One Explosion (Varanus Island) Many Inquiries 18 10 09

Christine F MillerConsultant

Business Continuity Manager

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DISCLAIMERMy remarks should NOT be considered the views of the Australian Government or any of Australian Government or any of its departments or agencies for which I have worked. Any information in this presentation is drawn from public sources.

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Overview�WHERE is Varanus Island?�WHAT happened on3 June 2008?3 June 2008?

�INQUIRIES & IMPACTS�LESSONS LEARNT since Longford & Varanus incidents

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����Varanus Island

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����Varanus Island

Apache & Santos

HJV - Apache, Kufpec & Tap Oil

ChevronTexaco, Santos & ExxonMobil

Woodside

Apache & Santos

ExxonMobil

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Pipelines entering the plant from the sea

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Control room staffon a quiet day 11

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SHOW VIDEO

from

Varanus

Island

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Helping build business resilience VARANUS ISLAND4 June 2008

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Initial inspectionsinspections

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Crikey 1 - After the explosion

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Crikey 2 – The damaged pipes

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Crikey 3 –A piece of pipe

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Crikey 4 – The corroded pipe

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National Offshore Petroleum Safety Safety Authority (NOPSA) reported7 October 2008

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1330 hrs 3/6/081427 hrs

Sketch from NOPSA Report7 October 2008

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FINDINGS - NOPSA INQUIRY

Possible breaches of WA legislation

“Some findings…may “Some findings…may constitute non-compliance with pipeline conditions” (p 37).

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The Senate Economics Committee mademade6 Recommendations

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Offshore Petroleum Regulation Inquiry

Australia’s Minister forResources & EnergyMartin Ferguson AM MP

WA Minister forMines & Petroleum Norman Moore MLC

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Offshore Petroleum Regulation InquiryReduced terms of reference & publication

David AgostiniDavid AgostiniFormer GM, Woodside NW Shelf & a Non-Executive Director, Neptune Marine

Kym BillsFormer CEOAustralian Transport Safety Bureau (ATSB)

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The WA Gas Supply &Emergency Management Committee (GS&EMC)

Chaired by Jason Banks, WA Coordinator of Energy

GS&EMC conducted WA’s Gas

Government of Western AustraliaOffice of Energy

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WA’s Gas Supply & Emergency ManagementReview

Announced by WA Minister for EnergyPeter Collier MLC

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•WA State•WA Local•The Commonwealth

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Following 3 June 2008, WA’s business continuity experienced a non-routine business disruption or a supply chain disruption

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Then Western AustralianThen Western AustralianPremier Carpenter

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WA Office of Energygas pipelines

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Reduced gas & power

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Recommissionedcoal firedcoal firedpowerstations

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Mineral/petroleum production

Woodside gas processing, Karratha

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Mineral processing

Fertiliser & ammonia

Alumina Nickel smelting

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Logging & constructionLogging & constructionCement production

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Reduced gasimpactedindustriallaundries

Hospitals

Hospitality and tourism

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Food processing

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Reducedbeer & soft soft drink supplies

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www.tisn.gov.au

Prime Minister

Economic & Energy Security Dependencies

MinisterKevin Rudd

Wayne SwanTreasurer

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Lessons Learnt Summary 1

“Everyone is a reporter”

Expect insurance delaysExpect insurance delays

Expect inquiries

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Lessons Learnt Summary 2

Beware “risk blindness”

Seek “collective mindfulness” = HROs & organisational resilience

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Lessons Learnt Summary 3

Inject scenarios beyond the local & maximise options for your & maximise options for your reliability professionals

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International Safety Quality Environment Management Association (ISQEM)Association (ISQEM)

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http://www.isqem.com/

b4crisis@grapevine.net.auCell/Mobile +61 416 113 250

Photos courtesy of Neptune Marine -repairing Varanus Island’s

Any questions?

repairing Varanus Island’s pipelines

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