McDermott has announced the safe and successful decommissioning of the Campbell platform and associated offshore infrastructure at the Varanus Island hub in Western Australia
Under a contract awarded to McDermott in January by Santos, the company provided engineering, procurement, removal, and transportation of the platform topsides, substructure, and associated items to an onshore facility for dismantling and disposal.
"The successful removal of the Campbell platform topsides and substructures leveraged our expertise in circular practices and subsea project execution across the energy value chain," said Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities, McDermott. "This demonstrates our commitment to support clients in tackling complex challenges with creative problem-solving solutions that enable offshore decommissioning efforts and circularity across Australia's energy sector."
The deployment of a custom-built lifting cradle was central to the project's success. Designed and constructed at McDermott's Batam fabrication yard, with engineering support from teams around the world, the lifting cradle was specifically engineered to address the unique complexities of the platform's upper substructure.
ASCO, a UK-headquartered logistics and materials management company, has completed a contract with Onslow Marine Support Base (OMSB) in Western Australia in support of the offshore decommissioning sector.
Two radiation safety officers (RSOs) as well naturally occurring radioactive materials (NORM) and mercury monitoring and analysis equipment were mobilised to the OMSB site as per the contract. The RSOs delivered on-site training for NORM awareness, and monitoring for various hazards such as benzene, hydrogen sulphide (H2S) with a particular focus on NORM and mercury.
OMSB Chief Operating Officer, Andre Veder, said, “At OMSB
we believe all parts of the supply chain supporting the offshore decommissioning sector requires a robust focus on safety, efficiency and compliance. As part of this, OMSB proactively holds a range of licences including a radiation licence and associated management plan.
“To drive an effective and compliant outcome for the receival, handling and storage of potentially radioactive items, OMSB selected ASCO as its radiation specialist. ASCO’s international experience with radioactive items has allowed projects undertaken to appropriately manage the risks while not impacting the schedule of the works."
The project was led by senior RSOs John Davidson and Robin Small who helped to optimise the site, ensuring that supervised areas were set up correctly and any contaminated materials were properly managed and contained. The team enhanced OMSB's management plans and risk assessments, ensuring top-tier radiation management and site safety operations.
While ASCO has been present in Australia for more than 13 years, this contract represents the first time it has delivered NORM services in the Southern Hemisphere, demonstrating its capability and establishes its credibility to operate in this segment here. According to ASCO, this will set the groundwork to confidently invest to further deliver large scale projects of this nature in the country and expects continues growth in the region as the decommissioning opportunities in Australia mount.
Lee Vettese, Business Development Manager - Environmental Services and Decommissioning at ASCO, added, “This contract signals significant growth for ASCO in Western Australia. Our work in the North Sea has led the way in global decommissioning activity for a number of years now and we’re excited to bring that experience to Western Australia."
Bhagwan Marine Limited, an Australian marine services company, has announced that it will commence trading on the Australia Securities Exchange (ASX) as it seeks to pursue a number of growth opportunities.
The decision comes following a successful initial public offering of fully paid ordinary shares. The offer comprised the issue new shares by the company to raise $80mn before costs and received strong institutional support.
This will allow the company to strengthen its balance sheet and enable it to pursue a number of prospective opportunities around the oil and gas, offshore wind, infrastructure, defence and decommissioning sectors.
Bhagwan Chairman, Anthony Wooles, commented, “Bhagwan is now entering an exciting new growth phase with the emergence of the oil and gas decommissioning sector, and the future development of the offshore wind energy sector. I am excited about the opportunities and potential for the company to expand into new industry segments. Bhagwan’s strong operational and safety performance, along with its passionate focus on clients, personnel, culture, and service delivery, will continue to benefit the company as we pursue sustainable earnings growth.”
This step is recognised as the next chapter for a company which was founded in 2000 with a single vessel. Now, the fleet has expanded from increasing demand for its services to a diversified fleet of around 100 inshore and offshore vessels. These will certainly be put to use in the next phase of the company’s journey as it looks to take advantage of the emerging markets in Australia.
Bhagwan Marine has partnered with Linch-pin to deliver the Thevenard Island Offshore Decommissioning Project contract for Chevron Australia.
With special focus on environmental sustainability, the retirement project involves safe removal and the repurposing of nine offshore platforms as reefs.
While Bhagwan Marine will be supplying the marine and diving spreads, Linchpin will cover engineering aspects and deploy skilled construction personnel.
