With the offshore industry largely prioritising brownfield over greenfield projects to advance optimisation and sustainability, digitalisation has been a primary driver of the transition journey.
It has facilitated complex data and process integration, eliminating hours of menial tasks so that operators are free to make prompter decisions and can attend to areas where it really matters. When the focus is set straight, complex intervention processes become simplified with quicker turnarounds at half the cost of traditional approaches.
With an ideal setup of digital asset integrity management in place, operators can remotely monitor risks at the most inaccessible parts of gigantic offshore platforms and take timely action.
Offshore environments can be accessed without arranging for ropes or scaffolding when aerial drones can reach the targeted area and click high definition images with inbuilt thermal and optical cameras. These are equipped to clearly capture splash zones, flare tips and under-deck structures.
Without diving into the ocean, everything from subsea manifolds or wellheads to pipelines can be scanned to check for leaks with the help of remotely operated or autonomous underwater vehicles. This is made easy with machine-vision artificial intelligence (AI) driving these vehicles.
AI can also detect and track minute shifts in temperature and vibration in critical offshore turbomachinery. This helps to flag failures way ahead in time, avoiding emergency downtime situations. Non-intrusive wireless sensors, for example, can raise alarm in cases of internal sand erosion or chemical corrosion in subsea and topside pipes. When clamped to the right zones, these sensors come alive to feed consistent, real-time information on pipe wall thickness.
One of the most innovative solutions that digital asset integrity management has seen is digital twins or virtual 3D replicas of complex platforms placed deep offshore. These replicas can combine hull structural models with real-time wave, wind and mooring line tension data. They consistently update the fatigue life calculation of floating production storage and offloading (FPSO) units or tension-leg platforms.
Digital twin providers, FutureOn and SteelTrace, have collaborated to bring a one stop shop to operators, where all disconnected systems and archived documentation can be accessed in one place.
“A digital twin only delivers real value when it gives engineers immediate access to the information behind the asset. As offshore infrastructure matures, operators need trusted material information to extend asset life, support maintenance and plan for decommissioning.
“Bringing SteelTrace's verified material records directly into FieldTwin enables operations teams to quickly access the documentation they need to support maintenance, in-field repairs and decommissioning without searching across multiple systems,” said Filip Valica, vice president – corporate development at FutureOn.
Once SteelTrace’s Smart Manufacturing Records is integrated into FutureOn’s FieldTwin, a digital twin platform for offshore energy projects, operators can easily locate quality documentation, allowing faster maintenance and integrity decisions while maintaining a complete audit trail.
The integration will address a common challenge across offshore projects. Extensive data output from manufacturing and construction phase such as material test records (MTRs), weld records, coating documentation, non-destructive examination (NDE) results and fabrication sign-offs often ends up separated from the engineering models and operational systems used to manage offshore assets. The integrated solution will take care of this lack, ensuring easy access for operators.
Engineers will now be able to move directly from an asset in FieldTwin to the certificates, inspection records and manufacturing data that verify how it was manufactured, inspected and installed.
SteelTrace’s blockchain-backed Smart Manufacturing Records (SMRs) replace static PDF certificates with structured digital records that provide a verified audit trail from raw material through fabrication and installation. The integration will bring these records directly into FieldTwin, improving traceability without changing existing engineering workflows.
“Every offshore asset has a history. From the steel mill through fabrication and installation, thousands of records are created to demonstrate quality and compliance. The challenge isn't creating that information, it's making sure engineers can easily access it years later when they need it most.
“By connecting SteelTrace with FieldTwin, we're making verified material records available alongside the asset itself,” said Tom Meulendijks, CEO and founder of SteelTrace.
Australia’s offshore energy sector stands at a monumental crossroads.
Beneath the churning waves, an industrial transformation of unprecedented scale is underway. Australian operators and regulatory bodies face an incredibly complex dual mandate as the world pivots away from fossil fuels towards a sustainable future. They must safely decommission a sprawling network of ageing petroleum assets whilst simultaneously accelerating the deployment of new offshore renewable energy infrastructure.
