Decommissioning is no longer just a regulatory checkbox—it’s an economic and environmental priority. Australia’s offshore sector is on the brink of large-scale decommissioning, with its government seeking guidance to dismantle over 200 oil and gas structures this year. The Centre of Decommissioning Australia (CODA) anticipates peak activity between February and July 2025, covering platform wells, subsea infrastructure and pipelines.

Regulatory amendments under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) are tightening financial requirements and oversight, while trailing liability measures ensure companies remain accountable for legacy assets. With decommissioning liabilities estimated at $40.5 billion, with over half of this expected within the next decade, Australia is setting out to position itself as a leader in sustainable decommissioning.

This commitment aligns with the nation’s enhanced climate targets, including a 43 per cent reduction in greenhouse gas emissions by 2030. To achieve this ambition, rapid advancements in decommissioning technologies will be critical in ensuring compliance and environmental stewardship.

The UK’s decommissioning landscape: shared pressures, common goals

The UK’s offshore sector is facing similar pressures, with over 2,000 wells in the UK Continental Shelf (UKCS) set for retirement by 2033. Offshore Energies UK estimates that decommissioning will account for 22% of the sector’s cumulative expenditure over the next decade. Meanwhile, regulatory and financial constraints continue to evolve, increasing the complexity of asset retirement.

The UK’s offshore sector must navigate intensifying economic pressures, including a windfall tax increase from 35 to 38 per cent, extending until March 2030. With the sector’s headline tax rate now at 78%, among the highest globally, operators must strike a balance between financial risk and investment in sustainable innovations.

Despite these challenges, the UK is not merely reacting to decommissioning demands—it is shaping the future technology landscape through strategic alliances.

Collaborating for transformation

In recent years, the UK has adopted a collaborative approach to decommissioning innovation, bringing together operators, technology developers and regulators to collectively de-risk investment and accelerate deployment. This model has not only strengthened the UK’s decommissioning capabilities but is also already benefiting Australia.

For instance, Scottish startup Sentinel Subsea recently deployed its passive subsea monitoring systems for two major Australian decommissioning projects in partnership with Baker Hughes. Its Coral and Coral-Frond Hybrid systems provide continuous well integrity monitoring without intervention, improving efficiency and minimising environmental impact. Similarly, Scotland-based Resolute Energy’s EPG barrier is addressing decommissioning challenges, including at Chevron’s Barrow Island, by enabling well plugging while reducing contamination risk and reliance on tubing removal.

Both companies secured early funding through the Aberdeen-based Net Zero Technology Centre’s (NZTC) accelerator, which also provided industry exposure and strategic partnership opportunities.

Their success helped catalyse NZTC’s Wells Decommissioning Collaboration in 2022, the centre’s flagship Joint Innovation Programme aimed at supporting emerging developers in advancing their technologies. Seven leading operators from around the globe —TotalEnergies, Equinor, ConocoPhillips, Harbour Energy, Petrobras, Repsol, and Okea—are actively engaged and benefiting from the initiative. Backed by the North Sea Transition Authority, the programme is serving as a mechanism to help drive national decommissioning cost and emission reduction targets.

Allowing operators to share piloting costs and learnings, the consortium is already yielding game-changing technologies at speed. Most notably, a world-first rigless, electrically powered alloy plug, designed by Norwegian-based Wellstrom. The plug enables shorter overall barrier lengths without the need for cement, offering a breakthrough solution for highly reliable wellbore sealing that lasts for thousands of years while significantly cutting CO2 emissions compared to traditional methods.

By leaning on a collaborative model, the UK is scaling innovative solutions at speed, strengthening its decommissioning supply chain and setting a global benchmark, one which can serve as a technological blueprint for Australia.

A global opportunity

As Australia ramps up its decommissioning efforts, collaboration with the UK presents an opportunity to build a world-leading decommissioning technology ecosystem. A government partnership agreement formalised late last year aligns the UK’s 40 years of North Sea expertise with Australia’s emerging decommissioning services market, fostering economic resilience and advancing shared decarbonisation goals.

However, this partnership is already in motion. UK synergies, like NZTC’s Wells Decommissioning Collaboration programme, are actively supporting Australia’s offshore sector, providing operators with access to proven, cost-efficient technologies. Investment in initiatives as such can help Australia accelerate its progress, positioning decommissioning as a strategic advantage rather than a regulatory burden.

By working together, the UK and Australia can not only manage decommissioning liabilities more effectively but also drive global leadership in sustainable offshore asset retirement—turning one of the sector’s greatest challenges into a defining opportunity for innovation and impact.