WESTERN Australia’s Bhagwan Marine has extended its push into the burgeoning offshore decommissioning sector with a new contract for the removal of oil tanker moorings and navigation buoys at Barrow Island.
The contract, for an unidentified oil & gas company but presumed to be Chevron Australia, represents an important entry point into a broader offshore decommissioning program associated with legacy infrastructure in the region, Bhagwan says.
The scope for the removal of oil tanker moorings and navigation buoys provides Bhagwan with the opportunity to showcase its proven capability, positioning the company strongly as operators progress broader subsea and shallow-water decommissioning programs, it says.
The removal methodology being developed has the potential to establish a repeatable solution for the broader nearshore and shallow-water decommissioning infrastructure. Major offshore oil and gas operators have similar legacy infrastructure profiles requiring removal.
In October 2024, Bhagwan successfully completed one of Australia’s largest offshore decommissioning contracts to date — the Thevenard Island (TVI) project in WA. The operation involved approximately 180 offshore personnel and the removal of nine platforms, while safely delivering over 850,000 hours of execution works, demonstrating the company’s ability to manage complex, large-scale offshore operations safely and efficiently.
Since commercial completion of the TVI project, Bhagwan has continued to build its decommissioning track record through additional support contracts, including FPSO Northern Endeavour operations in the Timor Sea together with the Harriet Alpha platform and the Angel platform, both in offshore WA.
Decommissioning is expected to become an increasingly important component of Bhagwan’s business, based on results of a study published by the Australian Department of Industry, Science & Resources and the Centre of Decommissioning Australia that identifies a multi-decade, large-scale phase of offshore asset retirement as ageing oil and gas infrastructure reaches end of field life.
Total decommissioning liabilities are estimated at $60 billion, with the majority of spend concentrated in Western Australia and Gippsland Bass Strait. Bhagwan believes it is well positioned to convert early engagement in shallow-water decommissioning into a sustained program of offshore surface and subsea asset removal.
Bhagwan Marine founder and managing director Loui Kannikoski said in recent years they had been "positioning Bhagwan to capture the significant, long-term opportunity emerging in offshore decommissioning across Australia’s Northwest Shelf, Northern Australia basins, and Bass Strait / Gippsland area".
"This latest award reinforces our strategy, demonstrating confidence in our ability to deliver safe, practical, and cost-effective removal solutions in complex nearshore environments," Mr Kannikoski said.
"The methodology we are developing for nearshore pipeline removal has the potential to become a repeatable solution across multiple offshore basins and operators."