The Burden of Ageing Maritime Infrastructure
To grasp the magnitude of this transition, one must look at the physical footprint of Australia's legacy installations. The condition of this infrastructure is defined by its advancing age. Today, more than half of the nation's offshore petroleum assets have been operating for over twenty years, with several facilities exceeding half a century. This aging architecture encompasses over 1,000 wells, various floating and fixed facilities, and nearly 5,000 kilometres of subsea pipelines. As these stalwarts of the fossil fuel era reach the end of their productive lives, the sector faces a colossal wave of decommissioning. The financial liability for safely dismantling these structures over the next fifty years is staggering, estimated between US$30bn and US$50bn.
The Renewable Energy Dawn
As traditional oil and gas strongholds like the Gippsland Basin grapple with declining reserves, a dynamic new era of offshore production is taking shape. To facilitate this, the Australian Government implemented a forward-thinking regulatory framework via the Offshore Electricity Infrastructure Act 2021. This legislation paves the way for the construction, operation, and maintenance of modern marine energy projects. The sector's focus is shifting rapidly towards large-scale commercial offshore wind farms, designated in specific zones to underpin the national energy transition. Feasibility licences are also being explored for alternative marine energies, including offshore solar and wave energy plants. For operators, this creates a delicate balancing act: winding down legacy infrastructure whilst applying deep-sea expertise to construct sustainable energy hubs.
Managing these ocean-bound assets through such a profound transition introduces severe integrity challenges. One pressing risk occurs when production ceases but physical dismantling has not yet begun. During this precarious timeframe, assets enter a highly vulnerable "twilight period." Stripped of human presence, uncrewed platforms and dormant pipelines become exceptionally susceptible to inadvertent damage from routine maritime traffic, such as commercial fishing trawlers. These undetected collisions frequently result in dangerous "silent incidents". Furthermore, recent data reveals that nearly 25 per cent of all offshore wells suffer from some form of well integrity issue. If not rigorously monitored and remediated, these abandoned wells pose a severe hazard to the marine ecosystem.
Compounding these physical risks is a lack of local decommissioning precedent. Unlike the mature markets in the North Sea or the Gulf of Mexico, Australia's decommissioning industry remains in its infancy. This lack of regional experience, exacerbated by specialised equipmencanvat shortages and a fragile supply chain, inflates the risk of budget overruns and safety breaches. Crucially, human factors are taking centre stage. Regulators like NOPSEMA have elevated psychosocial health to a national priority, placing it on par with physical safety protocols. The rationale is clear: effective decision-making under immense pressure is vital for preventing technical failures in these hostile environments.
Forging a Future-Proof Strategy
To safely navigate these risks, operators must urgently adopt dynamic, technology-driven asset integrity management strategies. This approach demands enhanced maritime intelligence, utilising real-time vessel tracking to monitor behavioural patterns around unattended, late-life installations. By anticipating maritime traffic, operators can actively prevent costly collisions. Additionally, integrity strategies must mandate rigorous post-production monitoring for plugged and abandoned subsea wells, extending strict oversight through the entire asset lifecycle.
Risk profiles must remain highly adaptive, ensuring protocols guarantee that risks are maintained "As Low As Reasonably Practicable" (ALARP), heavily relying on remote monitoring and automated alert systems. Success hinges upon collaborative knowledge sharing. By working intimately with NOPSEMA, the Offshore Infrastructure Regulator, and adopting international best practices, Australia can protect its marine environments whilst ensuring commercial viability in a radically transformed energy landscape.
Australia's industrial and energy sectors face immense pressure to maintain ageing infrastructure while managing complex modern operational environments.
At the absolute core of these modern industrial challenges is workforce capability and human factors. In the high-stakes realm of Australian Asset Integrity Management, balancing technical demands with human limitations is no longer just an optional enhancement; it is a fundamental strategic necessity. To ensure long-term sustainability, operators must intentionally "Overcome workforce, budgetary and logistical constraints by building high-performing teams capable of identifying, mitigating and managing critical asset integrity risks."
