Facts About Offshore Oil and Gas Exploration in South Australia

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The Facts about offshore oil and gas exploration in South Australia Ocean Epoch, offshore drilling rig at Sophie Jane 1, south east South Australia How offshore exploration is regulated

The National Offshore Petroleum NOPSEMA is Australia’s first national Safety and Environmental regulator for health and safety, well Management Authority (NOPSEMA) integrity and environmental management was established on 1 January 2012. for offshore oil and gas operations.

LEGISLATION & REGULATIONS

NATIONAL: SOUTH AUSTRALIAN: • Environment Protection and • Oshore Petroleum and • O shore Petroleum and • Petroleum (Submerged Biodiversity Conservation Act Greenhouse Gas Storage Greenhouse Gas Storage Lands) Act 1982 (SA) 1999 (Environment) Regulations (Regulatory Levies) 2009 Act 2003 • Petroleum and • O shore Petroleum and Geothermal Energy Act Greenhouse Gas Storage • Oshore Petroleum and • Oshore Petroleum and 2000 (SA) Act 2006 Greenhouse Gas Storage Greenhouse Gas Storage (Resource Management (Regulatory Levies) • Oshore Petroleum and and Administration) Regulations 2004 Greenhouse Gas Storage Regulations 2011 (Safety) Regulations 2009

Holders must meet requirements for safety, well integrity and Regular maintenance, environmental sampling, monitoring management in and reporting accordance with relevant industry standards PERMIT Early engagement and ongoing targeted Su cient nancial consultation assurance to meet the throughout the lifetime costs, expenses and of the operation liabilities that may arise

REGULATORY COMPLIANCE AND ENFORCEMENT

• Prohibit specic operations • Improvement notices • Investigate and prosecute • Planned inspections for compliance • Directions and infringements • Cancel permit (powers lie with • Mandatory reporting • Withdrawal of permissioning Joint Authority) documents

P 1 The history of offshore exploration in South Australia

1966

Offshore exploration No offshore oil and gas has been undertaken To date, 24 wells have been activity is allowed to safely in South Australia drilled in offshore South be undertaken without since 1966, when the Australia waters. Half of detailed assessment and first seismic survey was these were drilled in the approval by the expert conducted by Shell. Great Australian Bight. independent regulator. Years of o shore exploration 50+ in South Australia Since 1966, offshore exploration in South Australia

has been Water resources Marine vegetation Tourism conducted safely, and fauna without harm to social, natural or economic environments. Culture and Fisheries Aquaculture heritage

P 2 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA SOUTH AUSTRALIA 1972

The first well in the Great Australian Bight was drilled in 1972.

The last well drilled in the 1A Great Australian Bight was Woodside’s Gnarlyknots 1A. It was drilled to a total depth of 4736 metres in 2003.

Bight Basin Otway Basin

The offshore South Australian Bight Offshore areas in Basin represents one of the world’s Commonwealth waters last under-explored petroleum basins are released annually with potential for giant petroleum for competitive work accumulations. program or cash bidding.

So far, 130 seismic surveys have been conducted in offshore South Australia waters – 148,841 km of 2D and 45,039 km2 of 3D surveys.

P 3 NORTHERN TERRITORY QUEENSLAND

Offshore titles in the waters off South Australia MOOMBA

SOUT

AUSTRAIA WESTERN AUSTRALIA WESTERN Ceduna

NEWSOUTH WALES PORT BONYTON 9 1 PODA BASIN Port Pirie

WA-517-P EPP 43 4

2 EPP 44 3 -200 Port incoln EPP 39 5 -1000 7 EPP 40 8 6 Adelaide EPP 45 -2000 EPP 43 EPP 42 EPP 46

BIT BASIN VICTORIA -5000

OFFSHORE PETROLEUM TENEMENTS Great Australian Bight Basin ATNOO Exploration permit for petroleum (EPP) PROVEN OIL & GAS PLAYS OTAY BASIN Exploration permit – Western Australia 10 10 Otway Basin 1 Murphy Australia Oil, Santos Oﬀshore 2-3 Equinor 4-5 Chevron Australia New Ventures INFRASTRUCTURE 6 Karoon Gas NORT 7-8 Bight Petroleum Liquids 9 Santos, JX Nippon Oil and Gas Processing plant

P 4 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA Offshore exploration would create jobs in:

Transport and logistics Fuel supply Food services Construction

If Bight resources are Base of 1,361 jobs in SA comparable with Bass Strait, Development in the Bight created during development this rises to 2,116 SA jobs could see creation of and construction phase & during construction and an additional 821-3,442 jobs average of 826 jobs per year average 1,521 jobs per year nationwide over the life of over the next 40 years* over the next 40 years* the projects*

*ACIL Allen Consulting, Petroleum Development in the Great Australian Bight, August 2018

A unique $20 million science research program will provide information to support sustainable development in the Great Australian Bight, and monitor possible future impacts.

