Upon discovery of petroleum, the holder of an exploration permit must notify the authorities and give details of its discovery. Before applying for a retention lease or production licence, the permittee must identify the block or blocks which cover the area of the discovery.
A declaration of location is made over the discovery and the permittee may then undertake further exploration and/or appraisal activities within the title area to more accurately determine the nature of the discovery. The permittee has two years after the declaration of location in which to apply for either a retention lease or a production licence.
The award of either a retention lease, production, pipeline or infrastructure licence is carried out by the Joint Authority - comprising relevant Australian Government Minister and State Government Minister or their delegates.
Further information, regulations and guidelines can be found on the National Offshore Petroleum Titles Administrator webpage at www.nopta.gov.au