The Australian Government has awarded Wood the role of Owner’s Team, which will see it assume responsibility for the first phase of decommissioning at the Northern Endeavour vessel.
The Northern Endeavour is a 274-metre long floating production storage and offtake (FPSO) facility moored between the Laminaria and Corallina oil fields about 340 miles northwest of Darwin in the Timor Sea.
No longer producing oil, it was owned by Woodside until 2016, when the facility and associated fields were sold to minor player Northern Oil & Gas Australia (NOGA).
The vessel was shut down by safety regulators in 2019 over concerns that severe corrosion could lead to fatalities, while NOGA collapsed into administration shortly after.
The site has since been managed by the federal government, which later imposed a per-barrel levy on all Australian oil and gas producers to cover the costs of remediating the facilities.
Working on behalf of the Australian government, the new contract will see Wood work with the Department of Industry, Science, Energy & Resources (DISER) and contractors to oversee the first phase of the decommissioning scope.
The value of the contract was not disclosed.
This is the first time the government has selected a partner in this type of contract and will be key to building momentum in the country’s growing decommissioning market, Wood said.
In April contractor Petrofac was awarded a A$325 million ($236 million) contract to handle decommissioning and disconnection of the FPSO from its subsea equipment, and temporary suspension of the wells.
Disconnection of the FPSO is expected to occur over approximately 18 months, with a further two phases of work planned to follow.
Wood’s president of operations for Asia-Pacific Ralph Ellis added: “The responsible decommissioning of the Northern Endeavour FPSO is of great national interest, with safety, cost, and sustainability in sharp focus throughout.
“We are proud to have been selected by the Australian government to represent their interests in the first phase of the field’s decommissioning journey. As Owner’s Team, we will leverage our unrivalled offshore decommissioning expertise garnered in mature basins across the world to support the successful delivery of this critical scope of work.
“We look forward to working closely with both DISER and the lead contractor on this important project.”
Recommended for you
