Parliamentary report demands oil and gas giants clean up Bass Strait rigs

A HIGHLY anticipated parliamentary report into the decommissioning of oil and gas infrastructure in Bass Strait has focussed heavily on holding fossil fuel corporations accountable for their historical footprints.

The landmark inquiry addresses the looming wave of offshore infrastructure to be retired and offloaded at the Barry Beach Marine Terminal providing a roadmap for Victoria to handle environmental risks while capturing regional economic rewards.

The comprehensive 142-page document arrives as Esso Australia a subsidiary of ExxonMobil embarks on its multi-billion dollar decommissioning program in Bass Strait.

Environmental advocates have widely praised the committee's findings, viewing it as a massive step toward robust regulatory oversight. Friends of the Earth Melbourne commended the report for recommending that significant legal and financial obligations be placed directly on fossil fuel companies to dismantle and clean up their decommissioned offshore installations.

"It’s encouraging to see so many recommendations from the environmental and labour movements echoed in this report," said Stanley Woodhouse an offshore fossil gas campaigner for Friends of the Earth.

"Strong financial safeguards, trailing liabilities, and domestic recycling will all help Victoria deal responsibly with, and benefit from, the incoming wave of decommissioning liabilities."

Key recommendations within the report mandate that fossil fuel companies must regularly report the structural status of ageing offshore infrastructure, assume full financial liability for any resulting environmental damage, and clean up defunct platforms before they degrade and release toxic substances into the marine ecosystem.

According to environmental groups if the recommendations are formally adopted by the Victorian Government, it will firmly establish the precedent of making polluters pay.

Activists argued that operators have historically omitted cleanup obligations from their long-term financial planning. "For too long, fossil fuel companies have not factored in the cost of properly cleaning up their old infrastructure and instead have treated the ocean as a dumping ground," Woodhouse stated.

"All Victorians want to see these companies made to pay to remove their defunct infrastructure in full, hiring unionised workers to carry it out."

The report highlighted that decommissioning provides substantial economic potential for regional communities, particularly in Gippsland. According to Esso Australia existing work at the Barry Beach Marine Terminal has shown that onshore dismantling and local scrap metal recycling can generate hundreds of local jobs.

Committee Chair Ryan Batchelor emphasised that the public must be protected from carrying these costs. "We are also mindful that Victorian taxpayers should not foot the bill for the costs of decommissioning," Mr Batchelor stated, calling for state policies that mirror federal trailing liability laws.

Despite overarching support, environmental organisations argued a dangerous loophole remains in the committee's framework. The report suggested companies could potentially abandon certain subsea structures if leaving them in place demonstrates a better environmental outcome, a clause often used to advocate for artificial reefs.

Campaigners are fiercely resisting this exception. Woodhouse warned that allowing infrastructure to remain on the seabed compromises the integrity of the entire inquiry.

"There is no world in which the ocean dumping of contaminated industrial waste offers a benefit to the environment," Woodhouse countered. "Our leaders need to stop pandering to industry lobby talking points and commit to what is right for Victorians and their environment."

The Victorian Government is expected to formalise its response to the committee’s 142-page report later this year, balancing regional employment opportunities against strict environmental protection demands.