Northern Endeavour has been a burden on government, its offshore regulator NOPSEMA and the Australian petroleum industry since it was shut down three years ago when its most recent operator, Northern Oil and Gas, collapsed into liquidation.
The former Woodside operated facility has remained in limbo in the Laminaria and Corallina fields since then while its future and who was responsible for the vessel, were debated.
Now it appears this ugly chapter in the history of the Australian oil and gas industry is finally coming to an end.
Xodus will now take responsibility for Northern Endeavour's immediate future after it was awarded a contract to provide technical and project support services for Phase 1 of the decommissioning of the FPSO.
Under the Phase 1 contract, Xodus will be responsible for a wide range of decommissioning activities to facilitate the disconnection and removal of the FPSO including topsides and subsea flushing and well suspension.
On behalf of the Australian Government, Xodus will also provide advice on project coordination, regulatory and environment, health and safety, technical, quality assurance, and contract management as part of the agreement.
"We have a highly experienced local team with several of our colleagues having extensive experience of the Northern Endeavor either from the early design and installation phase of the project or during production operations," Alasdair Gray, the Late Life and Decommissioning Lead at Xodus, said.
"This means that whilst being able to bring a fresh approach, the facility is already familiar to much of the team.
"We understand environmental sensitivities and the impact these can have on any proposed activity or execution plan. Expert technical advice and careful planning will be critical to the successful decommissioning of the offshore field in a safe and responsible manner. We are pleased to provide the necessary support to ensure that the decommissioning strategy is robust and ultimately compliant with regulatory expectations."
Government responsibility
After much toing-and-froing, the Australian Government eventually determined that decommissioning of the vessel was the most effective way to protect the environment from future potential risks.
With the former owner of the FPSO, the Northern Oil and Gas Australia (NOGA) group of companies having gone into liquidation, decommissioning costs are to be recovered from the oil and gas industry through the Laminaria and Corallina Decommissioning Cost Recovery Levy.
The decommissioning program is being delivered across three phases.
- Phase 1: Decommissioning and disconnecting the Northern Endeavour from subsea equipment and temporarily suspending the wells.
- Phase 2: Permanently plugging and abandoning wells
- Phase 3: Removing subsea infrastructure and remediating the Laminaria and Corallina fields
A spokesperson for the Department of Industry, Science, and Resources (DISR) Phase 1 NE Decom Project Management Team said the awarding of the contract marks a significant step forward in the government's role in managing the environmentally responsible and safe closure of the Northern Endeavour FPSO, permanent plugging and abandonment, and remediation of associated fields.
Colourful history
The 274m long Northern Endeavour FPSO came into operation with much fanfare in 1999.
After a number of very successful and productive years, the Laminaria and Corallina fields began to naturally decline and the project ceased producing oil in 2019.
Now permanently moored, the now redundant production system comprises a network of subsea wells tied back to the permanently moored vessel unit through a system of subsea manifolds, flowlines, umbilicals, and dynamic risers.
Xodus a decommissioning specialist
In June 2022 Xodus established a new Contaminant Advisory Group to help tackle the decommissioning regulatory challenges facing operators in Australia.
The group, which included representatives from ANSTO, SA Radiation, Total Hazardous Integrated Solutions and Qa3, was formed in response to the Australian Government's Offshore Petroleum and Greenhouse Gas Storage Amendment Bill which was created to strengthen and clarify Australia's offshore oil and gas regulatory framework.
The bill, an amendment to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, requires operators who are decommissioning in situ to report their precise contamination levels to limit further pollution.
"We believe that collaboration will be key to the future success of decommissioning in the region, and we are excited to bring this group together to tackle some important challenges relating to legacy offshore oil and gas equipment," Mr Gray said.
Source: Energy News Bulletin