Petroleum Search Subsidy Act 1969

Legislation au C1969A00038 Not in force Act

Legislation content

Petroleum Search Subsidy

No. 38 of 1969

An Act to amend the Petroleum Search Subsidy Act 1959-1967.

[Assented to 14 June 1969]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Petroleum Search Subsidy Act 1969.

(2.) The Petroleum Search Subsidy Act 1959-1967 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Petroleum Search Subsidy Act 1959-1969.

Commencement.

2. This Act shall come into operation on the day on which this Act receives the Royal Assent.

Title.

3. The title of the Principal Act is repealed and the following title inserted in its stead:—

“An Act to Encourage the Search for Petroleum by Subsidizing Exploration Drilling Operations and Geophysical Surveys.”.

Interpretation.

4. Section 3 of the Principal Act is amended—

(a) by omitting from sub-section (1.) the definition of “assessment drilling”;

(b) by omitting from sub-section (1.) the definition of “drilling operation” and inserting in its stead the following definition:—

“ ‘exploration drilling operation’ means—

(a) an undertaking in connexion with the search for petroleum in Australia or in a submarine area, consisting of—

(i) the drilling of a hole where the purpose of the drilling is, or is to a substantial extent, the obtaining of stratigraphic information; or

(ii) the drilling of a hole in a known rock sequence for the purpose of determining the presence or absence of petroleum; or

(b) a part of an undertaking referred to in the last preceding paragraph,


but does not include an undertaking consisting of drilling for the purpose of determining the limits of a pool of petroleum or a part of such an undertaking;”;

(c) by inserting in the definition of “geophysical survey” in sub-section (1.), after the word “Australia”, the words “or in a submarine area”;

(d) by omitting from the definition of “operation” in sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”;

(e) by omitting from sub-section (1.) the definition of “stratigraphic drilling” and inserting in its stead the following definition:—

“‘submarine area’ means a submarine area in the vicinity of Australia and beyond the mean low water mark (other than a submarine area beneath internal waters of Australia), and includes the waters and airspace above such an area;”;

(f) by omitting from sub-section (1.) the definition of “test drilling”; and

(g) by omitting sub-section (2.).

Approval of operations.

5. Section 7 of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the word “Australia”, the words “or in a submarine area”;

(b) by omitting sub-section (2a);

(c) by inserting in paragraph (b) of sub-section (3.), after the word “Australia”, the words “or in submarine areas”; and

(d) by inserting after sub-section (4.) the following sub-section:—

“(4a.) A proposed operation that is to be carried out in connexion with the search for petroleum in a submarine area is not eligible for approval under the last preceding sub-section unless the Minister is satisfied that natural persons ordinarily resident in Australia—

(a) are to pay, in whole or in part, the costs incurred in or in. connexion with the operation; or

(b) are beneficially interested, directly or indirectly, in the capital of a corporation that is to pay, in whole or in part, those costs.”.

Amount of subsidy.

6. Section 9 of the Principal Act is amended—

(a) by inserting after sub-section (1.) the following sub-section:—

“(1a.) An agreement in respect of an approved operation that is to be carried out in connexion with the search for petroleum in a submarine area may provide that the subsidy shall be an amount equal to such specified part (not exceeding the part that would, but for this sub-section, be applicable) of the costs


referred to in the last preceding sub-section as the Minister thinks fit having regard to—

(a) if natural persons not ordinarily resident in Australia are to pay those costs in whole or in part—the extent to which it appears to the Minister that such persons are to pay those costs; and

(b) if natural persons not ordinarily resident in Australia are beneficially interested, directly or indirectly, in the capital of a corporation that is to pay those costs in whole or in part—the extent to which it appears to the Minister that such persons are or may be so interested, and the extent to which the corporation is to pay those costs.”; and

(b) by omitting from sub-section (2.) the words “the last preceding sub-section” and inserting in their stead the words “the preceding provisions of this section”.

Repeal of section 9a.

7. Section 9a of the Principal Act is repealed.

Terms and conditions of agreement.

8. Section 10 of the Principal Act is amended—

(a) by omitting from sub-paragraph (iii) of paragraph (c) of sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”;

(b) by omitting from paragraph (f) of sub-section (1.) the words “a drilling operation” and inserting in their stead the words “an exploration drilling operation”; and

(c) by omitting sub-section (2.).

