Australia

• Region: Australia
• Topics: Decommissioning
• Date: 17 Feb, 2025

Global law firm Clifford Chance has provided its feedback on Australia’s recently-published roadmap for decommissioning, calling the blueprint a welcome development but one that needs "tangible" support to ensure success.

In its report – The Road to Decommissioning: Establishing a Global Decommissioning Hub in Australia – it charts the steps Australia plans to make following the release of the government’s long-awaited Offshore Resources Decommissioning Roadmap. In its closing remarks on where to next for the industry, Clifford Chance highlights some of the many opportunities –and challenges –ahead.

"There is significant potential for growth in the Australian decommissioning industry through involvement in upskilling employees, re-purposing existing ports and building facilities that will improve the efficiency of recycling decommissioned materials," it states. "The government's commitment to ensuring Australia is equipped to grow the decommissioning industry is a welcome development, which needs to be matched with tangible actions."

Testimony to Australia's continuing commitment to energy transition, the main objective of the roadmap is to develop a world leading decommissioning hub in Australia. This proposed hub will service global demands, seizing the opportunity to capitalise on the estimated US$60bn spend on decommissioning offshore facilities over the next 30 to 50 years. Among the growth opportunities highlighted by Clifford Chance are prospects for international collaboration. It notes that Australia lacks adequate vessels for engaging in heavy offshore decommissioning and there is also an opportunity for stakeholders to collaborate with other global markets to import machinery. Port modification is also seen as another area of opportunity. No existing Australian port researched by CODA and KPMG has all the required attributes to handle offshore decommissioning, Clifford Chance noted in its report. This means existing ports will need to be modified to host decommissioning.

But ultimately, this is only the beginning of the journey, it adds. "It is clear that the Australian government, and its state counterparts (who must come along this journey), are still in the information-gathering phase of developing the industry, as there has been a recent request for tender by the Department of Industry Science and Resources for technical advice relating to decommissioning.

"It is a long road ahead, but the areas of development highlighted by the government should act as a checklist for interested parties in ensuring that Australia is at the forefront of the decommissioning industry.

"The roadmap is a welcome and significant stepping stone in Australia’s energy transition journey, and in developing and fostering stakeholder engagement on Australia's ambitions to become a global leader in the offshore decommissioning sector. Australia's next step is eagerly awaited."

• Region: Australia
• Topics: Decommissioning
• Date: 14 Feb, 2025

The end of 2024 saw the Australian Government’s Department of Industry, Science and Resources release ‘Australia’s Offshore Resources Decommissioning Roadmap’, summarising the Government’s plan to create a sustainable domestic decommissioning industry.

In the Minister’s Foreword, Madeleine King, Minister for Resources and Minister for Northern Australia, stated, “An Australian decommissioning industry can be part of our economic transformation as we move to net zero. It can support new jobs for our skilled offshore workforce and attract new investment for Australian businesses. It can also grow domestic industrial capabilities while supporting the circular economy. This industry will play a key role in the continued protection of our marine environment by ensuring Australia continues to meet the robust environmental standards under Australian and international law.

“The foundations of an Australian decommissioning industry have been laid. We have the skills and expertise to underpin a world-class decommissioning industry, backed by strong regulatory settings.”

The roadmap outlines the steps the Australian Government will need to take to coordinate and guide policies while setting clear regulatory expectations in order to seize the estimated AUD$60bn in economic opportunity lying in wait.

To implement the roadmap, a dedicate Offshore Decommissioning Directorate will be established within the Department and will work with industry, unions, state and territory governments, First Nations groups, international organisations and local communities to help build an Australian decommissioning industry. The Directorate will focus on the most pressing issues identified by stakeholders and also work across governmental bodies to necessary policies in place to maximise the contribution of decommissioning to the Australia economy.

