As Australia experiences a significant rise in decommissioning activities, understanding the current landscape, challenges, and innovations is essential.
According to Francis Norman, CEO and Managing Directorof the Centre of Decommissioning Australia (CODA), Australia is witnessing a significant ongoing upward trend in decommissioning.
Major players, including Chevron, Woodside, Santos, and Esso, are actively engaged in both onshore and offshore decommissioning projects.
Norman said: “With this volume of work, many lessons a being learned across the entire value chain.”
“Operators are finding better ways to plan and control their work while the supply chain is learning how best to execute their scopes.”
This signals a robust pipeline of decommissioning activity that Norman expects to continue for several years before returning to a more stable market.
Despite the positive momentum in decommissioning, the industry faces several challenges. Historically, the vast distances across Australia and limited technological expertise have complicated decommissioning efforts, making it a daunting task for many involved.
Norman said: “The tyranny of distance and shortage of technologies and expertise are being superseded by a recognition that decommissioning is incredibly hard.”
He further noted that there is an increasing realisation that the Australian regulatory framework remains complex and time-consuming. Navigating these regulations can often impede project progress, adding layers of difficulty for companies already facing logistical challenges.
Another significant issue he identified is the limited range of decommissioning options available to operators.
“We have a solution to most challenges, but often there is only one option. Consequently, solutions to unusual challenges can take extended times to identify or develop.”
“This is not unique to Australia, but as a recently emerged and busy decommissioning destination, it can be hard even to define, let alone to find the right solutions.”
This lack of diversity in potential solutions can lead to extended timelines for identifying innovative approaches, particularly for unique challenges that arise during decommissioning activities.
As the sector matures, the need for varied strategies that can accommodate different scenarios becomes increasingly apparent.
To address these challenges, certain technological advancements are essential for improving the efficiency and safety of decommissioning processes.
Norman highlighted the need for broader acceptance of alternative barrier approaches, both in terms of materials and the adoption of new tools.
This includes promoting recycling capabilities for many of the hard-to-manage materials being recovered, achieving rigless decommissioning for Australia’s offshore fields – where the mobilisation costs for traditional rigs are significantly high – and fostering a greater understanding across the entire execution landscape of the risks associated with decommissioning.
“We have several technological barriers being pushed here, for example, the ability to efficiently disassemble flexibles and umbilicals ready for recycling.
“With its very busy decommissioning ecosystem, Australia is becoming a proving ground for many technologies developed elsewhere; sometimes these devices are getting some of their first operations in Australia.”
With Australia playing a pivotal role in advancing decommissioning technologies, the industry seeks to enhance its operational efficiency while minimising environmental impacts.
Innovative methods for dismantling and recycling materials, especially flexible pipes and umbilicals, are currently being developed and explored.
Norman stated that the ability to efficiently disassemble these complex components is essential for advancing the decommissioning process. He also highlighted that the focus on recycling is not merely an environmental consideration; it can yield economic benefits by reducing costs associated with waste disposal.
“Australian decommissioning has definitely embraced recycling and circularity as it has started.
“There is a strong desire right through the ecosystem to find the best option for every piece of material recovered.
“Additionally, there is research happening to look at how some otherwise hard-to-recover materials may be recycled.”
However, challenges remain in local recycling capacity, which often leads to significant volumes of materials being exported due to a lack of domestic facilities capable of processing them effectively.
The opportunities for reusing materials are vast. Much of the metals recovered, such as steel and copper, can be recycled through traditional avenues, while concrete can be crushed and repurposed for construction projects.
Norman said: “Practically everything recovered during decommissioning can be recycled in one way or another.
“There are a few projects underway at the moment to find alternate, higher value ways to reuse some of the steel; similarly, plastics from flexibles and umbilicals, which are very challenging to recycle, are being investigated for ways to recover them.”
“Internationally, there are options on the market to clean sections of pipeline which can then be sold on as pile material,” Norman said.
“In Scandinavia, there is an initiative looking at ways that sections of steel plate from vessels can be processed and then used directly as construction materials.
“It is still a very fertile area with a lot of ideas yet to emerge.”
However, the Australian decommissioning industry is currently facing a critical skills shortage, particularly in project management roles.
Norman said: “Decommissioning is probably one of the most complex and unpredictable phases… It’s very hard to simply step into.
“With so much of the work here and such a relatively inexperienced decommissioning management base, it has made running many of these projects immensely challenging.”
This complexity requires a skilled workforce adept at navigating the intricacies of decommissioning projects.
To help address this gap, CODA has been running an introduction to decommissioning course, which has attracted over 150 participants from various sectors, including government, operators, and supply chain personnel.
“The course is taught by several highly experienced subject matter experts who each cover their area of expertise.
“Additionally, we try to work with employers and educators to see how we can incorporate decommissioning aspects into their course material.
“There are some specific areas of knowledge that each different role needs to have to thrive and be safe in decommissioning; these skills must be carefully developed and nurtured.”
Norman reiterated that, since decommissioning is a dynamic global endeavour, it is fortunate that Australia has established several valuable international relationships in areas such as well plugging solutions, workforce development, marine operations, recycling research, and collaboration with regulators and similar organisations worldwide.
“Being part of such an open network means we can access knowledge, ideas and insights from around the globe as well as share emerging ideas and initiatives from Australia.”
Looking ahead, Norman envisioned a busy decommissioning market for the remainder of the decade, but hoped that as the industry matured, decommissioning would become business as usual in Australia.
The expectation is that companies involved in decommissioning will not only refine their practices but also extend their expertise
to tackle global challenges in the field. This potential for knowledge transfer could position Australia as a leader in global decommissioning efforts.
“I hope that…the companies that have been such integral parts of this work will progressively begin to take their knowledge and solutions to help address the broader global decommissioning challenge.
“I am excited to see some of the new ideas and solutions that emerge for recycling and processing of much of the recovered material.”
