Offshore oil and gas decommissioning: enhanced framework

Overview

Australia’s offshore oil and gas industry has reliably supported Australia’s energy security and economic activity through over 50 years of safe and responsible development of our energy resources. As Australia’s offshore oil and gas industry matures, there will be an increase in mid-to-late-life asset management considerations, including managing declining production while preparing to decommission.

Ahead of this, to ensure there is regulatory certainty, we have reviewed the existing legislative, regulatory and policy requirements for offshore oil and gas decommissioning.

The enhanced framework considers our initial consultation as well as the Walker Review. It aims to ensure the Australian regime for decommissioning is clear, fit for purpose and leading practice.

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 document:

• Enhanced offshore oil and gas decommissioning framework [566KB PDF] [1.4MB DOCX]

Why we are consulting

The enhanced framework includes a range of proposed legislative, regulatory and policy changes. We seek your views to inform the implementation of the framework outlined in the paper.

What happens next

We are considering the comments from stakeholders to inform implementation of the framework. In 2021, we will provide the final framework to government for consideration.