Pipeline Failure Leads to Condensate Spill and Hefty Fine
A recent incident at the Varanus Island Marine Terminal has resulted in a significant fine for Santos WA Northwest. The company has pleaded guilty to charges related to improper pipeline operation and failure to prevent petroleum escape, incurring a penalty of $10,000 plus additional costs of $9,700.
The Incident
On March 20, 2022, a pipeline leak at Varanus Island, off Western Australia’s north-west coast, released approximately 25,000 liters of condensate into the environment. The spill was detected early, prompting an immediate halt to the loading process. Investigations revealed that the cause of the leak was overbending and kinking of the pipeline, which had weakened its structural integrity over time.
Root Cause Analysis
The pipeline, situated 20-25 meters underwater, was connected to buoys for retrieval by support vessels. However, vessel crews were not adequately informed of the proper procedures to avoid kinking the flexible loading lines, despite the company’s written guidelines. This lack of communication and inadequate monitoring led to the pipeline’s failure.
Regulatory Response
The Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) has mandated Santos to enhance its operational controls and amend its environmental plan to mitigate future risks. Tyler Sujdovic, DEMIRS Resource and Environmental Compliance executive director, emphasized the importance of operating subsea pipelines in a “proper and workmanlike manner,” a fundamental principle widely understood and applied by operators in the oil and gas industry.
Corrective Actions
In response to the incident, Santos has revised its procedures, introducing measures to prevent the kinking of flexible loading lines and to monitor the pipeline’s subsea position. These changes aim to prevent similar incidents in the future.
Industry Context
The incident serves as a reminder of the importance of proper pipeline operation and maintenance. In a separate incident, two Russian oil tankers sustained severe damage in a Black Sea storm in December 2024, highlighting the risks associated with offshore operations.
Accountability and Prevention
The Varanus Island condensate spill highlights the need for companies to prioritize safety and environmental responsibility. By learning from this incident and implementing corrective measures, Santos WA Northwest can help prevent similar incidents in the future.
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