Following the oil spill from the Montara Platform in August 2009, the Minister for Resources and Energy, Martin Ferguson AM MP, commissioned an independent review into the operator of the well head, PTTEP Australasia (Ashmore-Cartier) Pty Ltd (PTTEP AA).
The review assessed the action plan the company submitted to address the deficiencies identified by the Montara Commission of Inquiry. It examined both technical and governance issues to provide advice to Government on PTTEP AA's suitability to continue operations in Australia.
Today, the Minister released the report of the independent review, which found that the Montara Action Plan effectively responds to the issues raised in the Montara Report and sets the company on the path to achieving industry standards for both good oil field practice and good governance.
“The company has cooperated fully throughout the review process and demonstrated significant changes to improve its leadership, governance and operating practices,” Minister Ferguson said.
“The report correctly identifies that the plan will only be effective if it is properly implemented.
“That is why I have accepted the recommendation to subject the company to a rigorous 18 month monitoring program to ensure that all aspects of the plan are implemented to the letter.
“I have decided in light of these findings not to issue PTTEP AA with a show cause notice leading to the cancellation of their operations at the current time.
“However, I retain the right to issue a show cause notice at any time should the monitoring program reveal that any aspect of the action plan is not implemented to my satisfaction.
“I will also be placing an additional set of conditions on the renewal or future granting of offshore petroleum title applications to PTTEP in Australia.
“Government, regulators, industry and individual companies are implementing the lessons of Montara and the Gulf of Mexico.
“Industry understands that in order to maintain its social licence to operate it must put the safety of workers and the environment first as part of the responsible development of our natural resources, and that this is something the Government will hold them to.”
Changes have already occurred in the senior technical team and PTTEP will shortly announce substantial changes to the leadership roles and structure at PTTEP AA.
The report of the independent review provides evidence that PTTEP AA has the capacity to implement industry best practice in its petroleum operations and an ongoing commitment to operational improvement across its Australian interests.
A copy of the independent review report is available at www.ret.gov.au/montarainquiryresponse