Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

by leave—As I have previously advised the House, an uncontrolled release of oil and gas into the ocean and atmosphere occurred at the Montara Wellhead Platform in the Timor Sea on Friday, 21 August 2009. This was the first serious loss of well control in offshore Australia since 1984, with around 1,500 wells having been safely drilled over the last 25 years. Since the leak occurred our top priorities have been, and remain, the safety of people and the protection of the environment. On Tuesday, 3 November 2009, more than 10 weeks after the incident occurred, PTTEP Australasia, the operator and licensee of the Montara oilfield, successfully killed the leaking well and the fire that had broken out on the wellhead platform on Sunday, 1 November 2009. Bringing the well under control was a great relief to all those involved and to the Australian community, but it is important to recognise that there is more work to do to secure the well and make the facilities safe.

Unfortunately, the impacts of the fire on both the Montara wellhead platform and the West Atlas drilling rig mean that this work will take longer than initially expected. Technical options to secure the well are still under review. PTTEP is working with a peer group from the industry and with relevant regulators, including the Northern Territory Department of Regional Development, Primary Industry, Fisheries and Resources and the National Offshore Petroleum Safety Authority, so as to ensure the work is planned and executed competently and in accordance with good oilfield practice. The work must also be done safely and as soon as reasonably practical.

As with all other petroleum exploration and production activities, the remaining work to secure the well and make the facilities safe is regulated under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and associated regulations, and the Northern Territory department is the designated authority of the Commonwealth for day-to-day oversight. All options to secure the well require access to the Montara wellhead platform and therefore safety case revisions that take into account the new hazards introduced following the fire require very careful development by PTTEP, and equally careful assessment by the National Offshore Petroleum Safety Authority. Once the well is secured safely, there are four other major activities to be completed to make the facilities safe:

• Firstly, to plug and abandon the relief well and demobilise the West Triton drilling rig;
• Secondly, to remove the fire damaged rig cantilever from the West Atlas drilling rig and off the Montara wellhead platform;
• Thirdly, to remove the West Atlas drilling rig from the site; and
• Fourthly and finally, to inspect and repair the Montara wellhead platform.

All of these activities require detailed structural assessments to be undertaken and safe work procedures to be developed. These activities will also require safety case revisions for both the Montara wellhead platform and the West Atlas drilling rig. Those revisions can only be progressed step by step as new information becomes available from each phase of work and is properly assessed to enable safe planning for the next phase.

As I foreshadowed on 7 September 2009 there will be a broad-ranging major incident investigation into the causes of the incident. It is vital that we understand what went wrong, that we learn from this occurrence, and that we put in place whatever measures are warranted to prevent similar incidents in the future. With the support of all parties in the parliament, amendments to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 were passed in September 2009 to provide the power for me, as minister, to establish a commission of inquiry to investigate serious incidents like Montara. I would like to place on record my appreciation for that support.

On 5 November 2009 I duly appointed Mr David Borthwick AO, Public Service Medal, to conduct the Montara commission of inquiry. Mr Borthwick will report to me by 30 April 2010. This inquiry possesses the powers and authority of a royal commission. It will have power to summon witnesses, take evidence on oath and require individuals and corporations to give the commission documents relevant to its terms of reference. The inquiry will also receive public submissions. Mr Borthwick, as the commissioner, will determine and release further details of how the inquiry will be conducted in due course. Consistent with the proven approach taken by the Australian Transport Safety Bureau the commission of inquiry will receive evidence on a ‘no blame basis’.

