Australia's offshore oil and gas sector is entering a critical phase of decommissioning, as ageing infrastructure in regions like the Bass Strait and Western Australia reaches the end of its productive life.
With maturing fields driving activity, the industry faces substantial challenges in safely removing platforms, pipelines, and wells while minimising environmental impact and ensuring financial accountability.
Recent analysis by global energy consultancy Xodus, commissioned by the Australian Government, estimates the total decommissioning liability in Commonwealth waters at AUD43.6bn through 2070, or AUD66.8bn when adjusted for inflation.
This figure represents a significant reduction from the 2020 estimate of AUD61.8bn, attributed to improved efficiencies and better understanding of decommissioning processes.
The scope encompasses over 700 wells, 7,600 km of pipelines, and 520 subsea structures, with approximately 55% of the work anticipated before 2040.
Separately, the Centre of Decommissioning Australia (CODA) projects US$40bn in offshore activity over the next 50 years, emphasising well plugging and pipeline removal as primary costs.
Key projects illustrate progress. ExxonMobil Australia's Bass Strait programme, the nation's largest decommissioning effort, advanced significantly in 2025.
The team permanently sealed more than 200 wells and processed over 10,000 tonnes of steel and concrete for recycling or disposal.
Retired platforms have entered "stasis mode," secured and prepared for removal, with the Allseas Pioneering Spirit vessel scheduled to commence lifting operations in 2027.
Woodside Energy has also made strides in Western Australia.
Offshore decommissioning at the Enfield field, which began in 2022, is nearing completion.
While physical removal works are complete, post-decommissioning environmental obligations are still ongoing. According to Woodside, an annual report is scheduled for December 2026.
The Nganhurra Riser Turret Mooring was recovered in November 2023, and deconstruction achieved over 95% reuse or recycling by March 2024.
Ongoing work at the Griffin and Stybarrow fields includes the Griffin Riser Turret Mooring recovery in December 2024.
Government reforms are also bolstering the framework.
In November 2025, the Department of Industry, Science and Resources (DISR) released a consultation paper on enhancing decommissioning planning, financial assurance, and compliance tools.
Additionally, the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2025 have been remade, effective from 31 March 2026, to improve resource management.
As Australia transitions towards net-zero goals, these efforts underscore a commitment to responsible decommissioning, balancing economic realities with environmental stewardship. Industry collaboration, as highlighted in reflections on 2025's landscape, will be pivotal in navigating the ramp-up to 2027 and beyond.
President Bola Ahmed Tinubu has approved the gazetting of targeted, investment-linked incentives to support the proposed Bonga South West deep-offshore oil project by Shell and its partners.
The President also instructed the Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the gazette of the incentives in line with Nigeria’s legal and fiscal frameworks.
Speaking to a Shell delegation led by Global CEO Wael Sawan, President Tinubu said the incentives are disciplined, targeted, and globally competitive, aimed at attracting new capital without undermining government revenue.
He emphasised that the incentives are ring-fenced and investment-linked, focusing on new capital, incremental production, local content, and in-country value addition. “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration,” he said.
The President highlighted the strategic importance of Bonga South West to Nigeria’s economy, noting its potential to create thousands of jobs, generate foreign-exchange inflows, and deliver sustained government revenues. The project is also expected to deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.
President Tinubu reaffirmed the administration’s commitment to policy stability, regulatory certainty, and speed, stressing that these reforms are vital for restoring investor confidence and positioning Nigeria as a preferred destination for large-scale energy investment.
Shell’s CEO, Wael Sawan, welcomed the developments, noting that Nigeria’s investment climate has improved significantly under the Tinubu administration and that Shell remains confident in long-term investment prospects in the country.
The Shell delegation included senior executives from both global and Nigerian leadership teams.
Transportation and installation work is set to begin for Shell's Kaikias Waterflood project off the Louisiana coast in the United States as Subsea7 signed a contract with Shell.
Subsea7 will be structuring subsea umbilicals, riser and a rigid flowline, all running 1,650 metres deep to support the offshore development project in the Mars-Ursa Basin. This will advance sustainable production from the Kaikas project, which is being developed by the waterflood method. The field will be subjected to oil recovery two times by water injection so that displaced oil becomes apparent to the nearby wells.
Subsea7 will be running contract operations from its base in Houston, Texas, initiating project management and engineering activities. This will be followed by offshore delivery in 2027.
Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico, said, “This award strengthens our long-standing and successful collaboration with Shell. We are bringing our deepwater experience to the Kaikias development and delivering cost-effective solutions that will support safe and efficient project execution, helping Shell maximise long-term value from the field.”
Shell's investment in the Kaikias Waterflood project will generate high-margin production for the oil major.
The Government of Guyana is progressing with plans to enhance governance and institutional capacity in the country’s growing oil and gas industry, according to Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh.
During the Budget 2026 presentation, Dr Singh stated that the administration is working to create a modern and credible governance system for the oil and gas sector, which involves updating laws and regulations, strengthening key institutions, and continuously developing technical skills within the public sector.
In the past five years, the government has launched a wide-ranging legislative reform effort to align the petroleum sector with international standards. This includes enacting the Natural Resource Fund (NRF) Act and the Local Content Act (LCA) in 2021, the Petroleum Activities Act (PAA) in 2023 – which replaced the 1986 Petroleum Act – and the Oil Pollution Prevention, Preparedness, Response and Responsibility Act (OPPPRRA) in 2025 to address environmental risks and emergency protocols.
Dr Singh added that the government plans to update the First Schedule of the Local Content Act this year to expand the range of goods and services eligible under local content rules. The review of regulations under the Petroleum Activities Act is progressing, incorporating lessons from the Hammerhead Petroleum Production Licensing process, with finalisation and implementation of the regulations expected this year. Also expected this year are the implementation and rollout of coordinated compliance and enforcement measures.
Dr Singh emphasised the administration’s commitment to developing human capital within the petroleum governance framework, highlighting the importance of strengthening local skills for managing the petroleum economy effectively. In 2025, government agencies took part in targeted training sessions led by industry experts in areas such as market analytics, cost estimation, and scenario modelling, with further such sessions planned.
Guyana is seeing its offshore sector expand rapidly, which in turn is spurring significant economic growth in the country and creating much-needed jobs. ExxonMobil Guyana Limited and its Stabroek block co-venturers, Hess Guyana Exploration Limited, and CNOOC Petroleum Guyana Limited are progressing several offshore developments in Guyana’s offshore Stabroek Block. The consortium reached a new production milestone of 900,000 bopd in November 2025, following the ramp-up of Yellotail, Guyana’s fourth offshore project, and excellent operating performance from other assets. The Uaru and Whiptail projects, Guyana’s fifth and sixth projects, due to begin operations in 2026 and 2027 respectively, are each expected to produce approximately 250,000 bopd. Hammerhead, the seventh project, is expected to add approximately 150,000 bopd when production begins in 2029. An eighth project, Longtail, is currently undergoing regulatory reviews. Once approved, ExxonMobil Guyana expects to have total production capacity of 1.7mn bopd from the eight developments.
Halliburton and the Agency for Science, Technology and Research (A*STAR) in Singapore have announced the launch of the Next-Generation Energy Xccelerator Joint Lab, or NEX Lab.
This S$35mn initiative aims to accelerate the development and commercialisation of advanced well completion technologies for the energy industry.
“NEX Lab brings together Halliburton's global expertise in well completions and A*STAR's multidisciplinary research capabilities to advance cutting-edge technology that shapes the future of energy and the Future of Completions,” said Shawn Stasiuk, Senior Vice President of Halliburton’s Completion and Production Division.
“The combination of our strengths will deliver innovative solutions that support customers within the full spectrum of completion technologies, including low-carbon applications for the evolving energy landscape.”
In a statement, Halliburton said that NEX Lab will serve as a collaborative hub for research, engineering and testing.
The aim is to streamline the transition from early-stage innovation to field deployment by integrating design, prototyping and validation activities all under one programme.
“By integrating Halliburton’s global expertise with the local innovation ecosystem, NEX Lab will increase demand for specialists in high-value technical roles and build a more competitive, future ready talent pool for Singapore,” it noted.
The project is also supported by the Singapore Economic Development Board (EDB) with Alvin Tan, Singapore's Minister of State for Trade and Industry, officiating at the launch event.
Prof Lim Keng Hui, Assistant Chief Executive of A*STAR's Science and Engineering Research Council, said the collaboration with Halliburton will help to translate research into real-world solutions.
“Through NEX Lab, we will work with Halliburton to build advanced manufacturing and energy technology capabilities in Singapore and create opportunities for our scientific and engineering talent to deliver impact beyond the joint lab. NEX Lab will also help develop and qualify local suppliers, strengthening resilient, high-value energy supply chains.”