In line with the roadmap, the Australian Government will implement the following actions to support the development of the regions’ decommissioning industry:

• Make decommissioning more efficient – through the establishment of intergovernmental agreements to enhance cooperation and develop updated benchmark estimates for costs to allow for the prioritisation of government policies and support.
• Improve viability of the decommissioning pipeline and safeguard the marine environment – this will be done be developing rigorous financial assurance reforms and by continuing the progress in reviewing Australia’s offshore environmental management framework.
• Be a trusted partner and advisor to industry, communities and the workforce – by deepening engagement with advanced offshore decommissioning jurisdictions, including the UK and Norway, and pursue sharing and collaboration opportunities with First Nations groups to ensure they are partners in the transition to net zero.
• Drive alignment between government programmes to support an offshore decommissioning industry – where support will be given to the industry to connect with government funding bodies across the supply chain and priorities given to government-led decommissioning projects such as the Northern Endeavour.
• Support a skilled, diverse and safe offshore decommissioning workforce – where the government will continue to review Australia’s offshore safety framework to protect the health and safety of workers and will work with unions and the local community along with Jobs Skills Councils to ensure a skilled workforce is developed.

More information, as well as the full roadmap, can be found on the Government’s website.

• Region: Australia
• Topics: Decommissioning
• Date: 10 Feb, 2025

Australia’s leading decommissioning and abandonment conference (D&A AUS 2025) will be opening its doors once again this June for a jam-packed schedule full of more industry updates, case study analyses, networking opportunities and VIP events than ever before.

Taking place at The Crown Perth on 10-11 June, 2025, this year’s edition, once again in partnership with CODA, will shine the spotlight on the region’s regulators, including an in-depth session with NOPSEMA discussing the roadmap for new technology implementation within the Australian decommissioning market.

Attendees will also have the chance to hear the latest updates regarding the notorious Northern Endeavour project in a talk led by the Department of Industry Sciences and Resources, as well as develop a deeper understanding of the on-going environmental research conducted by NDRI, AIMS and ANSTO in a panel session dedicated to identifying current gaps in the research.

Australia’s largest operators will also play an integral role in the conference, including Chevron, ExxonMobil and Woodside who will take centre stage to delve into regional case studies from their current decommissioning portfolio.

This year will feature the debut of the newly revamped expo hall, boasting double the number of booth as previous years and a fresh new look promising to be the one-stop-shop for all decommissioning needs.

As the content value of the conference has continuously elevated, so too have the networking opportunities, allowing delegates to indulge in the VIP treatment. This year, attendees can kick-start proceedings with the Pre-Conference Icebreaker Drinks, garnering new relationships and reconnecting with old faces over cocktails and canapés before toasting to the exciting days to come. D&A AUS 2025 will also once again host its invaluable Networking Drinks after the Day One sessions have ended, allowing delegates to relax, unwind and debrief.

Adding a touch of luxe to the events calendar, this year’s Deluxe Pass Holders will once again be treated to a Deluxe Dinner. The exclusive gathering offers a unique opportunity to connect with fellow delegates in a more intimate setting over a five-course menu. To round out the conference on a high note, VIP Pass Holders will enjoy a night of entertainment complete with a premium drinks package, a three-course meal and plenty of surprises in store.

Featuring 500 delegates, 50 new technology demos, 50 expert speakers, five interactive exhibition and networking spaces and five bespoke networking sessions, D&A AUS 2025 promises to be an unmissable event in the region’s oil and gas calendar.

• Region: Australia
• Topics: Decommissioning
• Date: Feb, 2025

The end of 2024 saw the Centre of Decommissioning Australia (CODA) celebrate its third anniversary of serving as the region’s peak body for decommissioning, and the organisation intends to keep the momentum building during its fourth year of operation.

Francis Norman, CEO of CODA, shared his delight with the milestone achievement, stating, “Reaching our third anniversary is a proud moment for CODA. It reflects not only the strength of our partnerships but also the dedication and collaborative spirit of everyone in shaping the future of decommissioning in Australia.”

Over the three-year period, CODA has grown to become a 130+ partner organisation across the entire supply chain.

