Cost recovery & levies

As a statutory authority, NOPSEMA operates on a cost recovery basis through levies and fees collected from duty holders who are planning and undertaking offshore oil and gas operations. These arrangements ensure that NOPSEMA is sufficiently resourced to independently and effectively regulate safety, well integrity and environmental management.

Cost recovery

The mechanism for setting levies is through the preparation of a Cost Recovery Implementation Statement (CRIS) that meets the requirements of the Australian Government Cost Recovery Guidelines. The Cost recovery implementation statement 2018-19 (PDF 10MB) is available here.

The levies that NOPSEMA collects are reflected in the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Regulations 2004.

NOPSEMA’s cost recovery arrangements consist of a range of fees and levies which vary depending on the type and scope of regulatory submissions (e.g. proposals in safety cases, well operations management plans, environment plans).

NOPSEMA can also cost recover on a fee for service basis in other specific instances, such as conducting an investigation on behalf of the National Offshore Petroleum Titles Administrator (NOPTA) or validation of a financial assurance model.

NOPSEMA conducts regular reviews of its CRIS to ensure that cost recovery arrangements are adequate and that it can continue to effectively discharge its regulatory functions.

Notification of levies payable by stakeholders

NOPSEMA will advise stakeholders of their levy obligations by way of a Levy notification. Levy notifications are administered to the relevant contact via email. Payment terms on these notifications are 30 days. Please send any queries in relation to the levy to levynotifications@nopsema.gov.au.

Cost effectiveness

Each financial year, NOPSEMA prepares a report that assesses the cost effectiveness of the authority's operations. The Cost Effectiveness Report 2018-19 (PDF 34MB) is available here. 

The Cost Effectiveness Report is generally issued in April each year, covering the previous financial year. The April release allows for the parliamentary tabling of NOPSEMA’s Annual Report (covering the same financial year as the Cost Effectives Report) in October, and NOPSEMA’s release of annual industry performance data in March. Information from both the annual report and industry performance data is required for the cost effectiveness report. The release of the report for the period 1 July 2018 – 30 June 2019, was delayed from April 2020 to July 2020 due impacts associated with COVID-19.

As NOPSEMA has broad ranging regulatory powers and responsibilities, it must ensure that the agency has a documented, systematic and consistent approach to how NOPSEMA will allocate its regulatory resources. For this purpose, NOPSEMA has published Allocation of NOPSEMA regulatory resources policy (PDF 135KB).