PERTH (miningweekly.com) – The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has accepted global energy player Equinor’s environment plan for exploratory petroleum drilling in the Great Australian Bight, which represents the second of four approvals required before activity can commence.

The first approval was granted in 2011 when the National Offshore Petroleum Titles Administrator and the Ministerial Joint Authority, comprising federal and state government resources ministers, granted an exploration title for activity in the Bight.

Under Commonwealth legislation, energy companies must have a petroleum title, an accepted environment plan, well operations management plan and facility safety case before they can undertake any offshore oil and gas activity.

The assessment process undertaken by NOPSEMA took almost eight months and involved a range of specialists with considerable environmental, scientific and engineering experience.

Through the iterative assessment process under the environmental regulations, Equinor modified and re-submitted its Environment Plan twice, responding to NOPSEMA’s requests for additional information.

The Environment Plan was also subject to public review and comment, with NOPSEMA and Equinor reviewing more than 30 000 submissions and taking into account all relevant information provided.

NOPSEMA has imposed stringent conditions on its approval to ensure a high level of protection to the environment, in recognition of the region’s unique values and sensitivities.

Equinor must now seek acceptance of its well operations management plan and safety case before any drilling activity can occur.

In the event Equinor secures all approvals, it will be subject to NOPSEMA’s inspection and compliance regime. Failure to comply with the environment plan will result in enforcement action.

Minister for Resources Matt Canavan welcomed the environmental plan approval, saying it was another step in the regulatory process for Equinor prior to being able to drill its exploration well.

“I have full confidence in NOPSEMA, Australia’s independent, expert environmental and safety regulator.

“Australia’s Chief Scientist Dr Alan Finkel completed his audit in September this year and found NOPSEMA to be a highly skilled, professional and competent regulator with the appropriate processes and procedures in place to assess environment plans.”

Canavan on Thursday emphasised the great potential for a new major petroleum basin to be opened up.

“The Great Australian Bight is relatively unexplored but considered to be highly prospective for petroleum resources, with potential to provide significant economic benefits and help strengthen our fuel security as a nation.

“Around 20 years ago we had 96% of our petroleum produced domestically in a raw product form – now we can only meet about half of our petroleum needs from domestic sources of production.

“An Acil Allen report found if petroleum is discovered in the Bight, a development less than half the size of the Bass Straight would create 1 361 full time equivalent jobs in South Australia during construction and generate A$1.7-billion in state and Commonwealth taxes every year.

“That means new business opportunities, new hospitals, new schools and new infrastructure for South Australia.

“Australia’s offshore oil and gas industry has maintained a strong operational record while powering our domestic industry and export sector for decades. Hundreds of oil and gas wells have been drilled safely around the coastline and thousands of jobs and tens of billions of dollars of economic benefit have been generated by the industry since the first offshore well was drilled in 1965.

“The Bass Strait has produced around four-billion barrels of oil and eight trillion cubic feet of gas safely and environmentally responsibly since that first well was drilled.”

The Australian Petroleum Production and Exploration Association (Appea) has also welcomed the NOPSEMA approval, with South Australian director Matthew Doman saying it was important that oil exploration resumed in the Bight to understand the scale of the resources and whether commercial development was possible.

“This is an important step towards understanding the energy resource potential of the Great Australian Bight and delivering major economic and energy benefits to the state and the nation,” Doman said.

“The prospects of a successful development offshore in South Australia could bring significant economic and energy benefits for the state and the nation.”

A report commissioned by Appea last year found successful oil exploration in the Bight could create more than 2 000 jobs in South Australia and generate over A$7-billion in average annual tax revenue to federal and state governments over the next four decades.

Australia’s oil production has declined significantly since 2000, and is at its lowest levels since the 1960s, despite the continuing need for oil in our daily lives.

Doman said industry was committed to listening and responding to the community’s questions and concerns.

“The industry will continue to work with local stakeholders and the wider community to build understanding of offshore petroleum activity for South Australians and other Australians.

“Any industry activity in the Great Australian Bight would only proceed under the highest environmental and safety standards.

“The oil and gas industry is proud of its track record of safe, sustainable operations over many decades in Australian conditions under Australian regulations. That includes long-established operations in Bass Strait and offshore Western Australia and the Northern Territory, and 13 wells already drilled in the Bight.”