Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020

Administered by Department of Industry, Science and Resources

Legislation au F2020L01611 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Resources, Water and Northern Australia

Industry Research and Development Act 1986

Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020

Purpose and Operation

Section 33 of the Industry Research and Development Act 1986 (the IR&D Act) provides a mechanism for the Minister to prescribe programs, by disallowable legislative instrument, in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.

The statutory framework provided by section 33 of the IR&D Act enables a level of flexibility to provide authority for Commonwealth spending activities in relation to industry, innovation, science and research programs. This allows the Government to respond quickly and appropriately to the need to implement innovative ideas and pilot programs on an ongoing basis and as opportunities arise. Prescribing programs in legislative instruments provides transparency and parliamentary oversight of Government programs and spending activities, whilst reducing administrative burden on the Commonwealth.

Once a program is prescribed by the Minister under section 33, subsection 34(1) allows the Commonwealth to make, vary or administer arrangements in relation to activities under the prescribed program. Arrangements may include contracts, funding agreements or other arrangements, and may provide for money to be payable by the Commonwealth to one or more third parties. The power conferred on the Commonwealth by subsection 34(1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non-corporate entity, or by their delegate (under section 36).

The purpose of the Industry Research and Development (Northern Endeavour Temporary Operations Program) Instrument 2020 (the Legislative Instrument) is to prescribe the Northern Endeavour Temporary Operations Program (the Program). The funding for the Program was secured through the Australian Government’s July 2020 Economic and Fiscal Update. The Program provides $75.433 million in administered funding over two years as part of the Australian Government’s commitment to ensure safe operations at the Northern Endeavour floating production storage and offtake (FPSO) facility (the facility) over the Laminaria-Corallina Oil and Gas Project in Commonwealth waters in the Timor Sea, following the liquidation of the title holder for this Project.

The Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020 (the Amendment Instrument) amends the description of the Program in section 5 of the Legislative Instrument. The amended description will allow for the safe and efficient disconnection, removal and disposal of the facility and the decommissioning and remediation of the Laminaria-Corallina fields. To assist with clarity, the Amendment Instrument inserts a definition of ‘decommissioning’ in section 4, which aligns with that used by industry, and a definition of ‘Laminaria-Corallina fields’.

Funding for the Program comes from Outcome 1, Program 1.3: Supporting a strong resources sector. Details will be set out in the Industry, Science, Energy and Resources Portfolio Budget Statements and Portfolio Additional Estimates Statements.

The Legislative Instrument specifies that the legislative power in respect of which it is made is the external affairs power (within the meaning of paragraph 51(xxix) of the Constitution). The changes to the Program specified in the Amendment Instrument will continue to rely on the external affairs power.

External affairs power

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to ‘external affairs’. The external affairs power supports legislation with respect to matters or things outside the geographical limits of Australia. In that regard, the Program prescribed by the Legislative Instrument, and as amended by the Amendment Instrument, is aimed at supporting activities located in offshore areas, which are outside the geographical limits of Australia.

Authority

Section 33 of the Industry Research and Development Act 1986 provides authority for the Amendment Instrument.

Consultation

In accordance with section 17 of the Legislation Act 2003, the Department of the Prime Minister and Cabinet, the Department of Finance and the Attorney-General’s Department has been consulted on this Amendment Instrument.

The Department of Industry, Science, Energy and Resources has consulted with members and the executive of the Australian Petroleum Production and Exploration Association, about actions being taken by Government with in respect to the Northern Endeavour facility and the Laminaria-Corallina fields and the priorities for Government, and sought views and expert advice from industry on options for a longer term solution to the facility and the fields.

Regulatory Impact

The Program has been assessed by the Office of Best Practice Regulation (OBPR) as being non-regulatory in nature (OBPR reference number 25323).

 

Details of the Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020

Section 1 – Name of Instrument

This section specifies the name of the Legislative Instrument as the Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020.

Section 2 – Commencement

This section provides that the Amendment Instrument commences on the day after registration on the Federal Register of Legislation. 

Section 3 – Authority

This section specifies the provision of the Industry, Research and Development Act 1986 under which the Legislative Instrument is made.

Section 4 – Definitions

This section is a machinery clause that allows the Schedule to the Amendment Instrument to operate according to its terms.

Schedule 1 - Amendments

This Schedule amends section 4 of the Legislative Instrument to include a definition of ‘decommissioning’, ‘Laminaria-Corallina fields’ and ‘Northern Endeavour’.

This Schedule also repeals subsection 5(2) and substitutes with new language to include activities related to the decommissioning of the Northern Endeavour floating production and offtake (FPSO) facility, the decommissioning of the Laminaria-Corallina fields, and the obtaining of insurance in relation to the prescribed activities.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020

This Amendment Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Amendment Instrument

The Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020 (the Amendment Instrument) amends the description of the Program in section 5 of the Industry, Research and Development (Northern Endeavour Temporary Operations Program) Instrument 2020 (the Legislative Instrument). The amended description allows for the safe and efficient disconnection, removal and disposal of the facility and the decommissioning and remediation of the Laminaria-Corallina fields. To assist with clarity, the Amendment Instrument inserts a definition of ‘decommissioning’ in section 4, which aligns with that used by industry, and a definition of ‘Laminaria-Corallina fields’.

