Woodside asked to explain Kimberley drilling plans

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This was published 13 years ago

Woodside asked to explain Kimberley drilling plans

By Mathew Murphy

WOODSIDE Petroleum has been asked for an explanation by the federal Environment Minister, Tony Burke, after it sidestepped federal scrutiny and began drilling off the Kimberley coast in joint venture with the company fingered for the Montara oil spill.

Woodside has received state approval for the drilling of the Omar-1 well in the Browse Basin, but it has surprised analysts by choosing not to get federal government approval for its drilling program 336km north of Broome. It is the proponent's responsibility to refer the matter to the government if it feels its operations may threaten the environment.

Woodside is under siege from a coalition of environmentalists, local campaigners and prominent musicians who are concerned that its $30 billion Browse liquefied natural gas development will irreversibly damage the pristine coastline.

Woodside started drilling the Omar-1 well earlier this month in its joint venture with Mitsui E&P Australia, Toyota Tsusho Gas E&P Browse and PTTEP Australasia, the company which the government late last year described as having failed ''basic oilfield practice 101'' in its role in Australia's worst oil spill, the Montara disaster.

An inquiry into Montara found that a cement barrier had blown out due to shoddy installation by PTTEP, spewing 29,600 barrels of oil into the Timor Sea over 74 days.

Mr Burke told BusinessDay that his department had written to Woodside as the lead partner in the joint venture requesting more information about the 70-day drilling campaign.

"My department has been in contact with the company to remind them of their obligations,'' he said. "It needs to be remembered that my responsibilities here are quite strictly to apply the principles of national environmental law which is what I will do on receipt of advice from my department at any stage.''

The director of the environmental pressure group Environs Kimberley, Martin Pritchard, said the refusal to submit the drilling program for federal scrutiny posed the question of what had they got to hide.

''This is another example of the

hubris in the oil and gas industry where they feel that they can ride roughshod over environmental concerns,'' he said.

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''The sensible thing for Woodside to do would be to refer this matter to the federal government, particularly given PTTEP's involvement. Why would they not want to provide every assurance possible to the locals, and indeed all Australians, that they will do all they can to ensure this internationally significant marine area is left unharmed?''

Woodside declined to say why it had chosen to avoid federal government scrutiny.

A spokeswoman said it had told the federal Department of Environment of the approvals process and provided ''a summary of the environment plan for the exploration well''.

''The drilling activity is being carried out under conditions set out in the detailed environment plan,'' the spokeswoman said.

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