Halliburton has collaborated with A*STAR since 2019 through the A*STAR Advanced Remanufacturing and Technology Centre's industry consortium, investing more than S$2mn in R&D and embarking on projects focused on materials and design improvements, workflow and inspection automation, and sensor development.
Lim Wey-Len, Executive Cice President of EDB, said NEX Lab exemplifies Singapore's leadership in advanced manufacturing and innovation.
“We welcome more collaborations with global energy leaders like Halliburton, so that companies can develop breakthrough solutions from Singapore that strengthen their global competitiveness and advance the energy transition.
“This collaboration will also create meaningful upskilling and innovation opportunities for local enterprises and our workforce.”
Rex International Holding Limited, through its indirect subsidiary, Masirah Oil Limited (MOL), has announced the signing of a jack-up rig contract to support offshore development drilling in Oman.
According to the statement, MOL’s parent company, Rex Oman Ltd., has contracted the Energy Emerger jack-up drilling rig, operated by Northern Offshore Drilling Operations Ltd. The rig will be used to drill three development wells in the offshore Yumna Field, located in Block 50, Oman.
The Energy Emerger was previously deployed during MOL’s 2024 drilling campaign and will now be utilised for a multi-well programme scheduled to commence in March 2026. The upcoming campaign is intended to support increased production and enhance long-term field performance.
MOL is an indirect 87.5% subsidiary of Jasmine Energy Limited (JEL) and acts as the operator of Block 50, holding a 100% interest in the licence.
Commenting on the development, Mike Hopkinson, General Manager of Masirah Oil Limited, said, “With funding and the rig now in place, we are focused on executing this drilling programme seamlessly to drill new producer wells to increase oil flow rates and extend the lifespan of the Yumna Field in Block 50 Oman.”
The drilling programme forms part of Rex Group’s ongoing efforts to optimise production from its Omani offshore assets through targeted development activity.
OKEA, alongside its partners, has announced a petroleum discovery at the 'Knockando Fensfjord' prospect in the North Sea.
The well was drilled from the Brage installation as part of a development well for oil (31/4-A-15 D) within production licence 055, according to the Norwegian Offshore Directorate.
Preliminary estimates suggest that, if the discovery contains oil, it could add between 0.5 and 1.5 million standard cubic metres (Sm³) of recoverable oil equivalent (o.e.) to Brage’s resources. If the find is gas, estimated volumes range from 0.4 to 0.9 million Sm³ o.e.
Well 31/4-A-15 D recently began production from the 31/4-A-1 B 'Talisker' discovery on 11 January 2026. The licence holders are now evaluating potential development options for the Knockando Fensfjord discovery.
Production licence 055 was awarded in Norway’s fourth licensing round on the Norwegian continental shelf (NCS) in 1978. The Brage field was proven in 1980, with the plan for development and operation (PDO) approved by the Storting in 1990. Several new discoveries have been made in the Brage area in recent years, including “Talisker Cook/Statfjord” (31/4-A-15 B) and “Prince” (31/4-A-23 G), both confirmed in 2025.
The current licensees in production licence 055 include OKEA (operator), Lime Petroleum, DNO, Petrolia NOCO, and M Vest Energy.
The development well 31/4-A-15 D targeted the lower Fensfjord Formation of Late Jurassic age en route to the “Talisker” production target in the Middle Jurassic Brent Group. The well confirmed a 38.5-metre hydrocarbon column across multiple sandstone layers with moderate to good reservoir quality. The petroleum-water contact was not encountered.
The well reached measured and vertical depths of 10,009 metres and 2,309 metres below sea level, respectively, before being terminated in the Oseberg Formation of the Middle Jurassic. Geological and reservoir data were collected throughout the discovery interval.
This latest find adds to OKEA and its partners’ ongoing efforts to optimise resource recovery in the Brage area, further strengthening the field’s contribution to Norway’s oil production.
he Nigerian National Petroleum Company Limited (NNPC Ltd) has congratulated Chevron Nigeria Limited (CNL), operator of the NNPC Ltd/CNL Joint Venture, on the successful completion of the Awodi-07 appraisal and exploration well in the shallow offshore western Niger Delta
The Awodi-07 well was drilled as part of the Joint Venture’s ongoing programme to further delineate and unlock hydrocarbon potential within its asset portfolio. Drilling began in late November 2025 and was completed by mid-December 2025. All operations were carried out safely and efficiently, fully complying with approved operational and regulatory standards. After comprehensive testing, logging, and data acquisition, the well was secured, bringing the programme to a successful conclusion.
