PERTH (miningweekly.com) – The federal government has awarded a A$325-million contract to Petrofac Facilities Management to deliver Phase 1 of the decommissioning of the Northern Endeavour floating production storage and offtake facility and associated oil field, with producers left to foot the bill.

Phase 1 of the decommissioning will see the Northern Endeavour disconnected from the subsea equipment, and temporary suspension of wells. 

The federal government has been responsible for maintaining the Northern Endeavour and associated subsea facilities since February 2020 after its owners, the Northern Oil and Gas Australia (NOGA) group of companies, were placed in liquidation. The Northern Endeavour stopped producing oil in 2019.

Parliament this week passed legislation to impose a temporary levy on industry to recover the costs of decommissioning and remediating the oilfields and associated infrastructure, delivering on the government’s commitment to ensure Australian taxpayers are not left footing the bill. 

“The Australian government is delivering on its commitment to keep the Northern Endeavour and its workers safe while protecting the environment,” Minister for Resources and Water Keith Pitt said.

“Decommissioning the Northern Endeavour is a unique and unprecedented responsibility for the Commonwealth after its owners went into liquidation. We are working closely with industry and regulators to progress decommissioning as safely, efficiently, quickly and cost-effectively as possible.

“Petrofac Facilities Management has been selected and engaged through a robust global, competitive procurement process. I thank all the respondents for their engagement on this important matter.”

Pitt said Petrofac Facilities Management has extensive global experience in successfully leading and delivering large-scale and complex offshore decommissioning projects.