Region: Australia
Content Types: Report
Date: Feb, 2021

oil industry 3289176 1920Petrofac’s Engineering and Production Services (EPS) business has secured a Well Project Management contract in Australia with PTT Exploration and Production (PTTEP).

Under the agreement, Petrofac will provide all project manpower to enable the execution of plug and abandonment (P&A) operations on two of PTTEP’s remaining subsea wells in the Vulcan Basin, located offshore North West Australia. This will include detailed planning, procurement services including tender for a semi-submersible rig, and management of operations and sub-contracted services.

This announcement builds on Petrofac’s ongoing expansion in Australasia and reflects the continued global growth of its well engineering capabilities.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services (West), commented, “The award of this contract is testament to our track record for delivering well engineering and decommissioning services for our clients globally. Our teams have operated in Australia for more than a decade working on some of the region’s largest energy developments, but we are particularly excited to be deploying our Well Project Management capability and expertise there for the first time.”

Shorten added, “When it comes to decommissioning, we understand the focus on cost and schedule is as important as ever. We look forward to working closely with PTTEP to deliver a safe and predictable plug and abandonment campaign.”

Decomissioning in Australia

The Australian region is one that is characterised by a distinct lack of decommissioning projects (in a recent survey conducted by Accenture and National Energy Resources Australia ranked 1st in exploration but 29th in decommissioning) but an increased emphasis on sustainability over the last few years (especially in 2020) has given impetus for regulator NOPSEMA to encourage more P&A projects to be carried out in the region. With Cooper Energy’s recent partnership agreement with Helix Energy to perform decommissioning work in Australia and now Petrofrac’s announcement that it has been contracted to do likewise it appears NOPSEMA’s call has been heeded and could motivate more P&A projects to be undertaken in this region in the future.