The Pressures of Workforce and Budgetary Constraints
The Australian industrial landscape is currently grappling with a severe skills shortage, compounded by the realities of an ageing workforce. A substantial proportion of seasoned integrity engineers and specialised inspectors are rapidly approaching retirement age. Their departure represents a profound loss of tacit knowledge, the vital ability to recognise subtle indication patterns or failure precursors that is incredibly difficult to replace with automated technology alone.
Furthermore, stringent budgetary constraints and complex logistical hurdles mean that maintaining safe operations in remote or harsh environments has never been more difficult. Without highly skilled workers available to operate and implement asset integrity strategies, routine maintenance and inspection tasks become prohibitively expensive and practically unachievable. The stakes are remarkably high; poor asset documentation and work-related incidents cost the Australian economy an estimated $28.6 billion annually. Consequently, executives must find innovative ways to do more with less, without compromising on stringent safety standards.
Understanding Human Factors in Asset Management
To effectively counteract these compounding constraints, organisations are increasingly pivoting towards a much deeper understanding of human factors. The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) defines human factors directly as 'the ways in which the organisation, the job, and the individual interact to influence human reliability in hazardous event causation'.
Historically, research has demonstrated that between 75 and 80 per cent of accidents across high-risk sectors involve deficiencies in human performance, rather than purely mechanical or technical failures. Even within highly controlled maintenance environments, human error is a significant vulnerability; for instance, between 12 and 20 per cent of aviation accidents involve maintenance-related human factors. Errors typically manifest as slips, lapses, or mistakes. Slips and lapses occur at the point of task execution—such as accidentally skipping a vital step in an isolation sequence, or loosening a valve when intending to tighten it. By deeply understanding these cognitive and physical interactions, responsible parties can implement robust barriers that dramatically improve human reliability and mitigate potential errors.
Building High-Performing, Resilient Teams
How do organisations overcome these layered challenges and prevent critical errors? The solution lies in building high-performing teams that are technically competent and actively empowered to communicate risk. Modern operators increasingly require multi-skilled personnel who possess cross-disciplinary capabilities spanning condition monitoring and non-destructive testing.
Organisations must minimise operational mistakes through robust competency assurance processes, comprehensive task-based training, and proactive supervision. To build authentic workforce capability, management must foster an open, fair reporting culture where co-workers feel entirely comfortable observing and challenging one another regarding safety practices. Additionally, fatigue risk management, the reduction of external distractions, and proactive resource allocation play a significant role in mitigating human error on the front lines.
As Australian facilities increasingly operate well beyond their original design life, asset integrity has transitioned from a basic maintenance function into a highly strategic risk discipline. While digital transformation and advanced inspection platforms provide essential diagnostic data, they cannot function effectively without a competent, highly accountable workforce to interpret that data. Looking ahead, the future resilience of Australia's industrial sector will depend entirely on these interlocking pillars: robust methodologies, digital tools, and human expertise. Ultimately, investing heavily in the human element is the most robust defence against catastrophic infrastructure failure. By rigorously prioritising human factors and continuous competency development, Australian industries can successfully navigate their current constraints and guarantee the long-term safety of their critical assets.
Eni, in partnership with the Libyan National Oil Corporation (NOC) through the Mellitah Oil & Gas joint venture, has start-up hydrocarbon production from the Sabratha Compression Project.
This is a strategic offshore development for Eni to leverage the Bahr Essalam offshore field for boosted and sustained gas generation.
The Sabratha Compression Project comprises an installation of a new 1,600-ton compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 MMscfd.
The new module can produce under low-pressure conditions, enhancing gas recovery from the gradually declining Bahr Essalam field. This process secures the generation of boosted gas volumes at about 800 million cu/m per year and associated condensate. This additional production will play a critical role in sustaining national power generation, reinforcing Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.
