Timor Sea oil rig leak will be investigated, says government

Updated November 2, 2009 12:09:02

The Australian government has promised to set up an independent inquiry in to the leak of an oil well that's been generating headlines around the world.

The West Atlas well has been spewing oil and gas into the Timor Sea for 10 weeks, and now the rig is on fire.

Australia's Resources and Energy Minister, Martin Ferguson, has been following the operation closely.

Presenter: Tony Eastley.
Speakers: Martin Ferguson Australian Resources and Energy Minister

MARTIN FERGUSON: Oh, the company is focussed on actually trying to fill the well, to plug it. A heavier batch of mud was actually mixed overnight and at first light it is hopeful that they are able to resume pumping into the well this mud and in doing so filling it therefore removing the source of gas which is fuelling the fire which is the primary objective at the moment. To actually focus in a technical way, having intercepted the well yesterday, to fill it, plug it and therefore remove the source of the fuel for the fire.

TONY EASTLEY: So I take it from that, we still have oil leaking into the ocean and now we have gas on fire?

MARTIN FERGUSON: What we have got is a fire on the platform.

TONY EASTLEY: And the oil is still leaking?

MARTIN FERGUSON: In a technical ways, I would have thought we've got a combination of the gas and the oil in terms of the fire.

TONY EASTLEY: It is not a good situation, is it?

MARTIN FERGUSON: Oh, the company is clearly under a lot of pressure at the moment and the Government remains deeply concerned. It has clearly had an impact on the standing of the oil and gas industry in Australia and I simply say that once the well is filled, the platform is made safe, I will conduct a full and independent enquiry to actually assess the cause of the incident and the manner in which it has been handled over the last 10 weeks.

TONY EASTLEY: Can people be confident along the Kimberley coast and all around Australia for that matter that this mining for oil and gas is safe and future developments in this area are safe?

MARTIN FERGUSON: The oil and gas industry has had a proud record of achievement both environmentally and from a health and safety point of view over many, many years. In actual fact we have had 1500 wells drilled in Australian waters since 1984 and this is the first major incident.

Can I also say with ever incident you actually have to learn and that is why I will appoint a full and independent enquiry and in actual fact, I had to change the existing regulatory framework to give me full and proper powers to do this so as to remove any potential for any company to challenge such an investigation.

TONY EASTLEY: A lot of people would say that is all very well but we still don't actually know how much oil has actually leaked into the Timor Sea?

MARTIN FERGUSON: It is suggested about 300 to 400 barrels per day but perhaps more importantly as a result of action taken to actually soak up this oil, there is 70 or 80 per cent for example was actually mopped up last Monday, so you know AMSA (Australian Maritime Safety Authority) has actually been acting from the first day within 15 minutes of the incident occurring, they were on the job actually assisting and mitigating the impact of the oil spill.

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