OFFSHORE PETROLEUM EXPLORATION
ACREAGE RELEASE  AUSTRALIA 2014
Foreign investment
The Australian Government recognises the substantial
economic and social contribution that foreign investment
has made and the ongoing benefit it will bring in the future.
Foreign investment underpins higher rates of economic
activity and employment, provides access to new
technology and skills, facilitates access to overseas
markets and promotes continued competition.
Australia’s foreign investment policy
The Foreign Acquisitions and Takeovers Act 1975
(the Act) provides a legislative framework to screen
specified foreign investment. The Act is administered by
the Treasury.
The Treasury advises that concept of national interest
includes factors such as national security, competition,
other Australian Government policies (such as tax and
environmental policy), impact on the economy and the
community and the character of the investor.
Under the Act, the Treasurer has 30 days in which to
consider an application and make a decision. The
Treasurer may extend this period by up to a further
90 days by publishing an interim order, for example if a
proposal is very complicated or where further information
is required. Applicants will be notified of the Treasurer’s
decision within 10 days of it being made.
Private foreign investors
The Treasury advises that Australia adopts a
pre-establishment screening process that aims to provide
a straightforward, low cost mechanism for reviewing the
proposed operations of foreign investors. Foreign
investors apply to the Foreign Investment Review Board
(FIRB) if required.
The Treasury advises that privately-owned (i.e. nonforeign government) foreign investors do not need to seek
approval before lodging an application for the award of
petroleum exploration acreage. Further, approval is not
required for the grant of exploration acreage and the
subsequent development of any petroleum discovery.
This screening process provides foreign investors with
assurance prior to outlaying finances. It applies to
proposed foreign investment in Australian businesses and
business assets, across any industry sector, including
petroleum, which are valued at or above relevant annually
indexed monetary thresholds.
The Treasury advises that, in relation to offshore
petroleum activities, notification and approvals may be
required by privately owned foreign investors for
farm-in/farm-out activities, equity acquisitions or
acquisitions of existing interests in exploration permits,
retention leases and production licences and/or production
facilities, subject to the thresholds outlined below. For
further information, refer to sections 5 and 12A of the Act
and in particular, paragraph 12A(1)(c).
Australia’s Foreign Investment Policy (the Policy), the Act
and screening process are the responsibility of the
Australian Treasurer, who receives advice from the FIRB
when reviewing investment proposals to decide if they are
contrary to Australia’s national interest. The Treasurer can
block proposals that are contrary to the national interest or
apply conditions to the way proposals are implemented to
ensure they are not contrary to the national interest.
Foreign government investors
The Treasury advises that, for foreign government
investors, prior approval must be sought before making a
direct investment in Australia, regardless of the value of
the investment.
The Treasury advises that investment proposals are
considered case-by-case against the national interest
rather than against hard and fast rules.
www.petroleum-acreage.gov.au
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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.
The Treasury advises that any investment of an interest of
10 per cent or more is considered to be a direct
investment. Retaining an interest of 10 per cent or more
following the enforcement of a security interest is also
considered a direct investment.
Investments that involve interests below 10 per cent may
also be considered direct investments if the acquiring
foreign government investor is building a strategic stake in
the target, or can use that investment to influence or
control the target. In particular, an investment of less than
10 per cent must be notified if it includes any of the
following:

Preferential, special or veto voting rights;

The ability to appoint directors or asset managers;

Contractual agreements (e.g. agreements for loans,
provision of services or off-take agreements); or

Building or maintaining a strategic or long-term
relationship with a target entity.
The Treasury advises that foreign government investors
must also obtain foreign investment approval before
starting a new business, or acquiring an interest in land,
including any interest in a prospecting, exploration,
mining or production tenement.
Application of Australia’s Foreign Investment Policy
The Treasury advises that, in relation to offshore
petroleum activities, under the Policy all foreign
government investors must apply to the Treasurer for
foreign investment approval prior to acquiring an interest
in an offshore petroleum title whether obtained through a
cash bid or work program process (or any other process).
Potential bidders are advised to contact the FIRB via
firbenquiries@treasury.gov.au if they have any
questions.