With a smoothy delivery of the challenging and complex Sabratha Compression Project, Eni and NOC is able to secure a resilient gas infrastructure for Libya, adding to the stability and growth of the country’s energy sector.
Two additional strategic projects are presently in execution in the country: Bouri Gas Utilization Project, whose tie-in and commissioning activities are currently underway after the recent installation of the Bouri Gas Recovery Module, and Structures A&E, whose execution is underway to develop two offshore gas fields.
Eni has been present in Libya since 1959 and is the country’s leading international operator, with an equity production of approximately 162,000 barrels of oil equivalent per day in 2025 and three development projects currently in execution for a total investment of about 10 billion dollars.
A new collaboration between FutureOn and SteelTrace is set to help operators make faster maintenance and integrity decisions while maintaining a complete audit trail.
FutureOn, a leading provider of digital twin technology for the energy industry and SteelTrace, a cloud-based Smart Manufacturing Record (SMR) platform have agreed to integrate SteelTrace’s Smart Manufacturing Records into FieldTwin, FutureOn’s digital twin platform for offshore energy projects. This will reduce the time spent locating essential documentation, a common challenge across offshore projects.
Material Test Records (MTRs), weld records, coating documentation, Non-Destructive Examination (NDE) results and fabrication sign-offs are created throughout the manufacturing and construction process but are often stored separately from the engineering models and operational systems used to manage offshore assets. Once assets enter operations, engineers can spend valuable time searching disconnected systems and archived documentation to locate the information they need.
The integration will enable operators and EPCIs to access material test records, weld records and inspection data within FieldTwin, providing trusted information for asset integrity, maintenance planning and decommissioning within a single geospatial workspace.
SteelTrace’s blockchain-backed Smart Manufacturing Records (SMRs) replace static PDF certificates with structured, trusted digital compliance records that provide a verified audit trail from raw material through fabrication and installation. By capturing and validating manufacturing and inspection data against project specifications in real time, SteelTrace creates a single, auditable source of truth across the entire asset lifecycle. The integration will bring these records directly into FieldTwin, improving traceability without changing existing engineering workflows.
Tom Meulendijks, CEO and Founder of SteelTrace, said, "Every offshore asset has a history. From the steel mill through fabrication and installation, thousands of records are created to demonstrate quality and compliance. The challenge isn't creating that information, it's making sure engineers can easily access it years later when they need it most.
“By connecting SteelTrace with FieldTwin, we're making verified material records available alongside the asset itself.”
Filip Valica, VP Corporate Development at FutureOn, said, "A digital twin only delivers real value when it gives engineers immediate access to the information behind the asset. As offshore infrastructure matures, operators need trusted material information to extend asset life, support maintenance and plan for decommissioning.
“Bringing SteelTrace's verified material records directly into FieldTwin enables operations teams to quickly access the documentation they need to support maintenance, in-field repairs and decommissioning without searching across multiple systems."
Energy data and AI specialist Enverus has expanded its subsurface data offering with the acquisition of the A2D well log library from TGS, bringing what it says is the world's largest commercial well log database onto its energy intelligence platform.
Announced on 8 July, the deal adds more than eight million depth-calibrated raster logs, 1.9 million digital LAS files and over five million proprietary well logs covering every major US producing basin.
Financial terms of the transaction were not disclosed.
Enverus said integrating A2D's well logs, formation tops and petrophysical data with its existing production, completions, land, ownership, cost and economics datasets will give customers a more connected view of the subsurface, helping them move from geological interpretation to commercial decision-making more quickly.
"We have always believed energy data becomes more valuable when it is connected," said Manuj Nikhanj, CEO of Enverus.
"A2D brings subsurface depth and quality that customers have trusted for decades. When logs, tops and petrophysics can be connected with production, completions, ownership, costs and economics, teams can move from understanding the rock to understanding the return."
