Thai Firm Pleads Guilty Over Australian Oil Spill

[webfact]

Thai firm pleads guilty over Australian oil spill

Sydney, Aug 30, 2012 (AFP) - A Thai state-owned firm on Thursday admitted four charges over a huge oil spill off northwestern Australia, the country's worst ever offshore drilling accident.

Thousands of barrels of oil gushed into the sea over 10 weeks following a blowout at PTTEP Australasia's West Atlas rig in the Timor Sea three years ago.

The slick from the Montara oil field spread as far as Indonesian waters and environmentalists said it grew to almost 90,000 square kilometres (35,000 square miles).

The firm, a unit of Thailand's PTT Exploration and Production, pleaded guilty to breaching the Offshore Petroleum Act, admitting it failed to take all reasonable steps to prevent the spill and placed rig workers in danger.

An Australian government inquiry blamed widespread and systematic shortcomings at PTTEP for the spill, over which Indonesia sought US$2.4 billion in compensation for damage to reefs and fisheries.

PTTEP is facing more than Aus$1 million (US$1.03 million) in fines following its guilty plea at Darwin Magistrates Court, with company chief Ken Fitzpatrick saying that "mistakes were made that should never be repeated".

"From the outset we have admitted responsibility for the incident and deeply regret it occurring," Fitzpatrick told reporters outside the court.

"The hearing today draws a line under the Montara incident and allows us to focus on delivering safe, clean operations in Australia now and in the future," he added.

PTTEP paid for the clean-up and Fitzpatrick said the environmental impact was estimated to have cost the company Aus$40-50 million. It had also driven a transformation of the firm's operations and culture, he added.

The court is expected to deliver its sentence on Friday.

PTTEP's Australian offshore drilling licence was renewed in February 2011 on a strict 18-month probation period, with the government warning it would be subject to a rigorous monitoring regime.

-- (c) Copyright AFP 2012-08-30

[Rionoir]

Funny that Thai companies actually have to admit guilt when they do something wrong OUTSIDE of Thailand =P

[clockman]

must be a first time for admitting your at fault!

[TomTao]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

[Soutpeel]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

first off the company comcerned in this is not PTT, its PTTEP, which is a completely different company,

secondly I dont know why you are blaming a Thai "attitude" for this inident, it could have been the name BP, Exxon, Shell attached to this incident, lest not forget what happened in the Gulf of Mexico with BP and a Thai was no where near this one, as an MNC and operating oil company, they took a chance and lost out in this case.

Go and research what happens in the north sea on a regular basis as regards incidents and accidents, and again not a Thai to be seen anywhere, so you whole premise is flawed.

As regards world class safety standards being practised, go an look in the Gulf of Thailand and see what standards are being imposed there before making stupid and unqualified statements, world class and better than work class standards are applied and complied with in Thailand, does that mean there are no incidents and accidents, of course not.

[Tywais]

So they admitted guilt, does that mean they only have to pay half the fine?

[Soutpeel]

So they admitted guilt, does that mean they only have to pay half the fine?

[drdoom6996]

Proof positive that Thai companies operate the same way in other countries as they do here in Thailand. They just break the law and get punished for it in other countries. Here they are hero's that fixed the problem after it happened.

[Garry]

PTT customers will end up paying for the fines indirectly.

[JanKlaasen]

So they admitted guilt, does that mean they only have to pay half the fine?

It means, we said sorry already so that should be all.

We will therefore deny any compensation claim or fine for the next 15 years or so untill an airplane is confiscated.

[Soutpeel]

Proof positive that Thai companies operate the same way in other countries as they do here in Thailand. They just break the law and get punished for it in other countries. Here they are hero's that fixed the problem after it happened.

<deleted>...positive proof my ar*e doesnt prove anything...same thing could be said of specific British company operating in the Gulf of Mexico....

[webfact]

E&P

PTTEP fined A$510,000 for Montara incident

The Nation

A file photo of the fire incident

SYDNEY: -- PTT Exploration and Production Plc (PTTEP) is fined 510,000 Australian dollar or approximately Bt16.55 million for the 2009 fire incident at its Montara field, off the coast of Australia.

In a statement to the Stock Exchange of Thailand, PTTEP President and CEO Tevin Vongvanich said that the company’s wholly-owned subsidiary PTTEP Australia (Ashmore Cartier) Pty Ltd plead guilty to four charges brought by NOPSEMA (National Offshore Petroleum Safety and Environmental Management) in relation to incompliance with regulations from the Montara incident.

