The end of 2024 saw the Australian Government’s Department of Industry, Science and Resources release ‘Australia’s Offshore Resources Decommissioning Roadmap’, summarising the Government’s plan to create a sustainable domestic decommissioning industry.
In the Minister’s Foreword, Madeleine King, Minister for Resources and Minister for Northern Australia, stated, “An Australian decommissioning industry can be part of our economic transformation as we move to net zero. It can support new jobs for our skilled offshore workforce and attract new investment for Australian businesses. It can also grow domestic industrial capabilities while supporting the circular economy. This industry will play a key role in the continued protection of our marine environment by ensuring Australia continues to meet the robust environmental standards under Australian and international law.
“The foundations of an Australian decommissioning industry have been laid. We have the skills and expertise to underpin a world-class decommissioning industry, backed by strong regulatory settings.”
The roadmap outlines the steps the Australian Government will need to take to coordinate and guide policies while setting clear regulatory expectations in order to seize the estimated AUD$60bn in economic opportunity lying in wait.
To implement the roadmap, a dedicate Offshore Decommissioning Directorate will be established within the Department and will work with industry, unions, state and territory governments, First Nations groups, international organisations and local communities to help build an Australian decommissioning industry. The Directorate will focus on the most pressing issues identified by stakeholders and also work across governmental bodies to necessary policies in place to maximise the contribution of decommissioning to the Australia economy.
In line with the roadmap, the Australian Government will implement the following actions to support the development of the regions’ decommissioning industry:
- Make decommissioning more efficient – through the establishment of intergovernmental agreements to enhance cooperation and develop updated benchmark estimates for costs to allow for the prioritisation of government policies and support.
- Improve viability of the decommissioning pipeline and safeguard the marine environment – this will be done be developing rigorous financial assurance reforms and by continuing the progress in reviewing Australia’s offshore environmental management framework.
- Be a trusted partner and advisor to industry, communities and the workforce – by deepening engagement with advanced offshore decommissioning jurisdictions, including the UK and Norway, and pursue sharing and collaboration opportunities with First Nations groups to ensure they are partners in the transition to net zero.
- Drive alignment between government programmes to support an offshore decommissioning industry – where support will be given to the industry to connect with government funding bodies across the supply chain and priorities given to government-led decommissioning projects such as the Northern Endeavour.
- Support a skilled, diverse and safe offshore decommissioning workforce – where the government will continue to review Australia’s offshore safety framework to protect the health and safety of workers and will work with unions and the local community along with Jobs Skills Councils to ensure a skilled workforce is developed.
More information, as well as the full roadmap, can be found on the Government’s website.
