Rusting ghost ship off Darwin costing taxpayers $5 million a month to keep safe

A RUSTING oil production ghost ship off the coast of Darwin is costing taxpayers almost $5 million a month to keep safe

The disused oil production ship, Northern Endeavou r, off the coast of Darwin. Picture: Supplied

THE Federal Government says it is taking all the necessary actions to minimise risks to the environment off the coast of Darwin where a rusting oil production ghost ship is costing taxpayers almost $5 million a month to keep safe above an oilfield that at its peak can pump out 170,000 barrels a day.

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In an unprecedented event in Australia’s offshore oil and gas industry the Northern Endeavour is sitting idle and unmanned in lighthouse mode 550 km north of Darwin following its forced shut down more than a year ago because of safety concerns.

It is permanently moored between the Laminaria and Corallina oilfields in the Timor Sea

The Australian National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) ordered the shutdown because of an “immediate threat to health and safety” due to structural corrosion.

The company which owned it, Northern Oil and Gas, then went into voluntary administration and was ultimately placed in liquidation in February this year.

The responsibility for the remote vessel now sits with the federal government and taxpayers.

To decommission it could cost taxpayers as much as $200 million and would require the capping of a number of subsea wellheads.

Federal Resources Minister Keith Pitt has set up a task force in his department which is working closely across government and with the petroleum industry to develop options for

a long-term solution.

“To help minimise the risk of a similar situation occurring in the future, I also commissioned an independent Review into the matter,” Mr Pitt said.

“The Government is taking all necessary actions to ensure the safety of Australian workers and the security of the Northern Endeavour, and to minimise risks to the environment.

“The safety of offshore workers and protection of the marine environment remains the Government’s number one priority.

“No petroleum production is occurring and critical maintenance necessary to maintain a safe working environment is being undertaken.

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“Woodside Energy is providing expert advice on what will be required to decommission and remediate the facility and fields, if the Government proceeds with that option.

“As a previous owner of the Northern Endeavour, Woodside is well placed to provide timely, detailed advice,

“The Government is also working on options to recoup costs associated with Northern Endeavour.”