Latest News

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

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.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

Helix Energy Solutions Group will continue its work in the Gulf of Mexico this year where it will carry out well intervention services as part of a multi-year contract with Shell Offshore Inc., signed in Q3 2024.

In the coming months, and as outlined by the contract, Helix will provide an increased minimum number of days annually with the Q5000 riser-based well intervention vessel, Intervention Riser Systems (IRSs), remotely operated vehicles (ROVs), and project management and engineering services which will cover fully-integrated operations from production enhancement to P&A.

Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, said, “We are pleased to announce that Helix has successfully executed a long-term contract with Shell, a valued customer we have safely worked with on numerous projects around the world and with whom we look forward to continuing our excellent relationship. The contract is reflective of improving market conditions and increased demand for Helix’s assets and services, as we continue executing on our strategy by providing best-in-class and global leading well intervention services.”

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

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!”

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

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:

• Tier 1: If NOPSEMA has lost confidence in the titleholder's ability to meet decommissioning targets or discovers indicators of underdeveloped planning, then a combination of regulatory actions will be undertaken. These include an increased level of inspections or compliance monitoring, an issue of enforecement and a request for title-related intervention, among others.
• Tier 2: If the decommissioning plan is found to be immature and NOPSEMA loses confidence in the titleholder's ability to meet targets without heightened regulatory oversight, then regulatory bodies will ensure to intervene by requesting detailed plans and commitments, increasing collaboration with relevant stakeholders such as NOPTA and providing liaison at an increased frequency. 
• Tier 3: If NOPSEMA has confidence in the titleholder's ability to fulfil decommissioning targets during the late-life operations phase of the project, or during some uncertainity regarding the time to production cessation, the routine regulatory oversight will include a moderate level of compliance monitoring and a timely checking of decommissioning plans or schedules, among other actions.
• Tier 4: If the project is in a mid-early life operations phase and NOPSEMA is reasonably confident the Titleholder is aware of their obligations for decommissioning, then the regulatory body will consider the proposed end-state, property maintenance and future decommissioning requirements during assessments.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Proposed legislation would direct the US Department of the Interior to submit an annual public report to congress on the status of decommissioning offshore oil and gas wells, platforms and pipelines.

The Plug Offshore Wells Act was introduced by Oregon Senators Ron Wyden and Jeff Markley before the end of 2024 and seeks to address the growing threat of abandoned offshore oil and gas infrastructure to marine ecosystems and the environment.

“Neglected oil wells off our coasts are a ticking time bomb that threaten our coastal communities and environment in Oregon and nationwide,” Wyden explained. “It’s unacceptable that Big Oil has dodged responsibility to clean up drilling sites and pollution. This legislation will provide the data needed to hold Big Oil accountable and protect the public as well as our waterways and marine life."

“Orphaned wells are an environmental catastrophe waiting to explode," Wyden added. "They pose the possibility of massive damage to the ocean by leaking oil and gas and must be addressed quickly.”

In submitting the new legislation (which was co-sponsored by Senators Peter Welch and Ed Markey), the office of Wyden quoted a recent study by the US Government Accountability Office (US GAO) which expressed that more than 2,700 wells and 500 platforms in the Gulf of Mexico are overdue for decommissioning. The study also found that the Bureau of Safety and Environmental Enforcement and the Bureau of Ocean and Energy Management are unable to effectively enforce decommissioning deadlines and financial assurance requirements.

Avoiding decommissioning disaster

The study by US GAO recommended steps congress could take to address the current backlog of overdue decommissioning requirements, including the instituting of new reporting requirements from the Interior Department to Congress on the status of decommissioning.

This is what the Plug Offshore Wells Act aims to do while also reducing financial burdens on taxpayers by increasing oversight of Big Oil companies and holding them accountable for the full terms of their offshore oil leases. The proposed legislation – which is supported by numerous organisations including the Center for Biological Diversity, Earthjustice, Natural Resources Defense Council, Oceana, Ocean Conservancy, Ocean Defense Initiative, and the Surfrider Foundation – has now been officially introduced to congress and has been referred to the Committee on Energy and Natural Resources.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

In one of his final acts before Trump returns to the White House, US President Biden has implemented a ban on new offshore oil and gas drilling across most of America’s coastline.

