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Methodology, results and discussion

KPI 1

Assessments are undertaken in line with risk-based elements as per NOPSEMA policies

Annual target

2015–16

2016–17

2017–18

2018–19

92%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA’s assessment policy N-04000- PL0050 states that the detail of assessments will be proportionate to the level of risk.

Resources are allocated to assessments according to the size and complexity of the facility, activity and documents. NOPSEMA makes this judgement based on its existing knowledge of the relevant environment, facility, well, pipeline, diving operation, offshore project or activity and the content of the submission.

NOPSEMA focuses on areas of the facility or activity that contribute the largest proportion of risk and on control measures and aspects of the safety management system or environmental implementation strategy that are the most critical to risk control.

Within the legislated timeframe, NOPSEMA may not necessarily assess every aspect of a submission when it is received, but will carry out such evaluations as necessary to gain sufficient assurance to make an assessment decision. The submission is typically assessed and verified by using a sampling approach which provides sufficient assurance that the submission is fit-for- purpose.

To confirm that assessments were undertaken in line with the risk-based elements, all assessment scope selections were outlined as an assessment brief and reviewed and approved by management prior to assessment completion.

The following are the key permissioning documents included in the results for this KPI that have legislated timeframes and require an assessment brief.

  • Environment plans
  • Offshore project proposals
  • Safety cases
  • Well operations management plans1
  • Diving safety management systems

During 2018–19, NOPSEMA received 156 submissions of the document types listed above and commenced assessment. Of these, 100% had risk-based assessment scopes (in the case of WOMPs and DSMSs, full assessments scopes) and briefs reviewed and approved by management.

In 2018–19, NOPSEMA continued to publish data in a number of formats, including both quarterly and annual datasets. Relevant assessments and submissions data is available on the NOPSEMA website.

KPI cross-references: PBS 1, RPF 1, RPF 2

1 Assessment briefs are not required for the assessment of WOMPs and DSMSs as these are assessed in their entirety.

KPI 2

Risk-based inspections are conducted to meet policy targets

Annual target

2015–16

2016–17

2017–18

2018–19

90%

95%

97%

99%

100%

The target has been met for the last four years.

NOPSEMA’s regulatory divisions plan inspections at the start of the year and adjust those plans accordingly as offshore activity varies. The planned inspection targets are determined using a risk-based model.

Inspections are used to monitor duty holder compliance with the legislation and ongoing implementation and compliance with accepted permissioning documents, e.g Environment Plans (EP) Safety Cases (SC) Well Operations Management Plans (WOMP)

In addition to planned inspections, two other inspection types are routinely undertaken:

  • vessels - on an opportunistic basis dependent on their presence in the regime and their activity.
  • in relation to incidents (incident investigations) and potential breaches of compliance, with little to no notice

NOPSEMA’s inspection polices are published on its website.

A record of all inspections is entered into the RMS database.

During the reporting period of 2018–19, NOPSEMA undertook a total of 176 inspections, of these, 143 were planned inspections.

Target planned inspections

143

Planned inspections undertaken

143

Other inspections2

33

Total Inspections

176

In 2018–19, 100% of the planned inspections were completed (target = 90% for this KPI3).

NOPSEMA’s total inspection activity remains stable, although the inspection types fluctuate. There was a sustained increased frequency of OHS inspections on the large, newer, and more complex facilities. In total there were 15 more OHS inspections in 2018–19; of these:

  • There was a 70% increase in FPSO inspections – from 26 in 2017–18 to 42 in 2018–19.

The total number of inspection types for the last two years is shown below.

Type of inspection

2017–18

2018–19

Environment

59

42

OHS

109

124

Well integrity

10

10

TOTAL

178

176

KPI cross-references: PBS 2, RPF 3, RPF 4

2. Other inspections include vessel inspections and incident investigations.

3. Vessel inspections and incident investigation inspections are not included in the results for this KPI as they are not included in the target number.

KPI 3

Enforcement actions are undertaken in accordance with the Enforcement Management Model (EMM)

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

When warranted, NOPSEMA takes enforcement action to address breaches of the relevant legislation or accepted permissioning document and eliminate or reduce threats to health and safety, integrity or the environment.

NOPSEMA uses its enforcement powers in a transparent, efficient and consistent manner and according to the principles of procedural fairness.

