Life extension, repurposing and decommissioning

Maximising value from decommissioning activities for the community, environment, industry, economy & future

There is more than $50 billion of necessary decommissioning work to be done on Australia’s offshore oil and gas infrastructure, over half of which needs to be started within the next ten years.

NERA is leading the implementation of the Centre of Decommissioning Australia (CODA) to deliver a transformational approach to late-life asset planning and decommissioning execution, which returns maximum value to the community, environment, industry, economy and Australia's future.

CODA will provide a collaborative platform for joint projects, knowledge transfer and innovation to maximise value for Australian businesses, the community, the environment and the economy from decommissioning activities.

CODA will:

  • Connect industry, research and government to maximise the efficiency of activities through collaboration and innovation;
  • Strengthen Australia's underlying decommissioning knowledge economy to help Australia become a leading source of technology and capability in late-life asset planning and decommissioning.
  • Reduce Australia's decommissioning costs by at least 35 per cent;
  • Maximise the opportunities for local service and technology companies in Australia's decommissioning market.

Executive Summary

Advisian Report: Offshore Oil and Gas
Decommissioning Liability

View the summary.

Request for Proposals

CODA welcomes submissions for proposals.
Due: 9 April 2021

Find out more & submit an EOI.

CODA officially launched

NERA has officially launched the Centre of Decommissioning Australia (CODA).

View the media release.

Projects and Initiatives

Below are some examples of collaborative projects and initiatives that are supporting Australia to become a leader in life extension, repurposing and decommissioning.

National Decommissioning Research Initiative (NDRI)

The NDRI is the first long-term industry-wide oil and gas decommissioning research collaboration in Australia, delivering independent science to better understand the impacts of decommissioning oil and gas structures on the marine environment.

Coordinated by NERA, the NDRI provides an independent scientific evidence-base to improve understanding of how the decommissioning of offshore oil and gas structures influences the marine environment over time

Further information at www.ndriaustralia.org.

Australian Decommissioning Liability Assessment

NERA has partnered with seven oil and gas operators to commission a project through Advisian to quantify Australia’s decommissioning liability and estimate potential savings that can be achieved through decommissioning activities.

Specifically, the project has:

  • Compiled and categorised a database of oil and gas assets and wells in Australian waters
  • Estimated decommissioning costs; and
  • Identified potential opportunities for cost saving from decommissioning.

View the Executive Summary here.

Exmouth Integrated Artificial Reef project

The $1 million Exmouth Integrated Artificial Reef is a unique project that has enhanced marine habitat and recreational fishing opportunities, built as part of a collaborative project between Subcon, Curtin University, BHP, RecFishwest and the Exmouth community.

Installed in July 2018 on a previously barren seafloor, the Exmouth Integrated Artificial Reef is the largest purpose-built reef in the Southern Hemisphere and the first of its kind in Australia. The reef is now a thriving ecosystem and has seen over 100 different species of fish call it home.

Further information here.

Offshore platform in-situ collapse project

As an example of innovation, NERA co-funded Perth-based engineering consultants Linch-pin to investigate the feasibility of an alternative approach to decommissioning. This technique involves surgical cuts to a jacket which would encourage the structure to be intentionally collapsed in a guided way, to reduce the need for large vessels to support decommissioning.

Further information here.

Background

Australian legislation requires oil and gas companies to remove any property installed within a permit area at the end of its life. A proponent also has the opportunity to demonstrate that alternative decommissioning approaches might deliver equal or better environmental, safety and well integrity outcomes when compared with complete removal.

Decommissioning options include:

  • Full removal and relocation
  • Full removal and disposal
  • Partial removal and relocation
  • Partial removal and disposal
  • Leave in place / in-situ decommissioning

NERA’s Decommissioning Strategy seeks to achieve the following objectives:

  • Exhausting all viable options for continued use of existing infrastructure, prior to the commencement of decommissioning;
  • Decommissioning executed in a timely, safe and environmentally sustainable way;
  • Reducing the overall cost of decommissioning in Australia, through facilitating projects that target collaboration, innovation and efficiency, and minimising the potential burden on the Australian Government and industry; and
  • Maximising the value of decommissioning activities to Australia by creating opportunities for local service and technology providers in Australian and regional decommissioning markets.