The decision from the ‘lame-duck’ President, was taken in light of the “environmental and economic risks and harms that would result from drilling” that “outweigh their limited fossil fuel resource potential” according to an official announcement on The White House website. As such, more than 625 million acres of the US ocean has been protected from drilling, principally the entire U.S. East coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska. These have been protected from future oil and natural gas leasing in a bid to safeguard coastal communities, marine ecosystems, and local economies from oil spills and other impacts of offshore drilling.

For President Trump – who has recently named a fracking executive as his Energy Secretary – it presents an immediate challenge and one that he has promised to address as soon as he comes to power. In a radio interview, the President-elect said he has the “right to unban it” and he would do so at the earliest opportunity.

However, this may not be so simple. As outlined by Reuters, the Lands Act does not grant President’s legal authority to overturn prior bans and any attempt to do so would likely require an act of Congress. Biden’s bid to protect the marine environment could, therefore, not be as futile as Trump imagines and could bring a temporary halt to his plans to unleash domestic fossil fuel production.

Fortunately, for oil and gas companies who are eager to maintain production rates but are now unable to fall back on the tried and tested method of drilling, production enhancement through well intervention can offer a timely solution. Certainly, the longer the ban on new drilling stands, the more attractive this method of sustaining rates will become, presenting a potentially lucrative market and unique opportunity for those involved in delivering well intervention services.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

According to the analyst from Verified Market Research, the Gulf of Mexico oil and gas decommissioning market is estimated to reach a valuation of US$43.31bn in 2031

Stricter environmental restrictions have hastened decommissioning activities, with 2,300 non-producing wells scheduled for plugging and abandonment by 2025. The US Department of Interior’s annual report states that environmental compliance expenses for decommissioning grew by 35% between 2020 and 2023, reaching an average of US$2.8mn per platform. 

Many Gulf of Mexico operators face enormous financial risks due to their decommissioning obligations. As infrastructure ages and becomes more difficult to destroy, the expected expenditures for decommissioning range from US$40bn to US$70bn. Furthermore, the decommissioning process has inherent environmental dangers, especially if not carried out effectively. 

The deepwater segment is estimated to hold the largest market share during the forecast period, with the deepwater Gulf of Mexico showing tremendous untapped resource potential, attracting major investment and interest from operators. Technological developments have increased the efficiency and safety of deepwater operations, making it more economically viable to extract resources from deeper oceans. Subsea engineering and remote monitoring system innovations make decommissioning operations more efficient, lowering costs and timescales. These technological advancements increase the appeal of deepwater projects, resulting in more growth in this segment.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

Helix Energy Solutions Group will continue to provide well intervention services in the US Gulf of Mexico for Shell starting this year as part of a new multi-year contract.

Ranging throughout the well life cycle to plug and abandonment, the contract will cover integrated project management and engineering services including production enhancement.

The contract ensures services for an increased minimum number of days annually, including the availability of the Q5000 riser-based well intervention vessel, Intervention Riser Systems (IRSs), and remotely operated vehicles (ROVs).

Equipment from Subsea Services Alliance, a venture by SLB and Helix, will also be deployed for operations. 

Increased market demand

Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, said, “We are pleased to announce that Helix has successfully executed a long-term contract with Shell, a valued customer we have safely worked with on numerous projects around the world and with whom we look forward to continuing our excellent relationship. The contract is reflective of improving market conditions and increased demand for Helix’s assets and services, as we continue executing on our strategy by providing best-in-class and global leading well intervention services.”

• Region: All
• Topics: Well Intervention
• Date: Jan, 2025

Halliburton has taken steps to expand its offshore portfolio as it heads into the New Year.

