Maersk Decom loses sole contract, shuts down operations
Maersk Decom, the decommissioning services venture carved from the spinoff of Maersk's drilling and supply services units, is set to shut down following just four years of operations, after losing its sole decom contract to a competitor.
The contract in question is the subsea well decommissioning remit for Tullow's Banda and Tiof oil and gas fields, both situated offshore Mauritania.
While Maersk Decom has handled the contract since 2020, its rival Petrofac clinched a follow-on deal for the term ending early 2023. The latest tranche has a potential total value of more than $60mn.
Petrofac will offer up its Island Innovator drilling vessel and offshore support vessels to handle the next phase, as well as its personnel, assets and equipment. It is the fourth decom contract Tullow Oil has awarded to Petroface since 2016.
On its official website, Maersk Decom has stated it will close as it has no further commitments. Future decom contracts under the Maersk banner will go to Maersk Drilling and Maersk Supply Service, depending on the project's sphere of operations. Maersk Decom will close its website and social media channels on June 1.
Nick Shorten, chief operating officer for Petrofac's asset solutions, said on May 18 the award demonstrated global demand for the business's services skills and the quality of its delivery, particularly given its credentials in delivering North Sea oil services.
"We look forward to emulating this success for them in Mauritania, and across the African continent as we continue to grow our business here,” Shorten said.