ID :
151154
Thu, 11/25/2010 - 01:01
Auther :
Shortlink :
http://m.oananews.org//node/151154
The shortlink copeid
Thai oil rig licence 'at risk' over spill
A Northern Territory department failed to identify shortcomings in the operations of
the Thai government-owned company behind Australia's worst oil spill, an inquiry has
found.
Resources Minister Martin Ferguson publicly released a report by the Montara
commission of inquiry on Wednesday into the 10-week oil spill in the Timor Sea last
year.
PTTEP Australasia, a subsidiary of PTTEP Group which is owned by the Thai
government, operates seven exploration licences, five production licences and seven
other leases in Australia.
The inquiry found PTTEP had not used sensible oilfield practices at the Montara
oilfield, off Western Australia's northwest coast.
It recommended Mr Ferguson issue a show cause notice to PTTEP as to why it should be
able to continue to operate the oilfield.
But the minister said the recommendation did not go far enough.
"In light of the company's other operations in Australia, I believe a review of
PTTEP Australasia's licence to operate, which in turn was the commissioner's
recommendation (but) was restricted to the Montara field," Mr Ferguson told
reporters.
The inquiry found that major shortcomings by PTTEP and systemic failures by the
Northern Territory Resources Department to identify them led to the spill.
"In this case, the regulatory dog did not bark," the report said.
The NT department's "tick and flick" approach gave it little chance of discovering
PTTEP's poor practices, Mr Ferguson said.
"Clearly the accident could have been avoided," he said.
Mr Ferguson said he would wait for an independent departmental review of PTTEP's
action plan before making a decision in December.
The minister said he would strictly observe procedural fairness ahead of any decision.
"So as to ensure if I am required to take further action I minimise any legal
challenges to actions I may or may not take," he said.
Mr Ferguson said it could potentially force PTTEP to sell its various production
licences if its operating licence was revoked.
"A potential end result of that (action being taken) would be a serious financial
issue to PTTEP, which I may point out is in essence the Thai national republic," he
said.
No new exploration licences had been issued to PTTEP since the government received
the report, or any further approvals to operate oilfields, Mr Ferguson said.
The company was not producing in Australia at the moment, he said.
PTTEP spokesman Chris Kalnin said he had acknowledged there were deficiencies in the
company's operation and the company was working to address them.
"The action plan will ensure the full accountability of key personnel to give
greater oversight for reporting and checking of all critical offshore operations.
"This will strengthen the integrity and safety of drilling operations."
All drilling supervisors and management responsible during the Montara incident had
been removed from their jobs, Mr Kalnin said.
The company had learned valuable lessons during the incident and through the
inquiry, he said.
PTTEP faces potential prosecutions on health and safety issues, as well as for
breaching regulations.
The National Offshore Petroleum Safety Authority provided the commonwealth Director
of Public Prosecutions with a brief of evidence in June as to whether health and
safety laws were contravened.
Workers were evacuated when the well began leaking oil and gas, and no one was injured.
Mr Ferguson said the government was working to establish a single national offshore
petroleum regulator, as recommended by the inquiry, to restore faith in the
industry, which was worth $35.6 billion in revenue to Australia last financial year.
Australian Greens marine spokeswoman Rachel Siewert welcomed the report,
particularly the recommendation for a single regulator.
Conservationists have called on the government to establish marine sanctuaries to
prevent oil and gas drilling in environmentally sensitive areas.