What Are The Oil And Gas Regulations in Australia?

Australia’s oil and gas industry is a vital part of the economy, driving energy security and supporting jobs. With extensive offshore reserves and active exploration, strict regulations ensure safety, environmental protection, and operational integrity.

Governed by both federal and state laws, these regulations address key areas like offshore safety, environmental management, and decommissioning. Authorities like the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) enforce compliance to protect workers, communities, and ecosystems.

This blog unpacks the key oil and gas regulations in Australia, offering insights into how they shape the industry.

Federal regulations and governing bodies

Australia’s federal government plays a central role in regulating offshore oil and gas activities, particularly in Commonwealth waters beyond three nautical miles from the coastline. The primary legislation guiding these activities is the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act). This comprehensive law governs exploration, production, and the storage of greenhouse gases, ensuring these activities are conducted safely and sustainably.

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is the independent statutory body responsible for enforcing federal regulations. NOPSEMA oversees key areas such as:

• Occupational Health and Safety (OHS): Ensuring worker safety and preventing major accidents.
• Environmental management: Assessing and approving environmental plans to minimize ecological risks.
• Well integrity: Monitoring operations to prevent leaks and maintain structural integrity.

Key regulations under the OPGGS Act include:

• The Offshore Petroleum and Greenhouse Gas (Environment) Regulations 2023, requiring operators to develop approved environment plans.
• The Offshore Petroleum and Greenhouse Gas (Safety) Regulations 2009, mandating comprehensive safety cases for projects.
• The Environment Protection and Biodiversity Conservation Act 1999, providing additional safeguards for biodiversity.

To help meet these stringent compliance requirements, many companies leverage safety management software to streamline their processes. Tools like these assist in developing and maintaining safety cases, managing risks, and ensuring ongoing compliance with regulatory standards.

State and Territory regulations

While the federal government oversees offshore oil and gas activities in Commonwealth waters, state and territory governments are responsible for regulating operations within coastal waters (up to three nautical miles from the shore) and onshore projects. Each jurisdiction has its own set of regulations and governing bodies to address environmental protection, worker safety, and resource management.

For example, in Western Australia, the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) manages the exploration and production of petroleum resources. DEMIRS ensures activities are conducted responsibly by requiring operators to submit:

• Safety plans: Outlining how worker safety and accident prevention will be managed.
• Environmental management plans: Detailing how environmental risks will be minimised and stakeholders consulted.

States like WA also conduct audits and inspections to enforce compliance with strict international and national standards. Regular reporting, including daily drilling updates and monthly production summaries, ensures transparency and accountability.

Collaboration between federal and state governments is vital, especially for projects crossing jurisdictional boundaries. By working together, these authorities aim to create a seamless regulatory environment that balances economic development with environmental and social responsibilities.

Key regulatory areas

Australia’s oil and gas regulations focus on several critical areas to ensure operations are safe, sustainable, and aligned with national priorities. These include environmental protection, worker safety, well integrity, and decommissioning.

1. Environmental protection

Oil and gas operators must comply with stringent environmental regulations to minimise their impact on ecosystems. Under the Offshore Petroleum and Greenhouse Gas (Environment) Regulations 2023, companies must prepare detailed environment plans that identify risks and outline measures to mitigate them. These plans are assessed and approved by NOPSEMA.

• Operators are also required to consult with stakeholders, including Indigenous communities, conservation groups, and local businesses.
• The Barossa Gas Project case highlighted the importance of meaningful consultations, with approvals revoked due to inadequate engagement with traditional owners.

2. Health and safety

Worker safety is a cornerstone of Australia’s regulatory framework. Companies must develop safety cases under the Offshore Petroleum and Greenhouse Gas (Safety) Regulations 2009.

• These safety cases identify potential hazards, propose mitigation strategies, and detail emergency response measures.
• Inspections and audits by NOPSEMA ensure compliance and reduce the risk of major incidents.

Advanced safety management systems can help operators identify potential hazards, track incidents, and streamline the preparation of safety cases, ensuring readiness for inspections and audits.

3. Well integrity and decommissioning

Maintaining well integrity is essential to prevent leaks and ensure operational safety. Companies must submit and adhere to a Well Operations Management Plan (WOMP), detailing risk management practices.

• When a project ends, decommissioning regulations require companies to safely close wells, remove infrastructure, and restore the environment.
• The Australian government’s Offshore Resources Decommissioning Roadmap aims to streamline this process and support the emerging decommissioning industry.

Challenges and recent developments

1: Legal challenges and indigenous rights

One significant challenge has been ensuring proper consultation with Indigenous communities. The Barossa Gas Project faced legal action after traditional owners of the Tiwi Islands successfully argued that they were not adequately consulted. This case has set a precedent, pushing for more rigorous and inclusive consultation processes in project approvals.

2: Transition to net-zero emissions

Australia’s commitment to achieving net-zero emissions by 2050 is reshaping the oil and gas industry. Regulatory updates now emphasize environmental sustainability and encourage investment in cleaner technologies.

• The government has introduced policies to balance energy security with climate goals, including frameworks for offshore greenhouse gas storage and decommissioning.

3: Decommissioning and emerging opportunities

With many oil and gas facilities nearing the end of their lifecycle, decommissioning has become a key focus.

• The Offshore Resources Decommissioning Roadmap outlines strategies to build a domestic decommissioning industry, creating opportunities for local businesses and workers.
• The government’s proactive approach aims to manage environmental risks while fostering economic growth in this emerging sector.

Stay compliant and confident with myosh

Australia’s stringent oil and gas regulations demand precise compliance to ensure safety, environmental protection, and operational efficiency. Managing these requirements can be complex, but myosh simplifies the process.

With tools like the myosh Non-Conformance Module, businesses can track, manage, and resolve compliance issues quickly, helping them stay on top of regulatory requirements. By streamlining incident reporting and safety management, myosh enables companies in the oil and gas sector to maintain compliance and reduce risks effectively.

Start your free trial today and discover how myosh can help your oil and gas business stay compliant and operate with confidence.