Santos WA Northwest has admitted to a condensate spill at the Varanus Island Marine Terminal, resulting in a fine of $10,000 plus additional costs of $9,700.
The company pleaded guilty to charges related to improper pipeline operation and failure to prevent petroleum escape under the Petroleum (Submerged Lands) Act 1982.
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On 20 March 2022, approximately 25,000 litres of condensate leaked from a pipeline at Varanus Island, off Western Australia’s north-west coast. The spill was detected in the early morning, leading to an immediate halt of the loading process.
The cause was identified as overbending and kinking of the pipeline, which weakened its structural integrity over time.
The pipeline, situated 20–25m underwater, was connected to buoys for retrieval by support vessels. Investigations revealed that the vessel crews were not adequately informed of the proper procedures to avoid kinking the flexible loading lines, despite the company’s written guidelines.
Santos, as the pipeline licensee, was found to have inadequately monitored the condensate loading operations and failed to properly assess the pipeline’s condition before its 2022 use.
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By GlobalDataIn response to the incident, the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) mandated Santos to enhance its operational controls and amend its environmental plan to mitigate future risks.
DEMIRS Resource and Environmental Compliance executive director Tyler Sujdovic said: “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.”
Post-incident, Santos has revised its procedures, introducing measures to prevent the kinking of flexible loading lines and to monitor the pipeline’s subsea position.
In December 2024, two Russian oil tankers sustained severe damage in a Black Sea storm, with images and video showing one vessel seemingly split in half and the other listing.
