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The APPEA Journal The APPEA Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Embracing Australia’s decommissioning liability

Andrew Taylor A C and Stephen Stokes B
+ Author Affiliations
- Author Affiliations

A National Energy Resources Australia (NERA), Kensington, Australia.

B Advisian, Perth, Australia.

C Corresponding author. Email: andrew.taylor@nera.org.au

The APPEA Journal 61(2) 495-497 https://doi.org/10.1071/AJ20062
Accepted: 22 March 2021   Published: 2 July 2021

Abstract

Improving visibility of when and where oil and gas assets are approaching end of life has provided the foundation for transformation of decommissioning planning and execution around the world. A baseline understanding of decommissioning established by Oil and Gas UK fed into the much lauded Maximising Economic Recovery strategy, and provided a platform for government to pursue a 35% cost reduction target for decommissioning in the United Kingdom. In the Netherlands, one of the first four priorities pursued to maximise value through decommissioning was the establishment of a national decommissioning database, which aimed to create an integrated view of decommissioning scope and timelines. In 2020, funded by NERA and a group of seven operators, Advisian delivered the first operator-supported assessment of Australia’s decommissioning liability and outlook. This outlook lays the foundation for initiatives that support knowledge sharing, service sector engagement, collaboration, technology development, efficiency and reduced stakeholder burden. This joint presentation by NERA and Advisian will provide an overview of NERA’s decommissioning strategy and the data that underpins this strategy, the Advisian ‘Offshore Oil and Gas Decommissioning Liability’ assessment for Australia.

Keywords: decommissioning, collaboration, efficiency, liability.

Andrew Taylor is the General Manager Decommissioning for NERA, the Australian Government’s Industry Growth Centre tasked with transforming the energy sector. He has 15 years of experience in strategy, policy and regulation across roles in the WA Government, APPEA and NERA. Andrew is the program director for the National Decommissioning Research Initiative.

Stephen Stokes is a chartered (CEng MIChemE) engineer with over 19 years of experience in the oil and gas industry, primarily in Western Australia and the United Kingdom. His combination of experience is ideal for driving novel approaches and integrated development plans for late life operations and decommissioning projects. Stephen is the Advisian focal point for early study phase decommissioning projects in the ANZ region, managing studies that include options assessment, evaluation of technical execution strategies and generation of cost/schedule estimates.


References

Australian Government. (2021, February). National offshore petroleum information management system (NOPIMS). Available at Geoscience Australia: https://www.ga.gov.au/nopims

Energie Beheer Nederland. (2016). Netherlands masterplan for decommissioning and re-use. Available at https://kennisbank.ebn.nl/wp-content/uploads/2018/08/EBN-Masterplan-for-decommissioning.pdf

Government of Western Australia. (2021).WA petroleum and geothermal information management system. Available at Department of Mines, Industry Regulation and Safety: https://wapims.dmp.wa.gov.au/wapims

Oil and Gas UK. (2020). Decommissioning insight 2020. Available at https://oilandgasuk.co.uk/product/decommissioning-insight-report/