Australia’s offshore oil and gas sector is entering a major decommissioning phase, driven by ageing infrastructure, stricter regulations and growing environmental accountability
According to a Xodus report, the decommissioning liability for all assets in Australian Commonwealth waters is estimated at UA$43.6bn through 2070, or AU$66.8bn when adjusted for inflation. This encompasses more than 700 wells, 7,600 of pipelines and 520 subsea structures. Around 55% of the decommissioning (AU$25bn) will occur before 2040, with the remaining decommissioning activities mainly occurring by 2050.
Offshore Network has issued a new report entitled “The Decommissioning Landscape in Australia in 2026”, which:
The report concludes that the industry’s success will depend on collaboration across stakeholders, regulatory alignment and investment in domestic capability, along with the adoption of best practice and enabling technologies, incorporating learnings from more mature basins. That being the case, Australia can look forward to the prospect of a robust, safe, responsible and economically sound decommissioning industry characterised by mature, repeatable execution models in the long term.
The report can be downloaded here.
Aquaterra Energy and James Fisher and Sons plc (James Fisher) have entered into a global strategic partnership aimed at improving the delivery of offshore decommissioning projects by providing operators with a more integrated approach to well abandonment and infrastructure removal
The collaboration brings together Aquaterra Energy's expertise in front-end engineering and well access with James Fisher Energy's capabilities in subsea operations and offshore execution. By combining these services under a single delivery framework, the partnership is designed to simplify project execution, reduce the number of contractor interfaces and provide greater certainty throughout the decommissioning lifecycle.
Rather than following traditional multi-contractor models, the alliance integrates engineering, project planning, well access and offshore execution from the earliest stages of project development. This approach is intended to minimise handovers, improve accountability and provide operators with greater flexibility to respond to changing project requirements while maintaining efficient execution.
The partnership will support projects worldwide, with an initial focus on the North Sea, Asia-Pacific (APAC) and the Middle East, where increasing numbers of offshore assets are approaching the end of their operational life. According to the North Sea Transition Authority, 153 wells in the UK Continental Shelf have exceeded decommissioning consent deadlines, while an estimated £44 billion remains to be invested in decommissioning activities. In Australia, government forecasts suggest offshore decommissioning liabilities could reach approximately £48 billion over the next 30 to 50 years, while globally more than 2,500 offshore structures are expected to require decommissioning by 2040. These trends are driving demand for delivery models that improve efficiency, coordination and execution.
Matt Marcantonio, Head of Engineering at Aquaterra Energy, said: "Decommissioning programmes are increasingly moving away from simple, isolated scopes. The next generation of projects will require tight engineering control, early integration and the ability to adapt quickly as conditions change. By aligning our expertise with James Fisher from the outset, we can shape more efficient scopes, prevent downstream redesign and ultimately reduce offshore duration. We see this as a way to give operators the confidence to take on decommissioning programmes that are becoming more technically demanding and commercially pressured, while keeping the agility needed to respond as projects evolve."
Mark Stephen, Product Line Director - Decommissioning & CFE at James Fisher Energy, commented: "What operators are looking for now is delivery confidence, predictable execution, fewer interfaces and teams who already understand how to work together. By combining our subsea operations capability with Aquaterra Energy's early engineering and well access expertise, we can remove many of the common friction points that slow projects down offshore. This model gives operators a scalable, field-proven approach that directly supports safer, more efficient execution as global decommissioning activity accelerates."
The companies will operate the partnership on a project-by-project basis, tailoring team structures according to individual project requirements. This will include the deployment of cross-trained personnel where appropriate to reduce the number of people required offshore and minimise operational risk. While both organisations will continue to operate independently, they will collaborate under an agreed framework designed to promote early engagement, coordinated planning and aligned project delivery.
The partners are already working with operators on a number of upcoming offshore decommissioning opportunities across multiple international markets.
As Australia's offshore decommissioning industry grows, lifting operations are becoming more frequent, more complex and potentially more hazardous.
That is one of the core messages from an article in the latest issue of The Regulator, the journal of the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema).
Removing ageing platforms, subsea equipment and heavy structures presents risks that go beyond routine operations, making careful planning, maintenance and decision-making more important than ever.
“Analysis from Nopsema and international regulators shows that lifting incidents have increased over the past decade, even as safety systems have improved,” the article notes.
