The Australian Securities & Investments Commission (ASIC) has taken note of the additional US$239mn that Woodside Petroleum Limited (Woodside) has provided for its decommissioning requirements.
In its financial report for the year ended 31 December 2021, Woodside estimated that the extra costs would primarily come from the removal for rigid plastic-coated pipelines.
ASIC continued that Woodside has also improved its disclosure of the basis to provide for future restoration costs. This includes disclosing the types of offshore and onshore infrastructure assets for which full removal has been provided; that full removal has not been provided for certain pipelines and infrastructure, parts of offshore platform substructures, and certain subsea infrastructure; and an indication of the additional costs if certain items for which full removal has not been provided for are not exempted from full removal by The National Offshore Petroleum Safety and Environmental Management Authority.
Although acknowledging the extra capital that was being observed, ASIC, as part of its financial reporting surveillance programme, also raised concerns about the offshore infrastructure assets that were not included for full removal in the restoration provision in Woodside’s financial report for the year ended 31 December 2020, and the adequacy of related disclosures. ASIC said that it is continuing its inquiries about why Woodside did not allow for the full removal of certain infrastructure assets in its financial report.
D&A Aus 2022
From 10-11 May, the first ever Decommissioning and Abandonment conference will be arriving in Perth, Australia to provide the offshore community with the best blueprint for the wave of decommissioning projects on the horizon. For more information, download the brochure here: https://offsnet.com/da-aus/conference-brochure
Global Accounts & Australasia Regional Manager
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