Santos WA Northwest Pty Ltd pleaded guilty today in the Karratha Magistrates Court over a condensate spill at the Varanus Island Marine Terminal, located off the northwest coast of Western Australia.
The company has been fined $10,000 plus costs of $9,700 and charged with failing to operate its licensed pipeline in a proper and workmanlike manner, failing to prevent the escape of petroleum, as required under the Petroleum (Submerged Lands) Act 1982.
On 20 March 2022, around 25,000 litres of condensate escaped from a rupture in the flexible part of a pipeline that conveyed petroleum condensate to offshore shipping tankers.
Shortly after dawn, condensate was observed on the ocean surface, prompting an immediate halt to the loading process.
The rupture occurred due to repeated overbending and kinking of the flexible loading line, which compromised its structure over time.
The pipeline was stored on the seabed at depths of 20-25 metres and connected to surface buoys for retrieval by support vessels.
The support vessel crews were not sufficiently aware of the company's written procedures for loading offtake tankers, which had identified the hazard of kinking flexible loading lines and prescribed measures to prevent it.
Santos' failures, as the pipeline licensee, included insufficient monitoring of condensate loading operations, as well as failing to conduct an adequate investigation of the pipeline's fitness for purpose prior to using the pipeline in 2022.
Following the spill, the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) required Santos to strengthen its operational controls by amending the company's environment plan to reduce the risk of future incidents.
DEMIRS Executive Director of Resource and Environmental Compliance Tyler Sujdovic said the department would continue to enforce compliance to ensure companies observe all regulations and adopt best practice.
"Operating subsea pipelines in a 'proper and workmanlike manner' is a fundamental principle widely understood and applied by operators in the oil and gas industry," Mr. Sujdovic said.
"This principle is upheld through proactive risk management, adherence to best practices, and meticulous documentation.
The objective is to ensure pipelines are operated safely, reliably, and professionally.
"Companies must ensure all workers, including contractors, have the required training and access to up-to-date written procedures to manage petroleum effectively when performing their assigned tasks.
"The department is committed to ensuring petroleum activities are conducted in an environmentally safe and responsible manner.
After the incident, Santos reviewed its practices and implemented measures to prevent the kinking of flexible loading lines, and subsea monitoring of the position of the line.
