Australia

• Region: Australia
• Topics: Decommissioning
• Date: 04 March, 2025

The decommissioning process comprises a total of seven stages, with preparation being the third stage.

This stage involves well P&A, cleaning, purging and isolation, and a preliminary categorisation of material streams. Using renewable energy sources like wind, solar or wave power to perform offshore decommissioning activities offers a plethora of environmental and cost-saving benefits.

Some notable applications include:

• Solar-powered well P&A equipment: Solar solutions are generally considered to be cost-effective and important for unmanned wellhead platforms. In these cases, reliability is critical due to significant challenges involved in reaching remote locations for maintenance. 
• Wind-powered offshore structure removal tools: Wind energy is utilised to support a number of decommissioning processes such as topside preparation and heavy lift operations. Utilising this resource is an emerging trend that has several applications, most notable being the removal and shipment of anchors and mooring systems in floating offshore wind farms.
• Solar-powered monitoring systems: These sustainable systems are deployed to assess environmental conditions during the transportation of materials to port and also reduce the carbon footprint associated with conventional power sources. 
• Renewable-powered support vessels: Renewable energy sources such as wind and solar are incorporated into support vessels in order to reduce the emissions during offshore decommissioning activities.
• Solar-powered sorting and handling equipment: Solar-powered machinery utilised at ports for sorting, handling and preparation of materials contributes to the use of clean energy in the handling and dismantling stages.

• Region: Australia
• Topics: Decommissioning
• Date: 27 Feb, 2025

Australia’s total decommissioning liability is estimated at around US$40.5bn, with the region’s disposal industries, although being well placed, possess some critical knowledge gaps that urgently need addressing. 

According to a report by CODA, a scenario mapping exercise based on the Strengths, Weaknesses, Opportunities Threats (SWOT) analysis was performed. From the analysis, the following potential disposal solutions were found to be ideal: 

• A complete abroad disposal which includes the three main processes— dismantling, processing and recycling. 
• Dismantling can be performed domestically, while the processing and recycling processes are shared, but majorly executed abroad. 
• Dismantling can be performed domestically, while the processing and recycling processes are shared, but majorly executed domestically. 
• A complete domestic disposal. 

 With the presence of an efficient domestic recycling industry and concrete recycling market, the waste management and recycling phase of Australia’s offshore decommissioning seems to be on track. However, a number of negative factors have resulted in the preference of abroad disposal over domestic disposal: 

• Lack of domestic infrastructures: Limited specialised facilities for dismantling and recycling offshore oil and gas structures.
• Cost efficiency: Decommissioning and disposal and comparatively cheaper in southeast Asian countries ship-breaking yards and metal recycling industries are far more established when compared to Australia. 
• Environmental regulations and waste management laws: Australia has stricter laws for disposal compared to other countries. 
• Lack of specialised expertise: A limited local availability of expertise and required technologies makes the disposal process less efficient when performed domestically. 
• Lack of market demand: Valuable metals like steel and copper than constitute a majority of offshore platforms can be more efficiently recycled in countries that possess large-scale metal recycling industries. 

By working towards enhancing domestic disposal capabilities, Australia can not only reap economic and environmental benefits, but also promote technology and infrastructure development and adhere more strongly to local laws. This in turn helps in building public trust and reputation, thereby giving Australia a chance to position itself as a leader in sustainable offshore decommissioning. 

• Region: Australia
• Topics: Decommissioning
• Date: 19 Feb, 2025

A recent report by Macquarie University’s Centre for Energy and Natural Resources Innovation highlights a pressing issue regarding how the structural integrity and failure risks that come with offshore wells that are suspended, plugged or abandoned tend to be severely underestimated.

Wells that are not appropriately abandoned can pose a serious threat to the health of neighboring countries and the environment. Inadequate plugging can also result in excessive emission of methane, contributing to climate change. Moreover, leaks and operational issues can make them a significant safety hazard.

The report highlighted six recommended best practices and regulatory reforms that would be useful for handling plugged and abandoned oil and gas wells. Upon its launch, professor of Energy and Resources Law at Macquarie and writer of the report, Tina Soliman-Hunter, in collaboration with the members of the Maritime Union of Australia (MUA) urged the need to strengthen the regulatory framework for end-of-life offshore oil and gas assets. 

CODA's forecast emphasised that around 51% of Australia's on- and offshore decommissioning liability will occur before 2030, with 23% occuring between 2031 and 2040. This liability considers the removal of offshore material, most of which comprises steel and concrete. The removal of a majority of offshore infrastructure material would depend on NOPSEMA requirements. 

According to an article by Petroleum Australia, deputy leader of the Victorian Greens and Member of the Victorian Legislative Council, Sarah Mansfield stated that nearly 150,000 tonnes of methane were being emmitted by just a handful of surveyed sites each year. She also initiated the inquiry into abandoned and plugged wells, given Victoria's gradual transition towards renewables. 