NOPSEMA’s inspectors are guided by the organisations enforcement policy (PL0067) when considering enforcement and compliance action(s). The enforcement management model (EMM) is an intrinsic element of the decision-making process4.

All proposed enforcement actions under the powers of the OPGGS Act are referred to an internal compliance committee for review, which comprises members at a senior management level.

The appropriate type and level of enforcement action pursued during the reporting period was initially recommended by NOPSEMA inspectors using the EMM, and subsequently reviewed and endorsed by managers and the compliance committee.

As part of the broader EMM framework, proposed enforcement actions were also subjected to peer, team and/or management review.

The results of all reviews of enforcement action were saved in NOPSEMA’s electronic records management system.

NOPSEMA ensures the approved enforcement action types are entered into RMS and align with the EMM outcomes and decisions where applicable.

KPI cross-references: PBS 3, RPF 3, RPF 4

4. The EMM may not always be formally applied for general issues identified during a planned inspection. These issues are generally better addressed in the form a recommendation within an inspection report and are overseen by senior management through the inspection process.

KPI 4

Regulatory assessment and enforcement decisions include reasons for decisions where appropriate

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

Regulatory assessment and enforcement decisions are defined for this KPI as decisions to reject5 a submission and decisions to issue enforcement actions.

NOPSEMA’s senior managers oversee the authority’s assessment and enforcement decisions, and the enforcement decisions are also overseen by the authority’s internal compliance committee to ensure all regulatory responsibilities are met.

All regulatory assessment and enforcement decisions include reasons for the decision that is provided to the relevant duty holder.

At the conclusion of assessments resulting in a rejection, the proponent or duty holder is briefed on the assessment results and the reasons for the decision. Any verbal briefings are supported in writing.

NOPSEMA publishes a statement of reasons policy (PL1666) under the Administration Decisions (Judicial Review) Act 1977 on its website.

Data is published on regulatory activities each quarter on NOPSEMA’s website. This includes tables on assessment outcomes and enforcement types issued.

Note: NOPSEMA also issues non- statutory compliance actions in the form of written advice and warnings.

In 2018–19, NOPSEMA made 66 regulatory assessment rejections and enforcement decisions. This included 37 assessments that were rejected and 29 enforcement actions that were issued.

Of the 37 assessments rejected, 20 were safety cases, and they were primarily rejected for the following reasons. The safety cases were:

  • not appropriate to the facilities and to the activities conducted at the facilities
  • not complying with Subdivisions A, B and C of Division 1 for each stage in the life of the facilities in respect of which the safety cases were submitted.

The enforcement6 and compliance actions were of the following types and covered a range of issues.

Enforcement actions

29

Direction - General

7

EM improvement notice

3

Notice requiring variation of a well

operations management plan

1

OHS improvement notice

13

OHS prohibition notice

1

Prosecution Brief

1

Request for a revised safety case

3

Non-statutory compliance actions

5

OHS written advice/warning

1

EM written advice/warning

4

There were no judicial appeals received against the assessment or enforcement decisions.

KPI cross-references: RPF 2, RPF 3, RPF 5

5. Rejected submissions include all variations with a similar meaning such as ‘not accepted’, ‘refused’, ‘not agreed’, ‘further action required’ etc.

6. Enforcement in this instance also includes non-statutory compliance actions.

KPI 5

Incidents are investigated in accordance with NOPSEMA policies

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA conducts investigations on all notifications received. Notifications are subject to an enquiry-level investigation in order to triage the incident and determine if follow-up investigation is warranted, and these are reviewed by senior managers.

NOPSEMA typically undertakes either an offshore investigation or an investigation at a regulated business premises, where it has obtained information that identifies a significant risk gap and/or justifies seeking evidence of breaches of the legislation as a basis for enforcement action. Where practicable, and relevant to do so, investigations are incorporated into inspections, and the investigation scope and relevant dates are planned where possible.

The decision for NOPSEMA’s independent Investigation Team to conduct an investigation is based on suspected breaches of the legislation and may warrant a range of actions, up to and including prosecution. Most investigations are conducted with the primary aim of issuing proportionate enforcement action and identifying and sharing lessons learned with the broader industry.

In 2018–19, NOPSEMA received 529 notifications. Of these:

  • 471 were reportable incidents comprising accidents, dangerous occurrences, environmental incidents, and well integrity incidents.
  • 58 were notifications of events that were categorised as not reportable under the legislation.