As the organisation remains committed to advancing the industry within Australian waters, CODA has conducted various studies and initiatives during its operational years. Those include:

• Decommissioning Forward Outlook – a dynamic, interactive tool which provides a comprehensive view into Australia’s offshore oil and gas infrastructure.
• Global Review of Decommissioning Planning and Execution Learnings – a study which identified the key learnings for comparable jurisdictions and offered insights to improving the planning and execution of future decommissioning projects.
• Development of a Decommissioning Innovation and Technology Roadmap – the report highlighted innovative approaches and technologies which drew inspiration from global practices.
• Understanding the Opportunity for Local Disposal and Recycling Pathways ­– the report explored the opportunities for local disposal and recycling to enhance sustainably within the decommissioning process.
• Western Australia Decommissioning Hub Location Study – a study which aimed to identify optimal locations for decommissioning facilities to support the growth of the region’s domestic dismantling, recycling and disposal industry.
• Skills Review for the Australian Oil & Gas Decommissioning Industry – a comprehensive overview which assessed the capabilities of the current and future workforce while laying a foundation for a cohesive strategy to develop skilled employees.

The above initiatives have not only aided in advancing industry knowledge, but played a vital role in highlighting the importance of collaboration in addressing the complexities of decommissioning.

Norman concluded, “The work we’ve achieved together – delivering key studies, building industry resources, and fostering collaboration – has set a solid foundation for continued progress. I want to thank all of our partners and the Jobs, Tourism, Science and Innovation Department of the WA Government for their valuable support. Here’s to many more milestones ahead.”

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

The Australian government is seeking expert guidance to dismantle over 200 aging oil and gas structures set for decommissioning this year. The Department of Industry, Science, and Resources (DISR) has issued a call for technical specialists to oversee the process, ensuring compliance with environmental and regulatory standards.

With a wave of decommissioning ahead, Australia is preparing for large-scale offshore infrastructure removal. The Centre of Decommissioning Australia (CODA) projects significant activity between February and July 2025. The scope includes 41 platform wells, 34 subsea wells, 15 exploration wells, multiple production units, pipelines, and various subsea structures.

Strengthening regulations and industry oversight

The growing number of obsolete offshore installations has prompted a tightening of Australia’s regulatory framework. Amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) have introduced stricter financial requirements, increased oversight on asset transfers, and implemented trailing liability measures—holding companies accountable long after operations cease.

CODA estimates decommissioning liabilities at approximately USD $40.5 billion, with well plug and abandonment (P&A) and pipeline removals making up the bulk of costs. In response, DISR has created a dedicated Decommissioning Branch, recruiting specialists to refine policies, assess risks, and align strategies with international best practices.

Positioning Australia as a decommissioning leader

Beyond environmental and financial safeguards, Australia sees an opportunity to build a competitive decommissioning industry. With an estimated $60 billion in offshore retirement costs over the next 30–50 years, the government is laying the groundwork for a domestic sector that could drive job creation, innovation, and expertise.

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is leading efforts to uphold safety and environmental protocols throughout the process. By establishing best-in-class decommissioning capabilities, Australia aims to not only manage its offshore legacy but also export its expertise to global markets, transforming a costly challenge into an economic opportunity.

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

Woodside Energy has released an update of the company's decommissioning activities for the fourth quarter of 2024.

The removal of the Griffin Riser Turret Mooring (RTM) has been a highlight for the company as it marked the removal of nearly 25000 tonnes of infrastructure that included over 200 kms of pipe and 100 subsea structures that covered the Enfield, Echo Yodel, Stybarrow and Griffin fields. RTM removal besides, 20 wells have also been permanently plugged.

The RTM was recovered without significant obstacles to be transported to the Australian Marine Complex at Henderson, Western Australia, where its components will be cleaned and disassembled for recycling or reuse. 

The Griffin field that is situated off 65 km north west of Onslow and 94 km north east of Exmouth had served in its lifetime Western Australia’s  power needs with not only 62 billion cubic feet of gas, but also 167 million barrels of oil.

McDermott's EPR contract in Stybarrow

Woodside's decommissioning campaigns at Stybarrow included the plugging and abandoning of three wells, removal of several moorings, structures, and wellheads that covered multiple fields offshore Western Australia. Last year, the company plugged and abandoned seven of 10 Stybarrow wells, recovered more than 90 subsea structures including wellheads, Xmas trees
and manifolds, and recovered 149 km of pipe. 

