Oil and Gas Liability
In 2022, with the shift to the new LMF, the AER began reviewing how estimated liability was calculated. With the updated well abandonment costs in the 2024 release of Directive 011: Estimated Liability, the total estimated liability has increased to approximately $36 billion as of July 2024. Further information related to these changes can be found in this presentation on the Directive 011 well abandonment cost update.
We continue to update the estimated liabilities and are looking to use available information, such as reporting of closure spending, to provide more up-to-date estimated liabilities. Work will continue on improving estimated liability for wells and facilities. More information will be provided in the coming months.
A company can view the full breakdown of their estimated liability through the OneStop Liability Assessment Report. Liability information is updated daily, and licensees can see a select amount of historic liability information. For oil and gas estimated liability trend, please refer to the Liability Management Performance Report.