All of these were investigated.

Those that were identified for follow-up investigations were either immediately actioned or included in inspection scopes, some of which resulted in enforcement actions. These investigations addressed either an individual incident or a series of related incidents.

NOPSEMA also received 6 notifications relating to offshore instances that were also investigated (as OHS or EM related complaints7) following the process above.

KPI cross-references: PBS 4, RPF 3

7. These are offshore petroleum industry related complaints about the duty holder

KPI 6

Analyse and publish industry-wide performance data regularly

Annual target

2015–16

2016–17

2017–18

2018–19

Quarterly

100%

100%

100%

100%

The target has been met for the last four years.

Datasets are published on NOPSEMA’s website each quarter comprising a series of tables and charts on industry performance and NOPSEMA’s core regulatory activities.

NOPSEMA publishes a quarterly magazine, the Regulator, that includes articles about lessons learned provided from each of the agency’s regulatory divisions. The magazine also contains the quarterly datasets.

NOPSEMA publishes an Annual Offshore Performance Report that includes comprehensive safety, well integrity and environmental management performance information and data trends.

NOPSEMA regularly publishes alerts, information, bulletins, lessons learned articles and other news and media announcements. NOPSEMA offers an online subscription service on its website for news, publications and media announcements.

In 2018–19, NOPSEMA continued to undertake ongoing research and data analysis to inform regulatory decisions and promote improved industry performance.

Datasets of quarterly and annual trends were published in: July 2018, January 2019, October 2018, and April 2019

Specific data analyses were used to inform and support articles of lessons learnt published in the Regulator, and other liaison and promotional activities.

The 2018 Annual Offshore Performance was published in May 2019 and contains summary information, statistics and details of additional online resources.

As at 30 June 2019, the Regulator magazine was sent to over 2400 subscribers with printed copies provided to various organisations representing duty holders, government and non-government stakeholders.

KPI 7

Demonstrate that feedback is sought from stakeholders on guidance provided where relevant

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA seeks feedback from stakeholders on the guidance it provides via various methods, including:

Meetings with:

  • NOPSEMA Advisory Board
  • duty holders
  • industry CEOs
  • associations e.g. APPEA
  • HSRs on offshore facilities during an inspection
  • special-interest groups e.g. unions, environmental non-government organisations and fishing groups

Direct requests:

  • published on the website
  • in the Regulator quarterly magazine
  • published in guidance material
  • at industry workshops or forums
  • at public information sessions.

NOPSEMA also periodically reviews the adequacy of its guidance and communication mechanisms to ensure stakeholders maintain an understanding of the organisation’s functions, practices and processes, particularly with respect to risk assessment.

As NOPSEMA offers numerous opportunities and mechanisms for stakeholders to provide feedback and/or complaints about NOPSEMA, (including 880 direct engagement activities for 2018–19), the authority does not typically undertake additional formal surveys.

In 2018–19, 10 guidance documents were published that underwent external consultation. Topics included:

  • Complying with diving safety regulations
  • Environment plans and offshore project plans
  • Workplace arrangements
  • Marine parks and petroleum activities
  • Acoustic impacts
  • Key matters reports

In addition, the following brochures were updated and/or published on the website during 2018–19:

  • Offshore petroleum safety case approvals
  • Requirements for consultation and public comment on petroleum activities
  • Offshore Petroleum environmental approvals
  • Offshore petroleum lifecycle overview
  • Public comment on environment plans
  • Introducing NOPSEMA

There were also other opportunities for stakeholders to provide feedback at workshops/industry sessions, these included:

Nov 2018

Well barriers workshop

Perth

Dec 2018

Levies

Perth

Mar 2019

Operational Risk Assessment Industry Workshop

Perth

Mar 2019

Offshore energy activity regulation

South Australia

May 2019

Source Control Workshop

Perth

Jun 2019

HSR Forum

Perth

KPI Cross-references: RPF 2

KPI 8

Actions in the stakeholder engagement implementation plan are completed as scheduled

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA has implemented a stakeholder engagement and transparency initiative to improve community confidence in the offshore petroleum regime.

This is being achieved through:

  • disclosure of more information
  • focused regulatory effort on areas of poor consultation practice
  • increased frequency of community input to better understand their views
  • increased transparency of the regulator’s decision-making processes.