A major win for Bhagwan Marine, the offshore services provider is aiming a seamless and successful execution of the project for Chevron. The company is confident of its expertise and ability to deliver complex projects of this nature.
Energy services provider Expro has landed a significant milestone with the 100th deployment of its cementation technology SeaCure; this time for a five-well subsea batch campaign in Australia.
An exclusive offering on cementing portfolio, SeaCure technology was originally developed by DeltaTek, which Expro acquired last year. While the acquisition widened Expro’s technology portfolio in the well construction cementing sector, it also unlocked global access for DeltaTek. Recently, Expro completed the acquisition of integrity and intervention specialist, Coretrax, as well.
SeaCure helped maintain the quality primary cementation of the conductors, eliminating major risks associated with cement slurry placement.
A proprietary stabbed-in inner string technique was involved in post-cementing circulation via the inner annulus until slurry curing was complete. This ensured reliable installation of the top holes.
Alistair Geddes, Expro’s Chief Operating Officer, said, "Reaching our 100th global SeaCure job is a testament to the dedication and expertise of our team, as well as the strength of our technology and solutions. We are proud of providing the platform for Tristam Horn and the legacy DeltaTek to expedite their growth journey and quest for providing innovative solutions to our clients.
“Ineffective cementation is one of the single biggest contributors to cost over-runs, poor life of well integrity and ultimate failure of well objectives. Expro’s robust Cure portfolio has been developed to solve many of the issues associated with cementing subsea wells with the aim of delivering first time ultimate cement placement. SeaCure is an example of Expro’s commitment to investing in innovation, developing new technologies and delivering value and excellence to our clients globally."
Woodside Energy has prepared and submitted an experts-consulted, final environment plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), in accordance with the requirements of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and Environment Regulations.
In the capacity of a titleholder under the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2023 (Commonwealth), Woodside has proposed to undertake decommissioning activities within offshore petroleum production licence VIC/L22 and pipeline licence VIC/PL33.
It will include the removal of approximately 5 km of pipeline bundle and associated equipment, well tie-in infrastructure, and Minerva-2A wellhead and guide base that make up the Minerva subsea infrastructure.
As planning activities are well in progress, a rig has been secured for plug and abandonment in the Minerva field through a rig consortium with other titleholders in the region.
Keeping with the Environment Regulations, Woodside's EP has attempted to identify and describe the probable environmental impacts and risks that may arise during the end-of-life operations. It has worked out a process of appropriate management controls to reduce impacts and risks to a level that is ‘as low as reasonably practicable’ and acceptable. It defines Environmental Performance Outcomes (EPOs), Performance Standards (PSs) and Measurement Criteria (MCs) to ensure minimum adverse impact.
Woodside is planning the plug and abandonment of the Minerva-1, Minerva-2A, Minerva-3 and Minerva-4 wells (in accordance with a separate Minerva Plug and Abandonment EP), and removal of property in VIC/L22 and VIC/PL33 (under this EP).
Woodside's scope of decommissioning activity as mentioned in the EP is focussed in Commonwealth waters in the Otway Basin approximately 7 km south-southwest of Port Campbell, Victoria, where the Minerva subsea infrastructure is in approximately 55–59 m water depth at lowest astronomical tide (LAT). The operational area is thus defined as a 1,000 m radius around the subsea infrastructure, wellheads, and the gas production pipeline (the pipeline) within Commonwealth waters.
Spread over 24-hours per day, and seven days per week, Woodside believes the decommissioning activities might take up to 90-120 days, and completion is not anticipated before 30 June 2025.
With the addition of Geothermal Exploration Permit 2049, Whitebark Energy Limited further expands it’s potential geothermal portfolio, which now stands at 4,464 sq kms
EPG2049 comprises of 1250 sub-blocks within the Cooper Basin, which is about 100km West of Windorah in South-West Queensland. This comes after the acquisition of EPG2037 in the South-East Queensland region which covers an area of approximately 589 sq kms and is roughly 25km from Brisbane.
EPG2049 makes up approximately 3,875 sq kms and was identified following a comprehensive review of a number of geological considerations and future market access availability in the region. It will also consider the commercial viability of the permit and look into its historical well data to further gauge the potentials of the asset.
Following an energy-to-market analysis, by the company, EPG2049 is likely to support not only geothermal development but also green hydrogen production. Initial indications from offset well data pointed to an elevated geothermal gradient in the area with considerable potential to produce long-term, dispatchable renewable energy and green hydrogen for the region.