Independent of the commission of inquiry, the relevant regulatory processes will determine whether any noncompliance with the law has occurred and whether any measures to seek penalties and other sanctions should be pursued. In accordance with the terms of reference, Mr Borthwick will investigate and report on:

• Firstly, the likely cause or causes of the incident;
• Secondly, the adequacy and effectiveness of the regulatory regime, including approved safety, environmental and resource management arrangements;
• Thirdly, the performance of relevant persons in carrying out their obligations under the regulatory regime;
• Fourthly, the adequacy of response requirements and the actual response to the incident;
• Fifthly, the environmental impacts as a result of the incident, including reviewing environmental monitoring plans; and
• Sixthly and finally, the offshore petroleum industry’s response to the incident and the provision and accessibility of information concerning the incident to stakeholders and the Australian community.

I have also asked Mr Borthwick to make recommendations, through me, to ministers, regulators and the industry, as appropriate, on measures that might mitigate similar incidents occurring in the future and alleviate the safety, environmental and resource impacts arising from such an incident. Concurrent with the commission of inquiry, the following investigations and reviews are being progressed by the Australian government:

• Firstly, NOPSA is investigating all aspects of the incident concerning occupational health and safety;
• Secondly, the Northern Territory Department of Regional Development, Primary Industry, Fisheries and Resources is investigating all aspects of compliance with the regulatory regime applied under the Offshore Petroleum and Greenhouse Gas Storage Act 2006;
• Thirdly, the Department of Environment, Water, Heritage and the Arts is undertaking an audit of compliance with conditions of the Environment Protection and Biodiversity Conservation Act 1999 approval relating to the drilling and other activities on the Montara wellhead platform; and
• Fourthly and finally, under the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, the Australian Maritime Safety Authority will undertake a separate review into the effectiveness of the response to the incident.

The Montara Commission of Inquiry will, to the extent practical, take into account these investigations and reviews. The outcomes will enable lessons to be learnt and improvements to be made by all stakeholders, including government and industry. It is important to note that, while the focus is now on securing the well, making the facilities safe, understanding what went wrong and what can be done to prevent these incidents in the future, the clean-up and environmental response is also continuing.

The Australian Maritime Safety Authority (AMSA) is continuing daily observation flights to locate and verify any residual patches of oil. In recent days, these flights have identified patches of highly weathered oil south-west of the Montara wellhead platform. These patches have been targeted for containment and recovery operations, which continue to be the best method of removing spilled oil from the environment. AMSA’s priority continues to be to mitigate risk to the environment by preventing oil from impacting shorelines. AMSA operations will be ongoing until such time as it is satisfied that the clean-up and monitoring of the area is no longer necessary. AMSA is working closely with environmental specialists.

On 15 October 2009 the Australian government also reached agreement with PTTEP Australasia for a long-term environmental monitoring program to be put in place. The program will provide a longer term understanding of the impacts of the spill on the marine environment, in addition to the wildlife plan that has been implemented during the response effort. Experts from the Australian Institute of Marine Science, CSIRO and relevant state and territory agencies have provided input to ensure that the monitoring program is appropriate and robust. It will include, by way of example, marine life surveying, wildlife and habitat studies, continued water quality testing and shoreline ecological assessments.

Finally, on behalf of the House, I acknowledge the enormous efforts of all those involved in responding to this incident. They have been under huge pressure but have stayed focused and safe until the job was done, despite a number of setbacks. It has been dangerous, long and exhausting work, and I particularly thank the families of those involved for their patience and understanding. On 4 November 2009 I received an email from one of the workers on board the West Atlas at the time of the incident. I am sure it represents the sentiments of many workers involved in this incident and I quote:

I was on board the West Atlas at the time of the leak and subsequent blow out on the drill floor and had to evacuate immediately. Please believe me that noone on board ever thought this situation would ever arise and we are not environmental terrorists who have no regard for the environment and wildlife…This is the furthest from the truth… It has been a very stressful time for everyone including the workers on board. I personally am very proud of the efforts of everyone involved to bring this situation to an end.

I also acknowledge PTTEP Australasia’s openness and continued cooperation with the Australian government throughout this incident and its commitment to cooperate fully with the commission of inquiry. It is vital that we learn from this incident and take any necessary steps to stop similar incidents happening again. The Australian oil and gas industry is a very important part of the Australian economy and its successful future depends on a commitment to the health and safety of people, and to the protection of the environment, that is second to none.

