"That said, these are complex, mature assets. We believe this will lead to a far smaller pool of realistic buyers, who will have to get comfortable with the age of the assets, declining production and significant decommissioning liabilities. The fact that a previous effort to offload the Gippsland oil assets failed due to uncertainty over abandonment costs highlights how big an issue it will be, but also suggests any new operator would look to extend and increase production from the portfolio to delay the onset of decommissioning spend."
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/19092019/wood-mackenzie-comments-on-exxonmobils-sale-of-gippsland-basin-upstream-assets/
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