ESG: Enhanced exposure draft of enhanced decommissioning framework in Australia's offshore oil & gas sector - part 2 (July 2021)
Client Briefings
Introduction
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In May 2021, the Federal Government released an exposure draft Bill to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) proposing to introduce significant reforms to the legal framework regulating Australia's Offshore Oil & Gas sector. The regulatory changes will likely impact companies involved in or planning future offshore petroleum activities in Australia, specifically in respect of their management of environmental, health and safety risks, their procedures concerning decommissioning of maturing assets and environmental remediation.
The proposed amendments are intended to enhance both the government and industry's ability to manage decommissioning, remediation obligations and liabilities. This will bring Australia's decommissioning regime in line with comparable international jurisdictions, which have legal mechanisms imposing decommissioning and remediation obligations and liabilities on current/former titleholders.