NOPSEMA continues to progress initiatives to improve engagement and transparency through a newly established transparency taskforce.

NOPSEMA communicates with stakeholders using various methods from strategic meetings and workshops to email subscriptions.

Since January 2016, NOPSEMA has published enhanced information on its website regarding the status of petroleum activity environment plan submissions and assessment decisions.

The community information section on the website provides guidance to stakeholders affected by petroleum activities on participating in the environmental approval process, as well as the following information:

  • what’s happening offshore
  • how to get involved
  • how to find more information
  • frequently asked questions
  • how to submit feedback and complaints about NOPSEMA.

NOPSEMA published a variety of resources for stakeholders during 2018–19 (see KPI 7).

Key achievements in the area of stakeholder engagement in 2018–19 included:

  • continued coordination of the transparency taskforce
  • continued liaison with national and international industry associations e.g.
  • DrillSafe
  • Safer Together
  • SPE
  • IChemE
  • continued liaison with international regulatory counterparts via IRF and IOPER
  • participation in community drop-in sessions in Newcastle, alongside DIIS to explain NOPSEMA’s role and remit
  • participation in a series of community open days across four locations in South Australia
  • hosted information sessions for community and industry stakeholders to :
  • communicate changes to the Environment Regulations
  • showcase new online systems to support transparency initiatives
  • hosted the Inaugural HSR Forum in collaboration with APPEA and Safer Together
  • continued liaison with the members of CERG
  • development of late life assets guidance with DIIS and NOPTA
  • hosted industry workshops on well barriers and operational risk assessments.

KPI Cross references: RPF 1, RPF 4 and RPF 5

KPI 9

All relevant stakeholder events where NOPSEMA has actively participated are published

Annual target

2015–16

2016–17

2017–18

2018–19

Quarterly

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA maintains a stakeholder engagement register. The register contains information about NOPSEMA’s advice and promotional activities with external stakeholders, including titleholder liaison meetings, industry workshops and forums and events where NOPSEMA has delivered a presentation.

NOPSEMA engages with a wide range of stakeholders, including: duty holders, contractors, consultants, service providers, all levels of government (international, federal, state and local), tertiary institutions/ academia, the offshore workforce, HSRs, unions, non-government organisations etc.

NOPSEMA publishes information about stakeholder engagement activity in the National Quarterly Performance Report and the Regulator quarterly magazine and publishes presentations on its website.

NOPSEMA’s website also includes information about upcoming events in which the agency is hosting, participating or has an organisational role.

The number of engagements per year:

201516

201617

2017–18

2018–19

801

688

820

880

There were 880 stakeholder engagement activities in 2018–19, a 7% increase from 2017–18 and the highest number recorded.

These included interactions with the following groups:

Duty holders

611

Government agencies

137

Industry and trade associations

53

Other

31

Contractors

28

Working groups/ taskforce

20

In addition, NOPSEMA delivered a number of presentations at various meetings, briefings, workshops, seminar and conferences.

Relevant presentations are published on our website and can be found on the resources page: www.nopsema.gov.au/resources/

KPI cross-references: RPF 2, RPF 3

KPI 10

Reports are sent to relevant ministers

Annual target

2015–16

2016–17

2017–18

2018–19

Quarterly

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA has legislative requirements, agreements and obligations to keep any relevant Ministers informed of industry and/or agency matters on a regular basis.

A number of reporting channels and ministerial reporting requirements are managed by various teams within NOPSEMA.

There are a set of standard reports produced monthly, quarterly and/or annually. These reports and their accompanying transmittal records are saved in the electronic records management system (EDRMS). The team annual operating plans and task management systems record the completion of these reporting tasks each quarter.

Manager oversight of the reporting tasks and performance indicator results occurs regularly. A status report is delivered to the NOPSEMA leadership team (executive management) every six months.

Quarterly performance reports (national and state statistical snapshots) were submitted to relevant Commonwealth, State and Territory Ministers in: August 2018, January 2019, October 2018 April 2019

These reports included information about industry health and safety, well integrity and environmental management performance and, NOPSEMA’s regulatory activity.

NOPSEMA also submitted reports to various other relevant ministers and departments as per legislated or government requirements.

The reports included, but were not limited to:

  • APSC reports
  • finance and budget reports
  • ICT security reports
  • legal expenditure reports
  • FOI reports
  • agency tenders and contracts reports.

