Government tells oil firms to pay platform removal costs

Federal officials stated they will extend an emergency industry levy if required to cover the estimated $200 million cost of removing a disused oil platform from Australian waters. The warning came after ASX-listed explorer Pilot Energy entered voluntary administration, leaving the future of the Cliff Head oil platform uncertain. The platform sits 11 kilometres off Dongara in Western Australia.

Background on the platform and prior cases The platform's remaining joint-venture partner, Triangle Energy, would bear the full decommissioning liability under current offshore regulations. Both companies have a combined market value less than 5 per cent of the estimated clean-up cost.

Officials referenced a 2021 levy introduced after a previous operator transferred the Northern Endeavour vessel to a company that later collapsed, exposing taxpayers to more than $1 billion in costs. The former Coalition government later recovered those costs through an industry-wide production charge.

Statements from officials and administrators Federal Resources Minister Madeleine King said on Wednesday that she would extend the Northern Endeavour levy or take other measures if companies cannot pay. She added that taxpayers will not be left responsible for decommissioning costs.

Administrators from Cor Cordis said they have begun an urgent review of Pilot Energy's operations and joint-venture obligations. They stated they will work with employees, regulators, lenders and creditors to assess available pathways. Environmental groups described the situation as a test of federal offshore regulations and said the liability could shift to the company least able to pay.