Human rights implications

This Amendment Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Amendment Instrument is compatible with human rights as it does not raise any human rights issues.

 

The Hon Keith Pitt MP

Minister for Resources, Water and Northern Australia

Overview

The Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020 was enacted to prescribe and amend the Northern Endeavour Temporary Operations Program under the Industry Research and Development Act 1986. This Act provides the Minister with the authority to establish programs related to industry, innovation, science, or research through legislative instruments, ensuring flexibility in managing Commonwealth spending activities. The Amendment Instrument was introduced to address the need for safe operations and the eventual decommissioning and remediation of the Laminaria-Corallina Oil and Gas Project in the Timor Sea, following the liquidation of the title holder. The objective of the Amendment Instrument is to clarify and expand the scope of the Northern Endeavour Temporary Operations Program to include the decommissioning of the Northern Endeavour floating production storage and offtake (FPSO) facility and the Laminaria-Corallina fields. This is achieved by amending the description of the Program and inserting industry-aligned definitions for 'decommissioning' and 'Laminaria-Corallina fields'. The enacting body is the Minister for Resources, Water and Northern Australia, with the legislative instrument authorised under section 33 of the Industry Research and Development Act 1986, relying on the external affairs power as stated in section 51(xxix) of the Constitution. The policy objective is to facilitate safe operations and the orderly decommissioning of the facility and fields in Commonwealth waters.

Scope and Application

The Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020 amends the Industry Research and Development (Northern Endeavour Temporary Operations Program) Instrument 2020, which was made under section 33 of the Industry Research and Development Act 1986. The Amendment Instrument is intended to ensure the safe and efficient disconnection, removal and disposal of the Northern Endeavour floating production storage and offtake (FPSO) facility, and the decommissioning and remediation of the Laminaria-Corallina fields. It applies to the Minister for Resources, Water and Northern Australia, and any activities related to the safe and efficient disconnection, removal, disposal, decommissioning, and remediation of the Northern Endeavour FPSO facility and the Laminaria-Corallina fields. The Amendment Instrument has a national jurisdictional reach, as it pertains to activities occurring in offshore areas, which are outside the geographical limits of Australia. There are no stated exclusions, exemptions, or thresholds in the Amendment Instrument. The application of the Amendment Instrument may be extended or restricted through subordinate instruments made under the Industry Research and Development Act 1986.

Key Provisions

The key provisions of the Industry Research and Development (Northern Endeavour Temporary Operations Program) Amendment Instrument 2020 (Amendment Instrument) focus on prescribing and amending the Northern Endeavour Temporary Operations Program (the Program) under the Industry Research and Development Act 1986 (IR&D Act). Section 33 of the IR&D Act allows the Minister to prescribe programs related to industry, innovation, science, or research, enabling the Commonwealth to engage in specific activities and spend money on these programs (section 33(1)). This flexibility allows the government to implement innovative ideas and pilot programs effectively. Section 34(1) of the IR&D Act further allows the Commonwealth to make, vary, or administer arrangements related to the prescribed activities, which can include contracts, funding agreements, or other arrangements (section 34(1)). The Amendment Instrument amends the description of the Program (section 5), allowing for activities related to the decommissioning and remediation of the Laminaria-Corallina fields and the Northern Endeavour facility. It also includes definitions for 'decommissioning' and 'Laminaria-Corallina fields' to ensure clarity and consistency with industry standards (section 4). The Amendment Instrument imposes specific obligations on the parties involved in the Program. These include ensuring the safe disconnection, removal, and disposal of the Northern Endeavour facility and the decommissioning and remediation of the Laminaria-Corallina fields. The Amendment Instrument specifies that these activities must align with industry standards for decommissioning and must be carried out in a manner that ensures safety and efficiency. It also mandates that the necessary insurance be obtained for the prescribed activities. Additionally, the Amendment Instrument requires that all actions taken under the Program comply with the legislative requirements set out in the IR&D Act and any other relevant legislation. While the Amendment Instrument itself does not specify any direct offences, penalties, or consequences for breach, breaches of the obligations and requirements set out in the IR&D Act and other related legislation may result in penalties. Under the IR&D Act, failure to comply with prescribed programs or the terms of funding agreements could result in legal action, including civil penalties. The specific penalties depend on the nature and severity of the breach and may include fines or other sanctions as prescribed by law. Additionally, any environmental harm caused during the decommissioning and remediation activities could result in further penalties under environmental protection laws. The Amendment Instrument ensures that the Program is designed to mitigate such risks by including safety and efficiency as key objectives.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.