Introduction
We commissioned Xodus Group to develop the Australian offshore oil and gas decommissioning liability estimate 2025 report. The report estimates how much industry will spend to decommission their infrastructure in Commonwealth waters over the coming decades.
This report estimates industry will spend $43.6 billion to 2070. This rises to $66.8 billion when factoring in inflation. Around 55% of the decommissioning will occur before 2040.
The report found that 61% of the liability is off Western Australia, 23% is off Victoria and 16% is off the Northern Territory.
Other key findings in the report are:
- At least 2.7 million tonnes of infrastructure will be removed. A large portion of this is steel, which may have the potential for local recycling.
- Decommissioning practice and technology have improved since 2020. Some decommissioning work is already complete.
- There is opportunity for further improvements in efficiency, through:
- operator cooperation when decommissioning
- more technological advances
- industry investment in onshore disposal and recycling.
Download a copy of the report
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