Kevin Hogan (Page, National Party, Assistant Minister to the Deputy Prime Minister) Share this | Hansard source

I thank all members who have contributed to this debate. This bill, the Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Administration and Other Measures) Bill 2021, and the related bill amend the Offshore Petroleum and Greenhouse Gas Storage Act 2006 to strengthen Australia's offshore oil and gas regulatory regime. The measures contained in these bills will ensure that the offshore industry manages emerging decommissioning challenges effectively. They ensure that decommissioning remains the responsibility of those involved in the development and production of the resource. They guard against Australian taxpayers being left to bear decommissioning and remediation costs. The bills afford government oversight of corporate transactions causing a change of control of a title holder, increase scrutiny of entities at key decision points, and expand the types of information that can be requested by the decision-maker and the regulator. These measures ensure that entities operating in the offshore regime are capable, competent and responsible in managing offshore projects, including undertaking decommissioning.

The bills also provide for a more comprehensive trading liability regime, a feature of comparable international jurisdictions. This measure expands current remedial directions and powers to enable any former title holder or a related person to be called back to decommission infrastructure and remediate the title area, in the unlikely event that the current or immediate former title holders are unable to do so. It sets the expectation that a company that sells an asset and titles will undertake appropriate due diligence to minimise the risk of being called back to undertake decommissioning. The bills also make minor and technical amendments to improve the administration of titles, including the electronic lodgement of applications to modernise the regime.

The Offshore Petroleum And Greenhouse Gas (Regulatory Levies) Amendment Bill 2021 makes consequential amendments to the Offshore Petroleum And Greenhouse Gas (Regulatory Levies) Amendment Bill 2003. This enables the National Offshore Petroleum Safety and Environmental Management Authority to recover its costs from former title holders and related persons if a remedial direction is issued.

These bills strike an appropriate balance between implementing regulatory safeguards for Australian taxpayers, managing the impost on industry, and encouraging continued investment in oil and gas development. I commend these bills to the chamber.

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