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:
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.
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.
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.
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.
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.
ExxonMobil-subsidiary Esso Australia Pty Ltd is gearing up to present its decommissioning plan in Bass Strait before the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) early this year
The decommissioning campaign that will be undertaken in Bass Strait and the Onshore Reception Centre involves assets comprising 19 platforms with an estimated 400 wells, six subsea facilities and more than 800 kms of subsea pipelines.
Esso is all set to finally bring the curtains down with the Bass Strait decommissioning as most of the fields from the region are nearing the end of productive life after having served Australia's energy needs for more than 50 years. The first campaign will focus on topsides removal of up to 13 facilities, besides removing two monotowers and the upper jacket sections of up to 10 steel piled jacket (SPJ) facilities. These structures will be offloaded for dismantling at the Onshore Reception Centre at Barry Beach Marine Terminal, following which the end resources will be sent mostly for recycling, and the rest for disposal. Esso's association with the Barry Beach Marine Terminal can be traced back to the 1960s since when this port facility from South Gippsland has been the supply depot for Bass Strait oil and gas operations.
The campaign will see round-the-clock marine activities to remove around 60,000 tonnes of offshore facilities, including topsides and jackets. The facilities are predominantly comprised of steel, with the rest including primarily construction materials such as concrete, stainless steel, copper, wood and plastic.
Esso has onboarded Allseas Marine Contractors Australia who will be deploying its heavy lift vessel (HLV), Pioneering Spirit, for the project. Capable of removing entire offshore structures at one go, this vessel has the task covered in a matter of few months, allowing Esso to save considerably in time and costs. “This historic project gives us an opportunity to showcase the capability of our single-lift technology in challenging environments like the Bass Strait,” said Evert van Herel, General Manager of Allseas Australia. “We’re very much looking forward to working with Esso Australia to make this a successful project and thank them for their trust in Allseas to carry out this landmark project!”
Australia's decommisioning industry regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in its Decommissioning Compliance Strategy 2024-2029 outlines the key steps taken to achieve its objective for decommissioning all petroleum wells, structures, equipment and property in Commonwealth waters.
NOPSEMA's vision is to ensure that all decommissioning activities are completed in a timely, safe and environmentally responsible manner. To achieve this, the authority has laid out a list of targets that aim to reduce uncertainity and support the transparency of NOPSEMA's regulatory actions. These targets provide simple, time-based expectations for decommissioning. The approach is shaped by criteria that focus on the time to end of production, uncertainity surrounding that timing, financial capacity and the titleholder's planning performance.
Potential regulatory actions for the four risk tiers in relation to decommissioning include:
The Maritime Union of Australia (MUA) has expressed its support for the establishment of the Offshore Decommissioning Directorate by the Australian Federal Government. This initiative highlights the government's focus on offshore oil and gas decommissioning opportunities over the coming years.
The Union remains committed to advocating for a comprehensive roadmap that ensures full and proper decommissioning, emphasizing high-quality Australian jobs, workplace safety, and environmental care as part of a just transition from hydrocarbon industries to offshore renewable energy projects.
Thomas Mayo, Assistant National Secretary of the MUA, stated, “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.”
He further emphasised the need for action, adding, “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 concluded, “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.”
The MUA's engagement underscores the importance of ensuring offshore decommissioning is conducted to the highest standards, safeguarding both workers and the environment.
The presence of existing offshore industries positions Australia well to enhance its decommissioning industry.
For decommissioning activities to be carried out efficiently, an experienced workforce, the right vessels available at the right time, and a culture of safety and environmental stewardship are key requirements.
Australia’s domestic workforce exhibits extensive skill and experience in the oil and gas industry. This means that a majority of them can be re-deployed and re-skilled for decommissioning projects supporting Australia’s energy transition. However, the emergence of the renewable sector makes attracting and retaining a workforce significantly challenging.
In Australia, vessels are not hosted but instead imported for heavy offshore decommissioning. While the local availability for heavy lift and specialist vessels don’t appear to be a strategic opportunity, the domestic workforce can provide crew and support for these activities.