I extend my appreciation to the House for the opportunity to make this ministerial statement and, in doing so, I seek leave of the House to move a motion to enable the member for Kalgoorlie to speak for 14 minutes.

Leave granted.

I move:

That so much of the standing and sessional orders be suspended as would prevent the member for Kalgoorlie speaking in reply to the ministerial statement for a period not exceeding 14 minutes.

Question agreed to.

Barry Haase (Kalgoorlie, Liberal Party, Shadow Parliamentary Secretary for Roads and Transport) Share this | Link to this | Hansard source

On behalf of the coalition, I welcome the announcement of an inquiry into the oil spill on the Montara oilfield in the Timor Sea. I thank the Minister for Resources, Energy and Tourism for making sure that the House is kept up to date on this case. It is essential that this is a full and comprehensive inquiry that analyses the full range of events leading up to and after the oil leak, as well as the actions of government ministers and government departments.

Australia’s offshore exploration industry has an outstanding safety record. The incident off the coast of Western Australia was the first blow-out offshore in 25 years. In that time, around 1,500 wells have been drilled safely. It is essential that the integrity and accountability of the industry is maintained and that the full findings of this inquiry are reported in a transparent and timely manner. We also welcome the fact that the commission will have the powers and authority of a royal commission, along with its stated commitment to take submissions from a broad range of sources, including the public. Inquiry head, David Borthwick, will bring his experience as Secretary of the Department of the Environment, Water, Heritage and the Arts in the Howard government to the role, and I have full confidence in his ability to oversee the inquiry.

I take this opportunity to acknowledge the professionalism of the agencies which responded to the oil leak under the guidance of NOPSA, the National Offshore Petroleum Safety Authority. NOPSA was established to deal with incidents such as these and I believe that, in the execution of its duties, NOPSA has vindicated that decision of the Ministerial Council on Mineral and Petroleum Resources. I also note the minister’s assurance that PTTEP Australasia is cooperating with the commission of inquiry.

Offshore exploration has long played a critical role in contributing to our national economy and it will continue to do so. But the process of, firstly, intersecting with the drill stream and the later process of extinguishing the fire on board that platform was a highly complex and technical effort. It must not go unnoticed by this parliament that the technical expertise displayed by those whose task it was to locate that drill casing, 2.6 kilometres below the seabed, was much more complex than finding a needle in a haystack.

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

Mr Martin Ferguson interjecting

Barry Haase (Kalgoorlie, Liberal Party, Shadow Parliamentary Secretary for Roads and Transport) Share this | Link to this | Hansard source

Yes, the size of a dinner plate. The finding of it, somewhere in a three-dimensional space within a 2.6 kilometre range, the successful sealing of that blow-out and then the extinguishment of the fire on board the platform is a task that all Australians with an interest in the nation, the industry and the environment should acknowledge and honour.

I would like to express the coalition’s appreciation to all of those personnel on the West Atlas who were involved, and to those who had to evacuate the platform, by conveying to them that their actions were paramount in the final solution to what could have been, in a slightly different set of circumstances, an environmental disaster.

The inquiry is vital. Its process, I believe, will be hugely instructive to the public of this nation and it will be a further blueprint for ensuring that our activities in the future in the industry guarantee the absolute minimum of incidents. With those words, I concur with the minister. He is correct when he states that the most important objective of this inquiry is to find out exactly what went wrong so that similar circumstances can be avoided in the future. In conclusion, may I say that the Rudd government must ensure that this inquiry is used to ensure Australia’s high standards in offshore exploration are upheld.

Luke Hartsuyker (Cowper, National Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source

On indulgence, Mr Deputy Speaker, I would just like to support the remarks of the member for Kalgoorlie in his very fine contribution.