The Australian Parliament has passed into law various amendments to offshore oil and gas regulation, including an “enhanced framework” for decommissioning offshore infrastructure.
The Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Bill 2021 passed through both Houses of Parliament last Tuesday (24 August 2021), following consultation with industry and other stakeholders earlier in the year.
The legislation seeks to strengthen and clarify Australia’s offshore oil and gas regulatory framework, specifically by:
- expand existing trailing liability provisions
- increase oversight of changes in titleholder ownership and control
- increase regulatory scrutiny of the suitability of companies operating, or looking to operate, within Australia’s offshore petroleum regulatory regime
- expand information gathering powers to enable scrutiny.
In a statement, Federal Minister for Resources Keith Pitt said the laws make sure taxpayers are not left to pick up the costs of future decommissioning work on offshore oil and gas projects.
“The trailing liability provisions will be an action of last resort when all other safeguards have been exhausted and will reduce the risk that the financial costs of decommissioning will be left to Australian taxpayers,” Minister Pitt said.
“It also sets the expectation that sellers will undertake appropriate due diligence before selling assets, titles and infrastructure, so they can avoid being called back to decommission and remediate title areas.”
Administration will also be improved, enabling electronic lodgement of applications and documents.
The measures in the Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Bill package will become law 6 months after they receive Royal Assent, with the trailing liability provisions applying from 1 January 2021.
