Variation of Pipeline Licence VIC/PL6 (Kingfish A to Kingfish B Oil Pipeline)

Administered by Department of Industry, Science and Resources

Legislation au C2020G00005 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/PL6

(KINGFISH A TO KINGFISH B OIL 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/PL6, 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:

 

a)        deleting the words:

 

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

 

b)        deleting the words:

 

“the renewal of Pipeline Licence VIC/PL6, 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/PL6, 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 20th day of September 1989.
 

The licensee shall at all times comply with the provisions of the Act and Regulations (as 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.

 

“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 Kingfish A to Kingfish B Oil 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 Kingfish A platform and terminating at the first flange upstream of the First Valve On (FVO) on the Kingfish B platform. Coordinates are based on Geodetic Datum of Australia (GDA94).

 

ID

DESCRIPTION

EASTING

NORTHING

1

LVO Kingfish A Manifold

599671.29

5727368.95

2

Inflection Point 01

599670.26

5727355.01

3

KFB SSIV Umbilical Crossing

603446.35

5727228.40

4

KFB150 Fuel Gas Pipeline Crossing

603446.68

5727228.49

5

Inflection Point 02

603460.81

5727232.35

6

 FVO Kingfish B Manifold

603459.38

5727244.06

 

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

 

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

 

a)      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 400 mm nominal diameter pipeline for the conveyance of liquid hydrocarbons;

(b)   a flow rate of 20,986 standard cubic metres (sm3) (0.132 million barrels (MMbbl)) per day of liquid hydrocarbons;

(c)   an internal maximum design pressure of 11,376 kPag (1650 psig);

(d)   a specific gravity of 1.83 for the 400 mm weight coated pipeline (including contents);

(e)   a pipeline length of approximately 3.836 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 406.4 mm O.D. x 15.9 mm W.T.

 

The said riser pipework shall be API-X52 sour service seamless CS line-pipe and have the dimensions 406.4 mm O.D. x 19.1 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 3.2 mm coating of Coal Tar Enamel and an impressed current cathodic protection system from the two platforms 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 a 10 mm thick Monel sheathing. The Monel sheath is welded to HydroTech flanges at each end, which in turn connect to the riser.

 

Down to a depth of 6 m below MSL on KFA and 9.8 m below KFB, the risers are coated with Denso SeaShield 100. The risers then have 25 mm thick CWC and 3.2 mm CTE corrosion coating down to the seabed.”

 

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 all of 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.

 

 

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

 

 

 

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to provide a comprehensive framework for the regulation of offshore petroleum and greenhouse gas storage activities within Australia's jurisdiction. This Act addresses the need for stringent regulatory oversight to ensure environmental protection, safety, and sustainable development in the offshore petroleum industry. The Act was enacted by the Parliament of Australia, reflecting a policy objective to balance the economic benefits of offshore petroleum activities with the imperative to protect the marine environment and mitigate climate change. This legislation enables the Commonwealth–Victoria Offshore Petroleum Joint Authority to administer and regulate offshore petroleum activities, including the granting and variation of pipeline licences. The recent variation of Pipeline Licence VIC/PL6, which concerns the Kingfish A to Kingfish B Oil Pipeline, demonstrates the Act's application in updating and refining operational details to align with current standards and requirements. The variation ensures that the pipeline operations continue to comply with the provisions of the Act and its associated regulations, emphasising the ongoing commitment to safety and environmental stewardship in offshore operations.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to entities involved in the exploration, production, and storage of offshore petroleum and greenhouse gas, including the specific alteration of the Pipeline Licence VIC/PL6 for the Kingfish A to Kingfish B Oil Pipeline. This Act governs the activities of titleholders such as BHP Billiton Petroleum (Bass Strait) Pty. Ltd. and Esso Australia Resources Pty Ltd, who are the registered titleholders for the pipeline. The Act applies within the offshore area of Victoria and is administered by the Commonwealth of Australia through the Commonwealth–Victoria Offshore Petroleum Joint Authority. The variation of the licence is intended to refine the terms of the pipeline's operation, including the pipeline's design, size, capacity, and specific operational conditions, all of which must adhere to the provisions of the Act and relevant regulations. The scope of the Act extends to ensuring compliance with national safety and environmental standards, while any exclusions or exemptions are to be determined by the specific terms of the licence and any applicable regulations. The Act's application may be further refined or extended through subordinate instruments, ensuring that the legislative intent is effectively implemented and enforced.

Key Provisions

Section 226 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 pertains to the variation of pipeline licences, allowing for amendments to existing licences to ensure they remain effective and compliant with current regulatory standards and operational requirements. In this instance, the variation relates to Pipeline Licence VIC/PL6, which is renewed to accommodate changes in design, materials, and operational conditions. Section 264 outlines the requirements for the design, construction, and operation of pipelines, ensuring they meet safety and environmental standards. Section 708 provides the framework for imposing conditions and penalties in case of non-compliance with the Act and associated regulations. The licence is renewed for the conveyance of petroleum, with the design, size, and capacity specified in the updated licence, effective from the original start date of 20 September 1989. The obligations imposed on the parties governed by this Act include strict adherence to the conditions specified in the licence, the provisions of the Act, and the regulations made under it. The licensees must ensure that the pipeline's design and construction meet the specified parameters, including the pipeline's diameter, flow rate, maximum design pressure, and specific gravity. The materials used for construction must comply with the American Petroleum Institute specifications, and the pipeline must be protected by an appropriate coating system to prevent corrosion. Additionally, the licensees are required to operate the pipeline in accordance with the conditions set out in the licence and any relevant regulations. Failure to comply with the provisions of the Act, the licence conditions, or the regulations can result in various consequences. Offences under the Act may lead to criminal charges, while breaches of licence conditions or regulations may result in civil penalties. The Act provides for penalties including fines and imprisonment for serious breaches. The specific maximum penalties are not detailed in the provided text, but generally, these can include substantial fines and imprisonment terms depending on the severity and impact of the breach. Compliance is enforced through regular inspections and audits by the relevant authorities.

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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.