Thousands of jobs could be created in WA to handle tens of billions of dollars in work recycling old offshore oil and gas rigs – but only if governments stop dragging their feet and act urgently on a plan to kickstart a decommissioning industry.
Unions and environmental groups have united to call for urgent action and get sods turned on a new WA decommissioning hub within the next two years.
Otherwise, they warn, Australia will lose out on the lucrative industry to countries such as Brunei and Denmark.
Dismantling and recycling the five million tonnes of oil and gas infrastructure off WA’s coast has the potential to be a multibillion-dollar industry for the State as projects reach the end of their lifetime.
But research from the Centre of Decommissioning Australia — an independent organisation that works with industry and government — found about half of the $61 billion worth of decommissioning work needs to start within the next decade, and three-quarters by 2040.
A coalition consisting of Unions WA, Greenpeace Australia Pacific, the Maritime Union of Australia, the Australian Manufacturing Workers Union, the Electrical Trades Union, the Conservation Council WA and the Wilderness Society says WA cannot wait much longer if it is to benefit from this potential.
“If WA doesn’t get its act together, then we risk missing out,” Greenpeace’s WA campaign lead Geoff Bice told The West.
“Given the amount of work that needs to be done to get it ready, we’d like to see action on this in this term of government … If it gets pushed out beyond the next election cycle, that’s getting into too-late territory.”
Resources Minister Madeleine King launched a decommissioning roadmap in December while Premier Roger Cook included the sector as a priority in his Made in WA election plan, which identified Ashburton as the site of a decommissioning hub.
Mr Bice said not enough had been done since the launch of these plans and it was time to see actual decisions made.
The report launched on Monday anticipates thousands of jobs would be created in building a WA decommissioning hub, and hundreds more for its ongoing operations and maintenance.
Already, Australia is missing out on work: the Federal Government sent the Northern Endeavour floating production, storage and offloading vessel to Denmark for decommissioning, while Santos is also expected to dispose of its Ningaloo Vision FPSO overseas.
Brunei is opening a new decommissioning facility this year, further increasing competition.
AMWU WA secretary Steve McCartney said getting the industry moving domestically would create jobs in Australia and offer opportunities to feed green steel projects, another focus for the Federal government.
“Not only would this help stand up green steel projects in the South West, it would provide long-term and stable onshore demand so we never see another debacle like the Northern Endeavour work being stolen from Australian workers ever again,” he said.
Ms King said the Government was “determined to build a strong decommissioning industry” in Australia to create jobs here as work scaled up in coming years with oil and gas companies obliged to deal with infrastructure at the end of projects.
“This is not an optional requirement. It is the responsibility of industry to remove all infrastructure and rehabilitate the production area,” she said.
Australian Energy Producers chief executive Samantha McCulloch said the oil and gas sector would draw on decades of operational expertise and the capabilities of its highly skilled workforce to back safe and efficient decommissioning of its infrastructure.
https://thewest.com.au/politics/federal-politics/urgent-action-needed-to-start-decommissioning-industry-warn-unions-and-green-groups-c-19636793
