Federal Resources Minister, Ian Macfarlane, said the National Offshore Petroleum Safety Authority, which will be funded by the Federal Government to the tune of $6.1 million, follows an independent review by international experts which found "there are too many Acts, directions and regulations regulating offshore petroleum activities and their boundaries are unclear".
"This single Authority will look after our coastal waters in a uniform manner, reducing the regulatory burden on industry and simplifying the lines of accountability," said Mr Macfarlane.
"Petroleum companies operating in more than one jurisdiction currently face a complex range of legislative requirements and regulatory practices that made compliance difficult."
The States have agreed to the establishment of the National Authority through the Ministerial Council on Mineral and Petroleum Resources. The Authority, with offices in Darwin, Melbourne and Perth, will have its own chief executive officer but remain answerable to the State, Northern Territory and Federal resource Ministers.
"The offshore petroleum industry is key to Australia's future economic performance. A strong local industry relies on a secure, consistent supply at a competitive price. This is a step towards ensuring there can not be any serious disruption to that supply and that rig workers are properly protected," said Mr Macfarlane.
The Minister said an accident on an offshore facility, although highly unlikely, would have major economic ramifications.
"In 1988, the UK Piper Alpha North sea oil platform was destroyed by fire resulting in the loss of 167 lives and about $6 billion," the Minister said.
"Reviews in 1991, 1996 and 2000 raised serious concerns about the effectiveness of Australia's offshore oil and gas, health and safety regulation. In the context of protecting our workers, the establishment of this Authority is long overdue.
"Through a single authority we can directly implement changes to offshore safety arrangements and know that all employees will be protected, rather than subject to varying degrees of health and safety vigilance."
