Brunei Shell Petroleum has awarded a major decommissioning contract to a consortium led by Hilong Marine Engineering, with work to start in mid-2025
Brunei Shell Petroleum (BSP) has awarded a key contract to a consortium for the provision of engineering services, preparation, covering removal and disposal of offshore structures in the East-West and Tali oilfields, offshore Brunei Darussalam.
The contract won by Serikandi Hilong — a joint venture between Serikandi Oilfield Services (Brunei) and Hilong Marine Engineering (Hong Kong) — is described by Serikandi as being a significant contract for the engineering, preparation, removal and disposal (EPRD) of redundant offshore structures.
This project prioritises resource reclamation, ecosystem revitalisation and economic growth, aligning with global sustainability goals, the contractor said in a LinkedIn post.
“Leveraging Serikandi’s local expertise and Hilong’s technical proficiency, the collaboration will deliver safe, efficient and environmentally responsible decommissioning services,” said Serikandi.
“The project aims to restore offshore environments to their natural state using innovative techniques and best practices, ensuring compliance with regulatory standards and community expectations.”
Industry sources familiar with the matter said the contract involves the decommissioning and removal of up to 50 offshore platforms, with the operation expected to begin in mid-2025, using Hilong’s construction vessel, Hilong 106.
The work will primarily focus on the Tali oilfield, a shallow-water asset located two to three kilometres offshore, where production started in 1959.
Over the years, 38 wells, 21 platforms and 63 pipelines have been established, contributing to more than five decades of oil production. As the Tali oilfield reaches the end of its lifecycle, it is now entering a decommissioning and restoration (D&R) phase.
Before beginning the D&R work, BSP conducted a ‘Make It Safe’ programme to ensure that all wells, platforms and pipelines can be dismantled and removed safely and in an environmentally responsible manner.
This step was overseen by Brunei’s Department of Energy in the sultanate, which recently offered new exploration acreage for the first time in more than a decade.
Decommissioning the Tali oilfield presents several challenges, including the shallow-water conditions, limited space for equipment, marine growth on offshore structures, the remote location, ageing infrastructure and the need for extensive stakeholder engagement, Shell said in a November 2023 presentation.
Both BSP and the regulator are navigating the learning curve associated with the project.
The East-West field, which involves the removal of 30 offshore structures, will require mechanical isolation, hydrocarbon freeing and de-energisation before removal and disposal.
Shell also identified several obstacles for the complex East-West field decommissioning job, such as limited internal resources, challenges in ensuring safe access to ageing platforms, and the varying sizes and conditions of the platforms to be removed.
The Hilong 106 is a 167-metre-long and 46-metre-wide offshore pipelay derrick barge, built by Shanghai Heavy Industries and acquired by Hilong in late 2013.
Designed for pipelaying in water depths of up to 300 metres and with heavy-lifting capabilities of up to 3000 tonnes, the vessel is equipped with an S-lay system, automated welding and ultrasonic testing equipment, and a 12-point mooring system.
S-lay pipelaying is a method of installing subsea pipelines in shallow or medium-water depths where the pipe is welded onboard a vessel and then lowered to the seafloor with the curvature of the vessel’s stinger making the distinctive S shape.
Revi Bhaskaran, Serikandi Group’s chief executive, emphasised the partnership’s role in advancing Brunei’s sustainable energy sector: “This milestone reflects our commitment to environmental preservation and operational excellence.
“Collaborating with Hilong enables us to expand our capabilities while supporting regional decommissioning expertise.”
Jeffrey Gu, executive deputy president of Hilong Group, added: “We’re honoured to contribute to Brunei’s first major decommissioning project. Together with Serikandi, we will ensure successful delivery while upholding the highest safety and environmental standards.”
Upstream has reached out to Hilong, Serikandi Oilfield Services and BSP for comment regarding the contract award for the decommissioning job.
