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Under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 oil and gas companies must meet a number of requirements before commencing offshore oil and gas activities in Australian waters, including:

See how we regulate offshore oil and gas in Australian waters.

Annual acreage release 

Each year the Australian Government releases new offshore areas for oil and gas exploration via the offshore petroleum exploration acreage release

Before the release companies can nominate their areas of interest to the Joint Authorities for assessment.

The acreage release provides an opportunity to competitively bid for an exploration permit over an area. 

The government assesses the bids to determine which work program is most likely to achieve the fullest assessment and understanding of petroleum potential within a permit area, in the specified time frames. 

Successful bidders are granted a work bid exploration permit, a six-year title that can be renewed for a further two periods of 5 years. 

Exploration 

Before a petroleum exploration permit holder can carry out activities in their approved work program, they must submit to NOPSEMA:

  • an environment plan demonstrating how they’ll manage their activities’ environmental impacts and risks to as low as reasonably practicable, and an acceptable level.

Depending on the nature of the activity, companies may also need:

  • a safety case demonstrating how they’ll manage risks to ensure their offshore activities are safe 
  • a well operations management plan (WOMP) demonstrating how they’ll maintain well structural integrity to protect the health and safety of offshore oil and gas workers, and prevent oil and gas releasing into the environment

If NOPSEMA accepts these submissions, permit holders can carry out their own seismic surveys or drilling tests in areas shown to be more likely to hold oil and gas deposits. They can also purchase seismic data from other companies. 

Exploration doesn't always result in oil or gas discovery. 

Seismic surveying

A key part of oil and gas exploration is seismic surveying, which involves sending controlled pulses of sound towards the seabed to generate detailed images of underlying geological formations. 

Companies with an exploration permit and appropriate environmental approvals can carry out seismic activities in their own title areas. To survey in an adjoining area, they need to apply to NOPTA for a short term access authority. 
Other companies looking to survey vacant areas can apply to NOPTA for a special prospecting authority.

Read about short term oil and gas titles on the NOPTA website

Read about seismic surveys and the environment on Geoscience Australia’s website.  

Search seismic surveys on the National Offshore Petroleum Information Management System website

Development 

Companies who find oil or gas while exploring their permit area must determine whether it’s commercially viable to recover under current technological and economic conditions.

Companies can apply for a production licence over the area if the deposit is deemed viable. Before recovering the deposit they must submit and have accepted:  

Companies can apply for a retention lease if the deposit isn’t currently commercially viable, but is likely to be within 15 years. Retention leases run for five years and may be renewed.
There are also other licences and approval processes for development activities including: 

Decommissioning a site 

Companies must decommission oil and gas wells, pipelines and other infrastructure no longer needed or in use. 

Decommissioning activities like plugging and abandoning wells, removing property and rehabilitating sites must be done in a safe and environmentally responsible way.

Companies need an accepted environment plan, safety case and other documentation just like other oil and gas activities.  

Read about the review of the oil and gas decommissioning framework

See Australian decommissioning requirements in the offshore petroleum decommissioning guideline on NOPTA’s website.

Protecting the environment

Under the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009, all oil and gas activities must have an environment plan assessed and accepted by NOPSEMA before an activity can take place. Oil and gas companies must demonstrate to NOPSEMA how they will manage their activities’ environmental impacts and risks to as low as reasonably practicable, and an acceptable level. 

To be accepted by NOPSEMA the plan must: 

Check the status of environment plans for past and current oil and gas activities on the NOPSEMA website

Offshore project proposals 

Oil and gas recovery activities require an offshore project proposal to be prepared and assessed by NOPSEMA

This enables NOPSEMA to assess the potential environmental impacts and risks of petroleum activities over the life of an offshore project.

Consultation 

When preparing an environment plan, oil and gas companies may consult with a range of stakeholders, including government agencies, fishing, tourism and other business operators, community groups and non-government organisations (including conservation groups).

Companies must document consultations and explain how they have addressed any relevant issues and concerns, and provide this to NOPSEMA before an environment plan is accepted.

Consultation is also undertaken for offshore projects, which are open for public comment for at least four weeks. 

Protecting the environment and heritage 

Companies can only carry out activities after addressing environmental impacts. The Department of the Environment and Energy has a range of resources to support environmental management, including:

  • marine bioregional plans 
  • conservation values atlas 
  • Australian heritage database and historic shipwreck information 
  • protected matters search tool 
  • requirements under the Sea Dumping Act 1981

Considering other marine users 

Oil and gas activities in Australian waters must comply with Australian law, and must not interfere with the rights and interests of other marine users. 

Companies should consider the following matters before commencing activities. 

Australian marine parks 

Oil and gas activities are only permitted in certain marine park zones. Activities may be authorised in multiple use zones and special purpose zones, subject to the marine park management plan.

Defence practice areas and safety

Activities may be restricted when they coincide with defence offshore training areas and restricted airspace. See notice to airmen and notice to mariners for current restrictions. You could be ordered to evacuate defence training areas at short notice. 

Unexploded ordnance may be present on or in the sea floor. Please contact offshore.petroleum@defence.gov.au at least five weeks prior to commencing activities for further guidance.

Commercial fishing 

Commercial fisheries operate across all states’ waters, the Northern Territory, and to the Australian exclusive economic zone limit. Companies must consider the impact of oil and gas activities on commercial fishing in Australian waters when preparing their environment plan and offshore project proposal. 

Read about consulting with Australia’s fishing industry on the Australian Fisheries Management Authority (AFMA) website

Read about Indonesian traditional fishers who use traditional fishing methods in Australian waters on the Department of Agriculture and Water Resources website

Maritime security 

Companies may need to assess their security risk and prepare a security plan. Read about maritime security on the Department of Home Affairs website.  

Navigating Australian waters safely 

Companies must put in place measures to mitigate collision risks with all shipping traffic. Read about navigating safely on the Australian Maritime Safety Authority website.  

Submarine cables 

Companies must manage risk and avoid accidental damage to Australia’s submarine telecommunication cables. Email subcablesenquiries@acma.gov.au at the Australian Communications Media Authority (ACMA) for more information. 

Offshore greenhouse gas storage 

Greenhouse gas storage may coincide with oil and gas permit areas. View the National Offshore Petroleum Information Management System (NOPIMS) GIS map. 

Read about offshore greenhouse gas storage.  

Read more 

Contact us

Email offshoreresources@industry.gov.au 

See also 

Last updated: 22 February 2019

Content ID: 46908