Australia

Global energy consultancy Xodus has been awarded a contract to provide technical and project support services for Phase One of the decommissioning of the Northern Endeavour FPSO.

Phase One covers activities to facilitate the disconnection and removal of the FPSO including topsides and subsea flushing and well suspension.

Xodus will be working on behalf of the Australian Government, providing advice and project coordination, regulatory and environment, health and safety, technical, quality assurance, and contract management as part of the agreement.

Alasdair Gray, Late Life and Decommissioning Lead at Xodus, said, “We have a highly experienced local team with several of our colleagues having extensive experience of the Northern Endeavour either from the early design and installation phase of the project or during production operations. This means that whilst being able to bring a fresh approach, the facility is already familiar to much of the team.

“We understand environmental sensitivities and the impact these can have on any proposed activity or execution plan. Expert technical advice and careful planning will be critical to the successful decommissioning of the offshore field in a safe and responsible manner. We are pleased to provide the necessary support to ensure that the decommissioning strategy is robust and ultimately compliant with regulatory expectations.”

The Northern Endeavour is a 274 m long FPOS which is permanently moored between the Laminaria and Corallina oil fields in the Timor Sea. The now redundant production system comprises a network of subsea wells tied back to the permanently moored vessel unit through a system of subsea manifolds, flowlines, umbilicals, and dynamic risers.

Helix Energy Solutions’ Q7000 vessel has berthed in Port Taranaki to carry out a crew exchange and load up on supplies before heading to complete the third stage of the Tui oil field decommissioning campaign, which is set to take approximately three months to complete.

Port Taranaki’s head of commercial, Ross Dingle, said the port was pleased to support the project, having also provided berthing services and laydown facilities for the first two stages.

Port Taranaki is working with New Plymouth-headquartered energy consultancy, Elemental Group, which is providing project management assistance of New Zealand operations for Helix Energy Solutions.

Nick Jackson, Elemental Group Director, said, “All up, there will be a team of more than 100 on the Q7000, over half being Kiwis and Aussies in operations roles working alongside the Helix crews, as well as several specialist roles, such as wireline and cementing.

“We’re excited to be a part of the project. I worked on some of the original Tui exploration wells, so it’s nice to be involved in restoring the mauri of the area.”

Following new developments to the Decommissioning and Abandonment Australia 2023 programme, Offshore Network has released a revised agenda.

More than 250 decommissioning experts are expected to attend this year’s D&A AUS conference, being held at the Duxton Hotel, Perth, from 30-31 May. As the country’s largest decommissioning summit, attendees will receive unique access to updated regulatory guidelines, innovative technologies and valuable lessons which contribute to the success of upcoming campaigns.

With the forthcoming decommissioning wave more visible than ever, D&A AUS 2023, like its predecessors, will serve as a meeting point for the industry to get ahead of the challenge and unlock the opportunities held within. Now, there is more incentive to join the community in Perth this year, with new presentations and tech displays added to the agenda.

Notably, Craig Baxter, Decommissioning Technical Manager from Claxton Engineering will present on innovation and collaboration in underwater laser cutting, allowing attendees to access insights into the tools capabilities and understanding of where the technology can be utilised best.

Visitors will now also be looking forward to a presentation from Richard Bazen, Sales Director of Energy from RemSense. At the conference, Bazen will look at mitigating the risk of HSE and decommissioning liabilities using photogrammetry based digital twins. With the digital age firmly upon us all, this is one session not to be missed.

Offshore Network has now announced additional facets with AF Offshore Decom presenting and Trident Australia exhibiting at the conference. Furthermore, the organiser has revealed group bookings from Woodside, Santos, Weatherford, Mann Group, Tetra Tech and more.

Find all relevant information and the agenda in the brochure here: https://offsnetevents.com/da-aus/

Or contact:
Erin Smith
Global Accounts & Australasia Regional Manager
Offshore Network Ltd.
t: +64 (0) 3 569 3074 | e: This email address is being protected from spambots. You need JavaScript enabled to view it. | www.offsnet.com

Jadestone Energy plc, an independent oil and gas production company headquartered in Singapore, has announced the Montara Venture FPSO offshore Australia restarted production operations last week.