Its subsidiary, PTTEP (Australasia) or PTTEP AA which owns PTTEP Australia (Ashmore Cartier), appeared in the Darwin Magistrates Court on August 30 and the sentence was delivered today.

"The amount is within the provision that has already been set up in 2009 financial statements," Tevin said in the statement.

The company also noted that after the Montara incident, PTTEP AA worked closely with the Australian government and immediately volunteered to pay for all response and clean-up costs. The company also funds a long-term independent environmental monitoring programme in the Timor Sea.

PTTEP said earlier that production at the field would be resumed by the end of this year.

The Montara oil and gas field is located in the northern territory in block AC/RL3 650km west of Darwin in the Timor Sea, off northern Australia. Montara has recoverable reserves of 24 million barrels and is expected to produce 35,000bopd of light, low-sulphur crude. Montara was first discovered in March 1988 by BHP Billiton. Australian oil project developer Coogee Resources took over as the operator of the field in September 2003. In December 2008, PTT Exploration & Production acquired Coogee for $170m. The company was renamed as PTTEP Australasia.

The deal gave PTTEP 100 per cent control over the Montara development project, which includes Montara, Skua, Swift and Swallow fields. A total of ten wells, nine oil producers and one gas injection well are part of the Montara development project.

On 1 November 2009, a fire broke out at the West Atlas oil rig and the Montara well head platform during an attempt made to plug the leak in the well. The well leaked about 400 barrels of oil per day and an unspecified amount of condensate and natural gas into the Timor Sea before finally being plugged on 3 November 2009. First oil production from the Montara oil field is now expected in the third quarter of 2011.

-- The Nation 2012-08-31

[belg]

i guess after the accident, the thai workers just fled the scene

looooooooooooooooooool

[Tywais]

i guess after the accident, the thai workers just fled the scene

Looking at the picture, they would have had to take a jetski.

[slapout]

Now lets see how responsible they will be toward the claims against them by other enities.The fine is chump change, compared to 2. plus billion being sought by those affected by the pollution.

[chooka]

Now lets see how responsible they will be toward the claims against them by other enities.The fine is chump change, compared to 2. plus billion being sought by those affected by the pollution.

510K AUD is nothing to an oil company probably the wages of 2 or 3 workers. Being heard in the Magistrate's Court (The Lowest Court) that was probably the highest amount they could impose. Matters like these are normally heard in the County Court.

[Nigel1500]

Funny that Thai companies actually have to admit guilt when they do something wrong OUTSIDE of Thailand =P

You think?

They admitted guilt. They were fined.

I think this is "funnier": http://www.floridaoilspilllaw.com/

Even managed to hoodwink the President on that one !!!!!

Hahahahahaha ....

[Nigel1500]

510K AUD is nothing to an oil company probably the wages of 2 or 3 workers. Being heard in the Magistrate's Court (The Lowest Court) that was probably the highest amount they could impose. Matters like these are normally heard in the County Court.

Americans!!!

They don't know very much !!!

The matter was heard in the Lands, Planning and Mining Tribunal, a branch of the Magistrate's Court. Contrary to your comments above, the Tribunal is not "the lowest court". Contrary to what you may believe, the Australian court system is NOT the same as the US. We have no "County Court". The Tribunal is empowered to issue any fine or sentence contained in the appropriate legislation.

[PhootThaiMaiDai]

"First oil production from the Montara oil field is now expected in the third quarter of 2011."

-- The Nation 2012-08-31

Third quarter 2011 forecasting by the middle of third quarter 2012, now there's some crack reporting... by The Nation...

[spidermike007]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

Yes, but the fine should be closer to $100,000,000. At one million the company is sort of laughing at this. Seems like a small price to pay, for fouling 90,000 SQ. KM. of water. What alot of people do not know, is that PTT is one of the world's largest petroleum companies, and is active is a few dozen countries. Nice to see some fareng environmental restrictions imposed on a company that is probably used to getting away with alot, here in the LOS, where environmental restrictions are almost unheard of. Fortunately they are being made to pay for the cleanup.