Woodside's decommissioning work in Stybarrow was supported by McDermott under an engineering, procurement and removal contract.

“This award not only demonstrates McDermott’s proven track record in undertaking deepwater projects of diverse scopes, but it also highlights the critical importance of decommissioning in the offshore industry.

“With our seamless integration of engineering, fabrication, and offshore mobilisation expertise, we believe we are well-equipped to execute this project efficiently and responsibly, ensuring the safe recovery and removal of the Stybarrow DTM buoy,” said Mahesh Swaminathan, Senior Vice President, Subsea and Floating Facilities, McDermott.

The contract enables McDermott to fully remove the Stybarrow disconnectable turret mooring (DTM) buoy, and provide project management and engineering services for the recovery, transportation and offloading of the DTM buoy to an onshore yard for dismantling and disposal.

Allseas' role in Bass Strait 

The Bass Strait decommissioning work continues as well, with plug and abandonment completed on the Perch and Dolphin facilities. Steel gravity based monotowers, the Perch and Dolphin facilities saw the deployment of DOF multi-purpose support vessel (MPSV) Skandi Darwin. 

The MPSV's floating support asset can accomodate the whole workforce, eliminating crew transportaion costs. It also allows to complete abandonment operations on non-producing facilities which do not have accommodation based on them. 

Speaking of the MSVP, Marine Field Superintendent, Matt Barney said, “We’re excited to start utilising the MPSV to expand our capabilities and adopt new technology to identify efficiencies, while ensuring the work can be completed safely.” 

Allseas is also part of the Bass Strait decommissioning campaign, whereby the company will be dismantling up to 12 retired platforms from the region. “This landmark decommissioning project represents a significant milestone for Allseas in Australia,” said Evert van Herel, General Manager of Allseas Australia. 

To know more about Australia's decommissioning scene, click here. 

• Region: Australia
• Topics: Decommissioning
• Date: January 2025

The Maritime Union of Australia (MUA) is looking forward to working with the new Offshore Decommissioning Directorate that has been established by the Australian Federal Government

This is a welcome development that signals to all stakeholders that offshore oil and gas decommissioning opportunities will be in the forefront of government thinking over the coming years and decades. The Union will continue to raise concerns and fight for a roadmap that delivers everything we should expect: full decommissioning, done properly, and all the high quality, safe and skilled Australian jobs and environmental care that is an essential component of the just transition from hydrocarbon industries to renewable energy projects offshore. 

The Union is actively engaged with the Decommissioning Directorate to shape its implementation strategy and ensure it prioritises outcomes that reflect the interests of its members. The MUA reiterates the need for:

• Industry-funded ports and infrastructure to support decommissioning efforts.
• Comprehensive amendments to the Sea Dumping Act and the Recycling and Waste Reduction Act 2021.
• A Secure Jobs Code, mandating standards for government procurement.
• Mandatory domestic recycling and responsible disposal of decommissioned materials.
• Licensing systems for companies and workers to ensure high safety standards and accountability. 

“Decommissioning is well underway, yet offshore workers continue to face unacceptable hazards, including poorly maintained rigs, fatigue, and hydrocarbon spills. The MUA is steadfast in our commitment to holding government and industry accountable for improving safety, environmental protections, and conditions on the job,” said Thomas Mayo, the Assistant National Secretary of the MUA.

“The release of the Roadmap underscores the critical role the MUA has played in shaping this initiative, and now is a critical time to address several significant shortcomings. While we welcome the establishment of a Decommissioning Directorate, the roadmap falls short of the robust framework our members deserve. The lack of concrete commitments, such as industry-funded infrastructure, checks and balances such as independent verification of completed work, and strengthened worker safety protections, is concerning,” Mayo explained.

“This moment cannot be overstated. Our public response is a clear signal to all stakeholders – government, industry, and our members – that the MUA is increasingly dedicating attention and resources commensurate with the significance of this opportunity. We call on the Federal Government to heed the expertise of the decommissioning workforce and adopt the Union’s upcoming further recommendations to the Directorate. Complacency is not an option,” Mayo added.

