Variation of Pipeline Licence VIC/PL14 (West Kingfish to Kingfish A Pipeline)

Administered by Department of Industry, Science and Resources

Legislation au C2020G00392 In force Gazette

Legislation content

 

 

COMMONWEALTH OF AUSTRALIA

 

Sections 226, 264 and 708

Offshore Petroleum and Greenhouse Gas Storage Act 2006

 

VARIATION OF PIPELINE LICENCE VIC/PL14

(WEST KINGFISH TO KINGFISH A PIPELINE)

 

I, GRAEME ALBERT WATERS, the National Offshore Petroleum Titles Administrator, on behalf of the Commonwealth–Victoria Offshore Petroleum Joint Authority hereby vary Pipeline Licence VIC/PL14, dated 20 July 1990 (the Licence), for which:

 

BHP Billiton Petroleum (Bass Strait) Pty. Ltd.

(ABN 29 004 228 004)

 

Esso Australia Resources Pty Ltd

(ABN 62 091 829 819)

 

are the registered titleholders, as set out below.

 

The variation takes effect on the day on which a notice of the variation is published in the Commonwealth Government Gazette.

 

Made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006
of the Commonwealth of Australia

 

GRAEME ALBERT WATERS

TITLES ADMINISTRATOR

ON BEHALF OF THE COMMONWEALTH–VICTORIA
OFFSHORE PETROLEUM JOINT AUTHORITY

 

 

 


  1. The text of the Renewal of Pipeline Licence on Page 1 is varied by:

 

  1. deleting the words:

 

“and subject to the conditions set out hereunder, grant to

 

b.        deleting the words:

 

“the renewal of Pipeline Licence VIC/PL14, to have effect for a period of twenty-one (21) years from and including the 20th day of September 1989”.

 

and replacing with:

 

“the renewal of Pipeline Licence VIC/PL14, in the offshore area of Victoria, subject to:

 

a)     the conditions set out in this licence;

b)     the provisions of the Act; and

c)      the provisions of the Regulations;

 

to construct and operate a pipeline for the conveyance of petroleum, of the design, size and capacity specified herein, along the route specified herein, in relation the seabed specified herein, and to operate the pumping stations, tank stations and valve stations specified in the positions herein, to have effect from and including the 20th day of September 1989.

 

The licensee shall at all times comply with the provisions of the Act and Regulations (amended from time to time).”

 

2.      The ‘INTERPRETATION’ on Page 2 of the Licence is varied by deleting the current text under the heading ‘INTERPRETATION’

 

and

 

substituting under the heading the following:

 

“In this document:

 

“the Act” means the Offshore Petroleum and Greenhouse Gas Storage Act 2006, and includes any Act with which that Act is incorporated and words used in this document have the same respective meanings as in the Act; and

“the Regulations” means regulations made under the Act.

“Pipeline” has the meaning given in the Act.”

 

3.      The FIRST SCHEDULE of the Licence is varied by deleting the current text below the heading ‘FIRST SCHEDULE,’ ‘ROUTE OF PIPELINE’

 

and

 

substituting under the heading the following:

 

The route of the West Kingfish to Kingfish A pipeline is described in the table below, and displayed in the map below, commencing at the flange immediately downstream of the Last Valve Off (LVO) on the West Kingfish platform and terminating at the first flange upstream of the First Valve On (FVO) on the Kingfish A platform. Coordinates are based on Geodetic Datum of Australia (GDA94).

 

ID

DESCRIPTION

EASTING

NORTHING

1

LVO West Kingfish Manifold

596271.01

5727813.48

2

Inflection Point 01

596260.21

5727814.31

3

Inflection Point 02

596257.77

5727779.37

4

Inflection Point 03

599124.17

5727640.06

5

Inflection Point 04

599531.42

5727775.81

6

Inflection Point 05

599674.06

5727421.47

7

Inflection Point 06

599683.96

5727418.78

8

Inflection Point 07

599683.32

5727405.55

9

FVO Kingfish A Manifold

599673.34

5727406.28

 

Coordinate set above is based on GDA94 / MGA Zone 55, survey of pipeline centreline.”

 

 

 

4.      The SECOND SCHEDULE of the Licence is varied by:

 

  1. deleting the current text under Part I Specification, Section (A) Design

 

and

 

substituting under the heading Section (A) Design the following:

 

“The pipeline design is based on the following parameters –

 

(a)   one 300 mm nominal diameter pipeline for the conveyance of liquid hydrocarbons;

(b)   a flow rate of 12,398 sm3/d (0.078 MMbbl/d) of liquid hydrocarbons;

(c)   an internal design pressure of 13,962 kPag (2025 psig);

(d)   a specific gravity of 1.76 for the 300 mm weight coated pipeline (including contents);

(e)   a pipeline length of approximately 3.626 km.”
 

b.      deleting from Part I Specification, Section (B) Materials of Construction, the words:

 

“The materials used in the pipeline shall meet the following specifications-”

 

c.       deleting the current text under Part I Specification, Section (B) Materials of Construction, subsection (i) Steel Pipe

 

and

substituting under the heading subsection (i) Steel Pipe the following:

 

The line pipe shall be in accordance with the requirements of the American Petroleum Institute Specification – API Spec 5LX, 35th Edition for Grade X52 seamless pipe and Esso Australia Limited Supplemental pipe specification accompanying the pipeline licence application, and except for the riser pipework, the pipeline shall have the dimensions 323.4 mm O.D. X 12.7 mm W.T.