The acquisition also brings more than two million interpreted formation tops, basin temperature models and analytics-ready log attributes into the Enverus platform, allowing users to carry out basin-scale reservoir analysis without moving between multiple systems. Existing A2D licensing and subscription agreements will remain in place.
For TGS, the transaction marks the next chapter for a well log library that has been built up over more than three decades.
"We built the A2D library into something the industry depends on, and this transaction ensures it keeps getting better," said Kristian Johansen, CEO of TGS.
"Our customers have always wanted to take this data further into their workflows. Enverus gives them the platform to do that."
The acquisition follows Enverus' recent purchase of PDS Energy Information's exchange assets and reflects the company's wider strategy of bringing together subsurface, operational and commercial data within a single platform to support energy companies across the asset lifecycle.
DeepOcean has completed the recovery of the remaining subsea wellhead protection structure at the Spirit Energy-operated Seven Seas field and disconnected subsea infrastructure at the nearby Grove West field in the southern North Sea, using proprietary decommissioning tooling developed in-house.
The project included onshore engineering, project management and offshore execution by DeepOcean, with the company's high-specification construction vessel Edda Freya deployed to recover the wellhead protection structure, which weighed more than 100 tonnes, along with associated subsea infrastructure. All recovered materials have been transported for reuse, recycling or responsible disposal. The work was managed and carried out by DeepOcean's Aberdeen-based operations in the UK.
The activities form part of Spirit Energy's broader decommissioning programme for the Seven Seas and Grove West fields, with both scopes completed in preparation for an upcoming rig campaign.
"The wellhead protection structure at Seven Seas has served the field since 2011 and remains in very good shape. The piles were cut three metres below the seabed and the subsequent retrieval of the structure was conducted. We were delighted to support Spirit Energy on this project and look forward to working with Spirit Energy on future scopes of work," said Robin Mawhinney, Executive Vice President for DeepOcean's EMEA region.
The project also involved disconnecting a spool from a subsea Christmas tree at Grove West. The operation was carried out using a remotely operated vehicle (ROV) together with specialised tooling, eliminating the need for diver intervention that would traditionally be required for this type of work.
Spirit Energy's Decommissioning Manager, Ceri Wheaton, said: "We are committed to maximising material recovery and minimising waste throughout our decommissioning activities. By working closely with specialist contractors such as DeepOcean and leveraging the UK supply chain, we have safely recycled more than 95% of materials from decommissioned assets and infrastructure. This approach not only reduces environmental impact but also improves efficiency through streamlined logistics and the responsible reuse of valuable resources."
"At Grove West, we disconnected two subsea flanges using methodologies and proprietary tooling developed during the Gryphon Alpha FPSO removal project last year. This project adds to DeepOcean's growing track record of meeting project objectives across subsea decommissioning campaigns," said Øyvind Mikaelsen, Chief Executive Officer at DeepOcean.
The Seven Seas wellhead protection structure was located approximately 80 km offshore the East Yorkshire coast in water depths of around 33 metres, while the Grove West infrastructure is situated about 130 km east of the UK coastline in water depths of approximately 40 metres.
Australia’s offshore oil and gas sector is entering a major decommissioning phase, driven by ageing infrastructure, stricter regulations and growing environmental accountability
According to a Xodus report, the decommissioning liability for all assets in Australian Commonwealth waters is estimated at UA$43.6bn through 2070, or AU$66.8bn when adjusted for inflation. This encompasses more than 700 wells, 7,600 of pipelines and 520 subsea structures. Around 55% of the decommissioning (AU$25bn) will occur before 2040, with the remaining decommissioning activities mainly occurring by 2050.
Offshore Network has issued a new report entitled “The Decommissioning Landscape in Australia in 2026”, which:
The report concludes that the industry’s success will depend on collaboration across stakeholders, regulatory alignment and investment in domestic capability, along with the adoption of best practice and enabling technologies, incorporating learnings from more mature basins. That being the case, Australia can look forward to the prospect of a robust, safe, responsible and economically sound decommissioning industry characterised by mature, repeatable execution models in the long term.
