Woodside Energy has released an update of the company's decommissioning activities for the fourth quarter of 2024.
The removal of the Griffin Riser Turret Mooring (RTM) has been a highlight for the company as it marked the removal of nearly 25000 tonnes of infrastructure that included over 200 kms of pipe and 100 subsea structures that covered the Enfield, Echo Yodel, Stybarrow and Griffin fields. RTM removal besides, 20 wells have also been permanently plugged.
The RTM was recovered without significant obstacles to be transported to the Australian Marine Complex at Henderson, Western Australia, where its components will be cleaned and disassembled for recycling or reuse.
The Griffin field that is situated off 65 km north west of Onslow and 94 km north east of Exmouth had served in its lifetime Western Australia’s power needs with not only 62 billion cubic feet of gas, but also 167 million barrels of oil.
Above: Australia is preparing for a wave of decommissioning activity this year. (Image source: Adobe Stock)
Woodside's decommissioning campaigns at Stybarrow included the plugging and abandoning of three wells, removal of several moorings, structures, and wellheads that covered multiple fields offshore Western Australia. Last year, the company plugged and abandoned seven of 10 Stybarrow wells, recovered more than 90 subsea structures including wellheads, Xmas trees
and manifolds, and recovered 149 km of pipe.
Woodside's decommissioning work in Stybarrow was supported by McDermott under an engineering, procurement and removal contract.
“This award not only demonstrates McDermott’s proven track record in undertaking deepwater projects of diverse scopes, but it also highlights the critical importance of decommissioning in the offshore industry.
“With our seamless integration of engineering, fabrication, and offshore mobilisation expertise, we believe we are well-equipped to execute this project efficiently and responsibly, ensuring the safe recovery and removal of the Stybarrow DTM buoy,” said Mahesh Swaminathan, Senior Vice President, Subsea and Floating Facilities, McDermott.
The contract enables McDermott to fully remove the Stybarrow disconnectable turret mooring (DTM) buoy, and provide project management and engineering services for the recovery, transportation and offloading of the DTM buoy to an onshore yard for dismantling and disposal.
The Bass Strait decommissioning work continues as well, with plug and abandonment completed on the Perch and Dolphin facilities. Steel gravity based monotowers, the Perch and Dolphin facilities saw the deployment of DOF multi-purpose support vessel (MPSV) Skandi Darwin.
The MPSV's floating support asset can accomodate the whole workforce, eliminating crew transportaion costs. It also allows to complete abandonment operations on non-producing facilities which do not have accommodation based on them.
Speaking of the MSVP, Marine Field Superintendent, Matt Barney said, “We’re excited to start utilising the MPSV to expand our capabilities and adopt new technology to identify efficiencies, while ensuring the work can be completed safely.”
Allseas is also part of the Bass Strait decommissioning campaign, whereby the company will be dismantling up to 12 retired platforms from the region. “This landmark decommissioning project represents a significant milestone for Allseas in Australia,” said Evert van Herel, General Manager of Allseas Australia.
To know more about Australia's decommissioning scene, click here.
The Maritime Union of Australia (MUA) is looking forward to working with the new Offshore Decommissioning Directorate that has been established by the Australian Federal Government
This is a welcome development that signals to all stakeholders that offshore oil and gas decommissioning opportunities will be in the forefront of government thinking over the coming years and decades. The Union will continue to raise concerns and fight for a roadmap that delivers everything we should expect: full decommissioning, done properly, and all the high quality, safe and skilled Australian jobs and environmental care that is an essential component of the just transition from hydrocarbon industries to renewable energy projects offshore.
The Union is actively engaged with the Decommissioning Directorate to shape its implementation strategy and ensure it prioritises outcomes that reflect the interests of its members. The MUA reiterates the need for:
“Decommissioning is well underway, yet offshore workers continue to face unacceptable hazards, including poorly maintained rigs, fatigue, and hydrocarbon spills. The MUA is steadfast in our commitment to holding government and industry accountable for improving safety, environmental protections, and conditions on the job,” said Thomas Mayo, the Assistant National Secretary of the MUA.
“The release of the Roadmap underscores the critical role the MUA has played in shaping this initiative, and now is a critical time to address several significant shortcomings. While we welcome the establishment of a Decommissioning Directorate, the roadmap falls short of the robust framework our members deserve. The lack of concrete commitments, such as industry-funded infrastructure, checks and balances such as independent verification of completed work, and strengthened worker safety protections, is concerning,” Mayo explained.
“This moment cannot be overstated. Our public response is a clear signal to all stakeholders – government, industry, and our members – that the MUA is increasingly dedicating attention and resources commensurate with the significance of this opportunity. We call on the Federal Government to heed the expertise of the decommissioning workforce and adopt the Union’s upcoming further recommendations to the Directorate. Complacency is not an option,” Mayo added.
