Montara Wellhead Platform Incident R Galton - June 2011
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1 Montara Wellhead Platform Incident R Galton - June 2011 /dor
2 Introduction Department of Resources Contents Precis Project Regulatory Regime Drill rig operations Cause of incident Inquiry Outcomes
3 Department of Resources Precis Owners and operators of the Montara Field Development Project are the Australian based, PTTEPAA, a subsidiary of Thai State owned oil and gas company PTT Exploration and Production Pty Blowout (of H1 Well): 21 August 2009 Flow of hydrocarbons stopped: 3 November 2009 (75 days) Estimated to have lost between 400 and 1500 barrels oil/day No loss of human life Relatively little environmental damage
4 Department of Resources March 2011
5 Montara Development Project Department of Resources Montara Development Project Coogee Resources acquired Newfield Australia group in 2002 (including the Retention lease for the Montara Oilfield) Coogee submitted a development plan with an application for a Production Licence in 2006 DoR granted approval, in 2008, to drill three development wells (plus two, later) Coogee was acquired by PTTEP in February 2009
6 Regulatory Regime Department of Resources Regulatory Regime (1) Complex arrangement State (and NT) petroleum legislation applies in coastal waters (<3 nautical miles offshore) Commonwealth legislation alone applies in Commonwealth waters (>3 nautical miles offshore). However Commonwealth shares joint regulatory responsibility with relevant adjacent state (and NT) Joint Authority (JA) comprises the Commonwealth Minister and State (Territory) Minister who are both responsible for significant decisions Designated Authority (DA) is relevant State (NT) Minister who is responsible for the day-to-day administration
7 Department of Resources Regulatory Regime (2) Offshore Petroleum and Greenhouse Gas Storage Act, 2006 assented November relevant subordinate Regulations: Petroleum (Submerged Lands) (Management of Safety on Offshore Facilities) 1996 P(SL) (Management of Environment) 1999 P(SL) (Management of Well Operators) 2004 Act provides that the Commonwealth Minister (alone) is both the JA and DA for the external territories viz the Territory of Ashmore and Cartier Islands
8 Department of Resources Regulatory Regime (3) At the time of the incident Hon. Martin Ferguson was the responsible Commonwealth Minister On 28 August 2008 he delegated his JA functions and powers to a General Manager in DRET, and his DA functions and powers to the Director of Energy, DoR The Energy unit in DoR comprised 4 members, two of whom had experience of drilling rig operations. At that time the unit had responsibility for 3 other operational rigs Neither the NT Minister, the CE nor his ED had any direct role in the supervision of the Montara ops, let alone understanding You can delegate powers and functions, but never responsibility
9 Director of Energy s Responsibilities Department of Resources Director of Energy s Responsibilities Approval of PTTEPAA s Environmental plans Well operations management plans (WOMPs) Drilling programs Applications for approval to sidetrack and suspend development and production wells Only one person in DoR had the technical skills and expertise to properly assess such applications and determine compliance
10 Drill Rig Operations Department of Resources Drill Rig Operations West Atlas drilling rig was owned by Seadrill, operated by Atlas, and contracted to PTTEPAA Halliburton was the specialist cementation contractor under the control of PTTEPAA Well drilled between January and April 2009 Water depth: approx 77 m Well depth below rig: 3787 m Vertical depth: 2655 m 9⅝" casing string in reservoir PTTEPAA s, approved drilling program outlined the sequential nature of the rotary batch drilling operations (now 5 wells) Typical well involved drilling and bedding progressively smaller casings in the bedrock until the reservoir was reached.
11 Department of Resources
12 Cause of Incident Department of Resources Cause of Incident (1) The primary well control barrier (9⅝" cemented casing shoe) failed (source of the blowout) The shoe was unknowingly defectively installed (proved at the Inquiry by an inspection of DDRs) Cement barriers are more prone to failure in horizontal wells Despite obvious indications, a pressure test was not carried out Failure of sensible oilfield practice
13 Department of Resources Cause of Incident (2) A compounding problem was that while 2 secondary well control barriers (PCCCs) were approved and programmed for installation, only one was ever installed This PCCC was not tested and verified in situ PCCCs are not intended to be used as a primary well control barriers The casing fluid was mistakenly believed to overbalance the pore pressure (though it was never checked) The West Atlas departed in April 2009 leaving work on H1 Well suspended without a tested or verified barrier
14 Department of Resources Cause of Incident (3) Rig returned in August 2009 and discovered 13⅜" PCCC had never been installed on H1 Thread corrosion required removal of 9⅝" cap Drill equipment rotated off H1 to other wells Blowout occurred 15 hours later Systemic and interrelated factors (from the Inquiry): WOMP and Well Construction Standards generic and ambiguous PTTEPAA personnel lacked appropriate skills and experience None of the rig or onshore personnel understood the cementing of the well was compromised Records and communications were defective (particularly between shifts and shore) The regulator was kept in the dark (too close) An accident waiting to happen
15 Inquiry Inquiry Department of Resources Commissioned by Minister Ferguson on 5 November 2009 Report released 24 November 2010 It details the findings and lists recommendations to ensure such an event is not repeated It acknowledges the work subsequently undertaken to ensure the integrity of the remainder of PTTEPAA s wells And it supports the current objective-based regulatory regime for the offshore petroleum industry and the establishment of a single national offshore regulator (announced well in advance of the incident)
16 Outcomes Department of Resources Outcomes The Commonwealth Minister released a Government Response to the Commissions' report (25 May 2011). The Response has accepted (92), noted (10) and not accepted 3 recommendations of the Commission. The Commission s report endorsed the Productivity Commissions Report of April 2009 to introduce a single Commonwealth regulator (NOPSEMA), to be established 1/1/2012. It will be responsible for the day-to-day administration and regulation of OH&S, well integrity, environment plans and daily ops (Commonwealth Waters). The Commonwealth continue to investigate if PTTEPAA did not comply with the Commonwealth Offshore Petroleum and Greenhouse Gas Storage Act and or Regulations.
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