Gas giant called in to advise on oil ship clean-up
Woodside Petroleum has been drafted in as an expert adviser on the decommissioning and remediation of an offshore oil production ship in the Timor Sea.
Woodside Petroleum has been drafted in as an expert adviser on the decommissioning and remediation of an offshore oil production ship in the Timor Sea amid fears taxpayers could be left to foot an estimated $200m bill after the vessel operator collapsed.
Gas giant Woodside previously owned the Northern Endeavour project – which was permanently moored between the Laminaria and Corallina oil fields in the western Timor Sea - before selling the facility to NOGA in July 2015. NOGA subsequently fell into liquidation in February this year.
The national safety regulator had ordered a halt to production in July 2019 after finding structural defects with the potential to cause multiple fatalities and Credit Suisse has previously said many industry players would have expected Woodside to step in to look after their former asset.
Woodside “is providing expert advice on what will be required to decommission and remediate the facility and fields, if the Government proceeds with that option,” Resources Minister Keith Pitt said in a statement on Thursday.
“As a previous owner of the Northern Endeavour, Woodside is well placed to provide timely, detailed advice,” he said.
British offshore regulatory expert Steve Walker also completed a review on Thursday into the circumstances that led to the situation, which has raised issues about who pays for abandoned facilities if companies go bust.
Recommendations made by Mr Walker included adopting a ‘trailing liability’ where the owner of the petroleum title would remain liable for the decommissioning and removal of its offshore assets even after selling its interests in a title. Australia’s decommissioning liability system remains vulnerable despite checks and balances, the report found.
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