The reactor shut down in February 2012, after 44 years of operation.
Defuelling, which involves removing over 25,000 fuel elements, is expected to remove over 99% of the radioactivity from the site, Magnox said.
One removed, spent fuel elements will be stored in onsite cooling ponds, before being sent by rail for reprocessing at Sellafield.
Reactor 2 at Oldbury started defueling in 2012, and work is now 16% completed, according to Magnox Ltd.
Photo: the fueling machine