A new law to force big oil and gas producers to pay the cost of removing their offshore rigs from the ocean passed through Parliament this week, with federal Resources Minister Keith Pitt warning industry that taxpayers will not foot the bill to remove their old infrastructure.estimated at $60 billionResources Minister Keith Pitt’s has enacted new laws to ensure offhsore petroleum producers foot the bill for decommissioning their rigs.
“The trailing liability provisions will be an action of last resort when all other safeguards have been exhausted and will reduce the risk that the financial costs of decommissioning will be left to Australian taxpayers,” Mr Pitt said. “It also sets the expectation that sellers will undertake appropriate due diligence before selling assets, titles and infrastructure, so they can avoid being called back to decommission and remediate title areas.”Industry and environment groups have cautiously welcomed the passage of the bill, covering Australia’s offshore oil and gas fields on the North West Shelf in Western Australia and Bass Strait.
Mr Pitt’s reform was prompted by the case of the Northern Endeavour, which the federal government was forced to take ownership of in 2019. The industry regulator had shut down production on the ageing vessel due to safety concerns after the small company that had taken it over from Woodside entered liquidation. Mr Pitt has promised to soon