Offshore decommissioning will mostly be concentrated in south-east and north-west Australia, with the south-east region hosting significant offshore wind generation in the future. Offshore renewables construction could increase competition for infrastructure and capability, including ports, which requires careful management and coordination.
Australia’s decommissioning industry is well-positioned, with the presence of a domestic recycling industry playing a key role in the waste management phase of offshore decommissioning. However, there are some critical knowledge gaps that need to be addressed. These include innovation on the impact of contaminants on the environment and ecosystems, possibilities to develop new recycling pathways and technologies, and more efficient cleaning and waste management processes.
Australia’s availability of innovative products and technologies creates an opportunity for global exports to other decommissioning markets. The ability to create new innovative products and services makes Australia a significant contributor to the global decommissioning market.
Planning and preparation are underway for Australia’s largest offshore decommissioning project. Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia, has awarded Allseas the contract to dismantle up to 12 retired platforms from the Gippsland Basin in the Bass Strait.
The platforms, with a combined weight of approximately 60,000 tonnes, mark a historic milestone for offshore operations in the region.
For the first time, Pioneering Spirit will bring its revolutionary single-lift technology to Australian waters. This cutting-edge capability enables the removal of entire offshore structures – both topsides and jackets – in a single lift, allowing the massive scope of work to be completed within just a few months.
“This landmark decommissioning project represents a significant milestone for Allseas in Australia,” said Evert van Herel, General Manager of Allseas Australia. “Over the past 20 years, we’ve built a strong track record delivering subsea pipelay and construction services for major greenfield projects in these waters. It’s an honour to now bring our expertise to the first removal of platforms of this scale from Australian waters.”
The ambitious timeline includes the removal of up to 12 topsides and 11 steel jackets during a 3–4-month campaign set to begin in late 2027. Once removed, the structures will be loaded onto barges or vessels for transport to the Barry Beach Marine Terminal in Victoria, where they will be dismantled and recycled by an onshore contractor.
The engineering and project management work is being led from Perth and Melbourne, with additional support from Allseas’ offices in Delft and Kuala Lumpur.
“This historic project gives us an opportunity to showcase the capability of our single-lift technology in challenging environments like the Bass Strait,” added Evert. “We’re very much looking forward to working with Esso Australia to make this a successful project and thank them for their trust in Allseas to carry out this landmark project!”
With nearly US$60bn expected to be invested into decommissioning offshore infrastructure over the next three to five decades, the Australian government has formed an Offshore Decommissioning Roadmap aimed at boosting the growth of the country's decommissioning industry.
Growing Australia's domestic decommissioning industry not only benefits the country's economy and environment, it also plays a key role in Australia's transition to net zero.
The roadmap maximises the amount of decommissioning activity that happens domestically and ensures that planned activities are taking place with improved efficiency and transparency. It also sets out a path to grow Australia's industrial capability in the management of decommissioning and materials, create safe, top-tier jobs to service a thriving decommissioning industry, all while ensuring that the industry undertakes its decommissioning obligations in a safe, timely and environmentally responsible way.
The roadmap focuses on five main areas of opportunity including the establishment of a regulatory framework that safeguards the environment while attracting investment, fostering meaningful partnerships with First Nations people and local communities, and maximising infrastructure opportunities and availability. Moreover, it encourages job creation and investment in the recycling and waste management sectors while also developing an offshore decommissioning workforce that is safe, skilled and diverse.
To support the roadmap, the Offshore Decommissioning Directorate was formed this month to encourage collaboration among all parties involved, improve transparency across the pipeline, be a trusted partner and advisor on policy matters, strengthen regulatory frameworks and ensure that industry activities complement the Future Made in Australia agenda.
The United Kingdom and Australia have formed a partnership agreement to strengthen cooperation on offshore oil and gas decommissioning.
Announced in a joint statement, the governments of the UK and Australia have sought to establish the partnership that builds on the recently-signed Australia-UK Climate and Energy Partnership. It will combine the 40 years of UK expertise in the North Sea with the blossoming decommissioning services market in Australia.
The agreement was signed by Australian Minister for Resources and Minister for Northern Australia, Madeleine King, and the UK Minister for Services, Small Businesses and Exports, Gareth Thomas. Together, they agreed to encourage cooperation in areas including supply chains, knowledge and skills, regulations, and financing while supporting engagement between UK and Australian businesses engaged in decommissioning.
