Australia opens first decommissioning center

March 15, 2021
National Energy Resources Australia has opened The Centre of Decommissioning Australia.

Offshore staff

KENSINGTON, Australia – National Energy Resources Australia has opened The Centre of Decommissioning Australia (CODA).

The new complex, which will address decommissioning of Australia’s aging oil and gas infrastructure, is supported by Chevron, Woodside Energy, Santos Ltd., Esso Australia, Vermilion Oil and Gas Australia and BHP, and service/ research organizations such as Baker Hughes, Atteris, Linch-Pin, AGR, Xodus Group, and Curtin University.

Keith Pitt MP, Federal Minister for Resources, Water and Northern Australia, said: “We all want to ensure we have a sound regulatory framework and that the offshore oil and gas industry can manage current and future decommissioning challenges.”

WA Mines and Petroleum Minister, Bill Johnston MLA, added: “Western Australia is already a global hub for the oil and gas sector, accounting for 60% of Australia’s LNG exports in 2019, and now has the potential to be a world-leading center for decommissioning.”

NERA chief executive Miranda Taylor commented: “CODA will play a critical role in transforming our approach to late life planning and decommissioning to maximize the value for Australia.”

Last year NERA commissioned Advisian, Worley’s global consulting business, to produce a report on Australia’s offshore decommissioning liability, with support from oil and gas operators.

The report found that there is more than $A50 billion ($40.5 billion) of decommissioning work is needed on the country’s offshore oil and gas infrastructure, over half of which needs to be initiated within the next 10 years.

CODA will lead an initiative to ensure that these activities maximize opportunities for local service and technology companies in local and regional decommissioning projects.

Chevron Director of Operations, Kory Judd, said: “Industry has a responsibility to manage asset retirement in an environmentally responsible and efficient manner while ensuring opportunities to deliver long-term environmental and socio-economic outcomes for Australia.”

Woodside Senior Vice President Operations, Fiona Hick, said: “Decommissioning will become increasingly prominent in our industry in Australia in coming years. The launch of CODA presents industry with a fantastic opportunity through which to share best practice and to further contribute to undertaking decommissioning safely and efficiently, while delivering benefits to the environment and local communities.”