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

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)

McDermott's EPR contract in Stybarrow

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.

Allseas' role in Bass Strait 

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. 

• 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: 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: Australia
• Topics: Decommissioning
• Date: June, 2024

Bhagwan Marine has partnered with Linch-pin to deliver the Thevenard Island Offshore Decommissioning Project contract for Chevron Australia.

With special focus on environmental sustainability, the retirement project involves safe removal and the repurposing of nine offshore platforms as reefs.

Collaborative effort

While Bhagwan Marine will be supplying the marine and diving spreads, Linchpin will cover engineering aspects and deploy skilled construction personnel.

A major win for Bhagwan Marine, the offshore services provider is aiming a seamless and successful execution of the project for Chevron. The company is confident of its expertise and ability to deliver complex projects of this nature.

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

Woodside Energy has prepared and submitted an experts-consulted, final environment plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), in accordance with the requirements of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and Environment Regulations. 

In the capacity of a titleholder under the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2023 (Commonwealth), Woodside has proposed to undertake decommissioning activities within offshore petroleum production licence VIC/L22 and pipeline licence VIC/PL33.

It will include the removal of approximately 5 km of pipeline bundle and associated equipment, well tie-in infrastructure, and Minerva-2A wellhead and guide base that make up the Minerva subsea infrastructure. 

Rig secured for plug and abandonment 

As planning activities are well in progress, a rig has been secured for plug and abandonment in the Minerva field through a rig consortium with other titleholders in the region.

Keeping with the Environment Regulations, Woodside's EP has attempted to identify and describe the probable environmental impacts and risks that may arise during the end-of-life operations. It has worked out a process of appropriate management controls to reduce impacts and risks to a level that is ‘as low as reasonably practicable’ and acceptable. It defines Environmental Performance Outcomes (EPOs), Performance Standards (PSs) and Measurement Criteria (MCs) to ensure minimum adverse impact. 

Woodside is planning the plug and abandonment of the Minerva-1, Minerva-2A, Minerva-3 and Minerva-4 wells (in accordance with a separate Minerva Plug and Abandonment EP), and removal of property in VIC/L22 and VIC/PL33 (under this EP). 

Woodside's scope of decommissioning activity as mentioned in the EP is focussed in Commonwealth waters in the Otway Basin approximately 7 km south-southwest of Port Campbell, Victoria, where the Minerva subsea infrastructure is in approximately 55–59 m water depth at lowest astronomical tide (LAT). The operational area is thus defined as a 1,000 m radius around the subsea infrastructure, wellheads, and the gas production pipeline (the pipeline) within Commonwealth waters.

Spread over 24-hours per day, and seven days per week, Woodside believes the decommissioning activities might take up to 90-120 days, and completion is not anticipated before 30 June 2025.

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

Decom Engineering (Decom), a provider of green decommissioning solutions, has executed three market-entry Australian contracts to strengthen its position within the Asia Pacific region.

The company was commissioned to supply and operate its chopsaw cutting technologies on behalf of a major operator in the Bass Strait alongside two other clients in Australian waters. Together, the contracts amounted to more than UK£500,000.

The decommissioning specialist performed three cuts on a 20’’ concrete weight coated carbon steel rigid pipeline as well as 25 cuts on a 13’’ in-filled flexible flow line jumper, with a 4.5’’ piggy back. This was achieved through the deployment and use of its C1-24 chopsaw at water depths of around 400 m. Meanwhile, another C1-24 chopsaw was utilised on assets in the country’s North West Shelf at water depths of around 500 m.

Decom Engineering Managing Director, Sean Conway, remarked, “The award of these three contracts by major operators is a clear signal that our commitment to the Australian decommissioning sector is being rewarded. With the extensive track-record Decom has established on projects in the UK North Sea, Africa and Asia, we judged that now was the right time for us to enter the Australian market and we are keen to be part of the sector’s journey to sustainability.”

Investing in Australian decommissioning 

The commitment to the country took the form of a significant investment in the region of UK£500,000 in order to establish infrastructure and relocate equipment and personnel to be reactive to local market demands. This decision was taken after the company recognised the remarkable opportunity that Australia presents, leading Decom to recognise it as strategic market for its future growth. This is also in line with a wider growth directive for the Asia Pacific market, with Decom investing upwards of UK£2mn to design and manufacture a nine-strong portfolio of chopsaws and supporting equipment (including control panels, spares and consumables) which have been used of projects throughout the region.

“We are excited to be kicking off three Australian projects in tandem and look forward to building a strong relationship with our customers,” Conway added. “As our reputation grows, we will replicate our AsiaPac model by investing in facilities, equipment and personnel in Australia, to provide cutting edge technologies which will assist contractors and operators looking for cost effective and environmentally sound decommissioning solutions.”

