ID :
151095
Wed, 11/24/2010 - 20:48
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Thai oil firm clarifies reported oil spill off Australian coast

BANGKOK, Nov 24 - Thailand’s national petroleum exploration and production company PTTEP on Wednesday clarified an Australian government report which found that its subsidiary, PTTEP Australasia (PTTEP AA) failed to observe "sensible" practice and caused the worst oil spill off Australia’s northern coast.

The Thai-owned company said its subsidiary has followed an action plan over the past 12 months in consultation with the Australian government and key regulatory agencies.

The company's statement was in response to the Montara Commission of Inquiry’s final report and findings which blamed PTTEP AA for failing to observe well-control practices at the Montara field in the Timor Sea off Australia's northern coast on Aug 21, 2009 which pumped thousands of barrels of oil into the sea for almost ten weeks, while advising the Australian government to review the company's licence to operate the oilfield there.

“PTTEP is confident that PTTEP AA will continue its development of Montara since we have developed the Action Plan and implemented it for 12 months," said the statement.

"We regularly updated its progress to the Australian Government. We therefore reaffirm our confidence that this extensive implementation can regain the Australian Government trust in PTTEP AA’s capability as a prudent operator with International best practice. We also commit to continue our investment in Australia in the long term,” PTTEP AA president and CEO Anon Sirisaengtaksin said in the statement.

The PTTEP AA statement reaffirmed the comprehensive action plan is currently being implemented and ensuring that the incident which occurred at Montara is never repeated.

PTTEP AA spokesman Chris Kalnin said the substantial transformation of the company’s drilling operations has seen all supervisory and managerial drilling personnel associated with the Montara incident removed from their positions.

The statement also said PTTEP AA had completed its commitment made to the Australian government in the first days of the Montara incident to cover costs associated with the spill clean-up operations and that the company is funding a five-year long-term environmental monitoring program in cooperation with the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC).

PTTEP purchased Coogee Resources Limited in February 2009 and later renamed it as PTTEP Australasia.

PTTEP Australasia operates two oil fields, Jabiru (2,700 barrels per day) and Challis 1,500 barrels per day), and the Montara oil field in the Timor Sea.

Australian Resources Minister Martin Ferguson earlier told Parliament that the government report found operator PTTEP Australasia failed to observe "sensible" practice at the Montara field, adding that "the widespread and systematic shortcomings of PTTEP Australasia's procedures were a direct cause of the loss of well-control."

PTTEP Australasia, which paid US$319 million of clean-up operations, is being pursued for compensation by Indonesia over the slick which environmentalists claim grew to almost 90,000 sq km (35,000 square miles).

Thousands of barrels of oil gushed into the sea from the damaged well after a blowout on the West Atlas rig on Aug 21, 2009 prompted the evacuation of workers.

Repeated efforts to contain the spill failed before it was finally plugged on Nov 3, after the rig burst into flames after one failed attempt, by pumping in heavy mud. However, no casualties were reported. (MCOT online news)


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