• Region: Australia
• Topics: Decommissioning
• Date: January 2025

Following Australia's first operator-supported offshore decommissioning liability assessment, several measures have been identified to reduce cost based on the insights generated from the asset databases.

By adjusting the work breakdown structure of the costed decommissioning database, a quantum of reduction that can be targeted for key measures has been estimated:

• A 15% saving on overall liability can be achieved by limiting activities to preparation, disconnection, cleaning and site remediation.
• A combination of three key factors namely, a dedicated P&A workgroup, application of a technical limit approach and application of new technology would provide an estimated 10% saving on overall liability.
• The use of a re-floating and towing method in place of a heavy lift vessel for large jacket substructures holds a potential cost saving opportunity of 4%.
• The identification and development of designated ports and marine facilities on the West coast to handle large structures and marine spreads has the potential to reduce the overall decommissioning liability by 4%.
• A campaign approach across multiple assets is required to spread the high Wells P&A working group- equiv. drill to limit concept new technology cost of equipment mobilisation across a portfolio of compatible decommissioning projects, with a cost reduction of 3% seen as a reasonable target based on multiple campaign opportunities nationwide. 
• The opportunity to leave such sub-structures (5 in Australian waters) in place represents a cost saving of 0.5% on the overall liability. 

In order to maintain continuity of savings on the liability, effective industry-wide knowledge sharing should be ensured, failure of which will risk sub-optimal cost reduction outcomes. 

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

Australia’s offshore oil and gas industry is undergoing a seismic shift, with an estimated 5,695 kilotons of infrastructure set to be decommissioned from its coastal waters by 2060 and beyond.

This monumental effort, spanning both onshore and offshore activities, involves a broad range of businesses, from initial planning and permitting to dismantling offshore platforms and recycling materials. It’s a complex process that includes plugging oil and gas wells, removing pipelines, dismantling steel structures, and safely disposing of waste materials. As the industry adapts to the future, the scale of decommissioning is expected to evolve, and the potential impact on Australia’s economy, environment, and job markets is immense.

The expanding offshore decommissioning value chain

Australia’s offshore decommissioning value chain is vast, with many key players involved in various stages of the process. Key activities include:

* Planning and securing necessary approvals: Obtaining government permits and satisfying environmental regulations are crucial first steps.

* Removal of subsea infrastructure: This includes plugging and abandoning over 1,000 wells, removing more than 4,960 km of pipelines and 1,700 km of flowlines from the seabed, and dismantling a host of offshore facilities such as fixed production platforms and floating production storage facilities

* Waste management and recycling: Steel, plastics, and other materials are salvaged and recycled, while hazardous materials are safely disposed of.

The Gippsland Basin, located off the coast of Victoria, holds a significant portion of the offshore infrastructure, accounting for about 9% of the total materials slated for decommissioning. However, the bulk of the work lies in Western Australia, where 89% of the material to be removed is concentrated. The sheer scale of this operation requires a coordinated effort among various stakeholders, including government agencies, private companies, and environmental organizations, to ensure that decommissioning is done responsibly and efficiently.

The costs and economic implications

The cost of decommissioning in Gippsland Basin and North Carnarvon Basin alone is projected at US$11bn by 2032. This is just the beginning, as decommissioning peaks are expected in 2033-2037 and 2043-2047, corresponding with the end of life for large infrastructure projects.

With the ongoing evolution of offshore wind, decommissioning activities will only become more extensive and expensive. The pipeline of decommissioning projects is projected to continue expanding well into the second half of this century, shaping Australia’s energy landscape for decades to come.

The information in this article is sourced from the Department of Industry, Science and Resources. You can read more here

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

A groundbreaking offshore construction vessel is being used for a Gippsland Basin decom contract, which will provide a safer and more cost-effective removal of platforms.

The Esso Australia Pty Ltd (Esso Australia), a subsidiary of ExxonMobil Australia, recently awarded Switzerland-headquartered Allseas, a leading contractor in the offshore energy market, the contract to remove up to 12 retired platforms from the Gippsland Basin in the Bass Strait, with a combined weight of approximately 60,000 tonnes. It covers up to 12 topsides and up to 11 steel jackets.

