keynote presentation - iadc

1 Energy Partner of Choice

David JohnSpecialist, Process Safety

IADC HSE&T

Asia Pacific Conference

18th May 2021

KeynotePresentation


Present the long term impacts of Montara

highlighting the effects of a Major Accident Event can extend for many years after the

initial event is controlled.

Objectives


Montara - Background

West Atlas rig with derrick cantilevered over wellhead platform before incident

Feb 2009 acquired Coogee Resources. Developing Montara Field.

400 barrels/day oil spillover 3 months.

Well suspended March 2009, rig returned 20th August, blowout 21st August 2009.

No injuries.


Immediate Response 21/8/09

Emergency Response Team – PerthExecute recovery plan.Authorities liaison.Media response.

Crisis Management Team – BangkokStrategy and resources.Media response.

Rig Evacuation • 69 POB evacuated safely.• Java Constructor barge nearby.• Helicopters onshore.

Drills and exercises.


Spill Response 21/8/09 – 3/12/09

Command and control by Australian Maritime Safety Authority (AMSA) on 21/8/09 in line with National Spill Response Plan.

OSRL support mobilized.

320 people, 12 aircraft, 17 vessels.

Dispersant spraying (140m3), skimming (4,000 barrels).

No oil reached any shoreline.

Spill response ended 3rd December 2009.

Hercules Dispersant Spraying

Oil Skimming

Oil Spill Response


Well Control 21/8/09 - 3/11/09 Drill Relief Well, Kill Well and Plug

o Alert Disaster Control mobilized.o Top kill, sub-surface hot tap etc

not safe or practical.o Relief well only option.o Rigs in Australia not suitable or

unavailable. Rig mob from Singapore.

o Safety Case submitted / approved.

o Spudded well 15th September 2009.

o Well intercepted 24th October 2009.

o 1st well kill attempt 1st November 2009 unsuccessful. Ignition occurred.

o 2nd well kill 3rd November 2009 successful. Well plugged.


Well Barrier Campaign 1/6/10 – 27/7/10

Remaining 5 wells barriers tested offshore.

No significant concerns.

Wells Tested


Salvage December 2010

Assess Damage + West Atlas Salvage

o Rig total loss.o WHP topsides total

loss, jacket reusable.o Cantilever deck cut and

lifted in pieces, rig jacked down and tow away.

Tow Away


Action Plans Dec. 09 - Oct 12

Montara Action Plan

o Internal investigation in 2009 under legal professional privilege.

o 59 recommendations.

Drilling Management System.Competency Management.Corporate Oversight.Barrier management.Annual audit.

o Completed December 2011.

Corporate Lessons Learned Plan

Ensure lessons learned applied in Head Office and covered all operations – incorporated into SSHE MS.

67 recommendations:

o Step Change in SSHE. o SSHE Culture Roadmap and Survey.o Corporate Oversight of SSHE MS Standard.o MAE Prevention Tool and Drilling Major

Accident Prevention Tool.o SSHE Due Diligence Guideline.o Review Spill Plan for Gulf of Thailand.

Completed October 2012.


Department of Resources, Energy and Tourism (DRET).

100 findings and 105 recommendations.

Minister of Energy to review PTTEP AA’s license to operate, using a “show cause” notice.

DRET contracted Noetic Group to review the MAP.

DRET decided not to issue a “show cause” notice. A Deed of Agreement was put in place

Commission of Inquiry 15/3/10 – 17/6/10


Title Conditions also imposed requiring submission of information e.g. Cement Bond Logs, BOP test reports etc.

Binding Deed of Agreement between DRET and PTTEP signed.

Commit to completing the MAP.

Submit a Corporate Governance Framework within 8 weeks.

Monitoring program for duration of Deed:

o Monthly reports to DRET.

o Quarterly meetings with DRET.

o 6 monthly independent reviews.

“Show cause” notice option remained.

Deed and Title Conditions terminated June 2013 after Montara start-up.

Deed of Agreement Feb 2010 – June 2013


Environmental Studies Oct. 2009 - 2013

Montara Environmental Monitoring Program October 2009 PTTEP AA agreed scope and funding for an environmental monitoring program jointly managed with the Australian Government (DSEWPaC).

