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Petroleum Resource Management

How Governments Manage Their Offshore Petroleum Resources

John A.P. Chandler

This thought-provoking book examines how countries manage their offshore petroleum resources by comparing the different approaches to licensing and regulation taken by Australia, Norway and the UK. It is based on extensive research into their policies and management practices, including interviews with government regulators and companies. These countries all face similar challenges as their offshore petroleum basins mature which means smaller discoveries, marginal production and ageing infrastructure. John Chandler analyses how their petroleum policy, systems of regulation, and regulators developed up to the present, and how they are responding to these challenges, as well as how they deal with exploration, development, infrastructure sharing and production.
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Chapter 3: Regulatory structures and regulators

John A.P. Chandler

Extract

This chapter explains the ministries and other government regulators involved in licensing and petroleum resource management in the three countries, the relevant statutes and regulations and how the regulatory architecture developed. Australia is a federal system and important decisions are made by relevant ministers through a body called the Joint Authority, which is advised by the National Offshore Petroleum Titles Administrator, or NOPTA. In Norway important decisions are made by the Minister for Petroleum and Energy (NMPE), with advice and other administration being provided by the Norwegian Petroleum Directorate (NPD). In the UK the regulator is the Oil and Gas Authority (OGA). The chapter analyses changes in regulation methodology since the 1990s, particularly in relation to accountability, governance and risk, and their impact on petroleum resource management. It then develops what it calls State Petroleum Governance Criteria which can be used to assess the effectiveness of an offshore petroleum governance framework. It examines the responsibilities and powers of the relevant ministers, the OGA, NOPTA and the NPD and their regulatory style.

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