Variation of Pipeline Licence VIC/PL22 (Seahorse to Barracouta Pipeline)

COMMONWEALTH OF AUSTRALIA

Sections 226, 264 and 708

Offshore Petroleum and Greenhouse Gas Storage Act 2006

VARIATION OF PIPELINE LICENCE VIC/PL22

(SEAHORSE TO BARRACOUTA 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/PL22, dated 31 August 1989 (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:

“for a term from 31 August 1989 to 24 August 2009 a licence to construct and operate a pipeline for the conveyance of liquid hydrocarbons along the route described in the First Schedule hereto”

and replacing with:

“Pipeline Licence VIC/PL22, 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 to 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 31st day of August 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 1 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 Seahorse to Barracouta pipeline is described in the table below, and displayed in the map below, commencing at the tie-in spool at the Seahorse Subsea Facility and terminating at the first flange upstream of the First Valve On (FVO) on the Barracouta platform. Coordinates are based on Geodetic Datum of Australia (GDA94).

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 150 mm nominal diameter pipeline for the conveyance of liquid hydrocarbons;

(b)   a flow rate of 1,100 sm3/d (0.007 MMbbl/d) of liquid hydrocarbons;

(c)   an internal design pressure of 21,000 kPag;

(d)   a design temperature of 39⁰C;

(e)   a specific gravity of 3.7 for the 168 mm X 12.7 mm pipeline (including contents);

(f)     a maximum water depth during pipelaying of 47 m;

(g)   a pipeline length of 11.259 km.

(h)   a maximum allowable total strain on the line pipe during the reeling operation of two percent.”

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

“The materials used in the pipeline shall conform to 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 5L, 36th Edition for Grade X42 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      168 mm O.D. with 12.7 mm W.T. and provide thermal insulation with the use of a 10 mm thick polyurethane foam.

The said riser pipework shall be API Spec. 5LX, Grade X-60 seamless pipe and have the dimensions 168 mm O.D. and 12.7 mm W.T.

The connection of the said riser pipework to the line pipe shall be made by flexible jumpers as detailed in the specifications accompanying the pipeline licence application.

The carrier pipe shall be in accordance with the requirements of the American Petroleum Institution Specification – API Spec 5L, 36th Edition for Grade B Seamless pipe and Esso Australia Limited Supplemental pipe specification accompanying the pipeline licence application and shall have the dimensions 250.8 mm O.D. with 23.8 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 Taubmans HB3005 Fusion Bonded Epoxy 400-500 Microns thick, and shall be insulated by a coating of Aptane AP8809/6/8900 closed cell Polyurethane Foam Insulation 9.8 – 11 mm thick and in accordance with the Esso Australia Limited Protective Coatings Specifications accompanying the pipeline licence application.

Protection of the riser pipework by UHB epoxy and epoxy MIO coating systems shall be in accordance with the Coating Specification No. 4.3 Protective Coatings for Onshore Plants, Offshore Platforms and other Marine Structures.

In the splash zones, the risers are wrapped in a 12 mm thick carbon steel and a 4.75 mm thick Monel sleeve. Below the splash zone, the riser is coated with 1-1.5 mm UHB epoxy.”

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

“(ii) Protective Coating”

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

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

“(C) Cathodic Protection”

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

j.        deleting Part 1 Specification, Section (F) Pressure Test.

k.      deleting all Part II Further Conditions, Sections (A) to (H).

The rest of the Second Schedule remains as stated in the licence instrument dated 31 August 1989.