Upstream reports that Australia’s federal offshore regulator, the National Offshore Petroleum Safety & Environmental Management Agency (NOPSEMA), is investigating an incident that occurred during installation work on Shell’s under-development Crux gas field offshore Australia. Images and video shared on social media appear to show part of a rig section dropping from height during the operation.

According to Upstream’s sources, the event happened during piling activities being carried out from McDermott’s derrick lay barge DLV 2000, which is executing part of the US contractor’s offshore installation scope on Crux. No injuries or fatalities were reported, and it remains unclear whether any damage was sustained by the Crux facilities or by the vessel.

Industry sources told Upstream that the incident involved new drilling equipment purchased from a third-party supplier. The package had been tested before it was put into service, and the equipment has since been safely recovered from the incident location. Upstream understands that McDermott’s project team is finalising a comprehensive internal investigation to determine the root cause, identify lessons learned and prevent a repeat.

A spokesperson for Shell confirmed to Upstream that an incident related to piling operations occurred on the Shell Crux project on 15 November. The company said no personnel were injured and that the matter was reported to the regulator in line with the rules.

The Offshore Alliance, a partnership between the Australian Workers’ Union (AWU) and the Maritime Union of Australia, swiftly condemned McDermott’s handling of the situation in a social media post. The group alleged that the contractor has cut back on safety procedures, care and maintenance, industrial relations and safety standards, relied on overseas workers instead of Australians and may face cost overruns on its Crux scope.

“Cutting corners on safety procedures, care and maintenance, industrial relations and safety standards comes at a cost,” the Offshore Alliance said. “Skilled work isn’t cheap and cheap work isn’t skilled.”

In a written response to Upstream, a McDermott spokesperson said the company remains focused on delivering the Crux project safely and efficiently, in line with customer expectations and regulatory requirements, and that safety and operational performance will continue to be its top priorities.

Upstream notes that in July McDermott loaded out the Crux jacket from its fabrication yard on Batam Island in Indonesia. The structure is one of the largest the contractor has produced, with a source estimating the jacket weight at about 24,000 tonnes and the piles taking the combined weight to more than 31,000 tonnes.

Crux is being developed to supply backfill gas to Shell’s Prelude FLNG facility, with production start-up targeted in 2027. Although NOPSEMA is examining the November incident, Upstream reports that it is considered unlikely to derail the project’s overall schedule.

A spokesperson for NOPSEMA told Upstream that the agency is aware of an incident that occurred on the Crux facility on 15 November. The event was reported promptly by the operator in line with regulatory requirements, and NOPSEMA is conducting an investigation and seeking further information from the company. As Australia’s independent offshore regulator, the agency said it treats all safety-related incidents seriously and remains committed to protecting offshore workers and the environment. With the investigation ongoing, NOPSEMA said it is unable to provide additional detail.

Upstream also recalls that in April 2025 NOPSEMA issued McDermott with an Improvement Notice over safety breaches after a worker was injured on board DLV 2000 while the vessel was working for Woodside Energy in Australian waters.