NOPSEMA policy on the requirement to remove equipment and property

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPPGS Act) requires petroleum companies to remove all equipment or property when it will no longer be used in offshore operations, and if an alternative is proposed, to demonstrate how equal or better safety and environmental outcomes will be achieved.

In October 2019, the former federal Minister for Resources and Northern Australia made clear his expectation that NOPSEMA would heighten its focus on industry compliance with this requirement.

While compliance with the requirement has always been a component of our regulatory activities, in response to the Minister’s policy direction, NOPSEMA released a statement of intent in November 2019 announcing an increased focus on its efforts in challenging the robustness of how petroleum companies plan to comply with the requirement, with timeliness a particular focus. 

To assist in clarifying how NOPSEMA would intend to advise, promote, monitor, and enforce compliance with the requirement, NOPSEMA has released a draft policy Section 572 Maintenance and removal of property for comment. Interested stakeholders are strongly encouraged to review the policy and provide feedback by Tuesday, 9 June 2020 to be considered in its finalisation and subsequent use.