Allseas will utilise the Pioneering Spirit, which the company says is the largest, most versatile offshore construction vessel in the world, designed for the single-lift installation and removal of offshore platforms and the installation of record-weight pipelines.

The emergence of Pioneering Spirit sets new standards in offshore installation and decommissioning, according to Allseas. Capable of lifting entire platform topsides of up to 48,000 t and jackets up to 20,000 t in a single piece, it significantly reduces the amount of offshore work associated with installation and decommissioning, moving the work onshore where it is safer and more cost effective and reducing the time required to execute such contracts. The vessel set a new world record for the heaviest lift ever performed in July 2024, when it removed the last platform of the Shell Brent field in the North Sea, Brent Charlie, with topsides weighing 31,000 t.

Allseas plan to remove all the structures with Pioneering Spirit in just three to four months, starting late 2027. Once removed, the facilities will be transferred to barges or vessels for load-in to the Barry Beach Marine Terminal in Victoria for dismantling and recycling by a separate onshore contractor. Planning and engineering work is already underway.

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), with its regulatory priorities, aims to address the numerous challenges surrounding offshore decommissioning in Australia. Some of the most common ones include:

Decommissioning liability after title surrender

Australia's decommissioning industry appears to be lacking a fixed plan about its end-state, thereby affecting upcoming decommissioning projects. An additional disadvantage is NOPSEMA's recently introduced 'trailing liability' which enables former titleholders to be called back to work on residual work. Taking into account the immense costs and liability involved, the risk of future decommissioning liability following title relinquishment needs to be appropriately addressed by companies planning decommissioning campaigns. 

Dearth of experienced and skilled personnel

In its recent skills review, the Centre of Decommissioning Australia (CODA) recognised a significant shortcoming of resources in a number of areas including recycling and waste management, regulatory compliance management, decommissioning planning and reporting and stakeholder management and consultation. One major challenge is that the investment in oil and gas projects and renewable energy industry prevents the existing oil and gas workforce from transitioning their skills to decommissioning. It is therefore important for the government at a state level to address these issues and ensure that project work and revenue remains in Australia.

Limited onshore facilities

The availability of limited onshore facilities and ports that are capable of dismantling, recycling, disposing and handling massive topside and substructure loads is found to be a major challenge. In addition to this, the long distances and cost of chartering vessels have a significant impact on the cost and time of decommissioning. Building ports and onshore facilities that fulfil these purposes would help address these challenges.

Lack of vessel availability 

A limited supply of vessels poses a significant challenge for decommissioning project planning. This is exacerbated by ongoing oil and gas investments as well as emerging renewable energy projects like the offshore wind project. Promoting clarity and openness around upcoming decommissioning projects would therefore help titleholders to better plan and collaborate. 

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

The Offshore Decommissioning Directorate is leading the implementation of Australia’s Offshore Resources Decommissioning Roadmap, a strategic initiative focused on growing the country’s offshore decommissioning industry. To better support the sector’s growth, the Directorate is seeking input from stakeholders to determine which decommissioning activities are most valuable to different industry players. This feedback will guide efforts to overcome barriers and make the decommissioning process more efficient.

The Roadmap’s key objectives include promoting Australia as a global leader in safe, efficient, and environmentally responsible decommissioning practices, expanding the domestic decommissioning industry, and improving interactions with regulatory systems. While the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) remains the regulator for safety and environmental approvals in Commonwealth waters, the Directorate is working to enhance collaboration across the sector.

To achieve these goals, the Directorate is partnering with a wide range of stakeholders, including industry leaders, unions, state and territory governments, First Nations groups, local communities, and international organisations. By encouraging collaboration, improving transparency across the decommissioning pipeline, and offering expert guidance on policy matters, the Directorate aims to ensure that the decommissioning industry operates in line with the Australian Government’s Future Made in Australia agenda.

The Directorate is also focused on strengthening community confidence in regulatory frameworks, ensuring that decommissioning remains an offshore industry responsibility. By collaborating with other governments to share knowledge and best practices, the Directorate is helping to grow the industry’s knowledge base and position Australia as a leader in decommissioning globally.