[Soutpeel]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

Yes, but the fine should be closer to $100,000,000. At one million the company is sort of laughing at this. Seems like a small price to pay, for fouling 90,000 SQ. KM. of water. What alot of people do not know, is that PTT is one of the world's largest petroleum companies, and is active is a few dozen countries. Nice to see some fareng environmental restrictions imposed on a company that is probably used to getting away with alot, here in the LOS, where environmental restrictions are almost unheard of. Fortunately they are being made to pay for the cleanup.

Actually its PTTEP and farang restrictions are imposed as some of the shareholders of PTTEP are Total & British Gas....

and actually PTTEP's facilities offshore Thailand are very well run and actually run better run than some of the facilities in farangland

Further the PTTEP company in question is actually an Austrailan company, and it appears there is a nice Thai sounding name running the company..."Ken Fitzpatrick"....I wonder what part of Isaan that name hails from ?

So once again appears to be some unqualifed statements being thrown around by TV's finest experts

Edited September 2, 2012 by Soutpeel

[PhootThaiMaiDai]

510K AUD is nothing to an oil company probably the wages of 2 or 3 workers. Being heard in the Magistrate's Court (The Lowest Court) that was probably the highest amount they could impose. Matters like these are normally heard in the County Court.

Americans!!!

They don't know very much !!!

The matter was heard in the Lands, Planning and Mining Tribunal, a branch of the Magistrate's Court. Contrary to your comments above, the Tribunal is not "the lowest court". Contrary to what you may believe, the Australian court system is NOT the same as the US. We have no "County Court". The Tribunal is empowered to issue any fine or sentence contained in the appropriate legislation.

"Americans!!!"

Americans? With a name like Chooka, hailing from Melbourne, and a union jack as their avatar...

Who doesn't know "very much" Nigel?

[FarangTalk]

I have just returned from the Montara platform, the new wellhead is in place, drilling rig has departed and the FPSO is ready for the hook up.

[FarangTalk]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

Yes, but the fine should be closer to $100,000,000. At one million the company is sort of laughing at this. Seems like a small price to pay, for fouling 90,000 SQ. KM. of water. What alot of people do not know, is that PTT is one of the world's largest petroleum companies, and is active is a few dozen countries. Nice to see some fareng environmental restrictions imposed on a company that is probably used to getting away with alot, here in the LOS, where environmental restrictions are almost unheard of. Fortunately they are being made to pay for the cleanup.

Actually its PTTEP and farang restrictions are imposed as some of the shareholders of PTTEP are Total & British Gas....

and actually PTTEP's facilities offshore Thailand are very well run and actually run better run than some of the facilities in farangland

Further the PTTEP company in question is actually an Austrailan company, and it appears there is a nice Thai sounding name running the company..."Ken Fitzpatrick"....I wonder what part of Isaan that name hails from ?

So once again appears to be some unqualifed statements being thrown around by TV's finest experts

PTTEP is part of PTT.

PTT Exploration and Production is what is stands for and they are part of the Thai national oil company, as we are reminded every time we do work for them during our inductions. In this case it is PTTEP AA which is the Australasia division.

They have been audited very closely by NOPSEMA since the incident and cannot under any circumstances afford another slip-up.

[FarangTalk]

Just to clarify, many of the higher-ups in the PTTEP office are Thai.

[Soutpeel]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

Yes, but the fine should be closer to $100,000,000. At one million the company is sort of laughing at this. Seems like a small price to pay, for fouling 90,000 SQ. KM. of water. What alot of people do not know, is that PTT is one of the world's largest petroleum companies, and is active is a few dozen countries. Nice to see some fareng environmental restrictions imposed on a company that is probably used to getting away with alot, here in the LOS, where environmental restrictions are almost unheard of. Fortunately they are being made to pay for the cleanup.

Actually its PTTEP and farang restrictions are imposed as some of the shareholders of PTTEP are Total & British Gas....

and actually PTTEP's facilities offshore Thailand are very well run and actually run better run than some of the facilities in farangland

Further the PTTEP company in question is actually an Austrailan company, and it appears there is a nice Thai sounding name running the company..."Ken Fitzpatrick"....I wonder what part of Isaan that name hails from ?

So once again appears to be some unqualifed statements being thrown around by TV's finest experts

PTTEP is part of PTT.

PTT Exploration and Production is what is stands for and they are part of the Thai national oil company, as we are reminded every time we do work for them during our inductions. In this case it is PTTEP AA which is the Australasia division.

