The Centre of Decommissioning Australia (CODA) has officially launched, providing a platform to address the challenges and maximise the opportunities of decommissioning Australia’s ageing oil and gas infrastructure.
CODA brings together many of the world’s major oil and gas companies, including Chevron, Woodside, Santos, Esso Australia, Vermilion Oil & Gas and BHP.
Federal Minister for Resources, Water and Northern Australia Keith Pitt congratulated National Energy Resources Australia (NERA) for establishing CODA.
“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,” Pitt said.
In 2020, NERA commissioned the first assessment of Australia’s offshore decommissioning liability, produced with support and involvement from oil and gas operators.
The report by Advisian, Worley’s global consulting business, concluded that there is more than $50 billion of necessary decommissioning work on Australia’s offshore oil and gas infrastructure, over half of which needs to be started within the next 10 years.
With the study highlighting the urgency of the situation, CODA will now lead the way on supporting industry, government, the community and other stakeholders to ensure that these activities actively seek to maximise opportunities for local service and technology companies in local and regional decommissioning projects.
Woodside senior vice president operations Fiona Hick said decommissioning will become increasingly prominent in the 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,” Hick said.
Chevron director of operations Kory Judd added that the 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”.