Following Australia's first operator-supported offshore decommissioning liability assessment, several measures have been identified to reduce cost based on the insights generated from the asset databases.
By adjusting the work breakdown structure of the costed decommissioning database, a quantum of reduction that can be targeted for key measures has been estimated:
In order to maintain continuity of savings on the liability, effective industry-wide knowledge sharing should be ensured, failure of which will risk sub-optimal cost reduction outcomes.
Australia’s offshore oil and gas industry is undergoing a seismic shift, with an estimated 5,695 kilotons of infrastructure set to be decommissioned from its coastal waters by 2060 and beyond.
This monumental effort, spanning both onshore and offshore activities, involves a broad range of businesses, from initial planning and permitting to dismantling offshore platforms and recycling materials. It’s a complex process that includes plugging oil and gas wells, removing pipelines, dismantling steel structures, and safely disposing of waste materials. As the industry adapts to the future, the scale of decommissioning is expected to evolve, and the potential impact on Australia’s economy, environment, and job markets is immense.
The expanding offshore decommissioning value chain
Australia’s offshore decommissioning value chain is vast, with many key players involved in various stages of the process. Key activities include:
* Planning and securing necessary approvals: Obtaining government permits and satisfying environmental regulations are crucial first steps.
* Removal of subsea infrastructure: This includes plugging and abandoning over 1,000 wells, removing more than 4,960 km of pipelines and 1,700 km of flowlines from the seabed, and dismantling a host of offshore facilities such as fixed production platforms and floating production storage facilities
* Waste management and recycling: Steel, plastics, and other materials are salvaged and recycled, while hazardous materials are safely disposed of.
The Gippsland Basin, located off the coast of Victoria, holds a significant portion of the offshore infrastructure, accounting for about 9% of the total materials slated for decommissioning. However, the bulk of the work lies in Western Australia, where 89% of the material to be removed is concentrated. The sheer scale of this operation requires a coordinated effort among various stakeholders, including government agencies, private companies, and environmental organizations, to ensure that decommissioning is done responsibly and efficiently.
The costs and economic implications
The cost of decommissioning in Gippsland Basin and North Carnarvon Basin alone is projected at US$11bn by 2032. This is just the beginning, as decommissioning peaks are expected in 2033-2037 and 2043-2047, corresponding with the end of life for large infrastructure projects.
With the ongoing evolution of offshore wind, decommissioning activities will only become more extensive and expensive. The pipeline of decommissioning projects is projected to continue expanding well into the second half of this century, shaping Australia’s energy landscape for decades to come.
The information in this article is sourced from the Department of Industry, Science and Resources. You can read more here
A groundbreaking offshore construction vessel is being used for a Gippsland Basin decom contract, which will provide a safer and more cost-effective removal of platforms.
The Esso Australia Pty Ltd (Esso Australia), a subsidiary of ExxonMobil Australia, recently awarded Switzerland-headquartered Allseas, a leading contractor in the offshore energy market, the contract to remove up to 12 retired platforms from the Gippsland Basin in the Bass Strait, with a combined weight of approximately 60,000 tonnes. It covers up to 12 topsides and up to 11 steel jackets.
Allseas will utilise the Pioneering Spirit, which the company says is the largest, most versatile offshore construction vessel in the world, designed for the single-lift installation and removal of offshore platforms and the installation of record-weight pipelines.
The emergence of Pioneering Spirit sets new standards in offshore installation and decommissioning, according to Allseas. Capable of lifting entire platform topsides of up to 48,000 t and jackets up to 20,000 t in a single piece, it significantly reduces the amount of offshore work associated with installation and decommissioning, moving the work onshore where it is safer and more cost effective and reducing the time required to execute such contracts. The vessel set a new world record for the heaviest lift ever performed in July 2024, when it removed the last platform of the Shell Brent field in the North Sea, Brent Charlie, with topsides weighing 31,000 t.
Allseas plan to remove all the structures with Pioneering Spirit in just three to four months, starting late 2027. Once removed, the facilities will be transferred to barges or vessels for load-in to the Barry Beach Marine Terminal in Victoria for dismantling and recycling by a separate onshore contractor. Planning and engineering work is already underway.
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), with its regulatory priorities, aims to address the numerous challenges surrounding offshore decommissioning in Australia. Some of the most common ones include:
Australia's decommissioning industry appears to be lacking a fixed plan about its end-state, thereby affecting upcoming decommissioning projects. An additional disadvantage is NOPSEMA's recently introduced 'trailing liability' which enables former titleholders to be called back to work on residual work. Taking into account the immense costs and liability involved, the risk of future decommissioning liability following title relinquishment needs to be appropriately addressed by companies planning decommissioning campaigns.
