The contract to clean up the former Woodside offshore oil and gas production vessel Northern Endeavour has been increased by $25 million to $357 million.
The bill is to be covered by the oil and gas industry with a levy of 48c per barrel introduced by the federal government and championed by Pauline Hanson and Rex Patrick.
Petrofac Facilities Management, a UK offshore oil and gas platform builder, maintainer and decommissioner, has received the growing contract.
The Northern Endeavour was once the responsibility of the federal government. It took control of the 274-metre oil production vessel after NOGA, the company to which Woodside sold the Northern Endeavour, went into liquidation in 2020.
It seems Woodside has managed to offload its burden onto the whole of its industry, rather than just paying up directly.
Andrew McConville, chief executive of the industry association APPEA, said the levy would see a few companies footing a massive bill for a project they had never been involved in.
“The government should not be washing its hands of this through a blunt instrument like a levy but working constructively and collaboratively with industry to minimise costs and explore all options,” McConville said.
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Callum Foote was a reporter for Michael West Media for four years.