MUA members built the offshore Oil and Gas industry over many years and as the world shifts away from fossil fuels it is critical that MUA members are engaged to fully  decommission those disused offshore O&G assets and then transition our maritime skillsets into to the new energy powerhouse that is offshore wind and in doing so ensure the future of our seafaring membership is secure for generations to come.

 

There has been a mountain of work going on in the background around decommissioning and the development of the emerging offshore wind industry. I would like to take the opportunity to thank Emma Cain who has produced high quality research and submissions for our decommissioning scope over the past 12 months and I also acknowledge the ongoing pivotal work that Penny Howard does in the renewables space.

 

This detailed update contains just a snippet of the work that has occurred since the first Just Transition quarterly update was sent in November but I hope it gives members an idea of the opportunity that lies ahead. We know there is around 52 billion worth of work in the decommissioning scope and some of it has already started. The renewables boom will be even bigger.

 

In January we met with several key worldwide offshore wind developers in Copenhagen facilitated by the ITF and while we were there, we met with the Danish Energy Agency who informed us that for every 1GW of offshore wind around 9,500 jobs are created many of which relate to wharfies, diving, towage, dredging, Port Workers with nearly 1500 seafarers jobs created throughout the life cycle of each 1GW of offshore wind.

 

To demonstrate the significance of the upcoming Offshore Wind boom, there has been over 50GW of projects that have been announced so far around the country, with new announcements occurring regularly. Not all of those projects will be developed due to the competitive bidding process but it is clear there is a shitload of work for our members in this new industry which is why we focus so much time campaigning for local content, local jobs and meeting with developers and State and Federal Government to ensure a Just Transition for our members!

Late last year the Federal court ruled that oil and gas operators must fulfil requirements to make "genuine and rigorous efforts" to consult with First Nations people as part of the consultation process which is required prior to projects commencing.

 

We applaud our First Nations brothers and sisters for their efforts on this ground breaking decision.

 

We support consultation for traditional owners on all oil and gas projects, including decommissioning.

 

Since this ruling, there has been some improvement for the union and our members. After writing several letters to offshore operators and engagement with the regulator seeking consultation prior to decommissioning work kicking off, we have now been contacted by Woodside for comment on 3 projects prior to commencing. This has allowed us to argue on the scope of project activities to come, as well as the safest and most environmentally friendly way to decommission jobs. We expect

more genuine consultation from operators to flow from this ruling.

 

Off the back of this decision, NOPSEMA is seeking guidance on its creation of new guidelines that will be used by the oil and gas industry for environment plans, and the MUA has made a submission focusing on strengthening the following areas:

 

 

NOPSEMA has left the decision of stakeholder relevancy up to the title holder, and the union is concerned that certain groups will be left out of the consultation process because these groups are deemed irrelevant.

 

On several occasions, title holders have ignored the union's request for genuine consultation regarding proposed offshore oil and gas activities, even though this is a title holder obligation.

 

NOPSEMA must ensure that title holders adhere to these obligations.

 

 

NOPSEMA has left the decision of whether information is provided up to the title holder. We argue that when title holders request to deviate from legislative obligations, all information must be provided to relevant persons before an EP is lodged.

 

NOPSEMA must strengthen consultation guidelines that allow for all information to be requested and considered by parties during discussions.

 

 

The term ‘reasonable’ has been left to the title holder to decide. The union argues that there must be a more concrete timeline in place to ensure genuine dialogue between parties can occur. Therefore, the MUA proposes a minimum consultation period of three months. This three-month period will allow authentic discussion between parties and time for relevant persons to properly research and respond to proposed activities.

 

 

We recognise that guidelines created by NOPSEMA regarding the consultation process of offshore oil and gas projects will affect Traditional Owners within Australia. Therefore, the Regulator and industry title holders must thoroughly consult First Nations people while developing regulations, guidelines, and environmental plans.

 

We hope to hear NOPSEMA takes these considerations onboard.

 

Our members built these projects. We laid the pipes and subsea equipment, we towed the platforms and facilities to site, and we have maintained much of this oil and gas infrastructure to Australian standards for decades. We have made it very clear that our members have the skill and experience to decommission this work safely and effectively and we will continue to campaign for FULL decommissioning of disused O&G assets.

 

You can read the Resource Minister, Madeline King’s response to consultation requirements here.

Our first stakeholder consultation information sheet came from Woodside this month, recognising the MUA as a relevant person and seeking feedback on its proposal to decommission and remove the RTM that was once attached to the Nganhurra FPSO.