In collaboration with its technology partner, the company has begun to identify a works programme for EPG2049 and EPG2037, including timelines and financing.
Whitebark General Manager, Adam Stepanoff said, “The acceptance of EPG2049 in conjunction with our recent acceptance of EPG2037s application, represents an exciting development in the company’s geothermal strategy. Along with our technology partners, Whitebark will be in a prime position to deliver geothermal energy and green hydrogen into the national highway network.”
Decom Engineering (Decom), a provider of green decommissioning solutions, has executed three market-entry Australian contracts to strengthen its position within the Asia Pacific region.
The company was commissioned to supply and operate its chopsaw cutting technologies on behalf of a major operator in the Bass Strait alongside two other clients in Australian waters. Together, the contracts amounted to more than UK£500,000.
The decommissioning specialist performed three cuts on a 20’’ concrete weight coated carbon steel rigid pipeline as well as 25 cuts on a 13’’ in-filled flexible flow line jumper, with a 4.5’’ piggy back. This was achieved through the deployment and use of its C1-24 chopsaw at water depths of around 400 m. Meanwhile, another C1-24 chopsaw was utilised on assets in the country’s North West Shelf at water depths of around 500 m.
Decom Engineering Managing Director, Sean Conway, remarked, “The award of these three contracts by major operators is a clear signal that our commitment to the Australian decommissioning sector is being rewarded. With the extensive track-record Decom has established on projects in the UK North Sea, Africa and Asia, we judged that now was the right time for us to enter the Australian market and we are keen to be part of the sector’s journey to sustainability.”
The commitment to the country took the form of a significant investment in the region of UK£500,000 in order to establish infrastructure and relocate equipment and personnel to be reactive to local market demands. This decision was taken after the company recognised the remarkable opportunity that Australia presents, leading Decom to recognise it as strategic market for its future growth. This is also in line with a wider growth directive for the Asia Pacific market, with Decom investing upwards of UK£2mn to design and manufacture a nine-strong portfolio of chopsaws and supporting equipment (including control panels, spares and consumables) which have been used of projects throughout the region.
“We are excited to be kicking off three Australian projects in tandem and look forward to building a strong relationship with our customers,” Conway added. “As our reputation grows, we will replicate our AsiaPac model by investing in facilities, equipment and personnel in Australia, to provide cutting edge technologies which will assist contractors and operators looking for cost effective and environmentally sound decommissioning solutions.”
Following initial success, the company is aiming to introduce its Pipe Coating Removal (PCR) system to Australia in order to offer a full-service decommissioning option for redundant oil and gas steel pipes. The PCR strips steel tubulars of coating and transforms the pipe into a reusable product suitable for other uses.
Conway concluded, “To date our PCR system has processed more than 30,000 tonnes of steel tubulars from surplus prime and decommissioned oil and gas fields and we think that this is an offering which could introduce significant environmental and financial benefits to the massive Australian decommissioning sector.”
Cooper Energy Limited, an exploration and production company, has announced that the Helix Q7000 vessel has commenced work on the first well of the Basker Manta Gummy (BMG) decommissioning programme.
Although the company admitted that progress has been slower than anticipated, it is now making headway on the project with the Helix Q7000 – a purpose-built DP3 semisubmersible vessel from Helix Energy Solutions – now commencing work on the Basker-3 well after initially arriving late to the BMG field. The late arrival of the vessel resulted in Cooper Energy incurring more than three months of holding costs for the remaining contractor spread on the BMG programme and, in addition, more time was required during start-up activities due to factors such as loading of equipment and integration of the Integrated Riser System (IRS).
While Cooper Energy does not anticipate the start-up delays to impact the remainder of the project, the slow progress means re-forecasting of the programme for the remaining six BMG wells is required. As a result of this, the company has revised its mid-case cost estimate for the BMG decommissioning from AUS$193-198mn to approximately AUS$240-280mn. In order to keep this as low as possible, the company has indicated it will be applying learnings from the Basker-3 decommissioning work to the remaining wells. In addition, where possible, Cooper Energy and its contractors will aim to simplify the scope of decommissioning.
While the focus remains on executing the decommissioning programme safely and within the minimum time possible, the company has indicated there are certain risks retaining, including variables outside of the company’s control that could increase the total cost of the decommissioning programme.
