Submission: Offshore decommissioning and financial assurance reforms

13 January 2026

To: Department of Industry, Science and Resources
Re: Offshore decommissioning and financial assurance reforms 

Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to provide input to the Offshore decommissioning and financial assurance reforms consultation process.

IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy. 

The decommissioning of oil and gas infrastructure provides an economic opportunity for the oil and gas sector with up to A$60 billion of offshore petroleum decommissioning activities to be undertaken over the next 30 to 50 years. For this economic opportunity to be realised, greater assurance on the financing of the decommissioning work must be introduced, along with periodic updates on the financing of decommissioning to ensure there is adequate financial cover in the event of any material change to the project. This will provide greater economic certainty for service providers undertaking decommissioning work so they can plan their work with greater clarity.     

Kind regards,

Kevin Morrison, Energy Finance Analyst, Australian Gas