 

Our members are well aware that this 2,500 tonne and 83 metre long sinking structure is a disaster waiting to happen. You can read about this on the Offshore Alliance facebook page.

 

We have taken this consultation as an opportunity to remind Woodside that their track record on responsibilities for cleaning up after themselves has been the worst in the industry and that we expect all platforms, facilities, and associated infrastructure to be removed following relevant legislation. You can read our response to Woodside here.

 

We are pleased to announce that since lodging our complaint to Woodside, they have advised that the RTM will be decommissioned and removed properly. This is a big win for our union membership and the initial work is scheduled for the second half of 2023 (subject to EP acceptance) with removal of the remaining subsea infrastructure above the mudline including manifolds, manifold foundations, flowlines, and umbilical's, to occur by end 2024.

 

A range of vessels will be required to complete this project’s decommissioning work, including a multi-purpose offshore support vessel for inspection, a heavy lift vessel for preparation and lifting of the structure and anchor handlers for mooring disconnection and towage. In addition, a barge or heavy lift vessel will be used for transporting the RTM to shore. Woodside has yet to provide details of the operator, but we will pass this on to our members when we know.

Griffin Field Decommissioning Project (North West WA)

Stybarrow Field Decommissioning Project (Exmouth)

After lodging our submission last year against Esso’s decommissioning campaign based offshore from Gippsland, Victoria, comrades Adrian Evans, Penny Howard, Emma Cain, David Ball, and Rob Lumsden met with Esso’s decommissioning team to discuss its environment plan due to be lodged with NOPSEMA in April. The MUA team reinforced our position for Esso’s Gippsland decommissioning project.

 

All steel pile jackets must be cut at the sea floor and removed for recycling purposes as per the OPGGS Act. Esso must be transparent with information relied upon in its environment plan about leaving structures in place.

 

Decommissioning and removal of Esso’s expired infrastructure must not impede accessibility for new renewable energy zone projects.

 

Our next step is to contact Chris Bowen and Madeline King prior to this environment plan being lodged about our concerns regarding the overlap of decommissioning and offshore wind construction. NOPSEMA should require that the deadline for removal of this disused offshore oil and gas infrastructure be brought forward so that it is complete by 2025. This is essential to allowing new offshore renewable energy projects such as Gippsland offshore wind to be constructed.

 

The environment plan for Project 1 is due to be lodged with the regulator in April. We will report back the outcomes of NOPSEMA’s decision in our newsletter.

 

 

This month, Penny Howard and Emma Cain met with the Centre of Decommissioning Australia (CODA) to get a briefing on their plans for WA’s new decommissioning facility after the State government boosted funding for further research on this subject mid-last year. Here are the answers to some of our questions:

 

Federal Labor plans expect that by 2030 more than 80% of Australia’s energy will be accounted for by renewable energy. We expect this goal has been a major driver into the industry boom we have seen in such a short period of time. What does this mean for our members?

 

 

How much work offshore wind work is there?

Here are just some of the projects we know about:

1. Star of the South off Gippsland, Victoria. $8.7 billion. Construction could begin in 2025 and last five years. Exploration licence was approved in March 2019 which has allowed the project to begin. It is funded by Copenhagen Infrastructure Partners.

2. Energy Estate Hunter Coast, NSW,

3. BlueFloat Energy are developing three large projects: Wollongong, NSW Greater Gippsland, Vic Southern Winds, Portland/South Australia. Other sites in Victoria, South Australia and Tasmania are under assessment

4. Green Energy Partners. Wollongong/Port Kembla NSW, Bass Strait Victoria, Western Victoria, South of Perth, WA.

5. Newcastle Offshore Wind. Project lead by EDF Renewables.

6. Oceanex NSW offshore wind. Starting with 1.8 GW off Newcastle, with a significant port construction hub, then expanding with further locations off Wollongong, Ulladulla and Eden, potentially up to 7.5 GW. $31 billion with construction starting about 2027. Oceanex is lead by Andy Evans from Star of the South and also backed by European/Japanese investors Green Tower and Daiwa.

7. Floatation Energy. Located in Perth, WA. Company purchased by Tokyo Electric Power.

8. Corio Generation. Located in Victoria. Great Southern Offshore Wind Farm (Bass Coast) Great Eastern Offshore Wind Farm (Western Gippsland).