Operation to be carried out within specified period.

9. Section 11 of the Principal Act is amended by omitting the word “sixty-nine” and inserting in its stead the word “seventy-four”.

Regulations.

10. Section 13 of the Principal Act is amended—

(a) by omitting from sub-section (1.) all the words after the words “this Act” (third occurring); and

(b) by omitting sub-section (2.).

Transitional provisions.

11.—(1.) The amendments made by sections 4, 6, 7 and 8 of this Act, and any amendments of the regulations that were, immediately before the commencement of this Act, in force for the purposes of section 9 of the Principal Act, do not apply in relation to an agreement that specifies a period ending not later than the thirtieth day of September, One thousand nine hundred and sixty-nine, as the period within which the approved operation to which the agreement relates is, unless otherwise approved by the Minister, to be completed.

(2.) The amendments made by section 5 of this Act do not apply in relation to an application made before the thirtieth day of September, One thousand nine hundred and sixty-nine, for approval of a proposed


operation where the application states that it is intended to complete the operation not later than that date.

(3.) Notwithstanding the amendments made by section 10 of this Act, the regulations in force immediately before the commencement of this Act for the purposes of section 9a of the Principal Act continue in force in relation to agreements referred to in sub-section (1.) of this section.

 

Overview

The Petroleum Search Subsidy Act 1969, enacted by the Parliament of Australia, was introduced to amend the Petroleum Search Subsidy Act 1959-1967. This Act aims to encourage the search for petroleum by subsidising exploration drilling operations and geophysical surveys. The legislation broadens the scope of the principal Act to include submarine areas in the vicinity of Australia. It redefines key terms such as "exploration drilling operation" and "submarine area," and modifies the criteria for approving operations and the amount of subsidy that may be granted. The Act also includes provisions for the transitional application of its amendments, ensuring that existing agreements and applications are not unduly affected by the changes introduced. The policy objective remains to foster the exploration of petroleum resources while ensuring the involvement of Australian residents and entities in the financial and operational aspects of such explorations.

Scope and Application

The Petroleum Search Subsidy Act 1959-1969, as amended by the Petroleum Search Subsidy Act 1969, applies to individuals and entities engaged in exploration drilling operations and geophysical surveys for petroleum within Australia or in submarine areas. The Act outlines the parameters for the approval of such operations, the amount of subsidy available, and the terms and conditions of the subsidy agreements. Notably, the Act specifies that operations in submarine areas are subject to additional scrutiny to ensure that natural persons ordinarily resident in Australia are involved in funding or beneficially interested in the capital of corporations funding the operations. The geographic scope of the Act extends to all of Australia, including submarine areas, but excludes internal waters of Australia. The Act also includes transitional provisions to ensure that existing agreements are not unduly affected by the amendments. Subordinate instruments, such as regulations, may further extend or restrict the application of the Act.

Key Provisions

The Petroleum Search Subsidy Act 1969 (Act) amends the Petroleum Search Subsidy Act 1959-1967 (Principal Act) to enhance the regulation of petroleum exploration subsidies, particularly in submarine areas. The Act updates the definitions of key terms such as "exploration drilling operation" (section 4(b)) and "submarine area" (section 4(e)), and clarifies that geophysical surveys now include those conducted in submarine areas (section 4(c)). It also extends the scope of the Act's provisions to operations in submarine areas (section 5(a)) and modifies the criteria for approving such operations (section 5(4a)). The Act imposes specific obligations on entities seeking subsidies for exploration drilling operations in submarine areas. These entities must ensure that natural persons ordinarily resident in Australia either pay for or have a beneficial interest in the capital of a corporation funding the operation (section 5(4a)). Additionally, the amount of the subsidy for submarine operations can be adjusted by the Minister based on the extent of Australian residents' financial involvement or beneficial interest in the operation (section 6(1a)). Failure to comply with the requirements set out in the Act can result in various consequences. While the Act itself does not explicitly outline specific offences or penalties for breaches, it is implied that non-compliance with the subsidy terms or approval criteria could lead to the denial of subsidy payments or other administrative actions. Furthermore, if the operations are conducted in a manner that contravenes the conditions set forth in the Act, it could potentially lead to legal repercussions under broader regulatory frameworks governing petroleum activities in Australia.

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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.