Regulatory Issues Hampering Australian Oil, Gas Industry

The Australian Petroleum Production and Exploration Association (APPEA) has said that complacency in a raft of policy areas is threatening hundreds of billions of dollars’ in oil and gas industry investment waiting for approval.

In a report titled ‘Cutting Green Tape’ APPEA said evidence from the oil and gas industry proves that Australia’s environmental regulatory framework contains numerous overlapping, excessive and inconsistent requirements that are causing unnecessary project delays and costs. There are currently seven LNG projects, valued at over $200 billion, at various stages of environmental approval, APPEA said.

“The legislation does not always clearly define or achieve its objectives, or add any additional benefit to the Australian economy. It imposes additional costs on the industry and, in some cases, delivers conflicting outcomes that extend project timeframes and costs," the report said.

APPEA said that major regulatory issues arise when oil and gas projects span multiple jurisdictions. The report cited the example of INPEX Corporation’s Ichthys LNG project which extends across Commonwealth waters, Western Australia and Northern Territory coastal waters, and will come onshore in Darwin in the Northern Territory. “As a result, it is subject to multiple legislative requirements.”