236-Million-Dollar Contract Petrofac Secures Major Decommissioning Contract by Australian Government

Under the terms of the contact, Petrofac will complete Phase 1 of the decommissioning of the Northern Endeavour FPSO facility which will include decommissioning and disconnection of the FPSO from its subsea equipment, and temporarily suspending the wells.

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London/UK – Petrofac has recently been awarded a major decommissioning contract by the Australian Government, heralding the start of an era of decommissioning in the nation’s offshore oil and gas sector. Petrofac’s Australia team based in Perth, WA, has been contracted to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.

The contract, awarded by the Federal Department of Industry, Science, Energy and Resources, follows a stringent selection and due diligence process by the Government of Australia. The value to Petrofac of Phase 1 has the potential to be up to 236 million dollars.

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 expected to occur over approximately 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.

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 and long-term ambitions in the country. 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."

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 make sure strict safety and environmental protections are in place.

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