THE Federal government has agreed the powers of the National Offshore Petroleum Safety Authority need to be expanded significantly to avert any repeat of major incidents such as the Montara oil spill or Varanus Island gas explosion.

The pending outcome of the federal government's carbon pollution reduction scheme has created uncertainty for the Forest Products Commission of WA, which has had to cut staff numbers as part of a restructure to reflect the changing economy.

Apache Energy has failed in its bid to secure an injunction from the Supreme Court preventing Mines and Petroleum Minister Norman Moore from viewing a report into last year's Varanus Island gas explosion.

Mines and Petroleum Minister Norman Moore says he is "disappointed" the Federal Court has ruled in Apache Energy's favour over a claim relating to an inquiry into the Varanus Island gas explosion.

Tap Oil has received a further $6 million insurance payment over the Varanus Island gas explosion after reaching agreement with its insurers.