Fresh from the launch of its new advanced well intervention suite, Halliburton is set to acquire Optime Subsea, a company that delivers offshore technology that disrupts conventional methods and supplies technologies and services within subsea intervention, well completion, and well control. Its offerings simplify complex subsea operations, enhance operational efficiency and reduce risks.

This move will see the latter’s umbilical less technology move into Halliburton’s Testing and Subsea division. Subject to regulatory approval and other customary closing conditions, the transaction is expected to close in early 2025 according to Optime Subsea who will, in turn, receive access to global markets and resources for further technology development.

“The agreement is a validation of our journey as a company, from a local startup to a leader in subsea technology,” said Jan-Fredrik Carlsen, CEO of Optime Subsea. “We are proud of our roots and the strong commitment of our employees, who have made this success possible. This is a fantastic opportunity to join Halliburton and contribute to further growth and development.”

Shoring up startups

Elsewhere, Halliburton Labs has also announced that five new innovative companies have been added to its collaborative ecosystem. The startups will enter an environment designed to help advance their commercialisation through support from Halliburton’s practitioners and business network. The new companies include:

• 360 Energy: With its In-Field Computing technology, this startup captures flared or stranded gas and monetises it through modular data centres in a bid to provide a valuable solution for resource owners.
• Cella: Providing end-to-end services, Cella advances subsurface mineralisation of carbon dioxide through resource assessment, proprietary injection technology, and monitoring techniques to provide valuable geologic carbon solutions.
• Espiku: Developing solutions that advance water and valuable minerals recovery from brines and industrial produced water streams, Espiuku’s systems allow for rapid deployment in diverse environments to unlock the potential of domestic resources.
• Mitico: The patent-pending granulated metal carbonate sorption technology of Mitico captures more than 95% of the CO2 emitted from post-combustion point sources.
• NuCube Energy: The company’s nuclear fission under development will produce electricity and high-temperature heat for electrical and industrial markets. It targets heat production at temperatures up to 1,100°C for industrial applications to offer cost-competitive electricity in remote areas.

“We welcome these innovative energy startups,” remarked Dale Winger, Managing Director of Halliburton Labs. “We are eager to help these participant companies use their time and capital efficiently to progress new solutions that meet industry requirements for cost, reliability, and sustainability.”

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

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.

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

Case studies highlighted in the Offshore Energies UK Offshore Decommissioning Report 2024 have highlighted the importance of offshore engineering and preparatory work for safe and cost-effective outcomes in decommissioning projects.

OEUK cites AF Offshore Decom’s experiences with a bridge-linked flare stack, where extensive preparatory work, particularly from the platform complex, significantly reduced the time required for the heavy lift vessel (HLV) in the field. Additionally, by focusing the preparatory activities during the winter months, the team was able to optimise the use of the HLV for the summer, thereby enhancing operational efficiency.

In another case highlighted in the report, extensive preparatory works facilitated a smooth and effective removal of a major platform. Comprehensive helicopter surveys and a thorough engineering phase were undertaken, minimising unexpected issues during the main offshore removal campaign. This was followed by an HLV campaign when a crew handled the topsides preparations along with smaller modular lifts. A second HLV campaign included a large integrated modularised steel frame lift and an efficient jacket lift. The structures were then transported onwards to AF's environmental base to be dismantled and recycled onshore.

The phased execution helped to mitigate risk and allowed for detailed engineering and interface management, which was an important part of the project.

Optimising offshore operations for decommissioning projects in this way can make a substantial contribution to keeping costs down. This is critical in the Gulf of Mexico, where operators face spiralling decommissioning costs. Findings from a recent study published in Nature Energy showed that there are around 14,000 unplugged oil and gas wells in the Gulf of Mexico, with the process of plugging and decommissioning these wells estimated to cost around US$30bn.

• Region: Australia
• Topics: Decommissioning
• Date: Dec, 2024

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. 

Workforce

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. 

Vessels

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. 

Infrastructure

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. 

Waste management and recycling 

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.

Research capabilities 

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.