Results from Awodi-07 are highly encouraging, confirming the presence of hydrocarbons across multiple reservoir zones. The achievement marks a significant milestone for the NNPC Ltd/CNL Joint Venture, strengthening confidence in the underlying asset and reinforcing the prospectivity of the area. The well’s success further demonstrates the effectiveness of disciplined exploration, thorough technical evaluation, and strong operational collaboration between NNPC Ltd and Chevron Nigeria Limited.
Commenting on the accomplishment, Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, praised Chevron Nigeria Limited for its operational excellence, technical expertise, and consistent delivery of value.
“The success of the Awodi-07 well further reinforces the strength of the NNPC Ltd/CNL Joint Venture and our shared commitment to responsibly growing Nigeria’s hydrocarbon reserves. This achievement aligns squarely with our strategic priorities of increasing production, enhancing national energy security, and delivering sustainable value for the Nigerian people,” remarked Bayo Ojulari.
Speaking on the milestone, executive vice-president, Upstream, NNPC Ltd, Udy Ntia, described the results as evidence of the benefits of sustained collaboration, technical rigour, and a stable, enabling operating environment.
“This discovery underscores the importance of disciplined exploration programmes, strong partnerships, and the positive impact of the reforms introduced under the Petroleum Industry Act. We look forward to working closely with Chevron Nigeria Limited to mature this opportunity and progress it towards timely development and monetisation,” added Ntia.
NNPC Ltd and Chevron Nigeria Limited operate several oil and gas fields in Nigeria’s Niger Delta under a joint venture agreement. Chevron holds a 40% interest in the assets, while NNPC Ltd owns the remaining share. The partnership allows both companies to pool resources, technical expertise, and investment to develop Nigeria’s oil and gas resources efficiently.
Through this collaboration, the joint venture aims to increase oil production to approximately 146,000 barrels per day, supporting government revenue, creating jobs, and contributing to Nigeria’s energy supply.
Gulf Marine Services (GMS), a provider of jack-up support vessels to the offshore energy industry, has agreed to acquire a new mid-class self-propelled, self-elevating support vessel, marking its first vessel acquisition in a decade.
The vessel is expected to join the company’s fleet of 14 vessels within the next two weeks and is intended to support GMS’ strategy of doubling its 2024 adjusted EBITDA by 2030. The acquisition was partly financed through a US$37.4million 90-day interim loan provided by a Middle Eastern bank that is part of the company’s existing lending syndicate, pending participation by the remaining lenders. The remainder of the purchase price was funded from the company’s cash resources.
GMS said the cost of funding and covenant terms are consistent with those agreed with lenders in December 2024. Following completion, the group’s net leverage will remain below 2.0 times, excluding any EBITDA contribution from the acquired vessel. The company said the vessel has been earmarked for a number of identified commercial opportunities, with further announcements on backlog and revised adjusted EBITDA guidance for 2026 to be made in due course.
“We are delighted to announce this acquisition and would like to thank all those involved. This represents the first vessel acquisition by GMS in a decade and marks an important milestone for the company. The addition of this vessel supports our growth ambitions, while preserving our financial strength and operational flexibility. Subject to market conditions, we look forward to pursuing further acquisitions, and to commencing our shareholder reward programme in the coming months,” said Mansour Al Alami, executive chairman of GMS.
Halliburton reported a strong close to 2025, with fourth-quarter results highlighting changing activity levels across North America, including offshore-related services in the Gulf of Mexico, alongside continued strength in international markets.
For the fourth quarter of 2025, Halliburton posted net income of US$589 million, or US$0.70 per diluted share. Adjusted net income, excluding impairments and other charges and tax adjustments, reached US$576 million, or US$0.69 per diluted share. This marked a significant improvement from the third quarter of 2025, when net income was US$18 million, or US$0.02 per diluted share, and adjusted net income stood at US$496 million, or US$0.58 per diluted share.
Total company revenue for the quarter reached US$5.7 billion, up slightly from US$5.6 billion in the previous quarter. Operating income increased to US$746 million, compared to US$356 million in the third quarter. On an adjusted basis, operating income rose to US$829 million from US$748 million.