They have been audited very closely by NOPSEMA since the incident and cannot under any circumstances afford another slip-up.

where did I say it wasnt part of PTT ?.....I am fully aware of what the EP stands for........The point I am trying to get at is that TV resident experts are of the opinion this accident happened because Thai's, are running things and as O&G guy yourself, you know yourself, that BP, Shell, Chevron etc could have been the company name attached to this accident, take this report and substitute PTTEP with BP and change the location to the GOM...same same.

As an MNC operating company, they took a chance or cut a corner and got caught out....the "nationality" of the parent company is irrelavant

Edited September 2, 2012 by Soutpeel

[Soutpeel]

Just to clarify, many of the higher-ups in the PTTEP office are Thai.

But the man at the top is not..unless of course Fitzpatrick is a Thai name I have never come across before....

[spidermike007]

Thailand finally gets to see that what passes for acceptable in Thailand does not stand up to requirements in other countries, and PTT has found out that the incident cannot be passed off with a mai pben rai attitude or by passing the buck, I hope the lesson will filter into the way things are done by all such companies within Thailand, even without the rest of society moving first, it would be refreshing to see world class safety standards practiced and enforced in Thailand without the need for a 'fee'.

Yes, but the fine should be closer to $100,000,000. At one million the company is sort of laughing at this. Seems like a small price to pay, for fouling 90,000 SQ. KM. of water. What alot of people do not know, is that PTT is one of the world's largest petroleum companies, and is active is a few dozen countries. Nice to see some fareng environmental restrictions imposed on a company that is probably used to getting away with alot, here in the LOS, where environmental restrictions are almost unheard of. Fortunately they are being made to pay for the cleanup.

Actually its PTTEP and farang restrictions are imposed as some of the shareholders of PTTEP are Total & British Gas....

and actually PTTEP's facilities offshore Thailand are very well run and actually run better run than some of the facilities in farangland

Further the PTTEP company in question is actually an Austrailan company, and it appears there is a nice Thai sounding name running the company..."Ken Fitzpatrick"....I wonder what part of Isaan that name hails from ?

So once again appears to be some unqualifed statements being thrown around by TV's finest experts

PTTEP is part of PTT.

PTT Exploration and Production is what is stands for and they are part of the Thai national oil company, as we are reminded every time we do work for them during our inductions. In this case it is PTTEP AA which is the Australasia division.

They have been audited very closely by NOPSEMA since the incident and cannot under any circumstances afford another slip-up.

Hopefully Soutpeel got that info. He is harboring many illusions, including the fact that this is not the Thai company in question. Thais need to be held accountable overseas. They are rarely held accountable at home. We see that every day.

[jackr]

<deleted>...positive proof my ar*e doesnt prove anything...same thing could be said of specific British company operating in the Gulf of Mexico....

Soutpeel, BP is not a British company! There was a time when it was state-owned as British Petroleum, but it is as much Yank-owned, and myriad other entities, as it is British. It is only known by its former title, British Petroleum, when prats (Barack Obama) want to apportion the blame to the old satan. While the Anglo-American-and-everyone-else's-company was holding the ticket for Deepwater Horizon, the people operating it were Transocean, but we can't blame them can we because it doesn't sound British!

[softgeorge]

510K AUD is nothing to an oil company probably the wages of 2 or 3 workers. Being heard in the Magistrate's Court (The Lowest Court) that was probably the highest amount they could impose. Matters like these are normally heard in the County Court.

Americans!!!

They don't know very much !!!

The matter was heard in the Lands, Planning and Mining Tribunal, a branch of the Magistrate's Court. Contrary to your comments above, the Tribunal is not "the lowest court". Contrary to what you may believe, the Australian court system is NOT the same as the US. We have no "County Court". The Tribunal is empowered to issue any fine or sentence contained in the appropriate legislation.

I hate to burst your bubble but Australia does have County Courts.

1. Perin Court

2. Civil Court

3. Magistrate's or Local Court. / Children's Court

4. County or District Court

5. Supreme Court

The Perin and Civil matters are generally heard in the Magistrate's Court Build where the Magistrate will place the Magistrate's Court into recess open the Perin or Civil Courts hear the matters close those courts and re open the Magistrate's Court.

The you move into the realms of the Federal Courts, ie, Federal Court, Family Courts, and High Courts etc.

Some Australians don't know very much !!! Even thier own court system.

Edited September 7, 2012 by softgeorge