[Australia] Decommissioning the Northern Endeavour FPSO

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escveritas
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[Australia] Decommissioning the Northern Endeavour FPSO

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Decommissioning the Northern Endeavour

The Australian Government has committed to decommissioning the Northern Endeavour Floating Production Storage and Offtake facility and remediating the associated Laminaria-Corallina oil fields.

This follows the liquidation of the owner of the Northern Endeavour, the Northern Oil and Gas Australia (NOGA) group of companies in 2020.

The government investigated options to manage the Northern Endeavour in response to NOGA’s liquidation.

Decommissioning the facility and remediating associated oil fields was determined to be the most cost-effective way to:
  • remove future potential risks; and
  • protect the environment.
The Commonwealth’s costs of decommissioning the Laminaria-Corallina oil fields and associated infrastructure will be recouped through the Laminaria and Corallina Decommissioning Cost Recovery Levy.

The Levy is an important measure to ensure that taxpayers are not left to pay for the decommissioning and remediation of the oilfields and associated infrastructure.

Decommissioning projects

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Decommissioning and remediation will likely take several years and involve 3 phases:
  • Phase 1: Decommissioning and disconnecting the facility from the subsea equipment.
  • Phase 2: Permanent plugging and well abandonment.
  • Phase 3: Removing subsea infrastructure and remediation of the Laminaria and Corallina fields.
Experienced contractors are undertaking:
  • the current operations and maintenance of the facility
  • Phase 1 decommissioning activities in close consultation with the National Offshore Petroleum Safety and Environmental Management Authority.
Petrofac Facilities Management Limited will deliver Phase 1 as the lead contractor.

The facility

The Northern Endeavour is a 274m long Floating Production Storage and Offtake facility. It is permanently moored between the Laminaria and Corallina oil fields. Its location is approximately 550 km northwest of Darwin in the Timor Sea.

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escveritas
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Re: [Australia] Decommissioning the Northern Endeavour FPSO

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Petrofac Facilities Management Limited to lead Phase 1 of decommissioning the Northern Endeavour FPSO

1 April 2022

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Petrofac Facilities Management Limited has been engaged as the lead contractor to deliver Phase 1 of the Northern Endeavour decommissioning.

We conducted a global, competitive, multi-stage tender for this phase of decommissioning work. In accordance with the Commonwealth Procurement Rules, we have selected the supplier that offered the best value for money.

This $324.89m decommissioning contract will deliver Phase 1 while:
  • adhering to industry and Australian standards
  • staying consistent with good oilfield practice
  • working with industry and regulators to complete decommissioning and disconnection activities as safely, efficiently and cost-effectively as possible.
This is the next step in the government’s commitment to keep the Northern Endeavour and its workers safe whilst also protecting the environment.

Petrofac Facilities Management Limited will begin a managed transition of operational control from the existing operator, Upstream Production Solutions.
escveritas
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Re: [Australia] Decommissioning the Northern Endeavour FPSO

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