Oz Regulator Finds Safety Issues on Ichthys Offshore Platform

An Australian regulator National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has found safety issues on the offshore platform of Inpex operated Ichthys LNG project.

NOPSEMA serves as the national regulator for the health and safety, well integrity and environmental management aspects of offshore oil and gas operations in Australian Commonwealth waters.

NOPSEMA undertook an inspection of the Ichthys Explorer platform from June 25 to 28. “Three inspectors were deployed to the platform and two inspectors to Inpex headquarters in Perth. During the inspection, NOPSEMA identified deficiencies in the suitability of electrical equipment in hazardous areas,” a NOPSEMA spokesperson told NGW via email July 10.

Inpex has informed the regulator that it has delayed introducing hydrocarbons to the platform to address the identified deficiencies. “As is normal practice for NOPSEMA, the regulator will take steps to verify that Inpex takes action to address the deficiencies,” the spokesperson said. “NOPSEMA is considering taking enforcement action, however, the inspection has not yet formally concluded and as such NOPSEMA is not able to provide any further detail.”

Last week, a company spokesperson said that project has delayed the commencement of first gas production but remains on track to for first LNG by the end of September. The Inpex-operated project was due to have started up 2016 but its development has overrun and its cost has almost certainly topped the original $34bn price tag. Inpex has a 62.2% stake in the project while French Total has 30% interest. The rest is owned by Taiwan’s CPC Corporation and five Japanese utilities.

Update July 11:  Inpex issued a written statement today confirming that Ichthys will not start production/shipment until "towards the end" of the April-September 2018 period, in effect September.