Furthermore, it will establish a working group comprising industry representatives, academic partners, and regulatory bodies to develop a collaborative framework and partnership programme. This will identify viable decommissioning projects that would benefit from cooperation, delivering these in accordance with international quality and sustainability standards.
Through the identification of capability, equipment gaps and strengths, the group will also facilitate the sharing of decommissioning expertise between the two countries with knowledge transfer opportunities.
McDermott has been awarded a large engineering, procurement, removal and disposal (EPRD) contract by Santos for the decommissioning of the Harriet Alpha platform and associated infrastructure, located offshore Western Australia.
The contract follows the successful execution of the Campbell decommissioning project for Santos in Australia. Part of the Harriet Joint Venture (HJV) assets, the Harriet Alpha platform is one of the largest facilities slated for decommissioning.
McDermott will provide EPRD services, including engineering, procurement and fabrication of specialised equipment, as well as the removal and transportation of the platform structure to an onshore facility for dismantling and disposal. The contract scope also includes the removal, transportation and disposal of a flare tower, exploration well and subsea development system comprising of two subsea template wells.
"This is our largest decommissioning project to date, reflecting our continued commitment to delivering bespoke solutions for the timely, safe, and environmentally responsible removal of infrastructure at the end of its operational life cycle," said Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities. "McDermott's growing decommissioning portfolio in Australia also underscores the commitment we share to continue supporting circularity efforts in a lower carbon economy."
Project management and engineering will be executed by McDermott's team in Perth, Australia, with support from Batam, Indonesia and Kuala Lumpur, Malaysia.
With a commitment to recycling the Northern Endeavour floating production storage and offtake (FPSO) vessel in a safe and environmentally sound manner while achieving value for money, the Australian Government has released a request for tender (RFT) to find a supplier to recycle the vessel.
As works are underway to prepare the FPSO for a safe disconnection from the subsea infrastructure, the Government is seeking proposals from organisations to recycle the FPSO and manage the disposal of hazardous waste. This also includes the recycling of any furniture, fixtures, equipment, victuals or other on-board items. The FPSO will be towed to the ship recycling facility of the successful tenderer.
All FPSO recycling activities must comply with relevant regulatory requirements. This includes relevant safety, environmental protection and maritime regulations across international conventions and agreements, domestic legislation and regulations, and state legislation and regulations.
Interested parties must ensure registration to submit proposals through the AusTender website only. All requirements must be addressed in the RFT documents which are accessible on AusTender.
The Department of Industry, Science and Resources is holding industry briefing sessions for interested parties. There will be three separate briefings focussing on the commercial, financial and technical aspects of the RFT. To register for the briefings, participants can email the contact officer at
Submissions of the RFTs will close on 29 November 2024.
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), the Australian Government’s offshore energy regulator responsible for health and safety, well integrity and environmental management for offshore oil and gas, has accepted Woodside Energy’s plans to decommission the Minerva Field.
The field, previously operated by BHP Petroleum, is located in Commonwealth waters with the wells laying approximately 11 km southwest of Port Campbell in water depths of approximately 50-60 m. Woodside plans to remove all subsea infrastructure and equipment from the seabed associated with the Minerva development. According to NOPSEMA, activities covered by the decommissioning include:
• Ongoing field management activities (inspection and monitoring) for the Minerva subsea and well infrastructure until decommissioning;
• Removal of the Minerva gas pipeline bundle in Commonwealth waters. The pipeline comprises of approximately 4.9 km of 10-inch concrete coated rigid-steel flowline, bunded with an electro hydraulic umbilical and two 2-inch steel chemical injection lines and stabilisation materials;
• Removal of Minerva subsea infrastructure within VIC-L22 in Commonwealth Waters comprising of five inline pipeline structures, five tie-in spools, and associated equipment and stabilisation material.
Equipment removal activities are planned to commence as early as Q4 2024 and require approximately three to five months, subject to vessel availability and weather constraints.
The plans for the decommissioning were submitted to NOPSEMA earlier this year. Click here to learn more.
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