In 2016, Woodside sold the Laminaria-corallina oil field to North Oil & Gas Australia (NOGA)- for a small price which had never been disclosed. In addition to the asset $156 million was invested in the project. When NOGA went in to voluntary administration in mid 2019, people paid attention to the responsible man and the decommissioning issue was raised.
According to the global oil and gas industry improvements, more projects productivity will decrease. Recently, the decommissioning legislative framework in Australia has only been applied to smaller operations and is yet to be tested on larger projects. During the next 50 years, the decommissioning liability in Australia will be about $ 21.
The federal government is reviewing the policy and legislative framework to predict the facilities which will be decommissioned in the coming decade among 136 fixed oil and gas facilities operating now. But how does it affect Australian oil and gas producers?