Previously, the Helix Q7000 was at work offshore in New Zealand, conducting a decommissioning campaign on the Tui oil field. Click here to learn more.
BiSN, a provider of permanent downhole sealing solutions, has opened a manufacturing facility in Perth, Australia in order to increase its operational capacity in the Asia-Pacific region as well as creating several local jobs.
The decision to make the investment was driven by the growing demand for Wel-lok technology in the region. According to Paul Carragher, founder and CEO of the company, it is another step in its global expansion and builds on successful campaigns with operators in Australia and the wider region. Carragher added, “The Perth facility is one part of our commitment to rapidly support operators, allowing them to deploy Wel-lok technology for all intervention and P&A sealing applications.”
The Perth facility features full heater and bismuth-based alloy production, two major components of Wel-lok technology, as well as final assembly. It also provides a focus for regional business development and a field operations base. It will also boast a demonstration room to allow operators to view and get hands-on with Wel-lok and other technologies offered by BiSN. This will facilitate a collaborative environment for planning P&A, intervention and completion solutions.
The opening of the facility will remove the barrier of lead times due to shipping from the US or UK which can be prohibitive for operators and their intervention needs. “By opening a facility in Perth, it allows us to be more responsive to the needs of operators in Australia,” said Adrian Weiss, BiSN Senior Vice President of Operations. “The new facility is a continuation of BiSN’s commitment to increasing our global capability. We have listened to our clients in this region, and we are responding to help them seal safer and protect forever.”
The announcement follows the appointment of a new Regional Business Development Advisor in the Australian city, revealed earlier this year. Andy Vigor, the new appointment, boasts extensive experience in the industry having held roles in the Middle East and Asia Pacific regions. Now with BiSN, he is supporting customers both in Australasia and throughout the wider region.
Vigor surmised, “With the geographical size of the Australasia and the Asia Pacific region, response time and the ever-increasing cost of logistics is critical to our customers. We can now provide customized, engineered products and solutions locally, which will assist BiSN in its efforts to achieve service excellence for all of our regional customers.”
McDermott, a fully-integrated provider of engineering and construction solutions to the energy industry, has been awarded an engineering, procurement, removal and disposal contract by Santos for the full removal and disposal of the Campbell platform structure.
The platform is part of the Varanus Island Hub offshore Western Australia. McDermott has agreed to provide project management and engineering services for the removal and transportation of the platform topsides, structure and associated items to an onshore facility. There to be dismantled and disposed.
Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities, remarked, “Our successful, proven track record of project delivery spans the entire energy value chain. This decommissioning award reflects the commitment we share with Santos to timely, safe, and environmentally responsible removal of infrastructure at the end of its operational life cycle. We look forward to continuing to be part of delivering their sustainability commitments while also contributing to the circular economy for a lower carbon future.”
The contract is regarded as ‘sizeable’ by McDermott, being between US$1mn and US$50mn. The project management and engineering will be conducted by the company’s team in Perth with support from Indonesia and Malaysia. It represents the fourth decommissioning contract executed by McDermott in the country in the last two years.
The Offshore Well Intervention Australia 2023 Conference was carried out earlier this month as a host of industry experts and key stakeholders in the offshore community arrived in Perth for two days of engrossing seminars, presentations, panel discussion and (of course) extensive networking.
There were many highlights from the conference which provided an extensive ranging of talking points for those in attendance. A presentation by a NOPSEMA representative was an early point of interest which provided an insight into where the Australian regulator saw gaps in technology within the industry and what are the requirements for bringing new technology into the fold.
Attendees were also invited to hear how ExxonMobil has been creating a culture of innovation and improvement, where biases can be challenged and leadership teams are more receptive to new ideas. The ExxonMobil presenter noted and reviewed why this culture is so important and how it can help in upcoming campaigns as every participant’s ideas are valued, allowing for the continuous development of techniques and ideas to complete projects efficiently and effectively.