“This trend reflects changes in the offshore environment. Even though the number of cranes used offshore has not increased over the past 10 years, operations are becoming more complex, with heavier lifts, more simultaneous activities and increased use of large-scale equipment. Offshore decommissioning and the growth of offshore wind have also contributed to a rise in lifting activity.”
The articles cites the example of a 40-tonne subsea module dropping to the seabed after a degraded crane wire failed, demonstrating the consequences of deferred maintenance — an issue that becomes more significant as operators dismantle ageing offshore infrastructure.
“Ageing infrastructure is another factor,” the article notes. “As assets mature, maintaining structural integrity and equipment performance becomes more challenging, particularly where inspection and maintenance tasks are deferred.”
As well as ageing assets, with equipment and structures that may have deteriorated over decades, several other key points are particularly relevant to decommissioning in terms of offshore lifting.
These include the tendency toward heavier and more unusual lifts — decommissioning often involves removing large modules, pipelines and subsea infrastructure that were never designed to be lifted again.
Changing conditions are also significant factors, as corrosion, marine growth and structural degradation can make lifts more complex than engineering drawings might suggest.
Commercial pressures, with projects often operating to tight schedules and budgets, creates a further challenge.
But the biggest threat in offshore lifting is often a combination of human behaviour, the Nopsema article notes, alongside production pressure and failures to follow safety controls, which can quickly turn routine lifts into serious incidents.
As offshore decommissioning accelerates in Australia over the coming decades, lifting safety will be a defining challenge.
Success may hinge not only on engineering and technology, but on robust planning, maintaining lifting equipment, and fostering a culture where workers not only adhere to strict safety protocols, but are empowered to stop operations when something does not look right.
SBM Offshore has signed the project financing of FSO Chalchi for a total amount of US$465mn, backed by a consortium of international banks and institutional investors.
It also includes partial insurance cover from China Export & Credit Insurance Corporation. The project financing will be drawn during the construction period and will become non-recourse after the FSO has started operations. The loans have a maximum tenor of 14 years post completion.
Right now undergoing construction, FSO Chalchi has been secured for a 20-year lease and operate contracts with Woodside Energy through its affiliate in Mexico, Woodside Petróleo Operaciones de México, S. de R.L. de C.V. (Woodside). Woodside is the Operator with 60% interests, while Petróleos Mexicanos enjoys rest of the 40% that makes up the Trion project joint venture.
Designed to hold around 950,000 barrels of crude oil, the new build FSO is based on a Suezmax-type hull and will be equipped with a Disconnectable Turret Mooring system designed by SBM Offshore.
To be moored in water depth of about 2,500 meters, the FSO will be deployed at the Trion field, located 180 km off the Mexican coastline and 30 km south of the US/Mexico maritime border.
Douglas Wood, CFO of SBM Offshore, said, “We welcome the signing of the project financing of FSO Chalchi, marking our first transaction combining commercial banks, institutional investors and support from an export credit agency. This financing structure demonstrates SBM Offshore’s ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects.”
Upstream production and development company, Jadestone Energy, has brought online the first well at ~3,000 bopd as part of its 2026 Malaysia infill drilling campaign on the PM323 PSC.
Currently, the company is focussing on drilling the third contingent well which was confirmed for operations after the first two wells originally planned for the campaign. Identified in the 2023 infill programme, this well targeted the southwest extension of the East Belumut field.
The first of the two firm wells reported strong performance while the second was drilled on the basis of encouraging subsurface results. The Group's 2026 capital expenditure guidance[1] of US$50-80 million remains unchanged.
The company achieved 20% cost savings for operations in the first well, even though it was the longest well drilled on the East Belumut field. It involved tackling complex operations, targeting a 1,200 metre horizontal reservoir section in the well at a total measured depth of 4,866 metres.
T Mitch Little, Chief Executive Officer of Jadestone, said, "Our established operating capabilities in Malaysia, combined with our refreshed focus on operational excellence, have been further validated by the outcome of the EBA-18ST3 well. The result is an excellent start to this year's drilling campaign and will significantly increase our Malaysia production in the near-term against the backdrop of strengthened Brent oil prices, with our most recent Malaysia oil sales attracting a US$14/bbl premium to Brent.
"Following on from the significant progress on our Vietnam project earlier this year and the successful debt refinancing, this is further evidence of a business that is executing on its plan and strategy. We look forward to updating the market further on the second well in the campaign in the near-future."
