The Australian Government Department of Industry, Science and Resources has published a consultation paper seeking feedback on reforms to decommissioning and financial assurance arrangements for the offshore oil and gas industry
Australia has up to US$60bn of offshore oil and gas decommissioning activities expected to occur over the next 30 to 50 years. Previous reforms have strengthened the offshore petroleum decommissioning regulatory framework. However, there are aspects that may require further reform to ensure industry is undertaking timely, safe and environmentally responsible decommissioning.
While the paper focuses mainly on oil and gas projects, it is also seeking input on the regulatory regime for decommissioning carbon capture and storage projects.
Proposed areas for reform
The proposed reforms aim to strengthen the decommissioning framework so industry:
• decommissions in a timely, safe and environmentally responsible way
• remains responsible for the risks and liabilities of offshore activities.
The consultation paper invites feedback on:
• the existing decommissioning framework in Australia
• lessons from international and onshore frameworks
• proposed areas for reform, including:
• decommissioning planning
• financial planning and assurance
• decommissioning and financial capacity risk assessments
• compliance and enforcement tools
• title surrender.
Feedback to the consultation paper is now open and will close on 13 January 2026. Feedback to this consultation will help the government develop these reforms and may also inform related activities.
There will be future public consultation informed by the responses to this paper, and the government will also consult on any legislative changes.
To read the consultation paper and provide feedback please visit www.consult.industry.gov.au.
