Australia’s 2025 federal budget, unveiled this week, reinforces the government’s commitment to decommissioning, including the completion of the Northern Endeavour project.
Amid a raft of proposals covering energy, science and industry, as well as an ongoing commitment to net zero and the creation of a ‘green aluminium’ sector, the budget statement also charted recent efforts to bolster Australia’s decommissioning work.
“The government…remains committed to completing the decommissioning of the Northern Endeavour floating production storage and offtake (FPSO) facility,” the budget statement read.
“Costs for this activity continue to be recovered from the offshore petroleum industry through the Laminaria-Corallina Decommission Cost Recovery Levy.”
In terms of project updates, the budget statement also reported that progress was underway “towards completing Phase 1 decommissioning works by the expected vessel disconnection and towing window of 1 July 2025 to 30 September 2025, while ensuring safety and protection of the environment.”
Earlier this month, the Australian government awarded COSCO Shipping Heavy Transport (COSCO) a contract to dry tow the Northern Endeavour FPSO vessel to its recycling location.
The federal government also outlined its achievements so far in building out Australia’s nascent decommissioning industry.
“The Offshore Decommissioning Directorate was established in the department in December 2024, alongside the release of Australia’s Offshore Resources Decommissioning Roadmap,” it noted.
"The Directorate is responsible for delivering actions included in the roadmap, which sets out a path to grow a domestic offshore oil and gas decommissioning industry, improve the efficiency and transparency of decommissioning activities and ensure industry undertakes its decommissioning obligations.”
Alongside the roadmap, the Directorate also released accompanying studies into the decommissioning supply chain, socio-economic considerations and technology opportunities to support industry action in these areas.
Another key theme throughout the 2025 federal budget was creating local jobs and opportunities for Australians and domestic industries.
“As a key action under the roadmap, the government entered into the UK-Australian Offshore Decommissioning Partnership in December 2024,” the budget statement added.
“This partnership will ensure cooperation and sharing of lessons learned between the two jurisdictions to support efficiency and effectiveness of the industry.”
On the Northern Endeavour project, COSCO will work alongside UK-listed energy services group Petrofac to arrange for the FPSO to be towed to the recycling location after disconnection.
The platform is moored between the Laminaria and Corallina oil fields about 550 km northwest of Darwin in the Timor Sea.