In its recent skills review, the Centre of Decommissioning Australia (CODA) recognised a significant shortcoming of resources in a number of areas including recycling and waste management, regulatory compliance management, decommissioning planning and reporting and stakeholder management and consultation. One major challenge is that the investment in oil and gas projects and renewable energy industry prevents the existing oil and gas workforce from transitioning their skills to decommissioning. It is therefore important for the government at a state level to address these issues and ensure that project work and revenue remains in Australia.
The availability of limited onshore facilities and ports that are capable of dismantling, recycling, disposing and handling massive topside and substructure loads is found to be a major challenge. In addition to this, the long distances and cost of chartering vessels have a significant impact on the cost and time of decommissioning. Building ports and onshore facilities that fulfil these purposes would help address these challenges.
A limited supply of vessels poses a significant challenge for decommissioning project planning. This is exacerbated by ongoing oil and gas investments as well as emerging renewable energy projects like the offshore wind project. Promoting clarity and openness around upcoming decommissioning projects would therefore help titleholders to better plan and collaborate.
The Offshore Decommissioning Directorate is leading the implementation of Australia’s Offshore Resources Decommissioning Roadmap, a strategic initiative focused on growing the country’s offshore decommissioning industry. To better support the sector’s growth, the Directorate is seeking input from stakeholders to determine which decommissioning activities are most valuable to different industry players. This feedback will guide efforts to overcome barriers and make the decommissioning process more efficient.
The Roadmap’s key objectives include promoting Australia as a global leader in safe, efficient, and environmentally responsible decommissioning practices, expanding the domestic decommissioning industry, and improving interactions with regulatory systems. While the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) remains the regulator for safety and environmental approvals in Commonwealth waters, the Directorate is working to enhance collaboration across the sector.
To achieve these goals, the Directorate is partnering with a wide range of stakeholders, including industry leaders, unions, state and territory governments, First Nations groups, local communities, and international organisations. By encouraging collaboration, improving transparency across the decommissioning pipeline, and offering expert guidance on policy matters, the Directorate aims to ensure that the decommissioning industry operates in line with the Australian Government’s Future Made in Australia agenda.
The Directorate is also focused on strengthening community confidence in regulatory frameworks, ensuring that decommissioning remains an offshore industry responsibility. By collaborating with other governments to share knowledge and best practices, the Directorate is helping to grow the industry’s knowledge base and position Australia as a leader in decommissioning globally.
ExxonMobil-subsidiary Esso Australia Pty Ltd is gearing up to present its decommissioning plan in Bass Strait before the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) early this year
The decommissioning campaign that will be undertaken in Bass Strait and the Onshore Reception Centre involves assets comprising 19 platforms with an estimated 400 wells, six subsea facilities and more than 800 kms of subsea pipelines.
Esso is all set to finally bring the curtains down with the Bass Strait decommissioning as most of the fields from the region are nearing the end of productive life after having served Australia's energy needs for more than 50 years. The first campaign will focus on topsides removal of up to 13 facilities, besides removing two monotowers and the upper jacket sections of up to 10 steel piled jacket (SPJ) facilities. These structures will be offloaded for dismantling at the Onshore Reception Centre at Barry Beach Marine Terminal, following which the end resources will be sent mostly for recycling, and the rest for disposal. Esso's association with the Barry Beach Marine Terminal can be traced back to the 1960s since when this port facility from South Gippsland has been the supply depot for Bass Strait oil and gas operations.
The campaign will see round-the-clock marine activities to remove around 60,000 tonnes of offshore facilities, including topsides and jackets. The facilities are predominantly comprised of steel, with the rest including primarily construction materials such as concrete, stainless steel, copper, wood and plastic.
Esso has onboarded Allseas Marine Contractors Australia who will be deploying its heavy lift vessel (HLV), Pioneering Spirit, for the project. Capable of removing entire offshore structures at one go, this vessel has the task covered in a matter of few months, allowing Esso to save considerably in time and costs. “This historic project gives us an opportunity to showcase the capability of our single-lift technology in challenging environments like the Bass Strait,” said Evert van Herel, General Manager of Allseas Australia. “We’re very much looking forward to working with Esso Australia to make this a successful project and thank them for their trust in Allseas to carry out this landmark project!”
Australia's decommisioning industry regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in its Decommissioning Compliance Strategy 2024-2029 outlines the key steps taken to achieve its objective for decommissioning all petroleum wells, structures, equipment and property in Commonwealth waters.
NOPSEMA's vision is to ensure that all decommissioning activities are completed in a timely, safe and environmentally responsible manner. To achieve this, the authority has laid out a list of targets that aim to reduce uncertainity and support the transparency of NOPSEMA's regulatory actions. These targets provide simple, time-based expectations for decommissioning. The approach is shaped by criteria that focus on the time to end of production, uncertainity surrounding that timing, financial capacity and the titleholder's planning performance.
