Perth
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Introduction
Good afternoon distinguished guests, ladies and gentlemen.
Let me start by once again thanking you all for being a part of the International Offshore Petroleum Regulators and Operators Summit here in Perth, and for the contributions you have made over the past day and a half.
To our speakers, thank you for making time to be a part of this event and for your outstanding presentations.
It was vital to have each and every one of you here, sharing views and applying lessons to make the offshore petroleum industry the best and safest it can be.
As I said at the outset this Summit was never intended to be merely a political exercise.
Our intention was to bring together the people who are on the frontline of the world's offshore petroleum industry for a frank and fearless exchange of views.
And I believe that is exactly what we have had, and what has made this Summit a success.
Our American friends captured the essence of this at the beginning of the very first session yesterday by emphasising that each of us - permit holder, operator, regulator or government - has a stake in the performance of the other in connection with almost all activities in the offshore petroleum industry.
This is why this Summit has been so important - it has given us all the opportunity to enhance existing relationships and to build new ones.
Over the past one and half day we have all improved our understanding of, and commitment to, the responsibilities we assume in our individual functions and to the part we each have to play in making sure this industry has a sustainable future founded on an adherence to the highest standards in respect of both personnel and process safety.
It is clear from the presentations and discussions of yesterday and today that we have all - industry, regulators and governments - come a long way and completed a substantial amount of work since the incidents at Montara and Macondo.
But it is also clear that more remains to be done.
This work ahead will not be easy or quick.
It calls for dedication by governments, industry and regulators alike.
Dedication that continues well beyond the immediate aftermath of these two major incidents.
Our commitment must be to continually raise the bar, to relentlessly pursue safer and better outcomes in every aspect of our work.
Summit outcomes
The hard work that has gone into developing and agreeing on a substantial body of work to be taken forward is a clear demonstration of this commitment.
Governments, regulators and industry agreed on strategies that will enable us to achieve the twin goals of better protecting human health and safety and preserving the marine environment.
These include:
- Governments pursuing reforms to the regulatory and legislative frameworks as required to keep pace with a dynamic and growing industry and ensuring that within their jurisdiction there is an independent well-resourced regulator that challenges operators to be rigorous in their operational practices, prevention and mitigation techniques.
- Regulators collaborating through the work of the International Regulators Forum and other international bodies to facilitate a globally consistent, performance-based approach to regulation.
- Exploration and production companies and their contractors working together on a global basis to improve well incident prevention, intervention and response capability.
These and other outcomes provide a solid platform for action by all connected with the petroleum industry, whatever the role and wherever located.
As Australian Minister for Resources and Energy I can confidently say that the Australian regulatory environment for its part of the global petroleum industry will reflect the international consensus clearly demonstrated during this Summit.
Industry's support for the outcomes of this Summit emphasises its determination to maintain an ongoing social licence to operate.
The task ahead cannot be achieved by one nation.
It needs a coordinated global approach.
The Summit has reiterated the critical importance of international engagements on key issues such as:
- response preparedness;
- capabilities; and
- transboundary issues;
through international bodies such as the G20 and the International Maritime Organization.
The relationships that have grown at this Summit provide an ideal basis for ongoing cooperation to improve response preparedness and prevention.
For example, the knowledge shared by colleagues on the lessons learned from Macondo was particularly useful.
The update on implementing the recommendations made in the US Presidential Commission Report highlighted the extensive work that’s been done so far.
The Summit also gave industry itself a chance to discuss the work being done to improve the culture of safety.
Over the two days before the Summit, the APPEA National Oil and Gas Safety Conference shared innovative ideas on applying safety to all phases of projects and operations.
Since Montara and Macondo, the bar for best practice in offshore petroleum activities is higher – and so it should be.
Right across the world, communities are demanding better outcomes.
The creation of the Global Industry Response Group under the auspices of the International Association of Oil and Gas Producers is particularly welcome.
This Summit affirmed the Response Group’s conclusion that investment in better prevention procedures, behaviour and equipment is a critically important element in reducing the likelihood and impact of emergencies.
In Australia, the offshore petroleum industry has built on those recommendations by, amongst other things:
- conducting forensic analysis of process and practice on well design, integrity and operations;
- reviewing oil spill response capacities and preparedness, and blowout contingency plans; and
- conducting a detailed analysis of all critical rig equipment and verified preventive maintenance requirements and integrity assessments.
At the Summit this morning, APPEA unveiled a Mutual Aid Memorandum of Understanding.
This MoU puts in place a framework for deploying and sharing equipment and personnel in responding to a significant offshore petroleum incident.
This follows similar mutual assistance arrangements that have already been put in place in the Gulf.
But this is not enough. Given, not so much the risk, but the consequences, of all preventative measures failing, there must be a capping and containment solution that plainly can be mobilised as needed.
In this regard, as the Australian Minister for Resources I welcome the work being done by petroleum companies operating in Australia in relation to an Australian based capping and containment solution, the construction of which I understand is to commence early next year.
This technology will also form part of an integrated global, regional, and local approach to offshore incident response.
And together with the Australian Marine Oil Spill Centre, Australian industry is improving its plans for shoreline clean-up, dispersant use and oil-spill contingencies
Leadership
As I said yesterday, cooperation, commitment and prevention only come about through strong leadership.
Each and every one of us can take the lessons from Montara and Macondo, and the outcomes agreed at this Summit, and work towards implementing them.
To maintain a social licence to operate and restore public confidence in the offshore petroleum industry, we must be responsible custodians of our marine environment.
That means taking meaningful steps to improve resilience, and prevent emergencies arising in the first place.
What I have heard from industry participants during the past few days gives me full confidence in the commitment of senior management to ensuring that in their companies there exists, at all levels, a culture of safety first and of regulatory compliance.
It is the obligation of senior management to ensure that their ambitions in this regard are achieved.
Conclusion
Thank you again for taking part in this Summit.
Knowledge-sharing nurtures the ongoing development of the offshore petroleum industry, both here and globally.
An event such as this one multiplies the value of each initiative already underway around the world.
Working together, we achieve more than working apart.
I look forward to engaging with all of you in some capacity over the coming years.
As responsible custodians of our marine environment together we are implementing the lessons learnt from Montara and Macondo and raising our regulatory and operating practices and procedures accordingly.
In doing so, we are ensuring that the global offshore petroleum industry will maintain its social license to operate, to the benefit of all.