The Institute for Energy Economics and Financial Analysis (IEEFA) has published its responses to the Victorian Legislative Council Environment and Planning Committee and its inquiry into the decommissioning of oil and gas infrastructure.
IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies.
The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
In a statement published on its website, IEEFA noted that Victoria is in a “unique position” to establish a decommissioning industry, given the state has some of the oldest oil and gas extraction infrastructure in Australia “and therefore has a greater proportion of its property and equipment ready for decommissioning.”
It also called on the Victorian government to ensure decommissioning work is undertaken in an orderly and transparent manner.
“This will help to keep cost downs and provide opportunities for the state’s oil and gas workforce and contractors to move into the next phase of oil and gas lifecycle, decommissioning.
Victoria’s decommissioning asset profile includes 22 platforms, over 2,000 km of pipelines and umbilicals, as well as around 460 wells to be plugged and abandoned, according to the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema).
The infrastructure earmarked for decommissioning offshore Victoria is owned and operated by a handful of companies.
Historically, the largest oil and gas producing complex is the Gippsland Basin Joint Venture (GBJV), also known as the Bass Strait project. This year, Woodside took over as operator of the venture from ExxonMobil, which had operated the project since 1969.
Other companies with decommissioning liabilities offshore Victoria include Beach Energy and Amplitude Energy.