KPI cross-references: RPF 5, RPF 6

KPI 11

The NOPSEMA Advisory Board receives quarterly information reports

Annual target

2015–16

2016–17

2017–18

2018–19

Quarterly

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA submits quarterly reports to the NOPSEMA Advisory Board (the Board) comprising information, data and trends related to industry and NOPSEMA performance.

In additional to the quarterly data reports, operational reports detailing activities undertaken by NOPSEMA are submitted to the Board each quarter.

The Board may request additional ad hoc data and information prior to or during for any of its quarterly meetings. Relevant information is then collated and provided to the Board accordingly.

The reports were submitted for the quarterly Board meetings in August 2018, November 2018, March 2019 and June 2019.

In 2018–19, NOPSEMA provided the Board with copies of:

  • quarterly performance reports
  • NOPSEMA division/team/function operational reports

In addition the Board received various presentations, information, updates and reports on topical and emerging issues including:

  • decommissioning and late life asset transfers
  • amendments to the Environment regulations
  • stakeholder engagement
  • transparency
  • outcomes from the inquiry into work, health and safety of workers in the offshore petroleum industry and the HSR forum.

KPI cross-references: RPF 1, RPF 6

KPI 12

An externally validated self-assessment of performance against the Regulator Performance Framework KPIs is performed

Annual target

2015–16

2016–17

2017–18

2018–19

Annually

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA’s selection of performance measures for the RPF was validated by the Growth Centres Advisory Committee (GCAC)8 in 2015–16.

As NOPSEMA has aligned performance reporting requirements for the RPF with PGPA Act requirements, these annual performance statements also comprise NOPSEMA’s RPF self-assessment report

The GCAC unconditionally endorsed NOPSEMA’s 2017–18 RPF self-assessment report which then was published on NOPSEMA’s website, stating that:

Overall NOPSEMA’s self-assessment is a positive reflection that it has implemented the RPF and substantially met its six KPI’s.

The self-assessment is comprehensive and considers all of the regulatory functions of the statutory authority and its interactions with stakeholders. The link between evidence and performance measures is documented and NOPSEMA’s performance KPIs adequately cover the scope of regulatory activities.

NOPSEMA is an effective regulator, independently and professionally regulating offshore safety, well integrity and environmental management of petroleum and greenhouse gas storage industries in Commonwealth waters. The regulated entities support NOPSEMA in its role.

The GCAC identified an opportunity for improvement for 2018–19 - to better articulate guidance to industry on particular impacts which need to be addressed in submissions from Titleholders and Proponents.

In response, NOPSEMA has prioritised and broadened its stakeholder engagement.

Please also see KPIs 7, 8 and 9.

In summary, the following guidance to industry has been published:

  • a series of guidance for the Environment Regulations that came into force in 2019
  • a bulletin to clarify the application and interpretation of oil spill modelling presented in environment plans
  • a new guidance note on workplace arrangements
  • the draft operational risk assessments guidance note for comment

Five factsheets were also published during 2018–19 regarding marine seismic surveys, and oil spill response arrangements, strategies, dispersants and modelling.

The 2018–19 RPF self-assessment of performance has been submitted for validation to the GCAC.

KPI cross-references: RPF 4, RPF 6

8. NOPSEMA’s identified Ministerial Advisory Council

KPI 13

Support and contribute to portfolio regulation reform initiatives

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years,

As per the Australian Government’s reform agenda, NOPSEMA developed flexible work programme documents. NOPSEMA continued to ensure regulatory burden and impact was minimised for regulated entities, while still maintaining regulatory objectives.

This was demonstrated by engaging and understanding our regulated entities and other stakeholders and by undertaking regulatory activities in a timely manner.

Further details are referenced in KPI 14 and RPF KPI 1 responses below.

KPI cross-references: RPF 4, RPF 6

KPI 14

There are established cooperative mechanisms in place with identified relevant agencies

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years,

NOPSEMA has established cooperative mechanisms to interact with relevant government agencies.

These cooperative mechanisms include in- person and written exchanges of information, such as working groups and forums, attendance at both regularly scheduled and ad hoc meetings, the provision of written reports and updates, and other email and telephone exchanges.

Records of established cooperative mechanisms, related documents, exchanges, correspondence and meeting minutes are saved into the electronic document records management system and also may be recorded on appropriate internal registers where relevant.

