Minister for Resources and Northern Australia Madeleine King has outlined the potential to establish a new industry to decommission offshore oil and gas infrastructure.
In a statement to the Parliament, Minister King stated that work to decommission infrastructure when projects are completed could be worth up to $60 billion over the following 30 to 50 years.
Decommissioning includes the removal of oil and gas infrastructure, the permanent and secure plugging of all abandoned wells, and the rehabilitation of the marine environment. There is also the possibility of recycling much of this material onshore.
“Establishing a decommissioning industry in Australia will provide immense economic opportunities and create well-paid jobs in regional communities,” Minister King said.
Under Australian law, the offshore resources industry is required to cover all expenses related to decommissioning offshore oil and gas infrastructure. The Australian Government aims to find ways to enhance the advantages of this industrial investment for all Australians.
“The Australian Government wants as much of the anticipated $60 billion in spending to remove old oil and gas infrastructure to be spent backing Australian ingenuity and jobs,” Minister King explained.
“We want to build an industry to service not just ageing offshore oil and gas assets in Australia, but also meet future demand for sustainably decommissioning offshore windfarms at the end of their productive life,” she continued.
According to her, the May Budget includes $4.5 million allocated to create a decommissioning roadmap, to be released in 2024.
Minister King released an issues paper that calls for industry and public opinion on constraints and potential opportunities for decommissioning in areas such as:
- Infrastructure and adjacent industries;
- The workforce;
- First Nations engagement;
- Waste management and recycling; and
- Regulatory frameworks.
