Abandoning Offshore Oil Infrastructure: Lawsuit Brewing in Australia |
Australia could face a legal battle over its approach to decommissioning offshore oil and gas infrastructure after an international law expert warned that leaving structures in place could violate the country’s international obligations.
ExxonMobil’s plans to decommission its 50-year-old Gippsland offshore project in Bass Strait have raised serious concerns. The company proposes to leave steel structures below 55m depths “in place on the seabed,” a move that could breach Australia’s obligations under the United Nations Convention on the Law of the Sea (UNCLOS).
Decommissioning Disputes: Law vs. Legacy
Under UNCLOS, Australia is obligated to remove all structures from Bass Strait when they are no longer in use.
"This novel issue has never legally arisen in Australia before," says Professor Donald Rothwell, a renowned international law expert consulted by The Wilderness Society, who believe ExxonMobil’s plan is a blatant violation of international law.
According to Rothwell, the government is well aware of the importance of UNCLOS and Australia’s obligations under it, particularly in light of frequent references to the convention by Australian leaders concerning disputes in the South China Sea. This raises questions about whether Australia will prioritise its obligations under UNCLOS within its own territory.
Timeline: A Hazy Future of Offshore Scrap
ExxonMobil plans to submit its decommissioning plan in early 2025. Separate approval from the federal environment department under the Environment Protection (Sea Dumping) Act is required for abandoning any infrastructure on the seabed.
ExxonMobil, however, concedes that decommissioning "a range of options including full removal, partial removal and leaving in situ” is being investigated. The company undertakes a complex balancing act considering environmental impacts, risks, technical feasibility, safety, and socio-economic factors.
Mounting Decommissioning Costs and Ethical Questions
The Gippsland basin, Australia’s first major offshore oil and gas development, poses a significant decommissioning challenge. Over the next 30 years, an estimated 5.7 million tonnes of material – equivalent to 110 Sydney Harbour Bridges – needs to be removed from Australian offshore oil and gas facilities, highlight the Centre of Decommissioning Australia.
"Nopsema needs to crack the whip on ExxonMobil to avoid a scenario where the company no longer has the financial capacity for clean-up and taxpayers are left meeting Australia’s legal requirement and footing the bill,” says Fern Cadman, Wilderness Society campaigner.
What Needs to be Done?
This situation highlights the urgent need for:
- Stricter enforcement of international law: Australia must ensure its regulations align with UNCLOS obligations to fully remove decommissioned offshore infrastructure.
- Transparency and public engagement: Open communication and public consultation are crucial to ensure accountability and community confidence in the process.
- Sustainable decommissioning practices: Investing in innovative technologies and best practices can minimize environmental impacts and ensure responsible waste management.
Do you think Australia should be held accountable for full decommissioning of offshore oil and gas infrastructure? Share your thoughts in the comments below.