The Federal Government has released a framework to ensure offshore gas decommissioning activities happen in a timely and safe manner, while also benefitting the Australian economy and environment.
The Federal Government said Australia’s Offshore Resources Decommissioning Roadmap provides a pathway for governments, industry, workers and the community to build a domestic decommissioning industry.
It supports the Federal Government’s plan for a Future Made in Australia and the country’s transition to net zero.
The Federal Department of Industry, Science and Resources said that oil and gas titleholders will spend an estimated $60 billion to decommission offshore infrastructure over the next 30–50 years.
The roadmap outlines how the Federal Government can ensure that offshore decommissioning activities benefit the Australian economy and the environment.
This includes:
- Maximising the amount of decommissioning activity that happens domestically
- Growing Australia’s industrial capability in decommissioning activities
- Creating safe, high-quality jobs to service a decommissioning industry
- Ensuring the industry pays for decommissioning
- Building the capacity of Australia’s recycling and waste management industry to manage decommissioned material
- The roadmap was developed following extensive consultation with industry and the public.
Part of the approach to decommissioning includes setting up an Offshore Decommissioning Directorate. The directorate will drive actions from the roadmap to help make decommissioning more efficient.
It will also work with industry, governments and stakeholders to help address barriers to growing a decommissioning industry that cuts across sectors. This includes partnering with international governments to strengthen cooperation on offshore oil and gas decommissioning.
Industry response
Australian Energy Producers welcomed the roadmap, which it said outlines a number of actions aimed at positioning Australia as a leading jurisdiction for the decommissioning of offshore energy infrastructure, backed by industry’s world-class skills and expertise.
Australian Energy Producers Chief Executive, Samantha McCulloch, said the roadmap recognised the significant economic and employment benefits associated with the industry’s investment in offshore decommissioning.
“For decades, these offshore oil and gas facilities have delivered energy security and substantial economic benefits for all Australians, and this next wave of investment in decommissioning will extend that economic contribution,” Ms McCulloch said.
Ms McCulloch said the roadmap acknowledges the need for a skilled workforce, clear and efficient regulations and improved collaboration across jurisdictions to maximise economic and environmental outcomes.
“Regulations that provide clarity and certainty for industry are essential, including addressing the current ambiguity on consultation requirements that is delaying decommissioning activities as well as urgently needed new gas supply projects.”
