NOPSEMA decision to allow further delays in the clean-up of Bass Strait oil and gas infrastructure is a lost economic opportunity and a sign of regulatory weakness.
Friends of the Earth Melbourne
Key Facts:NOPSEMA has approved an EP for the removal of infrastructure in the Bass Strait belonging to ExxonMobil Australia and Woodside
The approval allows for tens of thousands of tonnes of steel to be left behind.
This is a lost economic opportunity and a further delay to the timely decommissioning of oil and gas infrastructure.
Friends of the Earth Melbourne has strongly condemned the decision by the National Offshore Petroleum Safety and Management Authority (NOPSEMA) to approve an environment plan permitting ExxonMobil Australia and Woodside (the Joint Venture) to leave tens of thousands of tonnes of steel behind in the Bass Strait.
The Joint Venture has arranged for an enormous purpose-built rig-removing vessel, the Pioneering Spirit, to travel to Australia for the first stage of their decommissioning efforts in the summer of 2027/28. Its arrival in Australian waters is an opportunity to retrieve the significant steel resources currently rusting at the bottom of the Bass Strait. The regulator’s decision allows the companies to delay the removal of lower steel pile jackets (LSPJs), the bottom sections of the giant steel frames that support oil and gas platforms, until 2032.
Recently, a Victorian parliamentary inquiry into the decommissioning of oil and gas infrastructure heard from the Australian Steel Institute that the nation’s domestic steel recycling industry is suffering from a lack of feedstock and is currently importing scrap steel from overseas.
ExxonMobil Australia released a bulletin in March 2026 stating their intention to apply for the permanent abandonment of the LSPJs in the fourth quarter of this year.
The Offshore Petroleum and Greenhouse Gas Storage Act (OPGGS Act) states full removal of all infrastructure is the legal base case for all offshore petroleum activities after cessation of production.
Quotes attributable to Stan Woodhouse, Friends of the Earth Melbourne offshore gas campaigner.
“The clean-up of the Joint Venture’s bass strait assets has already seen endless delays due to corporate irresponsibility and inaction by the regulator. This latest decision misses an opportunity to take advantage of a remarkable vessel designed for exactly this work”
“ExxonMobil Australia have made it clear they intend to abandon tens of thousands of tons of steel on the bottom of the sea because it is better for their bottom line. This decision by NOPSEMA heralds the potential loss of this valuable resource”
“Australia needs steel for public works and the transition to renewable energy. NOPSEMA should be maximising opportunities for the circular economy, not protecting ExxonMobil’s shareholder returns”
Contact details:
Stan Woodhouse: [email protected]