Following what the company called a ‘carefully planned’ restart programme, production recommenced from the H6 well within the Montara field, with further wells set to follow, including the first Skua subsea well.

With the systematic opening of additional wells in line with the restart plan, production rates are set to increase, and the company will announce its production guidance for 2023 once output has stabilised.

Paul Blakeley, President and CEO at Jadestone Energy, said, “I would like to thank everyone in Jadestone who has contributed to the safe and successful restart of Montara operations as well look forward to putting this challenging period behind us and returning to business as usual.

“It is a relief to see operations at Montara being restored and we look forward to increasing production and cash flow. We also plan to return to growth, having completed three acquisitions within the last six months, with several new acquisition opportunities in the pipeline.”

The restart programme was instigated after the initial shutdown of production in July 2022 after a small leak from the crude oil tank aboard the FPSO was detected and required permanent repair.  

Pressing climate concerns and an overall healthy oil price across 2022 have set the stage for Australia's decommissioning industry to flourish, according to a new report published by Offshore Network.

Reports estimating that oil prices through 2027 will stay at a healthy rate of approximately US$90 per barrel bodes well for the decommissioning industry as companies can consider liability expenses even more open-handedly.

The government-backed Northern Endeavour project has triggered a flurry of decommissioning prospects to swing into action; a trend that is expected to continue over the next few years. Because of this, promising engineering companies like Wood and Monadelphous are being shot into the limelight, as the government onboarded them for various roles on the Northern Endeavour decommissioning.

Companies like Santos, Woodside, BHP and Vermillion Energy have signed up for kick-starting end-of-life activities, with ExxonMobil leading the way. Chevron has ongoing decommissioning projects onshore and offshore at Thevenard Island, which was rendered inactive in 2014. NOPSEMA has granted decommissioning approval to companies like Woodside, BHP and Cooper Energy early last year. Decommissioning activities in the Enfield Oil Field are being conducted by Woodside in phases, and is expected to be completed by 2024. Australia is financing research initiatives and organisations are tying up to tackle the challenges of decommissioning through knowledge sharing. Xodus, along with ANSTO, SA Radiation, Total Hazardous Integrated Solutions and Qa3, form the Contaminant Advisory Group that helps operators to work through the government’s OPGGS bill.

This flurry of activity has been prompted by a government determined to ensure that decommissioning responsibilities are carried out. The new Offshore Petroleum and Greenhouse Gas Storage Amendment (Titles Amendment and other Measures) Act 2021, makes sure the entities intending to carry out petroleum or greenhouse gas activities are capable, competent and responsible in proper discharge of obligations under the act.

The Centre of Decommissioning Australia (CODA) has estimated the decommissioning expenses of the Australian oil and gas industry to reach as high as US$40.5bn, considering the nation's significant asset stock. According to a report by Rystad Energy, 890 offshore wells in total were drilled in Australia before 2015, of which 108 have been permanently abandoned. Around 440 wells are P&A candidates, the majority of which are in the Gippsland Basin.

Based on the identified numbers, CODA has come up with a comprehensive liability report, to serve as the go-to manual for operators when it comes to making smart economical choices. Critical to this, as stressed by Francis Norman, CEO and Managing Director of CODA, is the importance of collaborative campaigning and in-situ decommissioning as effective cost-cutting measures.

Players like CODA are guiding the Australian decommissioning industry through the climate conundrum through strikingly innovative approaches. One of them is the rig-to-reef concept, which involves a special combination of materials that resulted in the Exmouth Integrated Artificial Reef, better known as the 'King Reef' in the Exmouth community. It combined 49 purpose-built concrete modules with six steel structures from a BHP-operated field that is no longer in use, providing home to 27,000 cu/m of new marine habitat. As incredible as that sounds, operators must have clarity about the risks involved as well, so that they can keep pushing barriers through innovation.

