Petrofac announced that it has been awarded a major decommissioning contract by the Australian government.
According to the contract, Petrofac will complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.
Petrofac won the contract following a stringent selection and due diligence process by the Australian government. The value to Petrofac of Phase 1 has the potential to be up to $236 million.
Expectations indicate that FPSO disconnection may be completed in over an estimated 18 months. Petrofac will be responsible to provide unique integrated services, working with both domestic and international suppliers.
Commenting on that, Josie Philips, Petrofac’s Regional Director, Australia, said: “This contract builds on 15 years of working in Australia and is further proof of our growing and long-term ambitions in the country. A critical element will be upskilling the local workforce to meet the challenges of billions of dollars of decommissioning work in Australia now and in the future. It is Petrofac’s aim to be a local company, growing local jobs, local skills and the local supply chain. I’m delighted that we have Monadelphous and Linch-pin already on board.”
Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said:
“This contract recognizes our unrivalled decommissioning credentials, as the only tier one contractor with the in-house capability to manage all well and asset decommissioning phases. The contract builds on our existing track record for delivering well operator and project management services for clients globally, having successfully delivered numerous multi-well decommissioning campaigns.”
Petrofac and its supply chain partners, Monadelphous and Linch-pin, will be able to ensure the secure removal of the FPSO while minimizing costs.