Greens claim cover-up in second rig spill

The Greens have accused the Federal Government of complicity in covering up a second oil leak in the Timor Sea.

Greens MLC Robin Chapple said the Federal Government had been advised of the leak when it occurred some nine weeks ago but had failed to notify the public despite the spill coming soon after the August 21 West Atlas oil disaster.

The latest spill is just 50km from the stricken West Atlas rig, abandoned on August 21, when oil and gas began to spew from a damaged sub-sea pipe.

The West Atlas spill has seen thousands of barrels of oil spew into the ocean since the leak began 10 weeks ago.

Protesters covered in 'oil' today presented the oil and gas industry with a certificate of merit for overseeing the longest oil rig disaster in the nation’s history.

The second spill is at the East Puffin well run by Chinese company Sinopec. Little data has been released on the nature and extent of the spill.

The Puffin project’s joint venture partner AED Oil Ltd today said that, unlike the West Atlas leak, the Puffin leak was small.

Puffin is exuding “minute” amounts of gas from a pinhole in a gas lift control valve, which funnels hydrocarbons via pipeline to a floating processing vessel, an AED spokesman said.

He said it was important to note the leak did not originate in the geological reservoir.

The leak at Puffin was detected during a routine underwater inspection about two months ago.

While considered minor, the leak had been reported to the National Offshore Petroleum and Safety Authority and the Northern Territory Department of Primary Industry, Fisheries and Mines.

The AED spokesman said NOPSA had determined that no remedial action was required other than through a routine maintenance program.

Greens Senator Rachel Siewert said: “This second leak may be more minor in nature, but in the context of the massive Montara spill, it is of great public interest."

The Minister for Resources and Energy Martin Ferguson is expected to make a statement today.

Mr Chapple said the second spill raised questions about how many more leaks or spills may be happening or have occurred in secret.

He said it appeared that Sinopec had advised the Federal Department of Resources and Energy and the Northern Territory Government that the spill had occurred but the Australian Maritime Safety Authority had not been made aware of the leak and neither had the public.

Mr Chapple, who is an engineer by trade, said the industry also seemed to be unaware of the leak, which may have been disguised by its proximity to the West Atlas spill.

"The oil from the West Atlas spill would have been almost moving around the Puffin on its way to Indonesian waters. Any oil they have may have been completely disguised by the West Atlas leak.

"I am concerned we don't know how many other leaks have occurred in that area," Mr Chapple said.

"How complicit is the Federal Government in covering up these spills? The Federal Government hadn't released this information and still seems to be cagey about releasing it."

He said the possibility of seismic activity in the area of the spills needed to be investigated as a matter of urgency.

Mr Chapple said the area of both rigs was part of what is known as "the ring of fire" a fault zone acknowledged as one of the most geologically unstable areas on the planet.

Separately, production at Puffin has been suspended since May.

Production stopped after AED and China’s Sinopec noted that the operator of the field’s floating processing vessel, Bermuda-incorporated Sea Production, had committed “breaches related to serious matters of occupational health, safety and the environment”.

Sea Production’s contract was terminated by AED and Sinopec, who are attempting to avoid legal action by the former contractor through mediation, the AED spokesman said.

He said an operational update would be provided in the company’s September quarter report on Friday.