Varanus Island Incident Investigation Released 

10 October 2008

 

The Minister for Resources and Energy, Martin Ferguson AM MP, has welcomed the release of the report into the investigation of the gas pipeline failure on Varanus Island on 3 June 2008 by the Western Australian Government.

The report was prepared by the National Offshore Petroleum Safety Authority at the request of the WA Department of Industry and Resources and is the result of an investigation by the two agencies.

The WA Department of Industry and Resources is the responsible regulator for matters relating to the Varanus Island incident.

Minister Ferguson has advised the WA Minister for Mines and Energy, Norman Moore, that the Australian Government is prepared to provide further assistance and the two will meet next week in Perth to discuss the way forward.

Minister Ferguson has received a copy of the investigation report and will consider the issues raised in the context of the effectiveness of the regulatory regime for offshore petroleum safety and the Australian Government's goal to achieve world class safety standards and performance in the offshore petroleum industry.

The investigation has found that the likely cause of the incident is related to ineffective corrosion and cathodic protection measures, and ineffective pipeline inspection and monitoring.

The investigation concludes that Apache, the operator of the facilities, and its co-licensees, may have committed offences under WA legislation and its pipeline licences.

Minister Ferguson said: "Under the safety case regime, it is the operator's responsibility to maintain a safe working environment, identify hazards and take appropriate control measures.

"It is vitally important that all our petroleum industry operators take note of the lessons of this incident and re-evaluate whether their own safety management systems are appropriate and being complied with.

"Together with my Department and NOPSA, I will be taking a close look at the issues raised in the context of the effectiveness of the regulatory regime for offshore petroleum safety.

"While personnel safety is our number one concern, Australia's oil and gas facilities provide essential energy security to Australian households and industry and maintaining the integrity of those facilities is vital."

Media Contact:

Michael Bradley - 0420 371 744