Timor Sea oil platform ablaze in attempt to plug well

Updated November 2, 2009 09:23:54

A big fire which has been burning out of control at the West Atlas rig in the Timor Sea off Australia's northern coast since yesterday afternoon could continue for some time yet. The wellhead platform started blazing soon after the company began a new attempt to plug the leaking oil well. The company has been trying to stop the leak for more than ten weeks.

The Australian Resources Minister has ordered government agencies to do everything they can to assist, but the company says the fire can't be extinguished because leaking gas from the well is providing an endless supply of fuel to the massive fire.

Presenter: David Weber
Speaker: Jose Martins, CFO of PTTEP Australasia; Martin Pritchard, Executive Director of Environs Kimberley; Peter Strachan, Resources analyst; Colin Barnett, Western Australia's Premier

WEBER: PTTEP Australasia was on its way to finally stopping the leak when the fire started. The company's Chief Financial Officer Jose Martins.

MARTINS: At 12:10 Darwin time while 'well kill' operations were continuing, a fire broke out at the surface of the Montara wellhead platform. The measures which we have been able to take so far can only mitigate the fire, they will not stop the fire. The best way to stop the fire is to complete the 'well kill' and stop the flow of gas and oil at the surface from the H-1 well, cutting off the fuel source for the fire.

WEBER: The company's planning to use its West Triton rig to pump a so-called 'heavy mud' mix into the well later today. Environmentalists have responded to the turn of events with a mixture of shock and outrage.

The Executive Director of Environs Kimberley, Martin Pritchard.

PRITCHARD: This has really now turned into a disaster movie. The eyes of the world will be on the Australian oil and gas industry and the Federal Government. Really we need to have a significant response by the Australian government to make sure this kind of thing doesn't happen again.

WEBER: Mr Pritchard has called on the Federal Government to stop oil and gas developments off the Kimberley coast.

PRITCHARD: We're talking about one of the least-impacted areas of ocean in the world that has an extremely high marine biodiversity. We believe that if this had happened off the coast of Sydney or Melbourne there would've been a much bigger response and this problem would've been solved a long time ago.

WEBER: Resources analyst Peter Strachan says the incident gives a clear indication of what could've happened when the leak started on August the 21st.

STRACHAN: It was very lucky that nothing ignited the fluids coming out of the well at that time and people were able to get off the rig safely because it could've been a lot worse, I mean if that had ignited at the time the well control was lost, the it could've been a much different story.

WEBER: Mr Strachan says the events of the past ten-weeks have had a negative impact on the reputation of the entire oil and gas industry.

STRACHAN: I mean everyone is holding their heads in their hands and shaking I mean, at the same time the oil and gas industry's operating in Australia for 40 or 50 years and there hasn't been this sort of incident that I can remember in Australia but it doesn't excuse it, it's not good.

WEBER: The West Australian Premier has used the crisis to attack against the Federal Government's proposal to take jurisdiction for offshore developments.

Colin Barnett says WA will not give up its role.

BARNETT: This incident which happened in Commonwealth waters under Commonwealth responsibility is proof that the Commonwealth should never take sole responsibility. The Commonwealth has a role but so do states and if the Commonwealth were to do a takeover you'd find a lack of local ability and capacity to assist. Now when a serious issue like this occurs you need all the resources you can muster, both Commonwealth and state.