AUSTRALIA 2013
Offshore Petroleum Exploration Acreage Release
ACREAGE RELEASE
The annual release of quality petroleum exploration acreage
is the first step in the search for petroleum in Australia’s
offshore sedimentary basins. The Offshore Petroleum
Exploration Acreage Release (the Acreage Release) is
underpinned by Australia's stable economic environment and
a well-established, objective-based regulatory framework,
which seeks to balance environmental, social and economic
considerations in the development of Australia’s
natural resources.
In Australia, offshore petroleum exploration and development
is regulated by a title system. Petroleum activities can only
occur if a company holds a valid title, which in itself provides
holders with an exclusive right to apply for further approvals to
conduct safe petroleum operations in the area. For example,
each seismic survey or well drilling operation requires further
approvals under the Offshore Petroleum and Greenhouse
Gas Storage Act 2006, and potentially under the Environment
Protection and Biodiversity Conservation Act 1999.
The most common title is an exploration permit, which allows
a titleholder to explore for oil and gas. If an oil and gas
resource is discovered, the exploration permit holder may
apply for a production licence or a retention lease (if the
resource is currently uneconomic).
The issuing of new exploration permits is facilitated through
Acreage Release. In an Acreage Release, the Australian
Government announces a number of areas for which
exploration companies can place bids for exploration permits
(usually within a six or 12 month timeframe).
Areas included in an Acreage Release are selected following
a nomination process and analysis by the Australian
Government. Extensive stakeholder consultation is
undertaken to ensure the provision of accurate information
about marine reserves, environmental, fishing, security and
other considerations that could impact on future petroleum
activities in an area. This analysis is integrated into an annual
Acreage Release information package, including
pre-competitive geological and geophysical data analysis.
Inclusion in the Acreage Release does not automatically
mean that petroleum exploration, or future development, will
occur in an area. For a company to be awarded an
exploration permit, they must lodge a comprehensive bid
detailing the exploration work they propose to undertake in
the area, along with evidence of their financial and technical
capability to facilitate the work. Assessment of bids is a
competitive process against publicly available criteria; an
explorer will only be granted a permit if they can satisfy
decision-makers that they have the technical and financial
ability to carry out exploration activities.
Following this process, if an exploration permit is granted it
could be several years before any physical exploration
activities occur in the area. A typical timeline for the
exploration and development of an area released for
petroleum exploration is below:
Launch of the annual Acreage Release
6 (& 12) months
bids close and are assessed
3 months
permits granted
Years 1 to 3
initial geological, geophysical studies and
seismic surveying
Years 4 to 6
further seismic work and possible drilling
of exploration well/s generally in later
years of permit
Permit renewal
(up to ten years)
up to two periods of five years to conduct
further exploratory activities, including
seismic surveys and exploration wells
Title Transition
to a:
- production licence if a petroleum
discovery is considered commercial: or
- five year retention lease if any
petroleum find is not considered
currently commercial
Acreage Release information, including assessment criteria,
is available at www.petroleum-acreage.gov.au.
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.
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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