By Natalie Lonergan, Partner and Ebony Reckless, Associate
From 12 June 2025, Australia’s offshore oil and gas industry will operate under a refreshed regulatory regime: the Offshore Petroleum and Greenhouse Gas Storage (Safety) Regulations 2024 (2024 Regulations). These changes remake the 2009 Safety Regulations and include technical amendments and recommendations from the 2021 Offshore Oil and Gas Safety Review.
The 2024 Regulations represent a significant step in risk-based safety management for offshore operations. With less than two weeks to go, operators and advisers should be engaging with what the reforms mean in practice. This article outlines the key changes, the legal and operational implications, and what stakeholders should be doing to prepare right now.
Why change? Why now?
The Safety Regulations are the product of a multi-year review of Australia’s offshore safety framework to:
- modernise and align regulatory expectations with international best practices;
- clarify obligations;
- ensure safety remains front and centre as offshore operations grow more complex; and
- reinforce Australia’s commitment to responsible offshore resource development and responsible ESG.
Key changes
- Modernised Safety Case Requirements
- Greater clarity on required content of safety cases including more detail on risk assessments, control measures, and verification processes.
- Safety cases must now make and establish a direct link between “technical and other control measures” and those measures that are “critical to safety”.
- Operators must show how risks have been reduced to “as low as reasonably practicable” with a clear rationale and detail of how this risk level is maintained.
- Safety cases must now address risks across all operational phases from commissioning through to decommissioning, with tailored control strategies.
- Expanded Duties for Operators and Licensees
- New concept whereby shared control = shared accountability. JV parties and contractors with decision-making power may have overlapping legal obligations.
- Responsibilities for safety will follow real-world influence on safety-critical activities so that accountability is traced to those directive activities, not just those holding legal title or permits.
- Operators must ensure effective communication and safety and risk management across parties involved in an operation.
- Workforce Engagement and Consultation
- Health and safety representatives must be genuinely involved in preparing and reviewing safety documentation.
- Operators will need to maintain and be able to produce records demonstrating how workforce input has influenced safety outcomes. A strong consultation process is a compliance issue, not just a management preference.
- Terminology and Structural Reforms
- Updated definitions for clarity: Terms such as “facility,” “incident,” and “operator” have been redefined to reflect modern practice.
- Facility: Includes structure, equipment, and associated offshore places used for offshore petroleum or greenhouse gas activities.
- Incident: An event that results in, or could have resulted in, harm to people, property, or the environment, encompassing accidents and dangerous occurrences.
- Operator: A person nominated by the facility owner or titleholder and accepted by NOPSEMA as responsible for day-to-day management and control of the facility. The nominee must be registered with ASIC under the Corporations Act 2001 (Cth).
- Enhanced cohesion with the broader Offshore Petroleum and Greenhouse Gas Storage Act 2006 and other subordinate legislation.
- The Regulations have been restructured to enhance clarity and improve navigability for duty holders and inspectors alike to aid understanding and compliance.
Implementation and Transition
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is developing guidance materials to assist industry stakeholders in transitioning to the new regulatory framework.
These resources will provide clarity on compliance requirements and best practices.
Legal and Operational Implications
These changes heighten the accountability of offshore operators and their advisers.
Legal teams should review their business’ readiness to comply with the new obligations, particularly around documentation, decision-making processes, and internal audits.
Key considerations include:
- Are current safety management systems aligned with the new risk-based approach?
- Have all duty holders been clearly identified—and do they understand their roles?
- Are workforce consultation processes formalised, inclusive, and defensible under audit?
Failure to meet these standards could trigger enforcement action by NOPSEMA, reputational harm, or exposure in the event of an incident.
Recommended actions
With less than two weeks to go, this is a critical window for action. We recommend:
- conducting a compliance gap analysis against the 2024 requirements;
- reviewing and updating safety cases and associated procedures;
- delivering cross-functional training for legal, operations, and HSE personnel; and
- engaging early with NOPSEMA if any uncertainties or transitional issues arise
For joint ventures or multi-party arrangements, it’s particularly important to clarify where legal and operational responsibilities sit under the updated definitions.
The Mills Oakley team will be unpacking the 12 June 2025 amendments in more detail over the coming weeks, watch this space.
If you or your organisation need support navigating these changes, from compliance reviews to legal advice or workforce engagement strategies, our team is here to help.