> ## Content Index > Fetch the complete content index at: https://www.boilingcold.com.au/llms.txt > Use this file to discover other available public pages before exploring further. # Australian oil & gas lags in disclosing $44b clean-up bill - URL: https://www.boilingcold.com.au/australian-oil-gas-lags-in-disclosing-44b-clean-up-bill/ - Published: 2026-02-26T21:30:10.000Z - Updated: 2026-02-27T00:51:54.000Z - Description: Santos' decommissioning liability matches a quarter of its $22b value, but its disclosures to investors fared poorly against the latest accounting standards, according to an international survey. - Author: Peter Milne - Tags: Analysis, Decommissioning, Beach Energy (ASX:BPT), Amplitude Energy (ASX:AEL), Woodside Energy (ASX:WDS), Santos (ASX:STO), Strike Energy (ASX: STX), Australian Securities and Investments Commission (ASIC) ANALYSIS Australia's oil and gas sector faces a [$44 billion bill to clean up the ocean](https://www.industry.gov.au/publications/australian-offshore-oil-and-gas-decommissioning-liability-estimate-2025?ref=boilingcold.com.au), with more to do onshore, but it badly lags the UK and Canada in revealing this liability to investors, according to international energy finance analysts Carbon Tracker. Carbon Tracker examined [how well 38 companies disclosed information](https://carbontracker.org/reports/asset-retirement-obligations-what-lies-beneath/?ref=boilingcold.com.au) about decommissioning liabilities, using 15 metrics that it considered the minimum disclosure required under updates to international accounting standards. Australian companies, on average, disclosed just 19 per cent of the required metrics, less than half their foreign counterparts, the report released in December concluded. > **"Investors in these companies have little to no insight into the extent of (decommissioning) liabilities ... and the potential impacts of the different risks and uncertainties."** > Carbon Tracker on Australian oil and gas firms Barbara Davidson, head of capital markets transparency at Carbon Tracker, said investors cannot understand the risks embedded in these long-term liabilities without transparent assumptions, payment schedules and sensitivities. "Yet our findings also show that better disclosure is achievable," she said. "As the energy transition accelerates, incomplete reporting leaves markets exposed to growing financial and regulatory risks.” ## Decommissioning is a big deal The poor level of disclosure is at odds with the importance of provisions for decommissioning (or restoration) in assessing a company's value. The restoration provision for Santos, Australia's second-largest fossil fuel producer, is equivalent to a quarter of its current market value. For smaller firms, Beach and Amplitude, the liability is equal to 44 per cent and 58 per cent of their value, respectively. Carbon Tracker assessed the companies against [new guidance ](https://www.ifrs.org/news-and-events/news/2025/11/iasb-issues-illustrative-examples-reporting-uncertainties-financial-statements/?ref=boilingcold.com.au)issued by the International Accounting Standards Board in November. In January, the Australian Accounting Standards Board moved to implement these changes by issuing [new examples](https://aasb.gov.au/news/new-illustrative-examples-of-disclosures-about-uncertainties-in-financial-statements/?ref=boilingcold.com.au) on how to disclose uncertainties in estimating decommissioning liabilities, to be applied for the 2025/26 financial year. The revision promotes more detailed disclosure of assumptions about future uncertainties. For decommissioning, it points to the need to detail liabilities far into the future if there is a risk, such as climate change, that they may occur sooner. Investors need more granularity to assess if the risks associated with investing in oil and gas do not outweigh the promised returns. [![Want energy and climate news to hold gas giants to account? Support Boiling Cold.](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/2021/07/CTA-donate-big-gas-1.png)](https://www.boilingcold.com.au/support-cta/) ## Restoration calculations are not simple The liability a company records on its balance sheet for decommissioning is driven by four factors: the amount of infrastructure it expects to remove, when it will be removed, the cost for that work, and the discount rate used to convert future expenditure to today's dollars. All factors have room for legitimate variation in the estimate, but also ample opportunity to manipulate the recorded liability downward. Carbon Tracker notes that Woodside, Santos, Beach, and Amplitude all assume their offshore pipelines can be left in situ: industry jargon for leaving them in the ocean. This is despite the federal regulator NOPSEMA's [base case that all property is removed](https://www.nopsema.gov.au/offshore-industry/decommissioning?ref=boilingcold.com.au). On costs, globally, oil and gas companies have a history of underestimating decommissioning costs, with a [survey of projects](https://www.sciencedirect.com/science/article/abs/pii/S0195925520308143?via%3Dihub&ref=boilingcold.com.au) in the UK North Sea revealing the true costs were, on average, 76 per cent higher than the estimates. Locally, ExxonMobil appears to be an example of inadequate restoration provisions. In 2019, the US major's accounts lodged with the Australian Securities and Investments Commission (ASIC) revealed a $1.94 billion provision for restoration, predominantly for its 50 per cent of the Bass Strait operation it owns with Woodside. Now, despite [spending nearly $1.5 billion for its share](https://www.parliament.vic.gov.au/4aca38/contentassets/528808285c814db686db607676621d06/submission-documents/137.