Engineering firm Kent has won a two-year contract on the Northern Endeavour decommissioning project, days after unions pushed for more of the work to be done locally.
Engineering firm Kent has won a two-year technical advisory contract on the $1 billion-plus Northern Endeavour decommissioning project, days after unions launched a push for more of this work to be done locally.
Kent’s contract will focus on the permanent plugging and abandonment of the Laminaria and Corallina oil fields in the Timor Sea.
It also includes advisory services for the removal of associated subsea infrastructure.
The value of its contract was not dislcosed.
The firm, which has about 200 staff in WA and almost 1,000 across Australia, will deploy a multidisciplinary team of technical and regulatory experts to provide strategic and operational support.
The contract has been announced after an alliance of unions and environmental group called for the establishment of a decommissioning hub in northern Western Australia to manage the growing volume of offshore oil and gas infrastructure being retired.
Groups including Greenpeace Australia Pacific, Unions WA, Conservation Council of Western Australia, Maritime Union of Australia and the Australian Manufacturing Workers Union commissioned the WA Can’t Wait report.
It argued that a decommissioning hub would deliver thousands of secure, skilled jobs and help protect marine ecosystems and coastal communities.
An estimated $60 billion will need to be spent over coming decades on the decommissioning of offshore oil and gas assets.
The report was spurred by the announcement in June that the 44,000 tonne Northern Endeavour floating production storage and offloading (FPSO) vessel – which processed oil from the Laminaria and Corallina oil fields – will be towed to Denmark.
Contractor Modern American Recycling Services Europe (MARS) will recycle the FPSO at a purpose-built facility in the port city of Frederikshavn.
MARS will also manage the waste streams, including hazardous waste.
The Australian government, which assumed responsibility for the Northern Endeavour decommissioning after the previous owner went bust, said MARS was selected after an open tender.
It said the tender process did not identify a suitable domestic solution that met its requirements for recycling the whole vessel.
The government has also pointed out that recycling of the FPSO accounts for less than two per cent of the overall cost of the Northern Endeavour decommissioning program.
Phase 2 focuses on the Laminaria and Corallina wells, including permanently sealing and abandoning the wells to prevent future hydrocarbon leaks plus dismantling and removing wellheads.
Phase 3 will focus on removing and recycling the remaining subsea infrastructure, including risers, umbilicals, flowlines and manifolds.
This includes some 12,000 tonnes of steel.
Phase 3 also includes restoring the marine environment.
Kent’s Executive Vice President - Development, APAC & Americas Michael Costello said the contract reflected its expanding footprint in Asia Pacific and its proven track record in complex offshore decommissioning projects.
“This contract is a testament to the trust the Australian government has placed in Kent’s decommissioning expertise,” Mr Costello said.
“We are proud to continue supporting the safe and responsible transition of offshore assets, prioritising environmental outcomes and technical integrity at every stage.
“Our advisory team, with deep roots in Australia and the UK, is energised by this opportunity to help shape the future of offshore decommissioning.”
