
For further information, please email:
petroleum.exploration@industry.gov.au.
A full list of the legislation and regulations relating to the
operational practices of the offshore petroleum industry in
Australia can be found at:
http://www.nopta.gov.au/legislation/index.html.
www.petroleum-acreage.gov.au
AUSTRALIA 2014
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Offshore Petroleum Exploration Acreage Release