Independent expert advisors/organisations identified and contracted.

Research summary published 2013.

No significant environmental impacts found.

Oil spill trajectory real time observation and modelling confirmed the main area impacted by the spill was within a 23km radius of the well head and no oil reached any shoreline.

1. Shoreline ecological assessment aerial surveys

2. Assessment of fish for presence of oil

3. Olfactory analysis of Timor Sea fish fillets

4. Assessment of effects on Timor Sea fish

5. Offshore banks assessment survey

6. Shoreline ecological ground surveys (corals)

7. Shoreline ecological ground surveys (turtles and sea snakes)

8. Shoreline ecological ground surveys (seabirds and shorebirds)

9. Oil fate and effects assessment –trajectory analysis

10.Oil fate and effects assessment –dispersant oil modelling

https://www.environment.gov.au/marine/marine-pollution/montara-oil-spill

https://www.environment.gov.au/marine/marine-pollution/montara-oil-spill


Offshore Petroleum and Greenhouse Gas Storage Act Prosecution

o NOPSA investigation from 2009.

o On 30-31 August 2013 PTTEP AA pleaded guilty to four charges.

o Fined AUD 510,000.

Legal Aspects 2009 – Aug 2013

Regulatory ChangesNational Offshore Petroleum Safety Authority (NOPSA) became National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

Well integrity moved to NOPSEMA from Designated Authorities (state / territory level).

Title Holder responsible for spill response, not AMSA.


Civil Claims 2010 –to date

In 2010, the Indonesian Government made a claim for damages. That claim was ultimately not pursued, with negotiations ending inconclusively in 2012.

In August 2016, a claim was filed in Sydney, Australia against PTTEP AA on behalf of a class of up to 15,000 seaweed farmers from West Timor. Case commenced on 17 June 2019. Preliminary judgement in March 2021. Options being considered.

In May 2017, the Indonesian Government revived its claim, filing formal court proceedings in Jakarta, Indonesia. In March 2018 the Central Jakarta District Court dismissed the case as per the Government of Indonesia’s request to revoke the lawsuit with the reason to amend the claim.


Causes of Montara

Immediate Causes

Inadequate well barriers between reservoir and surface.

Root Causes (Montara Commission of Inquiry)

Failure to follow Procedures.

Failure to verify barrier effectiveness.

Lack of Competency.

Poor Management of Change.

Poor risk awareness.

Management structure deficient.

Lack of Corporate Oversight.

Cost minimization.

Comfortable relationship with regulator.


Conclusion

Response to Montara was successful:

No one was hurt.

Well was controlled.

No oil reached any shoreline.

Limited environmental impacts.

Secured license to operate.

Some positive lessons:

Safety culture, MAE Prevention Tool, DMAP etc.

However, the consequences are still being felt 12 years later:

Civil claims.

Activity Duration

Incident 3M in 2009

Spill Response 3M in 2009

Relief Well 3M in 2009

Well Barrier Testing 1M in 2010

Salvage 1M in2010

Montara Action Plan 2009-2011

Commission of Inquiry 2009-2010

Deed of Agreement/Title Conditions 2011-2013

Environmental Studies 2010-2013

Investigation + Court Case 2009-2013

Civil Claims 2010-to date


Thanks for your attention.


Montara vs MacondoMontara Macondo

Fatalities 0 11

Ignition Delayed Instantaneous

DamageWest Atlas total loss,

WHP topsides damageDeepwater Horizon sank

Distance Field to Shore 250 km 64 km

Leak Type Gas + light oil Oil

Leak Duration 74 days 87 days

Leak Rate 400 bbl / day 56 000 bbl / day

Leak Volume 30 000 bbl 4 900 000 bbl

Dispersants Used 140 m3 Surface 4 075 m3, Subsea 2 929 m3

Skimmed Oil Recovered 4 000 bbl 147 000 bbl

People Involved 320 41 000

Aircraft 12 119

Vessels 17 6 491

Total Costs $350 million $60 billion

keynote presentation - iadc

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