With every stakeholder working in tandem and taking onboard lessons from other more developed regions, the Australian industry can ensure that the forthcoming decommissioning wave can be weathered.

Esso Australia, a subsidiary of Exxonmobil Australia, has entered into an agreement with Helix Energy Solutions to charter the Helix Q7000 semisubmersible vessel to support decommissioning activity across the Gippsland Basin.

The vessel will join Esso Australia’s growing fleet, with its roster of mobile offshore assets now including Rig 22, the HWT600 and a DOF Subsea Multi-Purpose Support Vessel.

Dylan Pugh, ExxonMobil Australia’s Chair, said, “The Helix Q7000 is a welcome addition to our extensive fleet of vessels and rigs currently operating across the Gippsland Basin. It is the forth mobile offshore asset we have added to our decommissioning fleet, and marks the first time we will be using a light well intervention vessel for subsea work locally.

“We are committed to sourcing the right assets for the work we are completing, given the variety of fields we have operated for over 50 years. Our priority is to remain safe, whilst using fit for purpose solutions which ensure we are meeting our decommissioning requirements.”

The Helix Q7000 is set to support decommissioning activities in Bass Strait from the end of 2023.

Well-SENSE, a downhole sensing specialist, has deployed its FiberLine Intervention (FLI) technology at a large carbon capture and storage (CCS) facility, in an industry-first application.

FLI has already been well-proven in a variety of seismic, acoustic and temperature monitoring applications in the oil and gas sector and has just completed its first geothermal well survey for Eden Geothermal in Cornwall.

The fibre-optic monitoring system has since been deployed for a leading integrated energy operator in Australia and marks the first time that fibre has been used to survey live CCS wells and reservoirs.
The new application in the carbon sequestration sector provides a safe, low-risk monitoring solution in a highly corrosive CO2 environment where traditional intervention solutions are often detrimentally affected.

The energy operator employed FLI in a field trial to study well integrity, CO2 flow characterisation and plume movement within the reservoir. FLI’s distributed temperature sensing (DTS) enabled assessment of the reservoir zones, while its distributed acoustic sensing (DAS) simultaneously acquired vertical and passive seismic data.

Annabel Green, CEO at Well-SENSE, commented, “Our FiberLine Intervention system was selected by this leading operator, to be evaluated as a potential alternative to the use of wireline production logging tools. Our system’s advantages include its extremely compact rig-up, much lighter surface pressure control equipment which uses a static rather than a dynamic seal and a simpler deployment method compared to conventional techniques. FLI also uses a bare fibre that is impervious to the corrosive effect of CO2, which helped to make this intervention possible.

“Several challenges were overcome efficiently, including the requirement to leave the fibre in the well for four days with exposure to strong fluid cross flows, the requirement for immediate Cloud data transfer from the wellsite to the operator’s technical centre and servicing a remote wellsite near live infrastructure. We are delighted that operations were performed incident free with no major NPT events and that our unique technology provided valuable, high-quality data from multiple wells.”

The decommissioning of the Northern Endeavour facility has reached a significant milestone as contractor Petrofac Facilities Management Limited (Petrofac) has begun Phase One of the decommissioning process.

The process will see the Northern Endeavour disconnected from subsea equipment and the suspension of the oil wells.

The facility is moored in the Commonwealth waters in the Timor Sea, between the Laminaria and Corallina oil fields. It stopped oil production in 2019, after being shut down by National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) for immediate breeches in health and safety.

“The Australian Government remains committed to the successful decommissioning of the Northern Endeavour, the removal of infrastructure and the remediation of the Laminaria and Corallina oil fields,” said Madeleine King, Minister of Resources and Northern Australia.

“Petrofac taking operational control is a significant step in the decommissioning process.”

The US$355mn contract was drawn up with Petrofac in March 2022 to deliver the first phase of the decommissioning project.