The report can be downloaded here.
Aquaterra Energy and James Fisher and Sons plc (James Fisher) have entered into a global strategic partnership aimed at improving the delivery of offshore decommissioning projects by providing operators with a more integrated approach to well abandonment and infrastructure removal
The collaboration brings together Aquaterra Energy's expertise in front-end engineering and well access with James Fisher Energy's capabilities in subsea operations and offshore execution. By combining these services under a single delivery framework, the partnership is designed to simplify project execution, reduce the number of contractor interfaces and provide greater certainty throughout the decommissioning lifecycle.
Rather than following traditional multi-contractor models, the alliance integrates engineering, project planning, well access and offshore execution from the earliest stages of project development. This approach is intended to minimise handovers, improve accountability and provide operators with greater flexibility to respond to changing project requirements while maintaining efficient execution.
The partnership will support projects worldwide, with an initial focus on the North Sea, Asia-Pacific (APAC) and the Middle East, where increasing numbers of offshore assets are approaching the end of their operational life. According to the North Sea Transition Authority, 153 wells in the UK Continental Shelf have exceeded decommissioning consent deadlines, while an estimated £44 billion remains to be invested in decommissioning activities. In Australia, government forecasts suggest offshore decommissioning liabilities could reach approximately £48 billion over the next 30 to 50 years, while globally more than 2,500 offshore structures are expected to require decommissioning by 2040. These trends are driving demand for delivery models that improve efficiency, coordination and execution.
Matt Marcantonio, Head of Engineering at Aquaterra Energy, said: "Decommissioning programmes are increasingly moving away from simple, isolated scopes. The next generation of projects will require tight engineering control, early integration and the ability to adapt quickly as conditions change. By aligning our expertise with James Fisher from the outset, we can shape more efficient scopes, prevent downstream redesign and ultimately reduce offshore duration. We see this as a way to give operators the confidence to take on decommissioning programmes that are becoming more technically demanding and commercially pressured, while keeping the agility needed to respond as projects evolve."
Mark Stephen, Product Line Director - Decommissioning & CFE at James Fisher Energy, commented: "What operators are looking for now is delivery confidence, predictable execution, fewer interfaces and teams who already understand how to work together. By combining our subsea operations capability with Aquaterra Energy's early engineering and well access expertise, we can remove many of the common friction points that slow projects down offshore. This model gives operators a scalable, field-proven approach that directly supports safer, more efficient execution as global decommissioning activity accelerates."
The companies will operate the partnership on a project-by-project basis, tailoring team structures according to individual project requirements. This will include the deployment of cross-trained personnel where appropriate to reduce the number of people required offshore and minimise operational risk. While both organisations will continue to operate independently, they will collaborate under an agreed framework designed to promote early engagement, coordinated planning and aligned project delivery.
The partners are already working with operators on a number of upcoming offshore decommissioning opportunities across multiple international markets.
As Australia's offshore decommissioning industry grows, lifting operations are becoming more frequent, more complex and potentially more hazardous.
That is one of the core messages from an article in the latest issue of The Regulator, the journal of the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema).
Removing ageing platforms, subsea equipment and heavy structures presents risks that go beyond routine operations, making careful planning, maintenance and decision-making more important than ever.
“Analysis from Nopsema and international regulators shows that lifting incidents have increased over the past decade, even as safety systems have improved,” the article notes.
“This trend reflects changes in the offshore environment. Even though the number of cranes used offshore has not increased over the past 10 years, operations are becoming more complex, with heavier lifts, more simultaneous activities and increased use of large-scale equipment. Offshore decommissioning and the growth of offshore wind have also contributed to a rise in lifting activity.”
The articles cites the example of a 40-tonne subsea module dropping to the seabed after a degraded crane wire failed, demonstrating the consequences of deferred maintenance — an issue that becomes more significant as operators dismantle ageing offshore infrastructure.
