CODA Connect • September 2021

Welcome to the fourth edition of CODA Connect, the newsletter that keeps you updated on our efforts to address the challenges and opportunities of decommissioning Australia’s aging oil and gas infrastructure.

CODA’s inaugural report showed there’s more than $50 billion of necessary offshore decommissioning work to be done - over half of which needs to be started within the next ten years.  CODA will help Australia’s oil and gas industry collectively answer strategic questions about decommissioning options based on technical, safety and environmental knowledge.

In addition, by applying research findings from the National Decommissioning Research Initiative, we and our industry partners will ensure Australia's future decommissioning activity will be built on independent and sound scientific research, providing the best possible outcomes for industry, environment and community.

Work is progressing quickly to establish a secure and sustainable future for CODA built on strong, collaborative and trust-based relationships across all the parties who will play a vital role on the decommissioning journey.   

This CODA Connect edition provides an update on:

·      setting up CODA for a sustainable future

·      successful contractors announced for CODA projects

·      building local engineering capacity

·      the National Decommissioning Research Initiative (NDRI)

CODA's sustainable future

Since our last update a great deal of progress has been made to future-proof CODA. We are creating ongoing structure and governance processes, including the establishment of a supervisory committee to form the heart of CODA’s strategic focus and decision-making.

Led by CODA’s Independent Chair and General Manager, the committee is also comprised of six senior leaders - two from operators, two from the service sector and two independents. We have progressed to the final stages of confirming the appointment of these key industry figures and will update you as soon as possible.

We have also commenced the process of establishing CODA as a separate, independent legal entity to accelerate the delivery of a transformational approach to late-life asset planning and decommissioning execution.

Additionally, we are pursuing funding options with state and federal governments and developing a scaled industry membership model to secure our sustainability as an independent but collaborative entity.

This will position CODA to grow capability and capacity to service Australia's decommissioning needs and capture work in the Asia-Pacific market that could create thousands of jobs and generate billions in economic growth for the nation. 

We continue to engage and consult widely with oil and gas operators, service sector companies and regulators to ensure CODA’s strategy is supported and fit-for-purpose to deliver in a timely fashion the best outcomes for all parties. 

Next month we will be running a number of operator and service sector workshops to bring together stakeholders to shape CODA’s priorities and activity.

We look forward to bringing you further updates on all these important milestones very soon.

CODA's foundation projects contracts awarded

After an extensive review process, we’re pleased to announce we have awarded contracts for the CODA foundation phase projects. Due for delivery in early 2022, these projects will build knowledge and understanding of the local decommissioning and recycling capability, provide Australian industry with an easily accessible digest of international best practice that can be used locally, and set out a pathway for innovation and new technologies for the industry.

The projects are as follows:

Understanding the opportunity for local disposal and recycling pathways
Led by Advisian

This study will assess Australia's existing capacities and capabilities for disposal and recycling of materials from decommissioning, including the likely disposal pathways that these materials will follow. Gaps to achieve 100 per cent local disposal and recycling in Australia will be identified and cross-industry and regional benefits of achieving this quantified.

Find out more here.

Development of a decommissioning innovation and technology roadmap
Led by Linch-pin

This project will articulate key areas within the decommissioning work breakdown structure that would benefit from the application of innovative approaches and technologies.

Find out more here.

Global review of decommissioning planning and execution learnings
Led by Advisian

This project will identify key learnings arising in comparable jurisdictions, which could be applied in the Australian context to inform improved design of planning and execution.

Find out more here.

Each organisation has curated a team with varied skill sets and subject-matter experts, bringing both international experience and understanding of local context and knowledge.

The following representatives will lead the projects and project teams:

Next Steps

With contracts now in place, initial framing meetings have started and work is under way for each project.

Key to the success of each of these projects will be stakeholder and industry consultation. Over the coming months, both Linch-pin and Advisian will be reaching out across CODA and industry networks to solicit insights that can be incorporated into the project reports.

If you have any queries about the projects, please email coda@nera.org.au

Building local engineering capacity

National Decommissioning Research Initiative Update

Phase one projects are progressing, with several papers in review. Planning has commenced for phase two projects, with the initial focus on developing a roadmap of future decommissioning research priorities and projects that will continue to answer critical knowledge gaps related to decommissioning in the Australian offshore oil and gas industry over the next 10 to 20 years.

Highlights from phase one projects are:

Project 1.2 — The Influence of Oil and Gas Infrastructure on Ecological Connectivity in Marine Ecosystems

The Australian Institute of Marine Science (AIMS) has completed a comprehensive literature review and expert elicitation process to document current knowledge of the influence of oil and gas infrastructure on ecological connectivity in marine ecosystems around the globe and in Australia’s north-west and south-east regions. This information has been prepared as a paper that will be submitted for publication.

Project 2.3 — Risk-based marine impact assessment of Naturally Occurring Radioactive Materials (NORMs) and mercury from decommissioning oil and gas Infrastructure

The Curtin University Oil and Gas Innovation Centre and the University of Aberdeen have produced a literature review that consolidates the state of knowledge on protective standards and impact of NORMs and mercury exposure on the marine environment.

To be kept up-to-date with the NDRI Projects and other news, follow NDRI on LinkedIn & Twitter.