Topic: Decommissioning

Petrofac awarded major Australian decommissioning contract

Region: Australia
Content Types: Report
Date: Apr, 2022

petrofac 1 april
Petrofac, a leading provider of services to the global energy industry, has received a major decommissioning contract by the Australian Government, which has kickstarted decommissioning services in the country’s offshore oil and gas sector.

The contract, awarded by the Federal Department of Industry, Science, Energy and Resources, follows a strict selection and due diligence process by the Government of Australia. The value to Petrofac of Phase 1 has the potential to be up to AUD$325mn (US$236mn).

Petrofac’s Australia team based in Perth, has been contracted to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.

The contract sees Petrofac as Outsourced Operator responsible for decommissioning and disconnection of the FPSO from its subsea equipment, and temporarily suspending the wells. Disconnection of the FPSO is likely to occur over the period of 18 months. Petrofac’s scope includes the provision of its unique integrated services, working with both local and global suppliers.

The Northern Endeavour is a 274-metre long FPSO facility, currently not producing oil, moored between the Laminaria and Corallina oil fields about 550 kilometres northwest of Darwin in the Timor Sea.

Speaking about the company’s long-term ambitions in the country, Josie Philips, Petrofac’s Regional Director, Australia, said, "This contract builds on 15 years of working in Australia and is further proof of our growing ambitions. A critical element will be upskilling the local workforce to meet the challenges of billions of dollars of decommissioning work in Australia now and in the future. It is Petrofac’s aim to be a local company, growing local jobs, local skills and the local supply chain. I’m delighted that we have Monadelphous and Linch-pin already on board."

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said, “This contract recognises our unmatched decommissioning credentials, as the only tier one contractor with the in-house capability to manage all well and asset decommissioning phases. The contract builds on our existing track record for delivering well operator and project management services for clients globally.”

Together Petrofac and its supply chain partners, including Monadelphous and Linch-pin, will ensure the safe and cost-effective removal of the FPSO from the field in accordance with good industry practice. All activities will be done in close consultation with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to ensure strict safety and environmental protections.

D&A Aus 2022

From 10-11 May, the first ever Decommissioning and Abandonment conference will be arriving in Perth, Australia to provide the offshore community with the best blueprint for the wave of decommissioning projects on the horizon. For more information, download the brochure here: https://offsnet.com/da-aus/conference-brochure

Or contact:

Erin Smith

Global Accounts & Australasia Regional Manager

Offshore Network

t: +64 289 900 118

e: This email address is being protected from spambots. You need JavaScript enabled to view it.