 

Primary external corrosion protection for the pipeline is provided by a 2.5 mm thick, high temperature resistant, low density, Sintakote FBP.

 

The said riser pipework shall be API Spec. 5LX, Grade X52 seamless pipe and have the dimensions 323.1 mm O.D. X 19.05 mm W.T.”

 

d.      deleting Part I Specification, Section (B) Materials of Construction, subsection (ii), Valves and Fittings

 

e.       deleting the current text under Part I Specification, Section (B) Materials of Construction, subsection (iii) Protective Coating:

 

and

 

substituting under the heading subsection (iii) Protective Coating the following:

 

“The line pipe shall be protected by a coating of fusion bonded black polyethylene to a thickness of not less than 2.2 mm and applied in accordance with the Esso Australia Limited Protective Coatings Specifications accompanying the original pipeline licence application.

 

Protection of the riser pipework shall be maintained with a coating in accordance with the coating Specification No. 4.3 – Protective Coatings for Onshore Plants, Offshore Platforms and other Marine Structures or other systems.

 

In the splash zones, the risers are coated with 10 mm carbon steel and 4.75 mm Monel sheathing. Above and below the splash zones at KFA and WKF, the riser has a 6 mm thick Zebron polyurethane coating.”

 

f.        amending the numbering of Part I Specification, Section (B) Materials of Construction, subsection (iii) Protective Coating to be:

 

“(ii) Protective Coating”

 

g.      amending the numbering of Part I Specification, Section (B) Materials of Construction, subsection (iv) Weight Coating to be:

 

“(iii) Weight Coating”

 

h.      deleting Part I Specification, Section (C) Connection to Pipeline, Pipeline Scraper Sender and Scraper Receiver

 

i.        deleting the current text under Part I Specification, Section (D) Cathodic Protection

 

and

 

substituting under the heading (D) Cathodic Protection the following:

 

“Sacrificial zinc bracelet anodes. There are three anodes fitted to the pipeline.”

 

j.        amending the numbering of Part I Specification, Section (D) Cathodic Protection to be:

 

“(C) Cathodic Protection”

 

k.      deleting Part I Specification, Section (E) Pressure Control

 

l.        deleting all Part II Further Conditions, Sections (A) to (E).

 

The rest of the Second Schedule remains as stated in the licence instrument dated 20 July 1990.

 

 

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to provide a comprehensive legal framework for the regulation of offshore petroleum and greenhouse gas storage activities in Australian waters. This Act addresses the need for effective management and regulation of offshore petroleum operations, ensuring environmental protection, safety, and efficient use of resources. The Act was introduced by the Parliament of Australia, aiming to establish clear guidelines for the exploration, production, and storage of offshore petroleum and greenhouse gas, alongside measures to mitigate environmental impacts. The policy objective of the Act is to balance the economic benefits of offshore petroleum activities with the protection of marine environments and the safety of operations. The Act serves as the foundational legislation under which specific licences and regulatory frameworks are developed, ensuring that all offshore activities comply with stringent safety and environmental standards. By providing a structured approach to the regulation of these activities, the Act helps to maintain public trust and confidence in the offshore petroleum industry while promoting sustainable practices.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 governs the variation of the Pipeline Licence VIC/PL14, concerning the West Kingfish to Kingfish A pipeline, which is used for the conveyance of petroleum. This legislation applies specifically to the pipeline operators, BHP Billiton Petroleum (Bass Strait) Pty. Ltd. and Esso Australia Resources Pty Ltd, as the registered titleholders. The Act applies to the construction, operation, and maintenance of the pipeline within the offshore area of Victoria, adhering to the conditions outlined in the licence, the provisions of the Act, and the regulations. The variation is made by the National Offshore Petroleum Titles Administrator on behalf of the Commonwealth–Victoria Offshore Petroleum Joint Authority and becomes effective upon publication in the Commonwealth Government Gazette. The Act provides a comprehensive framework for managing offshore petroleum activities, including the administration of pipeline licences, and its provisions are supplemented by subordinate regulations that further detail operational standards and safety measures.

Key Provisions

The key provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) as varied by this Gazette are primarily outlined in Section 226, which allows for the variation of a pipeline licence. Section 264 outlines the specific conditions and requirements that must be adhered to by the licensees, while Section 708 details the penalties and consequences for non-compliance. The Act provides the legal framework under which the variation of the pipeline licence is made. Under this variation, the primary obligations imposed on the titleholders, BHP Billiton Petroleum (Bass Strait) Pty. Ltd. and Esso Australia Resources Pty Ltd., include strict compliance with the provisions of both the Act and the Regulations. These obligations encompass adherence to the design specifications, operational parameters, and maintenance standards as set forth in the amended licence. The titleholders are required to ensure that the pipeline is constructed and operated in accordance with the detailed specifications provided in the Schedules of the Licence, including the pipeline's route, dimensions, materials, protective coatings, and cathodic protection systems. The titleholders must also ensure ongoing compliance with any additional conditions set out in the licence. Failure to comply with the provisions of the Act or the licence may result in various civil or criminal consequences. Under Section 264 of the Act, non-compliance may lead to enforcement actions, including the imposition of fines, cancellation or suspension of the pipeline licence, or other regulatory sanctions. The specific penalties are detailed in Section 708, which stipulates that breaches of the Act may result in substantial fines. For example, the Act provides for fines up to a maximum of $275,000 for corporations and up to $55,000 for individuals, depending on the severity and nature of the breach. Additionally, ongoing non-compliance could lead to further legal action, including potential criminal charges and imprisonment.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.