Senate debates

Tuesday, 22 June 2010

Questions without Notice: Additional Answers

Gulf of Mexico Oil Spill

3:03 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I wish to incorporate further information in answer to a question asked by Senator Siewert to Senator Wong.

Leave granted.

The answer read as follows—

Question Time

ANSWERS TO QUESTIONS ON NOTICE

Resources, Energy and Tourism Portfolio 17 June 2010

Topic:    Gulf of Mexico Oil Spill and Montara Incident

Hansard Page:    22-24

Supplementary questions from Senator SIEWERT:

Could the Minister confirm whether all the wells in Australia that have been cemented by the company that was responsible for the cementing of the well with regard to Montara, and is reported to be the same company that did the BP well in the Gulf of Mexico, been audited by the relevant authorities?

The Australian Government has implemented a range of measures following the Montara and Gulf of Mexico incidents. The Government:

  • Initiated an Inquiry into the uncontrolled hydrocarbon release from the Montara Wellhead Platform that occurred from 21 August—3 November 2009. Commissioner David Borthwick AO PSM, delivered his report arising from the Inquiry to the Minister for Resources and Energy, Martin Ferguson AM MP, on 18 June 2010. The Inquiry was conducted on a “no-blame” basis under the powers of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
  • Requested the Northern Territory Government (as the delegated Designated Authority) to undertake a review of the status of wells suspended by PTTEP at the Montara Wellhead Platform;
  • Requested all Designated Authorities to undertake a compliance review of existing well approvals;
  • Developed and introduced amendments to the Offshore Petroleum and Greenhouse Gas Storage Act which are currently before the Parliament. These amendments will enhance the safety and integrity regulation for offshore petroleum activities; and
  • Commenced an internal government review of the findings and recommendations arising from the US Department of the Interior’s report on increased safety measures for energy development on the outer continental shelf, for relevance for Australian legislation and regulations.

In addition the National Offshore Petroleum Authority (NOPSA) has increased its focus, in safety case assessments and through its inspection of drilling rigs, on issues arising from the Montara incident. NOPSA has urged Australian titleholders and rig operators to learn from the initial key safety recommendations made by US authorities in the wake of the Gulf of Mexico incident, including in relation to well control equipment (both surface and subsea), review all rig drilling/casing/completion practices and review all emergency shutdown and dynamic positioning procedures that interface with emergency well control operations.

Companies operating in Australia are reviewing their operations to ensure that there are no further incidents. A number of them have already implemented actions in relation to their activities in Australia and worldwide. This includes reviews of well plans, drilling processes, blow-out contingency plans, testing frequencies and training of personnel.

The Montara Commission of inquiry is reporting to the minister for resources tomorrow. When will the government be releasing the report to the public for public review?

Commissioner David Borthwick AO PSM, delivered his report arising from the Montara Commission of Inquiry to the Minister for Resources and Energy, Martin Ferguson AM MP, on 18 June 2010.

The Minister will properly consider the findings and recommendations of the report and act promptly and appropriately on them.

Prior to releasing the report publicly the Minister is bound to take advice to ensure that in the handling of this report he does nothing to prejudice the conduct of further investigations for possible offences including criminal offences, other civil or criminal action, or undermine any natural justice considerations.