Decommissioning of Australia's oil and gas facilities in the 21st century

Abstract

Through 2016, there has been increasing interest in the rules and regulations that apply to decommission facilities in Australia’s offshore waters. APPEA is developing guidelines as is the State of Western Australia. The Department of Industry Innovation and Research is preparing a discussion paper on Australia’s decommissioning laws, regulation and practice. It is expected to issue by the end of 2016. These developments are long overdue. Australia’s laws regarding these activities have barely changed since the offshore legislation was enacted in 1967. How major facilities are decommissioned in Australia will be a matter of interest to numerous stakeholders. It seems likely that decisions taken in the next two years will result in a modernisation of Australia’s law and practice and will determine how the major offshore facilities will be decommissioned over the next 30 years. The paper canvasses the reform process, considers the more modern regimes overseas and whether they have achieved their objectives, looks at regional (Asia–Pacific) practice and informs delegates as to the path forward on any legislative reform. The position of the States and the Commonwealth are contrasted.