PERTH (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) has welcomed the Senate committee’s rejection of a Bill seeking a ban on oil and gas activities in the Great Australian Bight.

The Environment and Communications Legislation Committee on Thursday released its report on the proposed Great Australian Bight Protection Bill 2016, recommending that it should not be passed.

The committee warned that the new legislation will create regulatory uncertainty and that Australia’s reputation as an investment destination for oil and gas companies would be severely damaged by the Bill.

The committee noted that, despite the concerns raised by the Bill that the Great Australian Bight was at risk from oil and gas operations, it believed the protection offered by the current regulatory regime was adequate.

Appea director for South Australia Matthew Doman said on Thursday that it was pleasing that petroleum exploration in the Great Australian Bight continued to receive bipartisan support.

“The committee has made a sensible and responsible recommendation which should be accepted by the Senate.

“As the committee notes, revocation of permits would lead to the loss of Australian jobs and the cancellation of contracts by companies that have already spent more than A$200-million in exploration in the Bight since 2011,” Doman said.

“The uncertainty created by such actions would severely damage Australia’s reputation as an investment destination for oil and gas.”

Doman noted that the committee was also right to back Australia’s independent regulator, the National Offshore Petroleum Safety and Environmental Authority (Nopsema), which has been in operation since 2012.

“Nopsema does not allow petroleum activities to proceed without the highest standards of environment and safety management, and appropriate community consultation.

“One of Nopsema’s strengths is its regulatory independence, something that would be severely compromised if the Greens’ Bill was passed.

“With proper regulatory oversight, there is no reason a safe, sustainable offshore petroleum industry should not be possible for South Australia, as it has been in Victoria and Western Australia for several decades.

“The economic benefits are potentially enormous. While it is very early days, success in the Bight would attract investment to South Australia and see significant local job creation.”