The Australian government has started sounding out specialists to tackle the decommissioning of more than 200 pieces of aging oil and gas infrastructure, all set for the scrapheap this year.
The Department of Industry, Science and Resources (DISR) has issued a call for technical specialists to guide the dismantling of aging oil and gas platforms and associated infrastructure in Australian waters, with a focus on minimising environmental impact.
The move comes as Australia braces for a surge in decommissioning activity. According to the Centre of Decommissioning Australia's (CODA) Decommissioning Forward Outlook, the initial contract period from February to July 2025 will see significant activity.
The program spans 41 platform wells, 34 subsea wells, 15 exploration and appraisal wells, 13 fixed facilities, two floating production units, 15 pipelines, 33 flowlines, 19 static umbilicals, and 34 other subsea structures.
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The tender, published on January 9, 2025, outlines the need for expert advice to navigate the complexities of decommissioning under Australia's newly tightened regulatory framework.
Regulatory reforms and industry challenges
The volume of Australia's aging offshore oil and gas infrastructure is pushing decommissioning to the top of the government's agenda, sparking a significant overhaul of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act). Research from CODA suggests there is a combined liability of about USD $40.5 billion (including wells and facilities), with well P&A and pipeline removal accounting for the majority of estimated spend).
With so many platforms nearing the end of their operational lives, authorities are tightening the regulatory net to safeguard both taxpayers and the environment.
Recent amendments have ramped up financial assurance obligations, imposed stricter oversight on asset transactions, and introduced groundbreaking trailing liability provisions—ensuring companies remain accountable long after their operations cease.
The Department of Industry, Science, and Resources (DISR) has launched a dedicated Decommissioning Branch and is actively recruiting experts to shape policy, operational strategies, and risk assessments for this high-stakes sector.
Advisors will tackle complex challenges, from validating technical and financial plans to benchmarking against international best practices. They'll also navigate the intricate maze of stakeholder engagement, addressing regulatory and environmental hurdles as Australia seeks a safer, more sustainable offshore legacy.
Forging a new frontier: Australia's push to dominate decommissioning
The government is seizing a golden opportunity to transform the costly dismantling of redundant oil and gas infrastructure into a thriving domestic industry. With an eye on the estimated $60 billion in spending required to retire offshore installations over the next three to five decades, plans are in motion to establish Australia as a global leader in decommissioning expertise.
At the core of this vision is a detailed roadmap outlining the scope of the emerging sector and its capacity to generate jobs, innovation, and expertise. The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is responsible for enforcing safety and environmental standards during the decommissioning process.
This initiative aims to address Australia's offshore legacy while potentially sharing its knowledge with other countries, presenting an opportunity for economic growth and environmental management.
