Geology and exploration

How to get a petroleum exploration permit

Resources Victoria regulates petroleum on land and in state waters (up to 3 nautical miles from the coast). This includes running petroleum tender invitations and accepting plans for operational activities.

Oil and gas operations are regulated by the:

Getting a permit is just the first step of the exploration process. Exploration typically takes several years, and there is no guarantee that it will lead to producing petroleum.

The first stage usually involves desktop geological studies and modelling. If geophysical surveys are later needed, a separate approval process will need to be completed first. This will include consulting with all relevant persons and organisations.

If a commercially viable reservoir of gas is found and a company wants to develop it, a new and thorough regulatory process is required.

If a gas field is found to be commercially viable, safe to extract and suitable for the local area, it could bring jobs and economic benefits to the region.

Block releases for competitive bidding

Onshore and offshore in Victorian waters

Exploration permits are granted through a public tender process.

The department can either:

  • nominate areas for release or
  • consider suggestions from companies.

For each tender, Resources Victoria publishes the following on its website:

  • guidance on how to apply
  • data packages for the released areas.

You can access the state’s geological reports, past tender reports and an Annual Statistical Review of Victoria’s petroleum activities via Earth resources publications.

Explorers can also access permits by buying existing permits or via farm-in. Explorers can find out about farm-in opportunities by contacting current permit holders.

You can view current permit areas and work programs using GeoVic as a registered user (select ‘Petroleum Tenements’, then use the ‘Identify’ tool to launch the ‘Licence’ window, then choose ‘Work Program’ from its drop-down menu).

Offshore in Commonwealth waters

Offshore petroleum in Australian Commonwealth waters (from 3 to about 200 nautical miles from the coast) is regulated by 2 national bodies:

Tender bid requirements

Specific bid requirements are advertised with the tender invitation. Typically, the bidder is required to provide:

  • a technical assessment of the area
  • a detailed work program
  • proof of financial and technical capacity
  • any additional supporting information
  • a completed application form and fee.

Bids must be submitted by the deadline listed in the invitation.

What is work program bidding?

A work program sets out the office-based and field-based activities a company agrees to do during the permit term. It typically includes:

  • geological studies
  • geophysical surveys
  • exploratory drilling.

Each activity, or set of activities, is to be assigned a specific year of the permit to be carried out in. Early work will help to decide which blocks should continue to be explored and which should be relinquished on renewal (permits usually require giving up 50% of the blocks at renewal).

  • For offshore permits: the Primary Work Program covers the first 3 years. The Secondary Work Program covers the remainder of the term. The Work Program is a condition under section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2010.
  • For onshore permits: wells and surveys are often declared ‘key objects’ of the Work Program under section 27 of the Petroleum Act 1998. These must be achieved if a renewal of a permit is sought. They can only be changed in exceptional cases and must be equal or better than the original work.

How bids are assessed

The Minister may decide not to award a permit if bids do not meet the minimum acceptable criteria.

The work program designed by the applicant will depend on the size of the area, how much data is already available and how likely it is the area contains petroleum (its prospectivity). The work program should:

  • be credible, coherent and supportable
  • be realistic even if no gas is found (‘dry hole’ basis)
  • be based on a sound technical assessment
  • clearly outline each stage of work
  • increase knowledge about the area
  • include realistic timeframes, especially for approvals
  • be supported by evidence of the applicant’s technical and financial capability and past performance in Australia and overseas.

The bidding process is designed to award a permit to the applicant whose proposed work program is most likely to assess the area’s petroleum potential.

Bids are assessed by a panel and reviewed against the published criteria. The panel then makes recommendations to the Minister. The process usually takes about 3 months.

If there is a winning bid, the applicant will receive an offer that includes:

  • an exploration permit
  • conditions detailing the work program
  • onshore only: requirements for complying with the Native Title Act 1993.

Regulatory compliance

Resources Victoria regulates petroleum activities in state waters. Find out more about compliance and enforcement.

Page last updated: 13 Aug 2025