Building a world-class Australian decommissioning industry
Kym BillsWestern Australian Energy Research Alliance, PO Box 1130, Bentley, WA 6102, Australia. Email: kym.bills@waera.com.au
The APPEA Journal 58(2) 690-694 https://doi.org/10.1071/AJ17154
Accepted: 9 March 2018 Published: 28 May 2018
Abstract
Collaboration in decommissioning offshore infrastructure could save both industry and taxpayers billions of dollars and facilitate new industries and exports for Australia, especially in the Asia-Pacific region. At the end of the liquefied natural gas (LNG) plant construction boom, Australia must not miss out on this major new opportunity.
The 2017 bid for Commonwealth funding to establish a Decommissioning Offshore Infrastructure Cooperative Research Centre (DOI-CRC) involved more than 30 participants and many other collaborators. High-level commitments were made by Chevron, Woodside, Shell, BHP, ExxonMobil, Quadrant, The University of Western Australia, Curtin University, the University of New South Wales, Deakin University, Australian Maritime College, CSIRO and Australian Institute of Marine Science. A Perth-based DOI-CRC was supported by National Energy Resources Australia, National Offshore Petroleum Safety and Environmental Management Authority and other Australian Government bodies and by the Western Australian Government and its Chief Scientist and agencies but did not receive sufficient support from the CRC Advisory Committee.
Meeting decommissioning challenges in the North West Shelf, Bass Strait and the Northern Territory in a timely, robust, scientific, efficient and cost-effective manner that contributes to a sustainable marine environment should draw upon and augment international best practice with local capability and expertise. Good science and innovative engineering are needed to support regulatory approval of options such as ‘rigs to reefs’ and commercial opportunities such as in waste management and expanded fishing and tourism.
APPEA and operators wish to maintain DOI-CRC’s momentum and learn from UK research arrangements through funding marine science projects. But we must be much broader if we are to build a sustainable world-class Australian decommissioning industry. In particular, we need to work more closely with state and federal regulators and policymakers and undertake more engineering science research and innovation.
Keywords: abandonment, ALARP, APPEA, Bass Strait, collaboration, comparative assessment, CRC, CSIRO, Curtin, DMIRS, DOI-CRC, INSITE, LNG, NOPSEMA, North West Shelf, Oil & Gas UK, offshore infrastructure, offshore oil and gas, petroleum resource rent tax, PRRT, R&D, regulation, rigs to reefs, UWA, WA, WA:ERA.
Kym Bills was CEO of the 2017 bid to establish a Decommissioning Offshore Infrastructure Cooperative Research Centre (DOI-CRC). He has been CEO of the Western Australian Energy Research Alliance (WA:ERA) – a joint venture of CSIRO, Curtin University and The University of Western Australia – since 2011. He was a member of the NOPSA, NOPSEMA, AMSA and ANL Ltd boards and was the foundation head of the Australian Transport Safety Bureau based in Canberra for its first decade from 1999 to 2009. Previously, he had been head of the Commonwealth Government’s Maritime Policy Division. In 2009, he investigated the billion-dollar Varanus Island gas pipeline explosions with then WA:ERA Chair David Agostini AM. In 2010 and 2011 he was engaged by the Department of Resources, Energy & Tourism as a consultant to federal and state/NT ministers to progress national mine safety reform linked to the model Work Health and Safety Act. He is past Chair of the Western Australian Branch of the Safety Institute of Australia. Kym holds degrees from the University of Adelaide, Flinders University, Oxford University, the Australian National University and Charles Sturt University, and is a fellow of seven professional bodies (FAICD, FAIM, FAIE, FSIA, FCILT, FRGS, FRAI) and a member of many others including SPE, SUT, IFAP, IPAA and the Petroleum Club of WA. He originally trained as an economist and diplomat. |
References
Advisian (2017). ‘Scientific Literature Review: Environmental Impacts of Decommissioning Options.’ (Report prepared for APPEA by Advisian Worley Parsons Group: Perth.)APPEA (2016). ‘Offshore Oil and Gas Decommissioning Decision-making Guidelines.’ (Australian Petroleum Production and Exploration Association Limited: Canberra.)
Bills, K., and Agostini, D. (2009). Offshore Petroleum Safety Regulation: Varanus Island Incident Investigation, Government of Western Australia, Perth. Available at https://www.slp.wa.gov.au/salesinfo/varanusinquiry.pdf
Bills, K., McLean, D., and Mousa, A. (2017). ‘Potential streamlined offshore decommissioning R&D program.’ Presentation to DOI-CRC wrap-up meeting, 21 November.
