A state parliamentary inquiry into Bass Strait oil and gas decommissioning heard stark warnings last week about well containment failures and toxic contamination risks, as competing visions emerged for the future of offshore infrastructure, some of which is slated to be brought to shore at Barry Beach, near Welshpool.
Foster local Zavier Evans raised serious concerns about the reliability of plugged wells during the recent hearing in Leongatha, citing industry data showing significant failure rates.
"We've known for decades that plugging wells under the pressure of the ocean often leads to containment failure, with some estimates as high as 26 per cent of plugged wells springing a leak," Mr Evans told the Prom Coast News after the hearing.
"In fact, the campaign currently happening in Bass Strait has had two containment failures already, according to the community consultation sessions held by Exxon."
Mr Evans warned there is no government or industry-funded monitoring program to ensure containment of the 440 wells in Bass Strait currently being plugged.
Environmental groups presenting to the Legislative Council Environment and Planning Committee also warned that subsea pipelines contain naturally occurring radioactive materials, mercury, hydrocarbons and heavy metals that pose risks to human health and the environment.
Fern Cadman, Fossil Fuel Industry Campaigner at The Wilderness Society, told the committee that Gippsland's offshore region has around 800 kilometres of subsea pipelines.
"Even if buried, eventually they will degrade, and all that is going to end up in the environment," Ms Cadman said.
Stan Woodhouse from Friends of the Earth warned that some contaminants can bioaccumulate and move through the food chain.
"If we leave it on the seabed, it will end up on our dinner plates," Mr Woodhouse said.
Environmental groups advocated for removing pipelines before they corrode, with Ms Cadman dismissing industry concerns about difficulty.
"Industry says it's too hard to remove them, but engineers say almost anything can be done, you just have to be prepared to pay for it and use the right tools," she said.
South East Trawl Fishing Industry Association Executive Officer Simon Boag raised different concerns, telling the Gippsland Monitor that improperly removed infrastructure creates invisible hazards for fishermen.
"If you're a trawl fishing vessel and you become stuck on that, you then have to undertake a whole bunch of manoeuvres to try and extract your net from the snag," Mr Boag said. "That can become quite dangerous and can result in the loss of the vessel, which is potentially life threatening."
Mr Boag said the industry's main concern is ensuring fishing grounds in Bass Strait remain unchanged.
"If we lose access to our fishing grounds, fishermen have to go somewhere else. If they're not going to their preferred location, they are less profitable," he said.
The Australian Steel Institute urged the committee to recognise decommissioned infrastructure as a valuable national resource.
Jerusha Beresford, Sustainability Adviser at ASI, told the committee the first tranche of decommissioning will yield 60,000 tonnes of high-grade steel from 12 retired platforms.
"We are strongly recommending that the scrap steel recovered from the decommissioning of the Bass Strait oil and gas infrastructure is recognised as a valuable national resource and prioritised for local recycling into domestic steel manufacturing and not exported," Mr Beresford said.
He said demand for steel for renewable infrastructure alone is forecast at 400,000 tonnes per year through to 2030, with domestic recycling dramatically reducing carbon intensity compared to primary production.
Economic modelling shows every 10,000 tonnes of scrap steel processed domestically creates 37 jobs and $4.8 million in value-add, compared to just $1.3 million if exported.
However, Mr Beresford warned that without regulatory intervention, contractors may opt to export scrap for short-term financial gain.
"Unfortunately, the past has showed that sometimes scrap is exported because it is perceived to be an easier way to get rid of the waste and the contractor gets paid for it," he said.
The Bass Strait contains 23 oil and gas rigs with over 600 kilometres of pipeline, all set to be removed as wells dry up. The 23 platforms are jointly owned by ExxonMobil and Woodside Energy. In 2024, ExxonMobil reported it had undertaken nearly $2 billion of early decommissioning works in Bass Strait, including plugging 150 of over 400 wells in the area.
The inquiry is investigating how Victoria should manage ageing offshore wells, pipelines and processing infrastructure, including who pays for removal and how to balance environmental protection with economic transition.
The committee is expected to report to Parliament by June 2026. David Barrett with Cara Schultz
