Australia - Northern Endeavour

[Administrator]

Australian Government announces the decommissioning of the Northern Endeavour

14 Dec 2020

The Australian Government will decommission the Northern Endeavour floating production storage and offloading facility and remediate the associated oil fields. Decommissioning the facility will remove potential risks to the surrounding marine environment and shipping.

The government has been maintaining the Northern Endeavour since its owner, the Northern Oil and Gas Australia (NOGA) group of companies, was placed in liquidation in February 2020. No petroleum production is occurring.

Since February, Upstream Production Solutions (Upstream PS) has been operating the Northern Endeavour in lighthouse mode and carrying out crucial maintenance. This ensures the safety of workers, the facility and the environment.

Further information regarding the decommissioning project, including opportunities for industry, will be made available shortly.

A timely decision to decommission will avoid any extra costs and provide certainty to industry. The final costs of decommissioning are not yet known.

The government is continuing to work with the offshore oil and gas industry on proposals to recover the costs.

The government has also been working with stakeholders on broader policy and legislative reforms to minimise the likelihood of a similar situation occurring in the future. The reforms will take account the independent review by Mr Steve Walker, an expert in the offshore oil and gas industry. The Review examined the circumstances that led to the administration and liquidation of the NOGA group.

The Northern Endeavour is permanently moored in Commonwealth waters in the Timor Sea.

[Administrator]

Petrofac Facilities Management Limited to lead phase 1 of decommissioning the Northern Endeavour

1 April 2022

Petrofac Facilities Management Limited has been engaged as the lead contractor to deliver Phase 1 of the Northern Endeavour decommissioning.

We conducted a global, competitive, multi-stage tender for this phase of decommissioning work. In accordance with the Commonwealth Procurement Rules, we have selected the supplier that offered the best value for money.

This $324.89m decommissioning contract will deliver Phase 1 while:

• adhering to industry and Australian standards
• staying consistent with good oilfield practice
• working with industry and regulators to complete decommissioning and disconnection activities as safely, efficiently and cost-effectively as possible.

This is the next step in the government's commitment to keep the Northern Endeavour and its workers safe whilst also protecting the environment.

Petrofac Facilities Management Limited will begin a managed transition of operational control from the existing operator, Upstream Production Solutions.

[Administrator]

Northern Endeavour vessel to be dry towed to a recycling facility

7 Mar 2025

The Australian Government has engaged COSCO Shipping Heavy Transport (COSCO) to dry tow the Northern Endeavour floating production storage and offloading (FPSO) vessel to a recycling location.

Dry towing is the safest and most reliable method to transport a vessel of this size and condition. Using their semi-submersible heavy transport vessel, the Hua Rui Long, COSCO will tow the FPSO to an appropriate facility for decontamination, dismantling and recycling.

The Northern Endeavour FPSO is 274m in length and weighs over 43,000t, the equivalent of just over 4 Eiffel Towers. There are only a few vessels in the world large enough to carry something as long and heavy as the FPSO. Securing an appropriate vessel in the right timeframes marks a significant milestone for the program.

Why is the Hua Rui Long uniquely suited to this task?

The Hua Rui Long is the third largest semi-submersible heavy transport vessel in the world. It is unique because the vessel superstructure is not in the usual location at the front of the vessel. This allows the Hua Rui Long to transport longer vessels because the bow, or front, of both vessels are in alignment. The Hua Rui Long can also hang cargo over the back, or stern, if needed.



COSCO will work with Petrofac to arrange for the FPSO to be towed to the recycling location after disconnection.

We released a request for tender to find a supplier to recycle the FPSO on AusTender(external link). Submissions closed on 13 December 2024, and we are evaluating the tenders.

What is a semi-submersible heavy lift vessel?

A semi-submersible heavy transport vessel is a large ship designed to carry large loads that are too big for standard transport ships. The main body of the vessel is long and low and made up of large water tanks. Pumping seawater into the tanks causes the vessel to sink lower in the water until the main deck is below sea level. The Hua Rui Long can submerge its main deck to a depth of 16 m.

Once the main deck is below the sea surface, the cargo, in this case the FPSO, can float onto the vessel. The seawater in the tanks is then pumped back into the ocean. This raises the main deck above the sea level bringing the cargo with it. 

Semi-submersible heavy transport vessels are most often used to transport drilling rigs, floating plants, dredging equipment, offshore structures, floating drydocks and other vessels. Using these vessels to transport this type of cargo is faster and safer, resulting in large time and cost savings.