Department of Resources, Energy and Tourism

THE CHALLENGE

Following a Commission of Inquiry into the blowout at the Montara wellhead platform, the Department of Resources, Energy and Tourism (DRET) received the Montara Action Plan from the oil field licence holders PTTEP Australasia. The plan provided a list of actions PTTEP Australasia would undertake to address issues that led to the Montara blowout. DRET wanted assurance the action plan and PTTEP Australasia would sufficiently address the lessons from the Montara Commission of Inquiry and meet good governance practice.

WHAT NOETIC DID

Noetic identified gaps in PTTEP Australasia’s Montara Action Plan as well as options for enhancement. Noetic then developed a comprehensive report that identified where PTTEP Australasia’s action plan was insufficient in meeting good practice and where improvements could be made. The report also provided options for DRET and the Minister for Resources and Energy to consider in reviewing PTTEP Australasia’s licence to operate in Australia. One recommendation accepted by the Minister was to establish an 18 month monitoring program to ensure PTTEP Australasia executed its action plan to a high level of quality.

Noetic was subsequently engaged to monitor PTTEP Australasia’s implementation of its action plan over a 24 month period. Noetic undertook six monthly inspections working with the company to monitor progress against the action plan. This included inspections at the company’s headquarters in Perth, on offshore platforms in the Timor Sea and in Singapore at the shipyard for the FPSO Montara Venture. This comprehensive approach to implementation looked at all aspects of the company’s operations and resulted in thorough reports for the DRET which allowed them to accurately track the company’s performance.

THE OUTCOMES

The Minister was reassured by Noetic’s report that the revised action plan would address the findings of the Montara Commission of Inquiry and meet industry good practice standards when implemented. The report also provided lessons that industry could apply to improve the governance and oversight across the oil and gas industry. Noetic’s subsequent oversight of the implementation of the action plan resulted in the Minister agreeing to lift restrictions on the company’s operations.