With a view to streamlining processes under the offshore petroleum regime, NOPSEMA has been working closely with NOPTA on decommissioning matters associated with offshore oil and gas activities.

Examples of other established co-operative mechanisms that were undertaken in 2018–19 include:

  • DIIS Quarterly heads of agency meetings
  • DIIS Stakeholder Group sessions on the Review of the Offshore Safety Regulatory Framework
  • Upstream Petroleum Resources (UPR) Working Group - bi-annual meetings with state and commonwealth representatives
  • Crisis Coordination Centre9 meetings
  • Australian Antarctic Division – contract of service agreement
  • State regulatory agencies – regular meetings

9. Supports the Australian Government Crisis Committee

KPI 15

Legislative change liaison with portfolio department

Annual target

2015–16

2016–17

2017–18

2018–19

Quarterly

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA has a legislative change management framework in place. Within this framework, NOPSEMA proposes key priorities and contributes to legislative change, collaborating frequently with DIIS.

NOPSEMA participates in regular meetings with the portfolio department and all documentation, including minutes and any actions, are recorded and saved in the electronic records management system.

Over the course of the year NOPSEMA continued to contribute significantly to legislative change processes lead by DIIS.

NOPSEMA contributed significant support to DIIS in the development and finalisation of the Offshore Petroleum and Greenhouse Gas Storage Amendment (Miscellaneous Amendments) Bill 2018 and the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Amendment Bill 2018. These bills were introduced to the 45th Parliament but failed to pass before the federal election of 2019. They have been reintroduced to the 46th Parliament.

These bills contain significant amendments relevant to NOPSEMA’s functions and for which NOPSEMA has strongly advocated. Amendments supported by NOPSEMA include transfer of regulatory responsibility for greenhouse gas activities from the responsible Commonwealth minister to NOPSEMA and improvements and additions to the suite of NOPSEMA inspection and enforcement powers, in particular as they relate to well integrity laws.

NOPSEMA also contributed significantly to the development of amendments to the OPGGS Environment regulations to provide for full publication of environment plans and public comment on environment plans for exploration activities. This represents the culmination of 4 years of work by

NOPSEMA and DIIS on initiatives to improve transparency and stakeholder participation in the regime. NOPSEMA is continuing to work through implementation of these amendments including through modifications to its website and suite of guidance and advice materials.

KPI cross-references: RPF 6

KPI 16

Participation at annual general meetings for IRF and IOPER

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years,

NOPSEMA is a member of the International Regulators’ Forum (IRF) which was formed in 1993 to provide international leadership on safety-related regulatory matters. The IRF currently comprises ten member countries.

NOPSEMA is also Australia’s representative on the IRF management committee, along with Canada and Norway.

The IRF focuses on offshore safety for the international petroleum industry and exists to drive improvements in health and safety performance through collaboration on joint programmes and information sharing.

NOPSEMA’s environmental credentials have been recognised through its membership and role within the International Offshore Petroleum Environmental Regulators (IOPER) group.

The IOPER group comprises eight member countries and exists to drive improvements in environmental management performance in the global offshore petroleum industry.

NOPSEMA also participates in the various IOPER sub-committee working groups, e.g. Oil Spill Working Group, Marine Sound Working Group.

During 2018–19, NOPSEMA participated in the following:

IRF

Annual General Meeting (AGM)

Jun 2019

Mid-year Meeting10

May 2019

Management Committee meetings

Nov 2018

Feb 2019

IOPER

Mid-year meeting10

Sept 2018

Conference

May 2019

Topics included:

  • Safety culture Community of Practice
  • Performance measures
  • Standards
  • Well control
  • Operator incident investigations
  • IRF Strategic direction
  • Mitigating impacts from marine seismic surveys (marine sound working group)

In addition, in April 2019 NOPSEMA submitted an annual article to the IRF on the topic of well barriers, published online at www.irfoffshoresafety.com/monthly-articles

KPI cross-references: RPF 1, RPF 4, RPF 6

10. The 2018 AGM was in May 2018, and the 2019 AGM is scheduled for October 2019, so both fall outside the 2018–19 financial year.

KPI 17

Regulatory and corporate process audits and improvements are undertaken in line with the quality management system

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA’s quality management system (QMS) comprises over 55 individual series of policies and procedures, including a series regarding management of the QMS.

