Integrity and safety of disused offshore oil and gas wells now in question: new report published this week

MARITIME UNION OF AUSTRALIA

MEDIA RELEASE

20 AUGUST 2024

Integrity and safety of disused offshore oil and gas wells now in question: new report published this week

Key Facts:

• As Australian offshore oil and gas infrastructure goes offline, the long term safety and integrity of the seafloor wells is being called in to question
• New research indicates that almost 25% of all offshore wells experience some kind of well integrity issue or failure.
• Historically, wells that have been plugged and abandoned as part of the decommissioning process are those most likely to see issues arise, as it’s a financial cost with no potential return to the operator at the end of the production life of the well.
• Australia’s absence of minimum requirements and no set standards for well plugging and abandoning, combined with a lack of well inspection, establishes a substandard regime with poor oversight of decommissioned offshore oil and gas infrastructure.

At a report launch in Parliament House yesterday, rank and file members of the Maritime Union of Australia joined with academic, Professor Tina Soliman-Hunter of the Centre for Energy and Natural Resources Innovation and Transformation at Macquarie University, to call on a strengthened regulatory framework for offshore oil and gas fields coming to the end of their natural production lifetime.

The report, into best practice and regulatory reform for plugged and abandoned subsea wells, makes a series of six recommendations to the Australian Federal Government, to adopt best practice methodologies for the end-of-life handling of wells, improve inspection and compliance and to remediate leaking wells. In attendance at the launch were both the Minister for Natural Resources, Madeleine King MP, and the Assistant Minister for Climate Change and Energy, Josh Wilson MP.

The report is the second major academic report from Prof. Soliman Hunter on the topic of offshore oil and gas decommissioning, and complements her recent report outlining best practices for dismantling, recycling and disposal of offshore petroleum structures (October 2023)

The MUA’s Assistant National Secretary, Thomas Mayo, welcomed the report and expressed the dire need for action to ensure oil and gas companies meet their obligations to clean up their mess.

“The report recognises both the shortfall in legislation and how offshore oil and gas giants are gaining the system so they might sail over the horizon with trillions of dollars from our resources, leaving a mess for taxpayers to clean up. There must be a regime of maintenance, monitoring and remediation for those plugged wells so that they remain safely capped. There are thousands of jobs for Australian workers if we get this right, and massive benefits for onshore and offshore businesses,” Mr Mayo said.

Liam O’Brien, the Assistant Secretary of the ACTU said, "The ACTU stands with the MUA in calling for the implementation of the report's recommendations to ensure these offshore wells are managed safely and responsibly. This is about protecting working people, their environment, and their future."

Thomas Mortimer, Policy Director of the Australian Workers Union, said ‘decommissioning done right can drive onshore and offshore jobs, local manufacturing and sound environmental outcomes. Australia should be leading the field here, but our laws need to catch up.’

ENDS