Responding to Montara and Macondo Actions by Australia's oil and gas industry

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Responding to Montara and MacondoActions by
Australia's oil and gas industry
International Offshore Petroleum Regulators and
Operators Summit Eric Streitberg, Chairman of
APPEA
Australian Petroleum Production Exploration
Association (APPEA)
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Montara Incident 21 August 2009
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History of Offshore Well Incidents in Australia
1964 First offshore well
1965 Barracouta well blowout
1966 Marlin well blowout
1968 Marlin well blowout
1969 Petrel well blowout
1971 Marlin well blowout
1984 Flounder well blowout
2009 Montara well blowout
1965
1970
1975
1980
1985
1990
1995
2000
2005
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Australian Oil and Gas Industrys Response

• Strong and immediate action by industry - pulled
  together to provide peer review, specialist
  personnel and support.
• Important to note that the emergency response to
  Montara at the time worked well, and saw 67
  people evacuated without physical harm.
• APPEAs members have since carried out in depth
  reviews of design, integrity and operations of
  all their wells, their communication and
  verification protocols and emergency response
  preparedness.

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Australian Industry Actions

• A new self-audit tool to guide integrating permit
  holders and contractors well operations
• A Memorandum of Understanding on Mutual Aid for
  responding to offshore well incidents
• A commitment to designing and constructing a well
  capping solution for Australian conditions
• Increasing collaboration within the Australian
  drilling industry
• Expanding the Australian petroleum industry spill
  response capability including through AMOSC
• Continuing to work closely with OGPs Well Expert
  Committee on international recommendations

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Self-audit Checklist

• The Montara Inquiry Report identified the
  importance of effective and verified
  communication between the title holder and their
  contractors
• Critical areas include planning, preparing and
  executing well activities, and emphasising the
  title holder has primary responsibility for well
  operations
• The Australian industry has developed a
  self-audit tool to be used to assess/audit title
  holders management system and clarify
  responsibilities between the title holder and the
  contractor

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Memorandum of Understanding Mutual Aid for Well
Incidents

• The Australian industrys Mutual Aid Memorandum
  of Understanding sets up a framework for best
  endeavours mutual assistance arrangements in
  drilling relief wells
• The Parties to the Memorandum acknowledge that
  from time to time, emergency conditions arise
  that require drilling relief wells
• This would necessitate an urgent response and
  assistance by industry to minimise adverse
  impacts
• For timely response, the general principles of
  the MoU will form the basis for arrangements with
  the Drilling Operator, drilling unit(s) and
  contractor personnel, equipment, materials,
  consumables and other well-site services

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An Australian Well Capping Solution

• The Australian and international industry has
  been working on the development of a capping
  strategy that will incorporate a regional and
  local capability
• Australia has been leveraging this work to
  identify the optimum option for Australia
• The Australian industry has commenced scoping and
  designing a local well capping solution suited
  for Australian conditions
• Construction work on an Australian capping system
  is expected to commence in early 2012 
• This technology will form part of an integrated
  global, regional, and local approach

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Industry Capacity to Respond - AMOSC

• Through AMOSC, industry has improved response by
  
• reviewing spill response equipment requirements
  and pre-positioned equipment to sensitive
  locations
• doubling the core group of spill responders from
  42 to 84 and available to work in an offshore
  incident
• developing new spill management response training
• investigating benefits limitations of
  dispersants
• investing in a major program of trajectory
  monitoring
• facilitating better access to international
  expertise.

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Offshore Petroleum Regulation

• Identified serious concerns with the regulatory
  disconnects between safety critical functions,
  including environmental management, well design
  and operation, and integrity of facilities.
• As a result, the Commonwealth is establishing two
  new regulatory bodies
• NOPSEMA (a single integrated independent
  authority, responsible for safety, well integrity
  and environmental plans) and
• NOPTA responsible for the administration and
  regulation of petroleum titles in Commonwealth
  and State waters if State Governments chose to
  delegate this role to the Administrator.

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Community Expectations

• An increased industry led focus on environmental
  and safety management.
• Essential for maintaining community support and
  access to existing and new areas.
• Need to improve the performance of the industry,
  particularly around
• process safety
• drilling operations and
• integrity of ageing facilities.

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Conclusions

• We must always be prepared to challenge our
  performance and learn any lessons.
• We can and will deliver the safe and
  sustainable energy and industry the Australian
  community demands.
• We must also acknowledge the dedication and
  skills of so many in our industry, including you
  here today.

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