Oil giant BP will be forced to rework its plan to drill in the Great Australian Bight after falling short of environmental standards.
BP's application to drill four exploration wells next year has been rejected by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
"NOPSEMA is a diligent and thorough regulator and we expect to have to work hard and take the time to demonstrate that we have got our EP right," the company said in a statement.
The South Australian government agreed, saying the setback was evidence of the regulator's diligence and efficacy.
But Independent South Australian Senator Nick Xenophon will push for legislation giving the commonwealth the final say on drilling in the Great Australian Bight.
"It appears to be an accident of history that NOPSEMA has no ministerial oversight for decisions as vital as letting exploration drilling into the Great Australian Bight," he said.
The Greens are likely to support the move, saying BP has a "shocking" environmental record.
"BP clearly hasn't learned from their disastrous Deepwater Horizon spill five years ago," Senator Robert Simms said.
The Wilderness Society of South Australia, which has campaigned hard against oil and gas drilling in bight, says BP would put marine life at risk.
"The Great Australian Bight is a haven for whales, boasting the world's most significant southern right whale nursery as well as many humpback, sperm, blue and beak whales," director Peter Owen said.
The group last month released modelling showing an oil spill in the Bight risked closing all fisheries from South Australia to Victoria and Tasmania.