Following initial success, the company is aiming to introduce its Pipe Coating Removal (PCR) system to Australia in order to offer a full-service decommissioning option for redundant oil and gas steel pipes. The PCR strips steel tubulars of coating and transforms the pipe into a reusable product suitable for other uses.

Conway concluded, “To date our PCR system has processed more than 30,000 tonnes of steel tubulars from surplus prime and decommissioned oil and gas fields and we think that this is an offering which could introduce significant environmental and financial benefits to the massive Australian decommissioning sector.”

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

Cooper Energy Limited, an exploration and production company, has announced that the Helix Q7000 vessel has commenced work on the first well of the Basker Manta Gummy (BMG) decommissioning programme.

Although the company admitted that progress has been slower than anticipated, it is now making headway on the project with the Helix Q7000 – a purpose-built DP3 semisubmersible vessel from Helix Energy Solutions – now commencing work on the Basker-3 well after initially arriving late to the BMG field. The late arrival of the vessel resulted in Cooper Energy incurring more than three months of holding costs for the remaining contractor spread on the BMG programme and, in addition, more time was required during start-up activities due to factors such as loading of equipment and integration of the Integrated Riser System (IRS).

While Cooper Energy does not anticipate the start-up delays to impact the remainder of the project, the slow progress means re-forecasting of the programme for the remaining six BMG wells is required. As a result of this, the company has revised its mid-case cost estimate for the BMG decommissioning from AUS$193-198mn to approximately AUS$240-280mn. In order to keep this as low as possible, the company has indicated it will be applying learnings from the Basker-3 decommissioning work to the remaining wells. In addition, where possible, Cooper Energy and its contractors will aim to simplify the scope of decommissioning.

While the focus remains on executing the decommissioning programme safely and within the minimum time possible, the company has indicated there are certain risks retaining, including variables outside of the company’s control that could increase the total cost of the decommissioning programme.

Previously, the Helix Q7000 was at work offshore in New Zealand, conducting a decommissioning campaign on the Tui oil field. Click here to learn more.

• Region: Australia
• Topics: Decommissioning
• Date: Nov, 2023

McDermott, a fully-integrated provider of engineering and construction solutions to the energy industry, has been awarded an engineering, procurement, removal and disposal contract by Santos for the full removal and disposal of the Campbell platform structure.

The platform is part of the Varanus Island Hub offshore Western Australia. McDermott has agreed to provide project management and engineering services for the removal and transportation of the platform topsides, structure and associated items to an onshore facility. There to be dismantled and disposed.

Mahesh Swaminathan, McDermott's Senior Vice President, Subsea and Floating Facilities, remarked, “Our successful, proven track record of project delivery spans the entire energy value chain. This decommissioning award reflects the commitment we share with Santos to timely, safe, and environmentally responsible removal of infrastructure at the end of its operational life cycle. We look forward to continuing to be part of delivering their sustainability commitments while also contributing to the circular economy for a lower carbon future.”

The contract is regarded as ‘sizeable’ by McDermott, being between US$1mn and US$50mn. The project management and engineering will be conducted by the company’s team in Perth with support from Indonesia and Malaysia. It represents the fourth decommissioning contract executed by McDermott in the country in the last two years.

• Region: Australia
• Topics: Decommissioning
• Date: Oct, 2023

Woodside Energy, an Australian petroleum exploration and production company, has safely and successfully lifted the 83 m-long Nganhurra Riser Turret Mooring (RTM) onto a barge off the North West Cape in Western Australia.

Following the successful lift, the RTM is now transitioning to the Australian Marine Complex (AMC) near Perth. Upon arrival, it will be cleaned and deconstructed for recycling and reuse – more than 95% of the RTM is expected to be eligible for this.

In a world-first, the heavy lift vessel Heerema Aegir, with three supporting tugs, lifted the 2,500 tonne RTM onto a 120 m barge where it was secured ahead of its journey to the AMC. Woodside has presented the removal as a demonstration of its abilities to manage activities in the sensitive marine environments where it operates.

The Nganhurra RTM brought subsea production lines from the Enfield oil field to a floating production storage and offloading facility. Enfield ceased production in November 2018 and the RTM is being removed as part of decommissioning activities at the field, which also includes the permanent plugging and abandonment of 18 former production wells.

The decommissioning concept for the Nganhurra RTM was matured over more than two years of careful planning and detailed engineering, undertaken in conjunction with a range of specialist contractors.

In-field preparatory activities included remote operated vehicle inspections, removal of redundant equipment and installation of a purpose-built lifting point.

Following an assessment of the forecast weather and sea-state, the remaining mooring lines were cut, and the RTM was towed to a sheltered location to ensure the lifting operation could be executed safely. After the RTM is unloaded at AMC, it will be cleaned of marine growth and deconstructed for recycling and reuse opportunities, supporting local employment and contracting opportunities.