Entities that are otherwise controlled by foreign
governments, their agencies or related entities, and
any associates, or could be controlled by them
including as part of a controlling group.
Where a potential investor is not wholly foreign
government owned, the Treasurer considers the size,
nature and composition of any non-government interest
including any restrictions on the exercise of rights as
interest holders.
Foreign persons
The Treasury advises that all foreign persons should notify
the Australian Government before acquiring an interest of
15 per cent or more in an Australian business or
corporation that is valued above A$248 million, or an
offshore company whose Australian subsidiaries or gross
assets are valued above A$248 million.
Notification requirements also apply where an acquisition
by a foreign person would result in foreign persons holding
an aggregate interest of 40 per cent or more in such
Australian businesses or corporations. A threshold of
A$1,078 million applies to New Zealand and United States
investors as defined under the Policy.
The Treasury advises that the monetary values listed
above are those for 2014. Thresholds are indexed
annually on 1 January. Investors are advised to confirm
notification requirements and relevant thresholds with the
FIRB at the time of investment.
Contact FIRB
The Australian Government encourages potential
investors to engage with the FIRB prior to lodging
applications on significant proposals to allow timely
consideration. Proposals are treated as in-confidence.
General enquiries: firbenquiries@treasury.gov.au
Compliance enquiries: FIRBCompliance@treasury.gov.au
“Foreign government investors” is defined under the Policy
(available at www.firb.gov.au) as including:
Further information on the Policy and the Act is available
on the FIRB site at www.firb.gov.au.

A body politic of a foreign country;
Assistance available from Austrade

Entities (including companies, trusts and limited
partnerships) in which governments, their agencies
or related entities from a single foreign country have
an aggregate interest (direct or indirect) of 15 per
cent or more;
The Australian Trade Commission, Austrade, is the
Australian Government’s trade, investment and education
promotion agency.

Entities in which governments, their agencies or
related entities from more than one foreign country
have an aggregate interest (direct or indirect) of
40 per cent or more; or
Through a global network of offices, Austrade assists
Australian companies to grow their international business,
attracts productive foreign direct investment into Australia
and promotes Australia’s education sector internationally.
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www.petroleum-acreage.gov.au
AUSTRALIA 2014
Offshore Petroleum Exploration Acreage Release
Austrade provides international businesses with a central
point of contact to navigate investment services available
in Australia and can provide companies with information
needed to establish, or expand, a business in Australia.
Key services Austrade offers include:

Information on the business environment:
covering issues such as business costs, regulatory
requirements to set up operations, taxation,
investment regulations and decision making
processes, skills availability and immigration
requirements.

Market intelligence and investment opportunities:
tailored research on Australia's capabilities and
investment opportunities across key industry sectors,
including advice on market developments, trends
and forecasts and on peers and competitors in the
Australian market.

Identification of potential partners in Australia:
introductions to specialists including industry
associations, industry experts and professional
service providers; relevant federal, state and local
government bodies, regulatory agencies and
authorities; and to potential business partners
including research and development partnership
opportunities.

Location identification and site visit
coordination: assistance in the identification of
suitable locations and the coordination of visit
programs and meeting schedules in Australia.

Australian Government programs: advice on
Government industry development programs that
may be suitable for your business, including support
for research, development, innovation and export
activities.

Government approval processes: advice on any
Government approvals required to facilitate your
business activities in Australia, and assistance to
streamline the relevant processes.
For further information:
Visit: www.austrade.gov.au/invest;
Call: 13 28 78 (Australia only); or
Email: info@austrade.gov.au.
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www.petroleum-acreage.gov.au
AUSTRALIA 2014
Offshore Petroleum Exploration Acreage Release