Australia’s offshore oil and gas industry continues to remain in the spotlight as ageing infrastructure approaches end of life, and the regulatory framework continues to face scrutiny. The Northern Oil and Gas Australia collapse highlighted risks of titleholder insolvency and taxpayer exposure. The Commonwealth Government responded with major reform to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth), including the introduction of enhanced titleholder suitability checks and trailing liability provisions to strengthen compliance and accountability for decommissioning costs. However, the Commonwealth Government has identified that deficiencies remain in the system. In November 2025, the Commonwealth released a consultation paper proposing further reform for discussion, principally related to financial assurance for decommissioning and early planning for decommissioning. This article explores the changing landscape of decommissioning regulation in Australia and the recently announced reforms. As the sector continues to transition, achieving a balance between regulatory certainty and investment viability will be critical to safeguarding environmental outcomes, fiscal integrity and long-term industry sustainability. It remains to be seen what approach the Commonwealth Government will take following the release of the consultation paper; therefore, industry and other interested parties will be keenly watching this space.
Jane Ballard (Wed,) studied this question.