Australia’s Department of Industry, Science and Resources has reported back on common issues and concerns regarding the decommissioning process, following an industry and stakeholder consultation process as part of its reforms overhaul.
It comes as Australia seeks to tighten financial and regulatory safeguards around offshore oil and gas decommissioning, amid concerns that companies could leave taxpayers exposed to costly clean-up liabilities.
The Department said it was running its targeted consultation on the practical workings of proposed regulatory design amid updates to offshore decommissioning and financial assurance reforms.
Common themes to emerge from stakeholders included the need for:
• Earlier and regularly updated decommissioning planning
• Robust and credible decommissioning cost estimates
• Greater public transparency of decommissioning information
• Stronger financial assurance requirements
• Clear and effective enforcement options capable of intervening where required
• Clear regulatory triggers and expectations
The consultation process focused on a range of issues including decommissioning planning; financial planning and assurance; decommissioning and financial capacity risk assessments;
compliance and enforcement tools; and title surrender.
The Department said that it received 38 submissions and published 30 responses, while issues identified have “directly shaped” the proposed model, including its emphasis on:
• Staged planning
• Greater transparency
• Effective compliance and enforcement tools
• A proportionate, risk-based regulatory approach
“We are now conducting roundtables and meetings with stakeholders to test the regulatory design for the reforms,” the Department noted.
“The focus of this consultation is on technical and implementation issues. This includes how the model would operate in practice across different project types and life cycle stages.”
It said this targeted feedback would help reduce the risks of “unintended consequences” and ensure a robust, proportionate and balanced regulatory regime.
“Our reforms seek to ensure industry decommissions offshore infrastructure in a timely, safe and environmentally responsible way. This includes remaining responsible for the risks and liabilities of offshore activities,” the Department said in a statement.
There is expected to be a further consultation on the legislative changes in 2027.
