<
https://reneweconomy.com.au/renewables-sector-learning-from-messy-failures-after-oil-company-collapses-with-200m-clean-up-bill/>
"A small oil and gas company in Western Australia has collapsed under the
weight of $200 million in decommissioning costs, and renewables experts are
paying close attention.
ASX-listed Pilot Energy has brought in administrators after failing to secure
the funding or partners it needed to turn an old oil and gas field into a
carbon capture and storage reservoir.
Not only is the carbon capture plan now unlikely, but the full impost of the
clean up is likely to be paid by the rest of the offshore oil and gas industry.
A report by engineering consultancy Xodus last year estimated the cost of
decommissioning in the Perth Basin, where Cliff Head is the only field, at $200
million.
Francis Norman, the head of the Centre Of Decommissioning Australia (CODA),
expects the federal government will likely extend the current industry-wide
levy imposed on the whole industry to cover the cost of cleaning up the
Northern Endeavour offshore gas facility, after its owner collapsed.
“I don’t honestly think it is reflective of the broader industry, these are
outliers,” he told
Renew Economy, but it’s a teachable moment for new energy
industries.
“This is part of the learnings that we’ve got as an evolving industry in
Australia, that we need the regulatory agencies, the governments that have
oversight of these need to be increasingly vigilant that the companies
operating these have the financial wherewithal to meet their obligations.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
