Recycling of Australian oil and gas assets, an Australian Basel-compliant solution
T. Soliman Hunter A , P. Brenan B * and D. Shannon BA Macquarie Law School, Sydney, NSW, Australia.
B Octoblue, Perth, WA, Australia.
The APPEA Journal 62 S72-S75 https://doi.org/10.1071/AJ21045
Accepted: 11 March 2022 Published: 13 May 2022
© 2022 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
Australian offshore petroleum infrastructure decommissioning strategies are dictated by legal requirements set out in the Offshore Petroleum and Greenhouse Gas Storage Act, requiring prima facie that assets are removed from the title area. Legally, once assets are decommissioned, they require disposal at a Basel-compliant facility. This lack of Australian capability has forced titleholders to contemplate leaving infrastructure in situ (rigs-to-reef), which may well breach Australia’s international law obligations under the United Nations Convention on the Law of the Sea, and the London Convention on Dumping at Sea (and associated Protocols). Australia’s closest Basel-compliant facility is located in Turkey. The experience of the Iron Chieftain in 2019 demonstrated the difficulty in using this facility. In 2019 the bulk carrier Iron Chieftain caught fire in Port Kembla, and was declared a Constructive Total Loss (CTL). Disposal required decontamination, seeking Basel export approval, and towing to Turkey via South Africa. Following 9 months to complete the application, the vessel commenced its tow. The vessel was not permitted to stop or enter the port waters of any port other than Turkey after leaving. If it did stop, the application ceased and a new application was required to be commenced. If the vessel arrived in a condition not acceptable to authorities, the vessel would be turned away, requiring it to return to its home port of Port Kembla where the application commenced from. In response to such difficulties, a new Basel-compliant recycling facility has been established, co-located to a green steel recycling works, delivering a near carbon-neutral asset recycling and disposal solution for Australia’s offshore energy infrastructure. Strategically located in the mouth of the Spencer Gulf, South Australia, this facility will provide a green whole-of-asset recycling and disposal solution in-country, removing towage expenses and CO2 emissions. This extended abstract articulates the Iron Chieftain experience, highlighting the issues facing petroleum infrastructure decommissioning and disposal in accordance with Basel requirements. It also provides an overview of the Whyalla recycling and disposal facility, presenting the case for circular economy, ethical asset decommissioning and Australian capability.
Keywords: advanced recycling, Basel, decommissioning, EPBCA, green recycling, HK Convention, Hong Kong Convention, Iron Chieftain, London Convention, OPGGSA, rig to wreck, Sea Dumping, waste, waste export Australia, Whyalla.
Professor Tina Soliman Hunter is a Professor of Energy and Resources Law at Macquarie University, teaching and researching in petroleum and resources law, the energy transition (particularly hydrogen and carbon sequestration) and pollution of the arctic (especially oil and microplastics). She has received academic qualifications in marine sediments and geology, political science, applied science and law. She is presently an Honorary Professor at the University of Eastern Finland, and a Visiting Professor at the Biological Research Institute, Tomsk State University, Russian Federation. Tina has undertaken teaching and research in numerous countries including the UK, Australia, Norway, Canada, Iceland, Greece, Finland, Russia, the USA and the Philippines. She presently leads a multidisciplinary UK–Australia–Russia Consortium of Researchers and Experts in Northern Aquatic and Arctic Marine Ecosystems (CRENAME), investigating continental water bodies and seabed sediment contamination arising from oil spills and microplastics, the implications for legal reform and the development of specialised tools for cleaning such contamination. |
Patrick Brenan, MIEAust CPEng NER (Mechanical & Petroleum), graduated from the School of Petroleum Engineering at UNSW in 2001 and joined BP UK as a Graduate Drilling Engineer. He has since worked for various large and mid-sized operators worldwide focusing on high-pressure high-temperature and deepwater projects. He has been responsible for well and project delivery as well as holding positions within centralised wells functions. During his career he has attained an intimate knowledge of well integrity, risk management, blowout response prevention and planning as well as direct experience with complex well control response activities. In 2018 he joined the IOGP Wells Expert Committee and the SWRSC. He actively participated in the update or creation of reports 485, 591, 592, 594, 595 and 664. In 2019–2020, Patrick was Chair of the SWRSC and has had an active role in advancing developments of subsea source control for both member companies and external stakeholders. In 2020, he founded OWE Consulting, which offers services in well engineering, subsea source control, advisory and advocacy and has been supporting IOGP as an Advisor. In 2021, he co-founded Octoblue which offers cradle to grave decommissioning solutions inclusive of asset and infrastructure recycling. |
Drew Shannon, Master Mariner, Bachelor of Business and Juris Doctor in Law is a master Mariner with over 30 years in the marine industry. He has been involved in the salvage industry from 2001 taking ownership of United Salvage in 2020. Notable salvage cases he has been involved in include the Pasha Bulker, Shen Neng 1, RENA, West Atlas (Montara incident), Iron Cheiftain and YM Efficiency. In 2021, he co-founded Octoblue which offers cradle to grave decommissioning solutions inclusive of asset and infrastructure recycling. |
