Tenders out for next phase of FPSO removal

THE DEPARTMENT of Industry, Science and Resources has released a request for tender for a lead contractor to deliver phase 2 of the decommissioning of the abandoned Timor Sea FPSO Northern Endeavour.

DISR, through AusTender, wants proposals from organisations able to complete two stages of phase 2, which include:

• Stage 1: project management, engineering, logistics, regulatory approval (including achieving Registered Operator status), subcontracting and procurement activities to: 
• design and plan for the permanent plugging and abandonment of 9 wells.
• develop a Stage Gate Review Pack that outlines a pricing model and detailed budget, risk profile and a Performance Management Framework.
• achieve Registered Operator status and monitor and maintain the Laminaria Corallina oil fields.
• Stage 2: includes:
• permanently plugging and abandoning all 9 wells.
• project management, engineering, procurement and field monitoring.
• meeting all regulatory requirements including a National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) approved Safety Case.

DISR says interested parties must register to submit proposals only through the AusTender website, through which all RFT documents can be accessed.

Northern Endeavour began operations in the Laminaria-Corallina oilfields in 1999 for Woodside and partners. In July 2015 it was sold to Northern Oil & Gas Australia, which later was forced to shut down over safety issues and subsequently went into liquidation, in September 2019. 

All crew were removed in February 2020 and the Federal Government was obliged to take control of the abandoned unit and arrange its decommissioning and removal, at an expect eventual cost to taxpayers of over $1 billion. This is to be partly recovered through a levy on the oil and gas industry.

Earlier this year it was announced that COSCO Shipping Heavy Transport had been engaged to ship the 274-metre, 108,406 GT Northern Endeavour to “a recycling location” on the semi-submersible heavylift Hua Rui Long, said to be the world’s third largest.

Subsequently it was revealed the recycling location is Modern American Recycling Services’ purpose-built facility in Frederikshavn, Denmark. The decision to dismantle overseas was attacked by unions and local companies for ignoring plans to develop offshore structure recycling facilities in Australia.

DISR is holding industry briefing sessions for phase 2 interested parties. Tender submissions close at 2:00pm AEDT on 1 December 2025. More about phase 2 of the program can be found on the Department’s website.