New research reveals projected Australian offshore decommissioning costs

New research from global energy consultancy Xodus has revealed that the estimated cost of fully removing Australia’s offshore oil and gas infrastructure is benefiting from rising efficiency and understanding in the country’s decommissioning sector.

The Australian Offshore Oil and Gas Decommissioning Liability Estimate 2025, which was commissioned by the Australian Government’s Department of Industry, Science and Resources, found that by 2070, full removal of infrastructure in Australian Commonwealth waters is expected to cost AU$43.6 billion (US$28.3 billion) (AU$66.8 billion (US$43.3 billion) when adjusted for inflation), compared with a previous 2020 estimate of AU$61.8 billion (US$40.1 billion).