Download Foreign investment - Offshore Petroleum Exploration Acreage Release

AUSTRALIA 2012
Offshore Petroleum Exploration Acreage Release
FOREIGN INVESTMENT
The Australian Government recognises the substantial
economic and social contribution that foreign
investment has made, and will continue to make.
For further information visit: www.austrade.gov.au/invest; or
call Austrade on 13 28 78 (Australia only), +61 2 9392 2035
(from outside Australia); or email [email protected].
Foreign investment brings many benefits to Australia. It
underpins higher rates of economic activity and employment,
provides access to new technology and skills, access to
overseas markets, and promotes continued competition.
AUSTRALIA’S FOREIGN
INVESTMENT POLICY
ASSISTANCE FROM AUSTRADE
The Australian Trade Commission (Austrade) is responsible
for the facilitation of foreign direct investment into Australia
and for the promotion of Australia as an internationally
competitive place to do business.
Though its global network in over 55 countries, Austrade
provides international businesses with a single, integrated
point-of-contact for all trade and investment inquiries and
can provide companies with the information needed to
establish, or expand, a business in Australia.
Key services Austrade offers include:

Information on the business environment: covering
issues such as business costs, the taxation regime,
investment regulations, skills availability and
immigration requirements.

Market intelligence reports/executive briefs: specific
information on Australia's capabilities across a wide
range of industry sectors.

Site visits: assistance to identify the most suitable
location and potential partners in Australia for your
business, in conjunction with relevant state and/or
territory investment agencies and industry groups.

Australian Government programs: advice on the
Government’s industry development programs that may
be applicable to your business, including support for
research, development, innovation and export activities.

Government approval processes: advice on any
Government approvals required to facilitate your
business activities in Australia and assistance to
streamline the relevant processes.
The Government welcomes foreign investment. The
Foreign Acquisitions and Takeovers Act 1975 (the Act)
provides the legislative framework to screen specified
foreign investment. Australia adopts a pre-establishment
screening process that aims to provide a straightforward,
low cost mechanism for reviewing the proposed operations
of foreign investors. Foreign investors apply to the
Foreign Investment Review Board (FIRB) if required.
This screening process provides foreign investors with
assurance prior to outlaying finances. It applies to
proposed foreign investment in Australian businesses and
business assets, across any industry sector, including
petroleum, which are valued at or above relevant annually
indexed monetary thresholds.
Australia’s Foreign Investment Policy (the Policy), the Act
and screening process are the responsibility of the
Australian Treasurer, who receives advice from the FIRB
when reviewing investment proposals to decide if they are
contrary to Australia’s national interest. The Treasurer can
block proposals that are contrary to the national interest or
apply conditions to the way proposals are implemented to
ensure they are not contrary to the national interest.
Investment proposals are considered case-by-case against
the national interest rather than against hard and fast rules.
This maximises investment flows, while protecting
Australia’s interests. The concept of national interest
includes factors such as national security, competition,
other Australian Government policies (such as tax and
environmental policy), impact on the economy and the
community, and the character of the investor.
www.petroleum-acreage.gov.au
This document has been developed as a guide only. It does not replace or amend information provided in the Offshore Petroleum Legislation, Regulations and Guidelines available
at: www.ret.gov.au/offshoreresourceslegislation. In the event that there is a discrepancy between this document and the legislation, the legislation has precedence. Explorers should
not rely solely on this information when making commercial decisions.
Privately-owned (i.e. non foreign government) foreign
investors do not need to seek approval before lodging an
application for the award of petroleum exploration acreage.
Neither is approval required for the grant of exploration
acreage and the subsequent development of any
petroleum discovery.
or an offshore company whose Australian subsidiaries or
gross assets are valued above A$244 million. Notification
requirements also apply where an acquisition by a foreign
person would result in foreign persons holding an
aggregate interest of 40 percent or more in such Australian
businesses or corporations. A threshold of A$1,062 million
applies to US investors as defined under the Policy3.
In relation to offshore petroleum activities, notification and
approvals may be required by foreign investors for
farm-in/farm-out activities, equity acquisitions, or
acquisitions of existing interests in exploration permits1,
production licences and retention leases and/or production
facilities, subject to the thresholds outlined below. For
foreign governments and their related entities, prior approval
is required before making a direct investment in Australia
(regardless of the value of the investment) and also before
starting a new business, or acquiring an interest in Australian
urban land.2
Please note that the monetary values listed above are
those for 2012. Thresholds are indexed annually on
1 January. Investors are advised to confirm notification
requirements and relevant thresholds with the FIRB at the
time of investment.
The Government encourages potential investors to engage
with FIRB prior to lodging applications on significant
proposals to allow timely consideration. The Government
will treat proposals as in-confidence.
Further information on the Policy and the Act is available on
the FIRB site at www.firb.gov.au.
All foreign persons should notify the Government before
acquiring an interest of 15 percent or more in an Australian
business or corporation that is valued above A$244 million,
ACKNOWLEDGEMENTS
© Commonwealth of Australia 2012
This work is copyright. It may be reproduced in whole or part subject to the inclusion of an acknowledgment of the source and
no commercial usage or sale. Reproduction for purposes other than those indicated above requires written permission of the
Commonwealth. Requests and inquiries should be addressed to the Manager, Media and Communications, Department of
Resources, Energy and Tourism GPO Box 1564, CANBERRA ACT 2601.
This document has been developed as a guide only. It does not replace or amend information provided in the Offshore
Petroleum Legislation, Regulations and Guidelines available at www.ret.gov.au/offshoreresourceslegislation.Therefore, you
should not rely solely on this information, and you should seek independent legal advice when making a commercial decision.
ISBN 978-1-921812-94-1
Electronic copies of this document are available at www.petroleum-acreage.gov.au or by contacting the Department of
Resources, Energy and Tourism:
Manager - Media and Communications
Department of Resources, Energy and Tourism
GPO Box 1564
CANBERRA ACT, 2601
Telephone: +61 2 6276 1000
Fax: +61 2 6243 7037
Email: [email protected]
Prepared by:
Exploration Section
Offshore Resources Branch
Image courtesy of Santos Ltd
1 See sections 5 and 12A of the Act and in particular, paragraph 12A(1)(c).
2 Foreign governments and their related entities and direct investment are defined under the Policy (available at www.firb.gov.au). Also, Australian urban
land is defined in sections 5 and 12A of the Act and includes all seabed within Australia’s Exclusive Economic Zone (EEZ).
3
Australia signed an Investment Protocol with New Zealand on 16 February 2011. Once implemented, New Zealand investors will be subject to the same
thresholds that apply to US investors. Further information is available on the FIRB site at www.firb.gov.au.
2