Australia's biggest decommissioning and abandonment summit powered by Offshore Network, D&A 2026 AUS that was held in partnership with the Centre of Decommisioning Australia (CODA) saw engaging exchanges and knowledge sharing on industry hot topics
With CEO and Managing Director Francis Norman, General Manager Rean Gilbert, and Brand Leader Pawel Rybczynski, among others, CODA's esteemed presence on the exhibition floor was hard to miss.
As Australia's decommissioning challenges continue to grow, operators are having to adapt to smoothly deliver complex campaigns. There were insightful sessions led by spokespersons from the Department of Industry, Science and Resources; Chevron; ExxonMobil and Woodside Energy, who shared first hand experiences on the challenges of tackling complex projects such as FPSO removal or onshore reception centre development, to name a few.
Industry experts from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), Unity and Archer to name a few, spoke on their challenges while delivering plug and abandonment projects. In such cases operators have to bear in mind the tactful balancing of factors such as costs, risks and regulations.
Representatives from NOPSEMA spoke on how the body's expectations are evolving with the needs of an ever-changing industry. There were talks on South Australia’s environmental liability management policy and a closer look at the regulatory updates from the NCS.
There were insightful sessions on regulatory priorities shaping P&A programmes, proven intervention strategies from real campaigns, and technologies improving efficiency and well integrity.
The conference reflected how Australia is building a robust, safe, responsible and economically sound decommissioning industry characterised by mature, repeatable execution models in the long term.
Global energy technology firm SLB has successfully secured a significant seven-year contract with the Kuwait Oil Company (KOC).
The landmark agreement, formed under the auspices of KOC’s flagship Ahmadi Innovation Valley (AIV) initiative, designates SLB as the very first contracted technology partner for the ambitious programme. This strategic alignment is explicitly designed to support applied research, the deployment of advanced technologies, and comprehensive digital innovation programmes that are closely aligned with Kuwait's long-term energy objectives.
The Ahmadi Innovation Valley serves as Kuwait Oil Company’s premier innovation platform. It has been strategically constructed to bring together industry leaders, academic institutions, and leading technology providers. The primary aim of this collaborative ecosystem is to address and overcome strategic technical challenges within the upstream energy sector. By fostering a cooperative environment, the initiative provides KOC with a highly flexible and structured approach to evaluate, pilot, and eventually deploy emerging technologies across its extensive operational network to ensure maximum efficiency.
Ahmad Jaber Al-Eidan, the chief executive officer of Kuwait Oil Company, highlighted the strategic importance of this new collaborative framework and its projected impact on the nation's broader industrial goals.
"Ahmadi Innovation Valley represents an important step in advancing technology leadership across Kuwait's energy sector," said Ahmad Jaber Al-Eidan. He further elaborated on the broader implications for the region, adding, "Through collaboration with leading technology partners, we are accelerating technology deployment, strengthening local capabilities and expanding knowledge transfer to support Kuwait's energy industry."
Under the newly established terms of the seven-year agreement, SLB will work intimately with KOC to evaluate, test, and deploy a multitude of advanced technological solutions. The scope of this partnership is vast, encompassing nearly 100 distinct projects that span a wide array of operational and strategic priorities. Key areas of focus for these ongoing projects include the integration of artificial intelligence (AI), industrial internet of things (IIoT) applications, production optimisation, advanced reservoir technologies, sustainable water management, and critical energy transition initiatives.
By leveraging these advanced digital systems, the collaboration aims to significantly improve upstream operations and mitigate execution risks. The utilisation of real-time sensor networks and advanced technological frameworks will enable the Kuwait Oil Company to process operational data more efficiently, optimise critical production parameters, and manage essential resources with a heightened focus on long-term sustainability.
Olivier Le Peuch, the chief executive officer of SLB, underscored the practical challenges of modernising the energy sector and the unique value that this dedicated partnership brings to the table.
"The energy industry has no shortage of technology. The challenge is deploying it at scale and turning innovation into operational impact," said Olivier Le Peuch. Reflecting on the collaborative nature of the new initiative, he added, "Ahmadi Innovation Valley brings together technology providers, researchers and operational teams to accelerate the evaluation, deployment and scaling of new solutions across KOC's operations. We are proud to contribute our technology, domain expertise and global experience while helping strengthen local capabilities and support the next generation of Kuwaiti talent."
To properly support the extensive technical requirements of the Ahmadi Innovation Valley initiative, SLB has also committed to establishing a permanent physical footprint within the region. As a core component of the overarching agreement, SLB plans to construct a dedicated Ahmadi Innovation Valley facility situated directly in Kuwait. The construction of this specialised technological centre is officially expected to begin in the year 2026, with the facility's grand opening planned for 2028. Once fully operational, this site will serve as a centralised hub for applied research and technology management, spanning multiple business lines and technology domains.
