An enhanced framework for decommissioning offshore oil and gas infrastructure: have your say
The offshore oil and gas industry has reliably supported Australia’s energy security and economic activity over 50 years of safe and responsible development of our energy resources. As Australia’s offshore petroleum industry matures, there will be an increase in mid-to-late-life asset management considerations. This includes managing declining production while preparing to decommission.
Ahead of this, in 2018 our department started a review of Australia’s offshore decommissioning framework. The review aimed to ensure the framework is fit for purpose and remains leading practice. It also ensures Australia is positioned to respond to decommissioning challenges and opportunities now and into the future.
We have completed our review and now seek views on the proposed framework, with a particular focus on comments to inform implementation of the proposed measures.
Key elements of the enhanced framework include:
- increased oversight of changes in company control
- increased oversight of financial assurance, including the use of bonds and securities
- modernising field development plans (FDPs)
- early and proactive use of remedial directions powers
- improved transparency and public engagement in relation to petroleum activities
- enhancing trailing liability to apply in a greater range of circumstances
Consultation closes on 22 January.
- The Minister announced consultation on the enhanced framework on 14 December 2020
- Read more about the offshore oil and gas decommissioning framework review, including the initial discussion paper
- An independent review looked into the circumstances leading to the administration and liquidation of Northern Oil and Gas Australia in August 2020 (the Walker Review).
- See how we regulate offshore oil and gas in Australian Commonwealth Waters
To receive regular updates on the review subscribe to the Australian Petroleum News e-newsletter.