Australia's Zenith Energy Leads Phase 2 of Northern Endeavour Decommissioning, Plugging 9 Wells

en.Wedoany.com Reported - Dimension News, August 18 — The Australian Department of Industry, Science and Resources announced the award of a Phase 2 lead contract to Zenith Energy Australia for the permanent plugging and abandonment (P&A) of subsea wells in the Northern Endeavour Floating Production Storage and Offloading (FPSO) decommissioning project. The contract was awarded through an international competitive bidding process.

Phase 2 focuses on the permanent plugging of 9 subsea wells in the Laminaria-Corallina oilfields in the Timor Sea, including 6 oil wells in the Laminaria field, as well as 2 oil wells and 1 gas injection well in the Corallina field. As the lead contractor, Zenith Energy will be responsible for project management and engineering services, covering detailed well engineering, operational program development, regulatory approvals, management of offshore plugging operations, as well as storage, transport, and site monitoring of recovered infrastructure, until handover to Phase 3.

Phase 2 will be executed in two steps: the first step involves detailed project planning, engineering design, and regulatory approvals; only after approvals are granted can the second step proceed, which involves the installation of permanent cement barriers, pressure testing, and the removal of wellhead facilities above the seabed. Zenith Energy Australia is a subsidiary of Zenith Energy Group, headquartered in Aberdeen, UK, with approximately 10 years of operational experience in Australia's offshore energy sector, having participated in projects in the North West Shelf, Timor Sea, Perth Basin, Otway Basin, and Bass Strait.

The Northern Endeavour FPSO is 274 meters long and previously operated between the Laminaria and Corallina fields. After the original operator, Northern Oil & Gas Australia, collapsed in 2020, the Australian Federal Government took over the asset under the "follow-on liability" provisions. Phase 1, completed by Petrofac, involved the dismantling of the FPSO and its towage to Singapore for recycling. The total cost of the entire decommissioning project is estimated at between USD 1.2 billion and USD 1.8 billion, making it the first deepwater decommissioning project in Australian waters.