$50 billion. That’s the cost we’ve reported to fully remove and decommission Australia’s offshore oil and gas infrastructure. And 50 per cent of this activity must be started in the next 10 years.
$17.5 billion. That’s the potential 35 per cent cost savings we identified based on alternative retirement options, emerging technologies and decommissioning efficiency.
Decommissioning and a net zero future
National Energy Resources Australia (NERA) commissioned us to deliver the first operator-supported assessment of Australia’s offshore decommissioning liability. But how do you decommission aging assets in a way that supports local communities and ties into a net zero future?
By using industry lessons from other oil and gas regions. From these, we’ve seen that a comprehensive strategy is an important starting point when planning decommissioning work. Early planning can also maximize cost savings and promote a circular economy approach when dismantling and removing assets.
From challenge to early planning for success
We began by creating a database and decommissioning roadmap for NERA.
We put together an approach to track every piece of offshore equipment in the country and convert this information into a nationwide liability database.
This involved creating a methodology to capture key data around the offshore assets’ characteristics and costing the decommissioning requirements. And as an industry first, we collaborated with seven operators to collect the data.
The database can be used for new developments to explore opportunities for future recycling or re-use and alignment with regional service companies from the earliest design stage. This provides a basis to promote a circular economy approach to decommissioning.