April 5th, 2021
We worked with National Energy Resources Australia (NERA) to tackle the analysis for its late-life offshore oil and gas asset planning and decommissioning outlook – unlocking a multi-billion dollar opportunity for the local community, environment, industry and economy.
$50 billion. That’s the cost we’ve reported to fully remove and decommission Australia’s offshore oil and gas infrastructure. And 50 per cent of this activity must be started in the next 10 years.
Setting the baseline for Australia’s decommissioning roadmap
We put together an approach to track and analyze every piece of offshore equipment in Australia and convert this information into an aggregate liability for full removal. This involved creating a methodology to capture data on the offshore assets’ characteristics and costing the decommissioning requirements. As an industry first, we collaborated with seven operators to collect the data – something that’s never been done in the Australian oil and gas sector for decommissioning. Without this partnership, we couldn’t have created the database.
We found that more than AUD 50 billion of decommissioning activity is needed across Australia. We also found that 50 per cent of this activity must be started in the next 10 years.
This analysis sets the groundwork for Australia’s decommissioning road map. And informs the recently announced Centre for Decommissioning Australia (CODA) – which will play a critical role in driving decommissioning cost reductions by promoting a collaborative effort between industry, government and local service companies.
$17.5 billion. That’s the potential cost savings we identified based on alternative retirement options, emerging technologies and decommissioning efficiency. Growth of the local supply chain is key – a significant opportunity for Australia’s communities, industry and economy.
Drawing on lessons learned from other regions’ decommissioning outlooks, this database will help to identify opportunities, such as options to repurpose assets. And promote offshore oil and gas asset decommissioning as part of Australia’s circular economy.
We look forward to working further with CODA to ensure positive retirement results for Australia’s aging offshore assets.
“NERA commissioned Advisian to deliver the first operator-supported assessment of Australia’s offshore decommissioning liability. This work represents a transformational moment in Australia’s decommissioning journey, which is underpinned by the expert insights delivered by Advisian.”
Andrew Taylor
General Manager Decommissioning, NERA
