Varanus Island Gas Incident

23 June 2008 Update

On Monday 23 June, Apache Energy released a media statement that outlined the completion of an initial assesment at its Varanus Island hub. It also outlined a timetable for restoring production.

To view this media statement and other updates from Apache Energy, please visit http://www.apache-energy.com.au/incident/incident.asp

20 June 2008 Update

Department of Industry and Resources roles and responsibilities

The Apache Varanus Island facilities are licensed under the Petroleum Pipelines Act 1969 (PPLA1969) as PL12.

The Department of Industry and Resources is responsible for regulating the safety and integrity of facilities on Varanus Island under the Petroleum Pipelines Act. 

The department has been administering these responsibilities with input from the National Offshore Petroleum Safety Authority (NOPSA) under a service level agreement and other sources. 

Regulation

Regulation of the Varanus Island facilities is in accordance with the nationally accepted Safety Case approach, which is risk and objective based.

Operators, such as Apache, are required to do risk assessment and develop appropriate safety management systems.

Regulation is by assessment and acceptance of safety cases by regulators (DoIR on advice from NOPSA). Safety cases must be revised every five years.

Since 2005, NOPSA has conducted six planned inspections on Varanus Island.

Incident Investigation

The department has authorised an investigation into the incident which is currently being undertaken by a team consisting of two NOPSA representatives and one departmental inspector appointed under the Petroleum Pipelines Act. 

The process will take about 10 to 12 weeks before a report is completed and provided to the Minister. Release of that report, or parts of it, will be determined by the Minister.

Facilitating the Re-start

The department and NOPSA are also working with Apache to determine the process for early and safe resumption of gas and liquids production.

On Friday, June 13, approval was granted for demolition and removal of the damaged infrastructure and clean up of the site.

The department is also reviewing the company’s safety procedures for the demolition phase. 

For further information released from the Office of Energy visit http://www.energy.wa.gov.au/ 

For information released by the National Offshore Petroleum Safety Authority visit http://www.nopsa.gov.au/

19 June 2008 Update

On 12 June 2008, Minister Francis Logan provided the Legislative Assembly with the following information during Questions Without Notice.

QUESTIONS WITHOUT NOTICE 297 AND 298
Supplementary Information Statement

MR F.M. LOGAN (Cockburn — Minister for Energy) [2.55 pm]: Pursuant to standing order 82A, I provide the house with further information to two questions that were asked today relating to the regulation of pipelines at Varanus Island. As I indicated to the Leader of the Opposition and the member for Darling Range, I had asked the Department of Industry and Resources for further information about the regulation of the pipelines. I can provide that information to the house immediately. It relates directly to the questions asked.

As I indicated, the pipelines on Varanus Island are regulated by the department and me under the Petroleum Pipelines Act 1969, and the Varanus island facility is determined under that act as PL12. As I also indicated to the Leader of the Opposition during my answer to his question, the responsibility for the review of the operations on Varanus Island lies in the first case with the operator itself, who then prepares the technical information that would then be reviewed by the National Offshore Petroleum Safety Authority in conjunction with the department. Those reviews are called safety cases. The safety case approach is a national approach to the regulation of petroleum operations in Australia. As a rule, regulators do not undertake site inspections but instead inspect operator reports and audit reports, as I indicated to the Leader of the Opposition. Safety cases have to be revised every five years.

With respect to Varanus and the questions asked by both members, the most recent safety case of the Varanus hub facility was reviewed by NOPSA and accepted by DOIR on 6 December 2007. The Apache Global operations pipeline management plan was reviewed and accepted by NOPSA on 27 March 2008. Since the start of NOPSA involvement at the beginning of 2005, NOPSA has conducted six planned inspections and advised DOIR of at least 19 assessments, involving matters such as diving project plans, safety cases and safety case revisions, licence renewals and variations and the recently completed global pipeline safety management plan assessment. At the request of DOIR, Apache provided a copy of the PL12 validation summary report, which was received on 8 August 2007.

The report indicated no impediment to continued safe operations or compliance with PL12 requirements that the safety and technical integrity of the whole of the Varanus Island plant and facilities were fit for purpose, and the safety management system was viewed as comprehensive and integrated. The planned inspection for the Varanus Island onshore facilities was conducted between 5 and 7 March 2008. On 3 April 2008 DOIR wrote to Apache requesting that Apache liaise with NOPSA regarding steps to address the recommendations from the inspection. Recommendations included management of facility integrity and inspection and testing of emergency shutdown systems.

The current status is that an investigation into the cause and extent of damage by a team of NOPSA and DOIR personnel is still underway. The investigation report will be confidential. DOIR is working with Apache to determine the process for early and safe resumption of gas and liquids production.