Monday 3 September 2012

PTTEP fined AUD526,000 for Montara spill




The Thai giant announced on Friday that the fine had been issued to its subsidiary, PTTEP Australasia, by the Darwin Magistrates Court in the Northern Territory.

The company got off lightly, given it had faced maximum fines of A$1.7 million (US$1.75 million).

Considered to be Australia’s worst oil disaster, a well blowout on the Montara platform in August 2009 had resulted in oil and gas condensate leaking into the Timor Sea for a total of 74 days.

During an attempt to stop the leak in November of that year, a fire broke out on the Seadrill-owned jack-up West Altas and burned for two days.

PTTEP Australasia pleaded guilty to four charges relating to the oil spill.

According to the Australian Associated Press (AAP), three of the charges had carried a maximum penalty of A$550,000.

AAP reported that Magistrate John Lowndes had offered PTTEP a 25% discount for the guilty pleas, fining it A$495,000 for the first three charges, which related to the Offshore Petroleum and greenhouse Gas Storage Act.

The company was fined A$15,000 for the fourth charge, well below the maximum penalty of $50,000, AAP stated.

PTTEP has accepted responsibility and shown remorse for the incident.

“From the outset we have admitted responsibility for the incident and deeply regret it occurring,” PTTEP Australasia chief executive Ken Fitzpatrick said in a statement.

“Mistakes were made that should never be repeated.”

PTTEP president Tevin Vongvanich added that the company had since significantly transformed its operations and culture.

“We aim to be a trusted, open and respected operator in the Australian oil and gas industry now and in the future,” he said in a separate statement.

Having completed development drilling at the Montara project, PTTEP expects first oil production by the end of this year. - Upstream