Each series has an identified audit schedule (typically two to four years) which is used to manage and plan auditing processes.

In addition to audits, improvement projects are undertaken as opportunities are identified, and in particular cases management reviews are conducted on processes.

During 2018–19, NOPSEMA’s internal audit team progressed reviews, audits and system improvements on a range of series.

The work resulted in:

  • recommendations and opportunities for improvement being raised and closed out
  • reviews of processes with stakeholders being consulted
  • QMS documents being created, corrected or withdrawn.

The annual audit report records the Quality Assurance details, which demonstrate that audits and improvements are conducted in accordance with the established procedures.

KPI cross-references: RPF 1, RPF 6

KPI 18

Completed major ICT projects are reviewed and evaluated to measure their performance in delivering objectives and value for money

Annual target

2015–16

2016–17

2017–18

2018–19

100%

n/a11

100%

100%

100%

The target has been met for the last four years.

NOPSEMA continued to implement ongoing cost-saving measures in 2018–19 that impacted the number of ICT projects established.

Criteria for inclusion in this measure include:

  • there was a business case created in the reporting period
  • it qualifies as a project under NOPSEMA’s project management system (as compared to a simple procurement)
  • the project costs over $20 000
  • the project was completed.

In 2018–19, five relevant ICT project business cases were created.

Of these, two were completed and met the criteria for reporting:

  • Electronic transmission of outgoing correspondence
  • Key compliance issues

Both these projects delivered their primary benefits on time and within budget.

Three projects are ongoing and/or deferred:

  • Meeting room upgrades (deferred)
  • Environment plan transparency (ongoing)
  • NOPSEMA online (ongoing)

KPI cross-references: RPF 6

11. The 2015-16 result is not available as this KPI was a new addition to the corporate plan in 2016–17.

KPI 19

Resourcing levels and skills are maintained within establishment requirements

Annual target

2015–16

2016–17

2017–18

2018–19

90%

100%

100%

100%

100%

The target has been met for the last four years.

NOPSEMA monitors and maintains staff skill levels through its employee performance management process that includes the consideration and review of demonstrated core competencies. Staff are required to participate in the employee management process each quarter.

NOPSEMA has built a critical mass of regulatory specialists with the necessary skill sets and expertise.

NOPSEMA maintains an establishment register and vacancies are filled according to approved operational requirements and are reviewed on an ongoing basis. Resources are allocated proportionate to risk. This KPI reports the number of positions that are filled as a proportion of the total number of established positions.

The NOPSEMA CEO and the NOPSEMA Advisory Board positions are both funded by DIIS.

NOPSEMA’s human resources team provides regular reports to the relevant minister, the NOPSEMA Advisory Board and the APSC. These reports include information about staffing levels, vacancies and recruitment.

NOPSEMA continued to action the human resources strategy and implementation plan for 2018 – 2022. This includes establishing a learning and development framework, which is currently in progress.

NOPSEMA recruited staff for critical positions indicative of industry activity.

During 2018–19, the positions status was:

Total established12 positions

125

Filled positions

125

As at 30 June 2019, 100% of the established positions were filled, comprising ongoing, non-ongoing, seconded and temporary staff.

Skill levels were maintained with all staff completing the required training and having met performance management expectations.

KPI cross-references: RPF 1

12. Establishment is defined as the agreed maximum number of positions for NOPSEMA to fulfil its legislative requirements.

KPI 20

Feedback and complaints are processed in compliance with the Regulatory Service Charter

Annual target

2015–16

2016–17

2017–18

2018–19

100%

100%

83%13

100%

100%

The target has been met for the last four years.

Note: Complaints about duty holders regarding possible breaches of offshore safety, well integrity and environmental management requirements under the legislation are managed in accordance with NOPSEMA’s notifications policy, and as such are not included in this KPI.

NOPSEMA’s regulatory services charter is published on NOPSEMA’s website.

The service standards in the charter state that NOPSEMA will provide a formal process to receive, consider and act on stakeholder feedback and complaints (about NOPSEMA).

NOPSEMA receives feedback (both positive and negative) and complaints about the agency’s service and discharging our responsibilities through various channels but also offers a dedicated mailbox: feedback [at] nopsema.gov.au (.)

NOPSEMA maintains a feedback and complaints register that includes references to relevant documents and completion/ finalisation dates to ensure the agency acknowledges all complaints received and responds to the complaints in a timely manner. The target is to acknowledge all complaints within three working days.