P 5 How is offshore exploration approved?

Under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, and associated regulations, approval will only be granted once the Commonwealth regulator, NOPSEMA, is satisfied that all impacts and risks to the environment are acceptable and will be reduced to as low as reasonably practicable.

Titleholders must revise and resubmit No offshore their Environment petroleum Plans for assessment activity is allowed if new information without stringent reveals a significant assessment. new or increased risk to the environment.

In light of the Bight Basin’s sensitive natural environments, marine industries, and cultural elements, special conditions relating to technical requirements for well design, environment, health and safety can be attached by the South Australian and Commonwealth Ministers when granting a permit.

P 6 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA The offshore exploration approval process

Joint Authority National Offshore Petroleum Environment plan covers: (Relevant Federal and Titles Administrator (NOPTA) State Government Ministers) Seismic exploration

Work together to release, grant and administer offshore petroleum exploration permits Site surveys

Petroleum companies submit detailed bids for each exploration area Exploration drilling

Appraisal drilling Bids assessed by NOPTA who provides advice to the Joint Authority who then awards a permit based on merit Oil Pollution Emergency Plan

OBTAINING APPROVALS

Safety case for the offshore Well operations facility (Occupational Health management plan – Environment plan & Safety) – drilling only drilling only

Successful bidder required to obtain relevant approvals from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) Consultation

Once relevant approvals are gained, exploration may begin Submit consultation report and environment plan COMPLIANCE to NOPSEMA ADMINISTERED NOPSEMA BY Inspections Investigations Enforcement Regulatory decision

Exploration activities subject to ongoing regulation by NOPSEMA, and community consultation is ongoing throughout the life of the activity YES NO

If a discovery is made the titleholder may apply for a Retention Lease or Production Licence

P 7 How does offshore drilling work?

100 to 300 kms o shore

C S B L S B S B

Sea bed

Reservoir

Not to scale

P 8 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA Offshore drilling in Australia

100 to 300 kms o shore

C S B L S B S B

offshore wells have been drilled in Australian waters. 3,800+ There are currently more than 400 petroleum titles in offshore Sea bed Commonwealth waters including exploration permits, retention leases, production licences, pipeline licences and infrastructure licences.

The first Australian $3.5 billion offshore exploration invested in offshore 1959 permit was granted in petroleum exploration in 1959 in Gippsland. Australia in 2013-2014.

Recent analysis of the 250+ offshore regulatory economic impact of discovery submissions have been $200 of petroleum in the Bass Strait approved by NOPSEMA shows oil and gas production since its establishment on BILLION has contributed more than Reservoir 1 January 2012 CONTRIBUTED $200 billion to Australia’s GDP TO GDP in the past four decades.

P 9 HowIs offshore is it regulated? drilling safe?

In 2010, the Commission of Inquiry into the 2009 Montara oil spill incident strongly recommended that a single, independent regulatory body be responsible for safety, well integrity, and environmental management.

Australian regulations take account of lessons The combination of safety, well integrity, and learnt from all significant incidents, worldwide. environmental management under a single regulator standardises Australia’s offshore NOPSEMA superseded the National Offshore petroleum regulation to a trustworthy, leading Petroleum Safety Authority (NOPSA), with the practice model. added responsibility of offshore environmental management.

The South Australian Government has the ability to respond to any potential threats in State The regulatory framework for offshore oil waters through its South and gas is objective-based and encourages Australian Marine Spill continuous improvement rather than Contingency Action Plan minimum compliance. (SAMSCAP).

P 10 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA Who is NOPSEMA?

NOPSEMA undertakes assessment, inspection, investigation, enforcement, and advisory activities.

NOPSEMA requires offshore titleholders to demonstrate The Regulations administered all impacts and risks are by NOPSEMA requires managed to levels that are consultation with relevant acceptable and as low as reasonably practicable. persons by petroleum titleholders.

NOPSEMA regulates Commonwealth waters, which comprise areas beyond the first three nautical miles of the territorial sea, and in State and Territory coastal waters where powers and functions have been conferred. South Australia plans to confer its regulatory powers and functions to NOPSEMA.

SOUTH AUSTRALIA NSW

NORT linders Island Spencer ulf OFFSHORE ulf of LEGISLATION St incent SOUTH AUSTRALIAN ATERS

Sea boundary of scheduled area angarooKangaroo IslandIsland Petroleum (Submerged Lands) Act 1982 (SA) Encounter Bay Petroleum and Geothermal Energy Act 2000 (SA)

Oﬀshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth)

SOUTHERN VICTORIA OCEAN

P 11 Stock image

P 12 THE FACTS ABOUT OFFSHORE OIL AND GAS EXPLORATION IN SOUTH AUSTRALIA P 13 Department for Energy and Mining Level 4, 11 Waymouth Street Adelaide, South Australia 5000 GPO BOX 320 Adelaide, SA 5001 T +61 8 8463 3000 E [email protected]