Bhagwan Marine Wins Barrow Island Contract Opening Door to Wider Decommissioning Work

Bhagwan Marine secures strategic Barrow Island decommissioning contract

Bhagwan Marine Limited (ASX: BWN) has been awarded the Bhagwan Marine Barrow Island contract from a major oil and gas client for the removal of oil tanker moorings and navigation buoys at Barrow Island, Western Australia. The contract represents an important entry point into a broader offshore decommissioning programme associated with legacy infrastructure in the region.

The scope provides Bhagwan with the opportunity to showcase its proven capability, positioning the company strongly as operators progress subsea and shallow-water decommissioning programmes. This is not just a standalone contract but a strategic positioning opportunity that could open doors to larger, more complex scopes as major operators advance their removal schedules.

The removal methodology being developed has the potential to establish a repeatable solution for broader nearshore and shallow-water decommissioning infrastructure. Major offshore oil and gas operators have similar legacy infrastructure profiles requiring removal, creating a scalable opportunity if the methodology proves effective.

What is offshore decommissioning and why does it matter?

Offshore decommissioning refers to the process of safely removing end-of-life oil and gas infrastructure once production ceases. This includes platforms, moorings, pipelines, and navigation buoys that have reached the end of their operational life. The work requires specialised marine capability, engineering expertise, and strict adherence to regulatory and environmental standards.

The market for decommissioning services is growing across Australia’s offshore basins. Decades of offshore development across Australia’s Northwest Shelf, Northern Australia basins, and Bass Strait have created a pipeline of legacy assets requiring removal. Major operators face regulatory obligations to decommission aging infrastructure under national and state legislation, creating a long-term structural demand tailwind distinct from cyclical exploration and production spending.

Decommissioning represents a multi-decade revenue opportunity for companies with proven capability and local expertise. Unlike exploration and development projects, which fluctuate with commodity prices, decommissioning work is driven by regulatory timelines and asset lifecycles, providing a more stable revenue base.

Building a decommissioning track record

The Bhagwan Marine Barrow Island contract adds to the company’s growing portfolio of decommissioning work. Since commercial completion of the TVI project, Bhagwan has continued to build its decommissioning track record through additional support contracts. As outlined in the company’s Prospectus, decommissioning is expected to become an increasingly important component of Bhagwan’s business.

Recent decommissioning contracts and support work include:

• TVI project (commercially completed)
• Northern Endeavour operations (Timor Sea)
• Harriet Alpha platform (offshore Western Australia)
• Angel platform (offshore Western Australia)
• Barrow Island contract (latest award)

The expanding project list demonstrates execution capability and builds credibility for larger, more complex scopes. Each completed project strengthens Bhagwan’s tender positioning as operators seek contractors with proven safety records and operational track records in Australian waters. The diversity of projects across multiple basins also demonstrates the company’s ability to mobilise resources and adapt methodologies to different environments.

Methodology with broader market potential

The removal methodology being developed for the Barrow Island contract has potential to become a repeatable solution for nearshore and shallow-water decommissioning infrastructure. Major offshore operators have similar legacy infrastructure profiles, creating a scalable opportunity if the methodology proves effective and cost-competitive.

A repeatable solution creates operational leverage. Rather than custom engineering each project from scratch, standardised methodology can improve margins and accelerate project delivery timelines. This positions Bhagwan competitively against contractors who lack comparable experience or must develop bespoke solutions for each scope.

Managing Director’s perspective on strategic positioning

The contract award reflects deliberate strategic positioning by the company over recent years to capture emerging decommissioning opportunities.

Loui Kannikoski, Founder, Managing Director & CEO

“Over recent years, we have positioned Bhagwan to capture the long-term opportunity emerging in offshore decommissioning across Australia’s Northwest Shelf, Northern Australia basins and the Bass Strait region. This award reinforces that strategy and reflects confidence in our ability to deliver safe, practical and cost-effective solutions in complex environments.”

The statement highlights management’s view that the contract validates the company’s capability positioning and reflects client confidence in Bhagwan’s ability to deliver in complex offshore environments. The emphasis on safety, practicality, and cost-effectiveness reflects the key tender criteria operators typically prioritise when selecting decommissioning contractors.

Australia’s largest listed marine solutions company

Bhagwan’s operational scale and capability provide context for why the company can compete for this type of work. Key operational metrics demonstrate the capacity to execute complex offshore projects:

• Australia’s largest listed marine solutions company
• Serves offshore energy, subsea, ports and inshore, and defence sectors
• More than 1,000 skilled professionals employed
• Up to 200 qualified divers
• Long-standing partnerships with major energy companies, mining companies, construction firms, and government agencies

Scale and in-house crewing capability differentiate Bhagwan from smaller competitors. The diverse fleet and skilled workforce provide operational flexibility across project types, allowing the company to mobilise resources quickly and maintain continuity across multiple concurrent scopes. The large diver workforce is particularly relevant for subsea decommissioning work, where specialist underwater capability is critical.

The company’s recognition for strong safety culture, operational excellence, and ability to deliver high-quality outcomes in complex environments supports its positioning for larger, higher-value decommissioning programmes as operators progress their removal schedules.

The Bhagwan Marine Barrow Island contract represents an entry point into broader offshore decommissioning programmes, with the company positioned to pursue additional scopes as operators advance their removal schedules across Australian waters. The development of repeatable methodology and continued demonstration of execution capability positions Bhagwan competitively for follow-on work in a market characterised by long-term structural demand.

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