A proposal by oil and gas company BP to drill in the Great Australian Bight has been rejected by the nation's oil and gas regulator.

The energy company had wanted to drill four deep-water exploration wells in the Bight from next year.

It had to demonstrate how it would manage the risk of an oil spill and address community concerns about the environmental impact.

The National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA) said it was not satisfied that BP's environment plan met all of the regulatory requirements.

The Wilderness Society of South Australia's director Peter Owen said that BP had submitted an "inadequate application".

"It doesn't appear that BP even completed an oil pollution emergency plan or a comprehensive risk assessment," he said

"BP should take this opportunity to drop its plan to drill in the Great Australian Bight especially after it released a statement last month saying it supported action on climate change."

South Australian independent senator Nick Xenophon said the regulator's decision showed there were "significant and unacceptable risks in the proposal".

"This decision shows that what BP wants to do is hugely complex and risky and needs to have proper oversight and scrutiny," he said.

"BP has refused to release its full environmental plan and today we can see why.

"The Great Australian Bight is a priceless Australian asset."

The NOPSEMA has given BP the opportunity to resubmit a new plan for consideration.

In a statement BP said it would submit an alternative proposal.

"Yes, we are going to work hard and take the time to demonstrate we have got our EP [environment plan] right," a BP spokesperson said.

"It is usual for NOPSEMA to provide initial feedback that titleholders need to address before resubmitting an updated version.

"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."