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Strategic Release Framework for Petroleum Exploration

The Strategic Release Framework for Petroleum Exploration (the Framework) has been developed by the NSW Government to deliver greater transparency and control over the release of exploration areas and the granting of prospecting titles for petroleum resources. It sets out a process for achieving value for the economy and adequate returns for state owned resources.

The Framework recognises there are competing uses for land, and seeks to balance these interests. Areas will be released for exploration only after environmental, social and economic factors have been considered and the community has had an opportunity to identify its values and issues.

This will facilitate the safe and sustainable development of resources under a process that balances the needs of the community, the economy and the environment.

The Strategic Release Process

The Framework implements a transparent and strengthened selection process for issuing petroleum prospecting titles through the up-front consideration of geological, social, environmental and economic factors, and operator suitability and capability.

The Advisory Body for Strategic Release (Advisory Body) is an interagency group with an independent Chair. The Advisory Body makes recommendations to the Minister for Natural Resources on the areas to be released for exploration.

To assist the Advisory Body in forming a view and making recommendations on areas for exploration, a series of studies will be undertaken including:

  • A Resource Assessment, to be conducted by NSW Resources, to determine the potential for discovery of a petroleum resource.
  • Based on the Resource Assessment findings, the Advisory Body will determine which areas, if any, should progress to a Preliminary Regional Issues Assessment (PRIA). The PRIA, to be conducted by the Department of Planning, Housing and Infrastructure, will assess the economic, environmental and social outcomes and will include a community engagement and consultation.
  • The Resource Assessment combined with the PRIA will deliver an understanding of issues that may arise for prospective petroleum developments. Based on these findings, the Advisory Body will make recommendations to the Minister responsible for administering the Petroleum (Onshore) Act 1991 as to area/s, if any, to progress to release.
  • Once a decision has been made to release an area, a notice (the invitation) will be published in the Government Gazette (legislated requirement) and through media channels.
  • Applicants that meet the prequalification criteria will progress into the auction and be required to submit a work program and a bid price. A reserve price, based on recovery of the state’s costs in assessing and releasing the area, will be set for the auction. The reserve price will not be disclosed at this point.
  • If the reserve price is met, the applicant with the highest bid will be considered for the granting of the prospecting title. If the reserve price is not met, a second auction will take place where the reserve price will be disclosed to all pre-qualified bidders.

To further assist explorers, landholders and the community to understand the Framework, NSW Resources has developed a Strategic Release Framework Fact Sheet. (PDF, 129.08 KB)

It is important to note that no part of this process will replace the need for a development application if a project seeks to progress to production. Nor will it duplicate or pre-empt the outcome of any future development assessment.

If an explorer is granted an exploration licence and is successful in discovering an economic gas resource they will need to apply for a petroleum production lease. A mining lease or petroleum production lease cannot be granted without an approved appropriate development consent. Any such development consent will be subject to a stringent, rigorous and exhaustive assessment process, including a details environmental impact assessment and extensive public consultation.

Note: The Strategic Release Framework does not apply to coal resources following the NSW Coal Industry 2026–50. The NSW Government will prohibit new greenfield coal developments, meaning coal mining will only be permitted where it is directly associated with an existing coal mining authorisation.

Process of the Strategic Release Framework

Initial resource assessment

The Advisory Body for Strategic Release (Advisory Body) considers potential release areas based on initial resource assessments.

Preliminary regional issues assessment

The Advisory Body requests a preliminary regional issues assessment to be prepared relevant to the potential release area. Community engagement is conducted to inform this process. Public release of information will occur at this time. 

Proposed release area recommendations

Advisory Body makes recommendations to the Minister for Natural Resources on a proposed release area based on assessments conducted in Steps 1-2. These recommendations are made public once considered by the NSW Government. 

Cabinet consideration

The recommendations of the Advisory Body are considered by Cabinet and, if approved, the Minister for Natural Resources releases an area for exploration and invites companies to apply for a prospecting title. 

Auction process

Only applicants that meet pre-qualification minimum standards will be permitte to participate in an auction process. If the reserve price for the release area is reached, a successful applicant is recommended by the Advisory Body to the Minister for Natural Resources. 

Cabinet endorsement

The Minister for Natural Resources seeks Cabinet endorsement of the successful application. 

Prospecting title granted

The successful applicant is granted the prospecting title. This information is made public. 

Advisory Body for Strategic Release

The Advisory Body for Strategic Release oversees the whole-of-government assessments, required by the Framework, and make recommendations to the Minister responsible for administering the Petroleum (Onshore) Act 1991.

The Advisory Body will provide recommendations to the Minister responsible for administering the Petroleum (Onshore) Act 1991 on:

  • Areas to be released for exploration. This will be based on a preliminary assessment of potential areas including community engagement.
  • Community engagement process for each Preliminary Regional Issues Assessment (PRIA)
  • Auction price. The Advisory Body will recommend the most appropriate competitive auction price for each release area.
  • The frequency of operation of the framework, based on a range of matters noting these will differ between coal and petroleum.

An independent Chair is joined by Senior Executive representatives from:

  • Department of Primary Industries and Regional Development
  • Department of Planning, Housing and Infrastructure
  • NSW Treasury
  • The Cabinet Office.

The Advisory Body is governed by its Terms of Reference (PDF, 86.39 KB)

Recommendations and commitments met by the Framework

The Framework responds to several recommendations and meets commitments made through:

  • the Independent Commission Against Corruption's (ICAC) recommendations on reducing opportunities and incentives for corruption in the management of NSW coal resources
  • the NSW Gas Plan, which was released in November 2014 in response to the recommendations of the NSW Chief Scientist and Engineer on Coal Seam Gas (CSG) activities in NSW

Where can I find out more?