The table below shows the emails received via the dedicated mailbox each year.

Feedback

Complaints

2015–16

20

1

2016–17

1

6

2017–18

3

1

2018–19

0

1

In 2018–19, NOPSEMA received one complaint through the dedicated mailbox. This was acknowledged and closed out within the three day target.

NOPSEMA is always open to receiving feedback from its stakeholders and uses a variety of other tools and mechanisms to do so, e.g.

  • Requesting workshop participants to fill out feedback forms.
  • Using interactive online tools at NOPSEMA workshops/forums.
  • Providing stakeholders with opportunities to give feedback during face-to-face meetings and briefings.

This feedback is then collated, processed, analysed and actioned accordingly.

KPI cross-references: RPF 2, RPF 5, RPF 6

13. In 2016-17 one of the six complaints received was not processed and acknowledged within the target 3-day period.

KPI 21

An annual environment scan and risk review is completed

Annual target

2015–16

2016–17

2017–18

2018–19

Annually

100%

100%

100%

100%


The target has been met for the last four years.

NOPSEMA undertakes an annual environmental scan as the first step in its annual risk review process.

The scan includes the identification of external factors using a PESTLE14 tool and methodology, and an analysis of our internal strength and weaknesses by undertaking a SWOT15 factors analysis.

The scan assists NOPSEMA to identify new and emerging issues that should be considered during its annual risk review process. Subsequently, this may result in a change to how NOPSEMA assesses and controls an identified risk.

The annual risk review is undertaken by all risk and control owners whom are requested to review the identified risks, controls, actions and measures in the NOPSEMA business risk register.

The environment scan and risk review results then are also used to inform NOPSEMA’s corporate planning and annual operating planning processes, and to assist in identifying the agency’s priorities.

NOPSEMA also completes the Comcover Annual Risk Management Benchmarking Programme each year.

Finding from the 2018–19 environment scan include:

Strengths

  • NOPSEMA engagement with stakeholders
  • professional and highly skilled staff
  • NOPSEMA has a strong reputation among regulators

Opportunities

  • further investment in training and development
  • identification of knowledge gaps for research organisations
  • conferrals from states and territories.

Findings from the annual risk review conclude that all our business risks remain at the moderate to low or negligible levels.

We have again achieved an ‘Advanced’ level rating for our risk management system from Comcover in the annual benchmarking programme survey.

KPI cross-references: RPF 1, RPF 3

14. PESTLE: political, economic, social, technological, legal and environmental

15. SWOT: strengths, weakness, opportunities and threats

KPI 22

Independent audit verifies compliance with the PGPA Act

Annual target

2015–16

2016–17

2017–18

2018–19

Annually

100%

100%

100%

100%

The target has been met for the last four years.

The Australian National Audit Office (ANAO) undertakes an audit on financial statements to verify financial systems, records, and results of the agency each financial year.

The audit outcome (independent auditor’s report) is included in NOPSEMA’s annual report each year.

The report for 2018-19 stated that the financial statements of NOPSEMA:

  • comply with Australian Accounting Standards – Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and
  • present fairly the financial position of the Entity as at 30 June 2019 and its financial performance and cash flows for the year then ended.

KPI cross-references: RPF 5

KPI 23

A cost-effectiveness review of operations is undertaken and presented to industry

Annual target

2015–16

2016–17

2017–18

2018–19

Annually

100%

100%

100%

100%

The target has been met for the last four years.

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.

Each financial year, NOPSEMA prepares a report that assesses the cost effectiveness of the authority’s operations. NOPSEMA’s financial report on cost-effectiveness is provided in accordance with Regulation 62 of the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Regulations 2004.

NOPSEMA’s 2017–18 cost-effectiveness review report was published on NOPSEMA’s website in Quarter 1 2019.

For the 2017–18 reporting period NOPSEMA had total expenditure of $31.7M and an operating surplus of $0.2M. During 2018, NOPSEMA undertook a review of its Cost recovery implementation statement (CRIS), including consultation with industry. The review resulted in increases to NOPSEMA’s levies, which took effect on 1 January 2019.

NOPSEMA delivered a presentation of the report to industry and other stakeholders on 11 April 2019. The presentation included an opportunity for industry and other stakeholders to ask questions about the report and was well recieved.