This newly awarded contract represents a major milestone in the enduring relationship between the two entities. It builds upon a robust foundation of collaboration between SLB and the Kuwait Oil Company that dates back more than 85 years. As the upstream energy sector continues to face complex transitional challenges, this renewed partnership ensures that both organisations are exceptionally well-positioned to drive digital innovation, enhance operational efficiency, and support the sustainable evolution of Kuwait’s vital energy infrastructure for the future.
RH Petrogas has commenced drilling operations at the Northwest Klagagi-1 (NWK-1) well under the Kepala Burung Production Sharing Contract (PSC) in Southwest Papua, Indonesia, marking another step in its ongoing gas development and exploration programme.
The well was spudded on 25 June 2026 by Petrogas (Basin) Ltd., the company's 82.65%-owned subsidiary. Located in the Arar block, around 15 km northeast of the Arar production cluster, NWK-1 is planned to reach a total depth of approximately 6,700 ft (2,000 m).
Drilling activities are being carried out using RH Petrogas' own rig, with the operation expected to take approximately 36 days to complete.
NWK-1 has been planned as a combined development and exploration well. Its primary objective is to support the development of gas resources within the upper Kais Formation. Once the development phase is completed, drilling will continue into deeper formations to assess additional hydrocarbon potential in the lower Kais Formation, the Oligocene-aged Sirga Formation and the underlying Devonian-aged Basement.
The drilling campaign forms part of the firm's work commitment under the Kepala Burung PSC and is intended to advance both near-term production opportunities and longer-term resource evaluation within the contract area.
Mr. Francis Chang, Group CEO and Executive Director, commented, "NWK-1 aims to advance the development of existing gas resources while evaluating additional growth opportunities within the contract area. Although drilling of the well has commenced later than initially planned, the delay created an opportunity to deploy the rig for well intervention activities in the nearby Arar block. Workovers were carried out on three wells, all of which were successful and delivered incremental production gains."
The successful workover programme in the nearby Arar block provided additional production before the drilling rig was mobilised for the NWK-1 campaign, supporting the company's strategy of optimising existing assets while pursuing further exploration potential within the PSC.
SLB has delivered the first reverse circulation cleanout using the powered downhole measurements system within its ACTive real-time downhole coiled tubing services, in an operation carried out on the Clair Ridge well in the UK North Sea.
The intervention was required by bp to support hydraulic fracturing operations at the field. The well presented a complex set of challenges, including pressure management, multiple zonal isolation requirements and internal diameter restrictions in the lower completion. Conventional reverse circulation cleanouts had offered limited real-time downhole visibility, raising the risk of pressure excursions, inefficient debris removal and nonproductive time.
To address this, SLB deployed a coiled tubing intervention incorporating the ACTive powered downhole measurements system, representing the first application of the technology during a reverse circulation cleanout. Continuous downhole pressure, temperature and casing collar locator measurements allowed for improved pressure management and earlier detection of screenout conditions.
Accurate casing collar correlation supported precise sleeve shifting and pressure testing, reducing the number of confirmation runs required and minimising time spent in the well. Controlled run-in-hole speeds and optimised operating procedures further reduced the risk of tool damage and debris accumulation.
As detailed in SLB’s case study, reverse circulation parameters were adjusted in real time based on downhole measurements, improving sand and proppant recovery while reducing total fluid volumes pumped. Enhanced debris removal at lower return rates supported efficient wellbore cleaning and subsequent post-fracture intervention activities.
Real-time collaboration was enabled through SLB’s InterACT secure wellsite data-delivery solution, improving alignment between offshore and onshore teams and supporting faster decision-making. The integrated approach established a repeatable workflow and benchmark for future offshore well interventions.
The Centre of Decommissioning Australia (CODA) has launched a Women in Decommissioning Special Interest Group (SIG), a new forum to support connection, visibility and collaboration across the decommissioning sector.
The group is designed to strengthen career pathways, knowledge sharing and mentoring opportunities for women working across the multidisciplinary decommissioning workforce, including engineering, environment, regulation, marine, logistics, commercial and related fields.
The SIG will be chaired by Carrie McIntosh of Xodus, supported by CODA General Manager Rean Gilbert as the CODA representative for the group, with Simona Chady of CB&I joining as a committee member.
