Earlier this year, a new ‘trailing liability’ regime was introduced with amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth). These changes ensure former titleholders carry a liability, even if their title has been disposed of, surrendered or terminated.

With a predicted estimated liability of USD $40.5 billion for well plugging, abandonment and pipeline removal in Australia’s decommissioning portfolio, effectively managing the associated risks will be critical for current and former asset holders and their insurers.

Property, Energy + Infrastructure specialists Adam Chylek and Sam Barker look at the issues and mitigation strategies associated with Australia’s new ‘trailing liability’ regime in this update.

Read the update in full below.