Potential regulatory actions for the four risk tiers in relation to decommissioning include:
The Maritime Union of Australia (MUA) has expressed its support for the establishment of the Offshore Decommissioning Directorate by the Australian Federal Government. This initiative highlights the government's focus on offshore oil and gas decommissioning opportunities over the coming years.
The Union remains committed to advocating for a comprehensive roadmap that ensures full and proper decommissioning, emphasizing high-quality Australian jobs, workplace safety, and environmental care as part of a just transition from hydrocarbon industries to offshore renewable energy projects.
Thomas Mayo, Assistant National Secretary of the MUA, stated, “Decommissioning is well underway, yet offshore workers continue to face unacceptable hazards, including poorly maintained rigs, fatigue, and hydrocarbon spills. The MUA is steadfast in our commitment to holding government and industry accountable for improving safety, environmental protections, and conditions on the job.”
He further emphasised the need for action, adding, “The release of the Roadmap underscores the critical role the MUA has played in shaping this initiative, and now is a critical time to address several significant shortcomings. While we welcome the establishment of a Decommissioning Directorate, the roadmap falls short of the robust framework our members deserve. The lack of concrete commitments, such as industry-funded infrastructure, checks and balances such as independent verification of completed work, and strengthened worker safety protections, is concerning.”
Mayo concluded, “This moment cannot be overstated. Our public response is a clear signal to all stakeholders – government, industry, and our members – that the MUA is increasingly dedicating attention and resources commensurate with the significance of this opportunity. We call on the Federal Government to heed the expertise of the decommissioning workforce and adopt the Union’s upcoming further recommendations to the Directorate. Complacency is not an option.”
The MUA's engagement underscores the importance of ensuring offshore decommissioning is conducted to the highest standards, safeguarding both workers and the environment.
The presence of existing offshore industries positions Australia well to enhance its decommissioning industry.
For decommissioning activities to be carried out efficiently, an experienced workforce, the right vessels available at the right time, and a culture of safety and environmental stewardship are key requirements.
Australia’s domestic workforce exhibits extensive skill and experience in the oil and gas industry. This means that a majority of them can be re-deployed and re-skilled for decommissioning projects supporting Australia’s energy transition. However, the emergence of the renewable sector makes attracting and retaining a workforce significantly challenging.
In Australia, vessels are not hosted but instead imported for heavy offshore decommissioning. While the local availability for heavy lift and specialist vessels don’t appear to be a strategic opportunity, the domestic workforce can provide crew and support for these activities.
Offshore decommissioning will mostly be concentrated in south-east and north-west Australia, with the south-east region hosting significant offshore wind generation in the future. Offshore renewables construction could increase competition for infrastructure and capability, including ports, which requires careful management and coordination.
Australia’s decommissioning industry is well-positioned, with the presence of a domestic recycling industry playing a key role in the waste management phase of offshore decommissioning. However, there are some critical knowledge gaps that need to be addressed. These include innovation on the impact of contaminants on the environment and ecosystems, possibilities to develop new recycling pathways and technologies, and more efficient cleaning and waste management processes.
Australia’s availability of innovative products and technologies creates an opportunity for global exports to other decommissioning markets. The ability to create new innovative products and services makes Australia a significant contributor to the global decommissioning market.
Planning and preparation are underway for Australia’s largest offshore decommissioning project. Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia, has awarded Allseas the contract to dismantle up to 12 retired platforms from the Gippsland Basin in the Bass Strait.
The platforms, with a combined weight of approximately 60,000 tonnes, mark a historic milestone for offshore operations in the region.
For the first time, Pioneering Spirit will bring its revolutionary single-lift technology to Australian waters. This cutting-edge capability enables the removal of entire offshore structures – both topsides and jackets – in a single lift, allowing the massive scope of work to be completed within just a few months.
“This landmark decommissioning project represents a significant milestone for Allseas in Australia,” said Evert van Herel, General Manager of Allseas Australia. “Over the past 20 years, we’ve built a strong track record delivering subsea pipelay and construction services for major greenfield projects in these waters. It’s an honour to now bring our expertise to the first removal of platforms of this scale from Australian waters.”
The ambitious timeline includes the removal of up to 12 topsides and 11 steel jackets during a 3–4-month campaign set to begin in late 2027. Once removed, the structures will be loaded onto barges or vessels for transport to the Barry Beach Marine Terminal in Victoria, where they will be dismantled and recycled by an onshore contractor.
The engineering and project management work is being led from Perth and Melbourne, with additional support from Allseas’ offices in Delft and Kuala Lumpur.
“This historic project gives us an opportunity to showcase the capability of our single-lift technology in challenging environments like the Bass Strait,” added Evert. “We’re very much looking forward to working with Esso Australia to make this a successful project and thank them for their trust in Allseas to carry out this landmark project!”
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