Where to from here for Australian decommissioning

Abstract

The size and scale of Australia’s upcoming decommissioning workload isbecoming increasingly apparent with an identified potential offshore decommissioning cost of around US$40 billion, 50% of which is anticipated to commence this decade. Preparing to address this volume of work with little previous local experience and limited access to technologies and facilities is exposing industry to significant risks. Preparation to undertake this work will require all parts of the decommissioning sector to come together in ways industry has not in the past. Solving the decommissioning trilemma of end state, timeliness and cost in a way that delivers the best possible environmental and ESG outcomes will not be easy. Operators need to be able to share future plans to enable them to coordinate vessels and tooling; service sector needs visibility of the workload so they can prepare themselves and offer the best solutions; regulators need to be able to manage their workload, assess activities and ensure compliance without imposing unnecessary burdens or risks on activities, and; governments need to meet their expectations of content, local employment and outcomes. All these need to be achieved in a cost-conscious way alongside growing pressures on the sector from new offshore developments such as wind. This paper will unpack many of the above challenges and highlight CODA’s ongoing work to build an inclusive Australian decommissioning community of practice, ready to undertake the next decades of activity.