“Ageing infrastructure is another factor,” the article notes. “As assets mature, maintaining structural integrity and equipment performance becomes more challenging, particularly where inspection and maintenance tasks are deferred.”
As well as ageing assets, with equipment and structures that may have deteriorated over decades, several other key points are particularly relevant to decommissioning in terms of offshore lifting.
These include the tendency toward heavier and more unusual lifts — decommissioning often involves removing large modules, pipelines and subsea infrastructure that were never designed to be lifted again.
Changing conditions are also significant factors, as corrosion, marine growth and structural degradation can make lifts more complex than engineering drawings might suggest.
Commercial pressures, with projects often operating to tight schedules and budgets, creates a further challenge.
But the biggest threat in offshore lifting is often a combination of human behaviour, the Nopsema article notes, alongside production pressure and failures to follow safety controls, which can quickly turn routine lifts into serious incidents.
As offshore decommissioning accelerates in Australia over the coming decades, lifting safety will be a defining challenge.
Success may hinge not only on engineering and technology, but on robust planning, maintaining lifting equipment, and fostering a culture where workers not only adhere to strict safety protocols, but are empowered to stop operations when something does not look right.
SBM Offshore has signed the project financing of FSO Chalchi for a total amount of US$465mn, backed by a consortium of international banks and institutional investors.
It also includes partial insurance cover from China Export & Credit Insurance Corporation. The project financing will be drawn during the construction period and will become non-recourse after the FSO has started operations. The loans have a maximum tenor of 14 years post completion.
Right now undergoing construction, FSO Chalchi has been secured for a 20-year lease and operate contracts with Woodside Energy through its affiliate in Mexico, Woodside Petróleo Operaciones de México, S. de R.L. de C.V. (Woodside). Woodside is the Operator with 60% interests, while Petróleos Mexicanos enjoys rest of the 40% that makes up the Trion project joint venture.
Designed to hold around 950,000 barrels of crude oil, the new build FSO is based on a Suezmax-type hull and will be equipped with a Disconnectable Turret Mooring system designed by SBM Offshore.
To be moored in water depth of about 2,500 meters, the FSO will be deployed at the Trion field, located 180 km off the Mexican coastline and 30 km south of the US/Mexico maritime border.
Douglas Wood, CFO of SBM Offshore, said, “We welcome the signing of the project financing of FSO Chalchi, marking our first transaction combining commercial banks, institutional investors and support from an export credit agency. This financing structure demonstrates SBM Offshore’s ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects.”
Upstream production and development company, Jadestone Energy, has brought online the first well at ~3,000 bopd as part of its 2026 Malaysia infill drilling campaign on the PM323 PSC.
Currently, the company is focussing on drilling the third contingent well which was confirmed for operations after the first two wells originally planned for the campaign. Identified in the 2023 infill programme, this well targeted the southwest extension of the East Belumut field.
The first of the two firm wells reported strong performance while the second was drilled on the basis of encouraging subsurface results. The Group's 2026 capital expenditure guidance[1] of US$50-80 million remains unchanged.
The company achieved 20% cost savings for operations in the first well, even though it was the longest well drilled on the East Belumut field. It involved tackling complex operations, targeting a 1,200 metre horizontal reservoir section in the well at a total measured depth of 4,866 metres.
T Mitch Little, Chief Executive Officer of Jadestone, said, "Our established operating capabilities in Malaysia, combined with our refreshed focus on operational excellence, have been further validated by the outcome of the EBA-18ST3 well. The result is an excellent start to this year's drilling campaign and will significantly increase our Malaysia production in the near-term against the backdrop of strengthened Brent oil prices, with our most recent Malaysia oil sales attracting a US$14/bbl premium to Brent.
"Following on from the significant progress on our Vietnam project earlier this year and the successful debt refinancing, this is further evidence of a business that is executing on its plan and strategy. We look forward to updating the market further on the second well in the campaign in the near-future."
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