North America revenue for the fourth quarter of 2025 was US$2.2 billion, reflecting a sequential decline of 7%. The decrease was primarily attributed to lower stimulation activity across US Land and Canada, reduced fluid services activity in the Gulf of America, and lower well intervention services in US Land. These declines were partially offset by improved cementing activity and higher completion tool sales in both US Land and the Gulf of America.
In contrast, Halliburton’s international business delivered growth, with total international revenue increasing 7% sequentially to US$3.5 billion. The company highlighted strong performance across multiple regions, including Europe, Africa and the Middle East, where well intervention services and stimulation activity increased during the quarter.
From an operating segment perspective, the Completions and Production division generated revenue of US$3.3 billion in the fourth quarter, flat sequentially.
Operating income rose by 11% to US$570 million, driven by higher year-end completion tool sales globally, improved cementing activity in the Western Hemisphere and Africa, and increased well intervention services internationally. These gains were partially offset by lower stimulation activity in the Western Hemisphere.
The Drilling and Evaluation segment also reported flat sequential revenue of US$2.4 billion. Operating income increased by 5 percent to US$367 million, supported by higher wireline activity in the Eastern Hemisphere and increased year-end software sales, offset by lower fluid services in North America.
For the full year 2025, Halliburton reported total revenue of US$22.2 billion, compared to US$22.9 billion in 2024. Operating income for the year was US$2.3 billion, while adjusted operating income reached US$3.1 billion.
Commenting on the results, Chairman, President and CEO Jeff Miller said the company outperformed expectations in the fourth quarter and highlighted the strength of Halliburton’s international business, while noting that North America is expected to respond first when macro fundamentals improve.
McDermott has been awarded a major contract with ADNOC for the engineering, procurement, construction and installation services for the Nasr-115 Expansion Project located offshore Abu Dhabi.
The Project acts as a critical component for the overall Nasr Phase II Full Field Development which is expected to increase oil production capacity to 115,000 bpd by 2027.
The scope of work McDermott is expected to provide includes comprehensive EPCI services for two topside structures, one new manifold tower, one jacket, one bridge and all associated pipelines, cables and brownfield modifications.
Mike Sutherland, McDermott’s Senior Vice President, Offshore Middle East, said, “McDermott shares ADNOC’s commitment to increase offshore production capacity and will do its part with safe, efficient delivery of the Nasr-11 Expansion Project to the highest quality standards. Our decades-long track record of delivering innovative, comprehensive solutions across complex offshore developments supports ADNOC’s vision for sustainable energy growth and to meet its capacity goals as part of the P5 Project.”
“This award underscores McDermott’s position as a trusted partner in executing large-scale infrastructure projects in the region. We are proud to further support development of the UAE’s energy sector in a safe and sustainable manner.”
MFE Inspection Solutions has launched MFE Offshore, a dedicated new division focused entirely on subsea and offshore operations.
Designed to meet the demanding needs of offshore oil and gas, offshore wind energy and wider maritime industries, the new division strengthens MFE’s commitment to delivering reliable inspection technology and real world expertise where conditions are at their toughest.
Offshore environments are unforgiving. Equipment must perform under constant exposure to saltwater, extreme weather, restricted access and complex subsea conditions. Recognising this reality, MFE Offshore has been built to support operators with tools and systems that work beyond controlled environments and perform consistently in the field.
Dylan Duke, CEO of MFE Inspection Solutions, said,“Offshore inspections are incredibly complex, and demand more than just good equipment. For over 30 years, MFE has supported industrial inspections by helping customers choose the right tools, train their teams, and build workflows that actually work in the field. MFE Offshore formalizes that approach for subsea and offshore operations, bringing together specialized technology, deep technical support, and experienced offshore leadership."
Unlike traditional inspection providers, MFE Offshore follows a consultative model. The team works closely with clients to understand operational challenges, identify suitable inspection technologies and provide hands on training. Support continues well beyond deployment, ensuring teams remain confident and effective long after equipment is delivered.
Wendy Post, General Manager of MFE Offshore added,“Offshore personnel don’t have the luxury of trial and error. Harsh environments, limited access, and tight inspection windows mean everything has to work the first time. MFE Offshore was built to support those realities, helping operators find inspection tools designed for offshore use, training teams to deploy them correctly, and staying engaged long after the equipment arrives.”
MFE currently supports more than 9,000 companies worldwide and delivers over 26,000 hours of technical training each year. With the introduction of MFE Offshore, the company expands its mission to empower inspection teams with dependable technology, expert guidance and long term support tailored specifically to offshore and subsea operations.
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