A recent report by Macquarie University’s Centre for Energy and Natural Resources Innovation highlights a pressing issue regarding how the structural integrity and failure risks that come with offshore wells that are suspended, plugged or abandoned tend to be severely underestimated.
Wells that are not appropriately abandoned can pose a serious threat to the health of neighboring countries and the environment. Inadequate plugging can also result in excessive emission of methane, contributing to climate change. Moreover, leaks and operational issues can make them a significant safety hazard.
The report highlighted six recommended best practices and regulatory reforms that would be useful for handling plugged and abandoned oil and gas wells. Upon its launch, professor of Energy and Resources Law at Macquarie and writer of the report, Tina Soliman-Hunter, in collaboration with the members of the Maritime Union of Australia (MUA) urged the need to strengthen the regulatory framework for end-of-life offshore oil and gas assets.
CODA's forecast emphasised that around 51% of Australia's on- and offshore decommissioning liability will occur before 2030, with 23% occuring between 2031 and 2040. This liability considers the removal of offshore material, most of which comprises steel and concrete. The removal of a majority of offshore infrastructure material would depend on NOPSEMA requirements.
According to an article by Petroleum Australia, deputy leader of the Victorian Greens and Member of the Victorian Legislative Council, Sarah Mansfield stated that nearly 150,000 tonnes of methane were being emmitted by just a handful of surveyed sites each year. She also initiated the inquiry into abandoned and plugged wells, given Victoria's gradual transition towards renewables.