-exxon-mobil-australia%5Fredacted.pdf?ref=snapshot.bcsda.org.au) of Bass Strait work in recent years, it has a restoration provision of $3.6 billion. Five years less discounting to today's dollars can account for only a small part of the reason why the liability increased by $1.7 billion after spending $1.5 billion. ![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/2026/02/Bream-A-platform.png) ****ExxonMobil and Woodside's Bream A platform is scheduled for removal in 2027.** Image: ExxonMobil Carbon Tracker said UK and Canadian regulators appeared to be more active in policing financial reporting than ASIC. "Market regulator practice at a jurisdictional level may be a key driver in the quality of financial statement disclosures," Carbon Tracker concluded. "Although ASIC has previously emphasised the importance of appropriate recognition and estimation of AROs, we did not observe the regulator compelling (or indeed companies providing) more useful financial statement disclosures." --- ## Australia's offshore clean-up to-do list Much decommissioning in Australia is occurring only after the federal regulator, NOPSEMA, ordered work to be done. Some of these projects are still required to publish annual progress reports. **Bass Strait - Victoria - ExxonMobil** [NOPSEMA direction in 2021](https://www.nopsema.gov.au/sites/default/files/2021-06/A783674.pdf?ref=boilingcold.com.au) [2025 annual report](https://corporate.exxonmobil.com/-/media/global/files/locations/australia/gd817-decommissioning-progress-report-2025.pdf?ref=boilingcold.com.au) **Stybarrow - WA - Woodside** [NOPSEMA direction 2025](https://www.nopsema.gov.au/sites/default/files/documents/General%20Direction%202022%20-%20Stybarrow.pdf?ref=boilingcold.com.au) superseded the original 2021 direction following "preventable safety incidents [resulting in injury](https://www.boilingcold.com.au/woodside-cleanup-off-wa-plagued-by-injuries-and-incidents-2/) as well as delays." [2023 annual report](https://www.woodside.com/docs/default-source/current-consultation-activities/australian-activties/stybarrow-annual-report---dec-2023.pdf?sfvrsn=e40c6717%5F3&ref=boilingcold.com.au) **Griffin - WA - Woodside** [NOPSEMA direction 2025](https://www.nopsema.gov.au/sites/default/files/documents/General%20Direction%202017%20-%20Griffin.pdf?ref=boilingcold.com.au) superseded the original 2021 direction following "several preventable health, safety, and [environmental incidents](https://www.boilingcold.com.au/woodside-spills-16-000-litres-of-oil-into-ocean-north-of-ningaloo/)." [2024 annual report](https://corporate.exxonmobil.com/-/media/global/files/locations/australia/2024-decommissioning-annual-report---griffin-rev-1.pdf?ref=boilingcold.com.au) **Minerva - Victoria - Woodside** [NOPSEMA direction 2025 ](https://www.nopsema.gov.au/sites/default/files/documents/General%20Direction%202016%20-%20Minerva.pdf?ref=boilingcold.com.au)superseded the original 2021 direction after [plastic was lost to the sea](https://www.watoday.com.au/environment/conservation/how-parts-of-a-dead-gas-rig-washed-up-on-our-beaches-20250514-p5lz1t.html?ref=boilingcold.com.au). [2023 annual report](https://amplitudeenergy.com.au/uploads/announcements/222407-WOOPET-Minerva-General-Annual-Reports-Proof-3.pdf?ref=boilingcold.com.au) [Woodside slammed for preventable offshore incidentsRegulator NOPSEMA has directed Woodside to properly plan its work after a series of preventable safety incidents off the WA and Victorian coasts.![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/icon/bc_symbol-268.png)Boiling ColdPeter Milne![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/thumbnail/Griffin-Venture-FPSO.jpg-2.webp)](https://www.boilingcold.com.au/woodside-slammed-for-preventable-offshore-decommissioning-incidents/) **Nganhurra Riser Turret Mooring - WA - Woodside** [NOPSEMA direction 2023](https://www.nopsema.gov.au/sites/default/files/documents/Direction%20-%201913%20-%20Nganhurra%20Operations.pdf?ref=boilingcold.com.au) [2025 annual report](https://www.woodside.com/docs/default-source/current-consultation-activities/australian-activties/2026/240509-woopet-decommissioning-annual-report-update---enfield---rev-0.pdf?sfvrsn=2db2599d%5F3&ref=boilingcold.com.au) **Basker, Manta, Gummy - Victoria - Amplitude Energy** [NOPSEMA direction 2021](https://www.nopsema.gov.au/sites/default/files/documents/General%20Direction%20824.pdf?ref=boilingcold.com.au) [2024 annual report](https://amplitudeenergy.com.au/uploads/corporate-governance/BMG-Closure-Project-Annual-Progress-Report-2024-Rev-0-2.pdf?ref=boilingcold.com.au)