“Decommissioning is going to need a broad and capable workforce, and that means drawing on the full talent pool available to the industry,” said CODA’s CEO Francis Norman.
“The Women in Decommissioning SIG is an important step in making sure the contribution of women in this sector is visible, supported and connected, while also strengthening the industry as a whole.”
Unlike CODA’s other Special Interest Groups — which include Well Abandonment, Decommissioning Project Management and Hazardous Materials Management — membership in the Women in Decommissioning SIG is open to CODA Partners and non-partners alike.
“This group gives women across the decommissioning sector a structured way to connect, share knowledge and build mentoring relationships, while also opening the door to broader participation across the industry,” said Rean Gilbert, CODA’s General Manager.
“While focused on supporting women in decommissioning, the SIG is open to all individuals, reflecting the role mixed teams play in shaping career pathways and opportunities across the sector.”
Talos Energy Inc has announced the execution of a definitive agreement to jointly acquire certain deepwater assets in the Gulf of America from Shell Offshore Inc, alongside an affiliate of Ridgewood Energy Corporation.
"We are pleased to announce the acquisition of these high-quality deepwater assets directly aligned with Pillar Two of our strategy. The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027, further supporting long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P," said Talos President and Chief Executive Officer, Paul Goodfellow.
Talos Executive Vice President and Chief Financial Officer, Zach Dailey said, "This strategic transaction in the Gulf of America is expected to be immediately accretive to key financial metrics and deliver long-term value while maintaining balance sheet strength and preserving financial flexibility. Importantly, the increased borrowing base reflects strong confidence from our lenders in the quality of the acquired assets, Talos's base business, and the financial framework that underpins our strategy. On a pro forma basis, we expect to maintain leverage consistent with our financial framework."
The acquisition holds highly accretive to key financial metrics for Talos as it will ensure low-cost, high-margin, oil-weighted production. It can potentially add proved reserves of approximately 23 million barrels of oil equivalent (MMBoe) and 10 MMBoe of probable reserves, with additional operated Infrastructure‑Led Exploration (ILX) opportunities supporting future growth. Production for the first quarter 2026 was 16 thousand barrels of oil equivalent per day (MBoe/d), ~77% oil.
In line with its previous guidance, Talos has also completed the Genovesa workover and returned the well to production late in the second quarter of 2026.
The first Monument development well was successfully drilled to its total measured depth of 32,250 feet and encountered 245 feet of net pay confirming pre-drill expectations. Drilling is set to commence on the second development well followed by completion operations on both wells. First oil is expected by late 2026.
The Company expects to update its 2026 operating and financial guidance for the Acquisition following closing.
Energy technology company, Baker Hughes, has been selected by ANOH Gas Processing Company (AGPC) for comprehensive lifecycle services, including parts, repair services and engineering advisory.
The company will also be delivering iCenter digital services for turbomachinery equipment at the greenfield ANOH Gas Processing Plant in Nigeria.
The agreement secures Baker Hughes’ role as a lifecycle solutions provider for one of the nation’s critical onshore gas projects. Baker Hughes services for the ANOH Gas Processing Plant goes back to 2019, when the company supplied an integrated power island solution for the facility, inclusive of two NovaLT 16 gas turbines – the first supplied in Sub-Saharan Africa – along with compressors and gears.
The service agreement covers essential maintenance and repairs for the plant’s critical equipment, including two NovaLT 16 gas turbines. In addition to providing local engineering support, Baker Hughes will deploy iCenter digital services, powered by Cordant, for remote monitoring and diagnostics to enhance equipment reliability, availability and optimized operations.
“It is a pleasure to collaborate with a globally trusted energy technology leader like Baker Hughes on this critical project,” said James Makinde, Managing Director at ANOH Gas Processing Company. “The reliable performance of critical turbomachinery equipment is essential to the successful operation of the ANOH Plant and to delivering on Nigeria’s domestic energy supply goals.”
“This long-term agreement is a testament to our successful collaboration with ANOH Gas Processing Company and the trust placed in our lifecycle service capabilities,” said Baker Hughes Chief Growth & Experience Officer and interim Executive Vice President of Industrial & Energy Technology Maria Claudia Borras. “We are leveraging our regional expertise and pairing it with our advanced digital technologies and services, supporting the delivery of reliable, efficient and affordable power solutions and helping Nigeria realize its goal to move to lower-carbon fuel sources.”
