Petroleum Decommissioning

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select Arrange and Send to BackPresented by Jason Medd

Key challenges

• Large portfolio of petroleum production assets at

or near the end of production life

• Australian offshore decommissioning liability

estimated at AUD $18 billion over the next 50

years

• Outlook for persistent low oil prices

• Regulatory and policy uncertainty at

State/Commonwealth

• Government and community expectations

Key challenges

Various types of facilities and operating environments:

• Offshore vs onshore

• Platforms

• Pipelines

• Subsea facilities

• Wells

• Tanks, vessels, ponds processing facilities

Different types of structures require different

engineering solutions for decommissioning

Current Situation in Western Australia

• Petroleum decommissioning has already

commenced with Tubridgi, Thevenard, Harriet,

Dongara, Mt Horner, Yardarino, etc.

• DMIRS in the process of developing

decommissioning guidelines in consultation with

industry

• Current bid for a WA based Decommissioning

Offshore Infrastructure Cooperative Research

Centre

Legislation in Western Australia

• Removal of property - section 101 of PGERA 67

and section 104 of PSLA 82

• Remove all property concerned with

operations or to make arrangements that are

satisfactory to the Minister

• Plug or close off wells to the satisfaction of the

Minister

• Conservation and protection of natural

resources in that area to the satisfaction of the

Minister

• Made good any damage to the seabed or

subsoil

Regulation of Decommissioning

The three primary regulatory instruments still applies

to decommissioning activities:

1. Environment – Environmental Plans referral to

other agencies (DWER, DBCA, etc.)

2. Resources – Well Management Plans and Field

Management Plans

3. Safety – Safety Cases and Safety Management

Systems

Referral and or consultation with other agencies may

be required – Fisheries and Transport for example

Regulation of Decommissioning

DMIRS policy approach to decommissioning

• Science and evidence based

• Environmental and safety risks reduced to as low

as reasonably practical (ALARP)

• Restoration of sites in consideration of future use

• Planning

• Consultation with community and stakeholders

Best Practice

Best practice in decommissioning may include:

• Project planning and budgeting well in advance

of decommissioning.

• Consideration of decommissioning during the

design and construction phase of a project.

• Early and ongoing engagement with regulators

and stakeholders.

Going Forward

• Release of revised DMIRS Petroleum

decommissioning plan for comment.

• Ongoing consultation with industry and research

institutes.

• Close alignment with the Commonwealth.

• Working towards amending regulations to

facilitate decommissioning applications and

approvals.

Government of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and PetroleumGovernment of Western Australia Department of Mines and Petroleum

Thank You