Asian Eyes Australia has launched a $ 100 billion oil and gas cleanup race

The abandoned North Enddov oil rig was found in the Timor Sea by the Australian Department of Industry, Science, Energy and Resources on September 6, 2021. Department of Industry, Science, Energy and Resources by REUTERS

  • The cost of the Asia-Pacific crossing is $ 100 billion
  • Australia’s new law eliminates aging oil, gas fields sales
  • Thailand, Malaysia, Indonesia will withstand the storm of abandonment

MELBOURNE, September 8 (Reuters) – Australia has enacted a law that would make it illegal to pay for fossil fuels in Asia.

The new law provides a model for governments competing with the oil and gas industry, eliminating hundreds of obsolete energy facilities, especially as the world shifts to a low-carbon economy.

The cost of destroying coastal facilities in Australia is expected to reach $ 40 billion, half over the next 10 years. For Asia-Pacific, the total cleanup budget is estimated at $ 100 billion by 2050, according to consultants expensive McKenzie.

Australian law strengthens the sale of property to ensure that any new owner has the financial and technical capacity to handle the termination. Controversially, under the auspices of the Northern Kingdom of England, it introduces liability for the destruction of former property if the current owner fails.

Selling mature oil and gas fields to low-skilled players who can prolong the life of a farm has become a common practice around the world, especially in the North Sea, the Gulf of Mexico, and outside Australia.

However, Australia

At a time when many oil and gas fields in South East and Western Australia are nearing the end of their lives, they are expected to limit such sales in Australia, sadly for the industry.

Andrew McKonville, CEO of the Australian Petroleum Production and Exploration Association, said:

Already, Exxon Mobile Corporation (XMN) and partner BHP Group (BXX) have pulled out of real estate sales in Southeast Australia following a government warning to select buyers. Last month, BHP agreed to merge its petroleum operations with Australia’s largest independent gas producer, Woss.All.

Australia’s main oil and gas fields

Older Asian plains

Hundreds of platforms in Southeast Asia are nearing the end of their lives, but they do not have as many demolition laws as Indonesia, Malaysia, Thailand, and Vietnam. Companies work as contractors with product sharing contracts with the state.

Wood Mackenzie, director of research at Wood Mackenzie, said there was little interest in abandoning old contracts, and that those contracts were outdated or that international oil companies were outsourcing.

In Thailand, Chevron Corporation (CVXN) is trying to resolve a dispute with PTT Expansion and Production PTTEP (PTTEP.BK) in the Gulf of Thailand in the Gulf of Thailand.

Thailand wants $ 2 billion in full rehabilitation costs for Erawan.

“The situation in the Gulf of Thailand is challenging,” Harud said. And it may delay PTT’s efforts to invest in those blocks.

If a company’s contract expires before a groundbreaking contract is made in Malaysia, the work will be held by state-owned Petronas, exposing issues such as currency risk, which could reduce recovery costs.

Considering the tendency of large oil and gas companies out of the region and the presence of small cash players … Principles such as accountability may be some of the things the country and Petronaus can explore to reduce these risks. , ”Said Fariz Aziz, a partner with Malaysian law firm Skrine.

Indonesia, one of the fastest-growing industries in the world for years, has demanded that it allocate funds to disperse operators.

The country’s oil and gas regulator, SKK Migas, is preparing a roadmap for the decommissioning of 100 unused platforms in July, and is considering using it for climate control or reuse of facilities, including reef, for border security.

In the event of a dispute over WoodMac’s Harwood account, Southeast Asia may see many examples of mediation, but subsequent liability will be a characteristic of new contracts.

“It can be done and we can be sure that it will be included in future contracts,” he said.

($ 1 = 1.3795 Australian Dollars)

Report by Sonali Paul; Additional report by Rosa and Latif in KwaZulu-Natal and Fathin Ungku in Jakarta; Edited by Richard ull Lin

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