9. Copenhagen Energy. Located in WA. Leeuwin Offshore Wind, (Bunbury) Midwest Offshore Wind, (Kalbarri) Samphire Offshore Wind (North of Perth).

10. Nexsphere. Located in Tasmania. Bass Offshore Wind Energy (Bell Bay).

11. Orsted - Gippsland project off Victoria

12. Alinta Energy - Spinifex Offshore Wind (Portland, Vic)

13. Direct Infrastructure - 3+GW planned for Gippsland Victoria, 3+GW planned for Hunter NSW and 3+GW planned for Bunbury WA

In 2022, the union managed to secure an amendment to the new offshore renewable energy regulations, so that when handing out licences to developers, the Minister will consider ‘the project’s impact on, and contribution to, the Australian economy and local communities, including in relation

to regional development, job creation, Australian industries and the use of Australian goods and services’ (Offshore Electricity Infrastructure Regulations 2022, s.26(4)(a)).

 

The MUA and ETU are now engaged in discussions with the Ministers office on how to ensure this is implemented in a proper and robust way, starting with the applications for licenses in the Gippsland offshore renewable energy area. It is expected there will be more than 10 applications for

four or five license areas in this zone, due at the end of April, so the Minister will have plenty of scope to demand the best possible outcome from developers.

 

Energy Minister Chris Bowen travelled to Newcastle this month to announce the opening of community consultation on an offshore renewable energy zone that will run from Port Stephens

south to Norah Head on the Central Coast. Newcastle Branch Secretary and MUA Vice-President Glen Williams was able to attend the press conference.

 

The Minister says that they expect to grant licences for 8 GW of offshore wind in this area, which is four times the amount of the large Liddell coal-fired power station (expected to close in April 2023), likely as 4 or 5 large projects.

 

Most of the zone is quite far offshore, due to a 25 nautical mile exclusion zone around the RAF Williamtown base. The two closest parts of the zone are 10km offshore, from Norah Head and Fingal Island off Port Stephens. From the Newcastle heads, the closest part of the proposed zone is

32km to the south, 40km straight offshore, and 52km to the north. The outer edges of the zone are 95-120km from Newcastle.

 

The government held community consultation sessions in Newcastle on the week of March 6-9 which were attended by MUA officials and members.

 

The branch will also be encouraging all members to get involved in showing support for this important new development for the Port of Newcastle, as will the union at a national level.

 

As the consultation progresses, we may see One Nation, elements of the Liberals and Nationals, and the Murdoch media run cynical campaigns against offshore renewable energy, on the basis of its environmental impact. Please contact your branch if you see this taking hold and we will do our best to provide reliable scientific information and materials. Whatever the local impacts will be, they are negligible when compared to the impacts of climate change on the ocean– for example, even if we manage to keep global heating to 1.5°C, it is expected that 70-99% of the world’s coral reefs, including the Great Barrier Reef and Ningaloo Reef, will not be able to survive.

 

The consultation period for the offshore renewable energy zone runs until the end of April, and it is expected that the zone will be declared later this year. After the declaration is made individual developers can apply for a licence within the declared area, and we expect this will happen by the

end of the year.

 

Port of Hastings set for expansion

 

On the 19th of December 2022, the Federal Labor Government announced the creation of an offshore renewable energy zone in the Bass Strait.

 

MUA Victoria Deputy Branch Secretary was able to attend the announcement in Seaspray alongside Energy Minister Chris Bowen, Industry Minister Ed Husic, and Victorian Energy Minister Lily D’Ambrosio, and offshore wind developers.

 

The declared area off Gippsland covers approximately 15,000 square kilometers and runs from offshore of Lakes Entrance in the east, to south of Wilsons Promontory in the west. The wind turbine installations will all be a minimum of 10 kilometers offshore.

 

The next step is for offshore wind developers to apply to the government for feasibility licences for their projects, due at the end of April. After pressure from the MUA and other unions, when looking at licence applications the government is required to consider ‘the project’s impact on, and

contribution to, the Australian economy and local communities, including in relation to regional development, job creation, Australian industries and the use of Australian goods and services’.

 

The MUA will be working with the rest of the union movement to ensure this requirement is properly implemented through a coordinated national plan.

ITF offshore wind delegation to Denmark

 

The consultation process has opened to support offshore wind off of Newcastle.

 

Please contribute by writing to the Department of Climate Change, Energy, the Environment and Water with the following points:

 

 

We urge all members to get behind this opportunity.

 

The MUA will continue to lead the way on fighting for future clean energy jobs for our members