One of the key players working on Australia’s flagship Northern Endeavour decommissioning programme has been taken over by a former American rival.
US-based CB&I has entered into an agreement to acquire Petrofac’s Asset Solutions business after the parent company filed for administration in late 2025 due to financial distress from cost overruns and contract issues.
Petrofac was awarded its Northern Endeavour contract by the Australian government in April 2022, heralding the start of an era of decommissioning in the nation’s offshore oil and gas sector.
Petrofac’s Australia team, based in Perth, were contracted to complete Phase 1 of the decommissioning of the FPSO (Floating Production, Storage and Offtake) facility.
It is unclear at this point how the project will be affected, if at all, after the CB&I acquisition goes through, with approximately 3,000 Petrofac employees expected to join the Texas company at the close of the transaction, anticipated to occur in the first quarter of 2026.
According to Mark Butts, CB&I’s President and CEO, the acquisition will strengthen the group’s overall portfolio and enhance service capabilities.
He said it also supports CB&I’s diversification into integrated services, expands customer relationships and opens pathways for growth in international markets.
“Asset Solutions’ leadership demonstrates pride in operational excellence, commitment to customers, and resilience through challenging circumstances,” said Butts.
“Our organisations share similar management philosophies and industry-leading safety performance. With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation. These factors collectively support CB&I’s long-term growth objectives.”
Following the close of the transaction, CB&I will operate as one company with two global business units, CB&I Asset Solutions based in Aberdeen, Scotland, and CB&I’s existing operations, CB&I Storage Solutions, based in The Woodlands, Texas.
With thousands of jobs saved, it is hoped there will be minimal disruption to the Northern Endeavour work.
“We are excited about this opportunity to focus on our core strengths, reaffirm critical customer relationships, stabilise our supply base and deliver operational excellence for our current and future projects,” said John Pearson, Petrofac Asset Solutions Chief Operating Officer.
“We have the operational and engineering talent required to deliver high-value growth opportunities and expand differentiated services. Our cultural compatibility with CB&I enhances our integration and supports a smooth transition.”