Then, in a memorable panel discussion that was described by a later presenter as one of the most memorable on the subject he had ever seen, participants from CCS Energy, NOPSEMA, Asia Pacific Energy Solutions and CO2Tech sat down to provide their thoughts on the CCS market in Australia. In the session, the speakers provided a detailed insight into the challenges and opportunities posed by the CCS market in the region, what are the advantages and disadvantages of repurposing ageing wells for CO2 storage, and how regulatory pressures are shaping the environment. Read more about what was said in the session here: https://offsnet.com/content/australia/meeting-emission-reduction-targets-through-ccs
Stringing the two days together was a myriad of presentations from technology providers and service providers outlining how their solutions were ready to support Australia’s offshore community for its well intervention requirements. In this vein, on the exhibition floor stood the likes of TAM International, Oilenco, Impact Selector and WELLVENE ready to display their wares to the gathered delegates. The onsite representatives provided some thoughts to Offshore Network on how their organisation was perceiving the Australian market:
Alastair McGregor, Business Development Manager at TAM International, remarked, “For Australia I think there's a lot of potential growth. The legislative, government and regulatory bodies have perhaps worked against themselves somewhat and lobbyists have perhaps been able to derail some projects that actually didn't have a lot of risk but were perceived as high risk.
“However, we have definitely seen a massive uptick in the whole P&A space but also routine well intervention here. P&A is definitely a major part of what we do and plugs and packers are integral to some of the operations around P&A. We are also seeing a bit of an uptick in people understanding how to apply them in the drilling phase as well. But, overall, P&A is definitely a large scope of what we do and is a large area of growth for us here.
“We've attended a few OWI AUS now and this one has certainly been very engaging with regards to the attendees; people definitely want to connect and learn a bit more about each other. We like to participate at events like this because it allows us to talk to more people and engage with them individually. There has definitely been a lot of interest in having those conversations during this event and I think we have at least four or five new leads from this conference.”
Colin Mackie, Country Manager at WELLVENE, said, “The main changes over the last six years for our company in Australia has been utilisation of equipment that is tried and tested in remedial intervention and utilising them in the P&A space. There has been more focus from operators on robust barriers and making efficiencies in deploying those barriers, which is where we've been able to help. As you go through P&A operations you have to consider every possible obstacle you may encounter on these older wells and try and plan contingencies that are efficient yet allow for the unknown, the fact that we are a smaller and more flexible company allows us to provide solutions a lot faster when the unknown does occur, and have a short turnaround on equipment that is bespoke to that particular problem. I think that will remain a big part of what we do in Australia over the next 10 years as well as the building of core products.
“Major growth areas for us as a company over and above the P&A and remedial intervention market would be service, we have some new technologies that allow for significant efficiencies in the Intervention space, and we are keen to work alongside the operators and indeed the contracted service companies to improve the safety and overall efficiency of interventions going forward.
“As a company that is established in Australia already, OWI AUS allowed us to reconnect with some people that we don’t necessarily get to see on a regular basis that have flown in for the event and meet some of the overseas service companies that are coming in to try and introduce their products into our market. It has allowed us to share our story of growth in Australia over the last six years. Furthermore, it allows us to showcase our understanding of Australian market to the clients and operators that are here.”
David Fisher, Business Development Manager at Oilenco, commented, “Oilenco have a strong track record in the North Sea and have been completing abandonment workscopes in this space since 2018. As Australia is becoming increasingly active in this area, we recognise that our technologies are transferable to this market.
“The OWI AUS conference provided us with the opportunity to showcase not only our capabilities but for attendees to see first-hand some of the projects we have completed. From safety valve remedial projects for well intervention workscopes to creating well-barriers for multi-well campaigns for an abandonment workscope. But also, how we deal with the unexpected, creating bespoke solutions to solve parted tubing challenges as an example, and our ability to manufacture, design and engineer these solutions to meet the specific challenges our clients face. It also allowed us to demonstrate how we can become an extension to a project team, with early engagement sometimes being the difference between getting a solution and getting the right solution. When speaking with operators they recognise how our solutions can support their needs.
“From the work we have completed in Australia so far, the feedback we have been getting from clients is very positive, so we look forward to continuing to support this region.”
Steve Irvine, Region Manager Australia-New Zealand-PNG at Impact Selector International, surmised, “This last year has been pretty slow because there's been a lot of projects been pushed back due to various factors such as the regulator and the government just told him things back a bit. So it has been a bit slow but I think it appears that it is going to fruition next year and in the years ahead. This is because these plans will likely now get passed and the major operators are getting their EPs together and better than they have been. So I would say I am optimistic for the future in this region, especially in regards to P&A which appears will be the next big thing here with lots of projects kicking off for that. So that will certainly be a focus for us.
“OWI AUS 2023 was very much what we wanted to happen. The audience was very much in our own line of business, which is good and it has been a while since I've been to conference which has had the right people as this did.”
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