Regulator and government intervention
On 10 July 2019, NOPSEMA issued a Prohibition Notice to UPS and on 18 July 2020 a General Direction to TSOGA requiring immediate cessation of production on the Northern Endeavour. NOPSEMA required that a range of long-standing issues, particularly relating to corrosion and safety systems, to be resolved for production to recommence.[16]
NOGA expended all available funds in an attempt to meet NOPSEMA requirements and re-establish production however on 20 September 2019 the company went into voluntary administration.[16] The FPSO was de-crewed at some point following this, remaining in place with navigational lights on in a "lighthouse mode".[18] In February 2020, KPMG as administrator recommended NOGA be liquidated and creditors voted to that same effect on 7 February 2020.[19][20] Liquidators immediately disclaimed all offshore assets as there was insufficient funding to continue operations,[21][22] responsibility for those assets fell to the Federal Government of Australia.[23]
The federal government engaged UPS on 15 February 2020 to continue to maintain the FPSO while the decommissioning was being planned.[24][25]
A secured creditor of NOGA owed more than A$135 million, Castleton Commodities Merchant Asia (CCMA), began legal action against the government on 25 November 2020 in an effort to take control of the FPSO with the intent of selling it. The parties reached a confidential settlement agreement in August 2022 that included the FPSO being delivered to CCMA.[26][27][28] CCMA notified the government in 2023 that it would no longer be taking ownership of the FPSO following disconnection. The government had the vessel and all other offshore infrastructure vested absolutely to itself, preventing any further claims.[29][30]
In 2021, the government worked to enact the which is designed to cover all costs of the decommissioning borne by the government. The levy applies to all offshore production title holders and is calculated on a per barrel of oil equivalent produced basis. During consideration of the bill, Chevron made a submission stating that they strongly opposed the levy and that "As the largest offshore petroleum producer in Australia, Chevron would pay the greatest share of the levy, despite receiving no economic benefit from or involvement in the LamCor oil fields".[31][15]
In 2022 the government contracted Petrofac to assume operatorship of the FPSO in addition to performing Phase 1 of decommissioning works.[24] In 2025 well suspension was completed by Petrofac for 7 wells (2 already suspended) and the government awarded a contract to COSCO Shipping to dry tow the Northern Endeavour to a recycling location.[24] Later in 2025 is was announced that the contract for recycling of the vessel has been awarded to Modern American Recycling Services Europe with the work to be completed in Frederikshavn, Denmark.[32]
As of April 2025, decommissioning costs incurred by the government total over A$850 million.[33]
Regulatory impact
On 23 March 2020, the Minister for Resources (Keith Pitt) appointed an independent consultant (Steve Walker) to conduct what would be known as the Review of the circumstances that led to the administration of the Northern Oil and Gas Australia (NOGA) group of companies (the Walker Review). The review was returned to the minister in June with a summary released to the public in August. A redacted version of the full review was made public in September via an FOI request.[34][16]
In 2021, the government moved to implement recommendations from the Walker Review as part of a suite of legislative and regulatory changes to the offshore oil and gas decommissioning framework.[35] This included new trailing liability provisions that allow the government to force prior offshore licence holders to pay for decommissioning if they sell to new owners who are unable to cover the costs.[36]
Prior to the new legislation, a number of large oil and gas companies operating in Australia had announced plans to sell late life assets, the new rules have led to these plans being abandoned as potential buyers must demonstrate to regulators that they have the ability to decommission any assets they purchase.