Chandler, J., White, D., Techera, E., Gourvenec, S., and Draper, S. (2017). Engineering and legal considerations for decommissioning of offshore oil and gas infrastructure in Australia. Ocean Engineering 131, 338–347.
| Engineering and legal considerations for decommissioning of offshore oil and gas infrastructure in Australia.Crossref | GoogleScholarGoogle Scholar |
CSIRO (2017). ‘Oil and Gas: a Roadmap for unlocking future growth opportunities for Australia.’ (CSIRO Futures.)
Cullinane, B., and Gourvenec, S. (2017). Decommissioning – the next Australian oil and gas boom? The APPEA Journal 57, 421–425.
| Decommissioning – the next Australian oil and gas boom?Crossref | GoogleScholarGoogle Scholar |
Decomworld (2017). Decommissioning and Abandonment Factsheet. Flyer released ahead of the Decomworld Decommissioning and Abandonment Summit in Houston, 21–22 February 2018. Available at https://www.scribd.com/document/361024390/Decom-Abandonment-Factsheet
DIIS (2018). ‘Offshore Petroleum Decommissioning Guideline.’ (Australian Government, Department of Industry, Innovation and Science: Canberra.)
DMIRS (2017). ‘Petroleum Decommissioning Guideline.’ (Government of Western Australia, Department of Mines, Industry Regulation and Safety: Perth.)
DNV-GL (2016). Risk-based abandonment of offshore wells: recommended practice. DNV-GL-RP-E103.
DRET (2008). ‘Decommissioning Australia’s Offshore Oil and Gas Facilities: a Discussion Paper.’ (Australian Government, Department of Resources, Energy and Tourism: Canberra.)
Jas, E., Selman, A., and Linton, V. (2017). Out of sight out of mind – subsea pipeline decommissioning. The APPEA Journal 57, 79–87.
| Out of sight out of mind – subsea pipeline decommissioning.Crossref | GoogleScholarGoogle Scholar |
NERA (2016). ‘Oil & Gas Industry Competitiveness Assessment.’ (Report prepared by Accenture for the National Energy Resources Australia Industry Growth Centre: Perth.)
NERA (2017). ‘Sector Competitiveness Plan 2017.’ (National Energy Resources Australia: Perth.)
NOPSEMA (2017). ‘Decommissioning Offshore Petroleum Facilities in Commonwealth Waters.’ (National Offshore Petroleum and Environmental Management Authority: Perth.)
Oil & Gas UK (2015). ‘Guidelines for Comparative Assessment in Decommissioning Programmes.’ (The UK Oil and Gas Industry Association Limited: London.)
Oil & Gas UK (2017). ‘Decommissioning Insight 2017.’ (The UK Oil and Gas Industry Association Ltd: London.)
OPRED (2017). ‘Guidance Notes (Draft): Decommissioning of Offshore Oil and Gas Installations and Pipelines.’ (Offshore Petroleum Regulator for Environment and Decommissioning, Department of Business, Energy and Industrial Strategy: London.)
Shell (2017). ‘Brent Field Decommissioning Comparative Assessment Procedure.’ (Shell UK Ltd: London.)
Thornton, W. (2018). Decommissioning and abandonment. Journal of Petroleum Technology 67, .
UWA (2015). ‘State of Mind: Western Australia’s New Landscape of Innovation and Opportunity.’ (Knowledge Society Pty Ltd and The University of Western Australia: Perth.)
WA Legislative Assembly (2016). ‘Growing WA Through Innovation: the Western Australian Government’s Role in Fostering Innovation to Expand and Diversify the Economy, Report No. 7.’ (Parliament of Western Australia Legislative Assembly Economics and Industry Standing Committee: Perth.)
WAMSI (2015a). ‘The Blueprint for Marine Science 2050 Report.’ (Western Australian Marine Science Institution: Perth.)
WAMSI (2015b). ‘Independent Review of the Effects of Decommissioning Offshore Infrastructure: Information Paper for Stakeholder Discussion.’ (Western Australian Marine Science Institution: Perth.)
WAMSI (2016a). ‘Decommissioning Offshore Infrastructure: a Review of Stakeholder Views and Science Priorities: Draft Report Consultation Document.’ (Western Australian Marine Science Institution: Perth.)
WAMSI (2016b). ‘The Blueprint for Marine Science Initiative: Implementation Strategy 2016.’ (Western Australian Marine Science Institution: Perth.)
Woodmac (2016). Decommissioning Asia-Pacific: 600 fields on the front line. Wood Mackenzie, November.
