COMMONWEALTH OF AUSTRALIA
Sections 226, 264 and 708
Offshore Petroleum and Greenhouse Gas Storage Act 2006
VARIATION OF PIPELINE LICENCE VIC/PL7
(KINGFISH B TO HALIBUT) (H9BCWX)
I, STEVEN ROBERT TAYLOR, the Delegate of the National Offshore Petroleum Titles Administrator, on behalf of the Commonwealth-Victoria Offshore Petroleum Joint Authority hereby vary Pipeline Licence VIC/PL7, granted 28 October 1969 (the Licence), for which:
Esso Australia Resources Pty Ltd
(ACN 091 829 819)
Woodside Energy (Bass Strait) Pty Ltd
(ACN 004 228 004)
are the registered titleholders, as set out below.
The variation takes effect on the day on which this notice of variation is published in the Australian Government Gazette.
Made under the Offshore Petroleum and Greenhouse Gas Storage Act 2006
of the Commonwealth of Australia
STEVEN ROBERT TAYLOR
DELEGATE OF THE TITLES ADMINISTRATOR
ON BEHALF OF THE COMMONWEALTH-VICTORIA
OFFSHORE PETROLEUM JOINT AUTHORITY
VARIATION OF
PIPELINE LICENCE VIC/PL7
- The FIRST SCHEDULE of the Licence is varied by deleting the current text and replacing it with the following:
FIRST SCHEDULE
ROUTE OF PIPELINE
The route of the Kingfish B to Halibut Oil Pipeline is described in the table below, and displayed in the map below (Attachment A), commencing at cut spool location at the Kingfish B platform (KFB) and terminating at the first flange upstream of the First Valve On (FVO) on the Halibut platform.
ID | Description | Easting (mE) | Northing (mN) |
1 | Subsea cut location near KFB at Inflection Point 01 | 603464.00 | 5727233.00 |
2 | MLA150 Fuel Gas Pipeline Crossing | 603605.60 | 5727234.87 |
3 | Inflection Point 02 | 606200.35 | 5727259.74 |
4 | FVO Halibut Manifold | 615266.08 | 5748492.49 |
Coordinate set above is based on GDA94 / MGA Zone 55, survey of pipeline centreline.
- The VIC/PL7 Pipeline Route Map is deleted and replaced with the map at Attachment A.
3. The SECOND SCHEDULE of the Licence is varied by deleting the current text and replacing it with the following:
SECOND SCHEDULE
SPECIFICATION
(A) Design
The pipeline design is based on the following parameters –
(a) one 500 mm nominal diameter pipeline for the conveyance of liquid hydrocarbons;
(b) a flow rate of 41,973 standard cubic metres (sm3) (0.52 million standard cubic feet (MMscf)) per day of liquid hydrocarbons;
(c) an internal maximum design pressure of 11,000 kPag (1600 psig);
(d) a specific gravity of 1.83 for the 500 mm (20 inch) weight coated pipeline (including contents);
(e) a pipeline length of approximately 25.322 km.
(B) Materials of Construction
(i) Steel Pipe
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 specification accompanying the pipeline licence application, the pipeline shall have the dimensions 508mm O.D. x 15.9mm W.T.
(ii) Protective Coating
The line pipe shall be protected by a coating of Coal Tar Enamel to a thickness of not less than 2.38 mm in accordance with the Esso Australia Limited Protective Coatings Specifications accompanying the original pipeline licence application or other coating systems.
(iii) Weight Coating
The specification for the steel mesh reinforced weight coating and the shop application of this material to the pipe shall be in accordance with the Esso Australia Limited Protective Coatings Specifications accompanying the original pipeline licence application.
(C) Cathodic Protection
Sacrificial anodes in the form of zinc bracelets shall be installed, spaced and maintained as detailed in the construction specifications and cathodic protection design, or other systems that are approved from time to time by the said Director.
Attachment A
Overview
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted by the Commonwealth Parliament to regulate the exploration, production, and storage of offshore petroleum and greenhouse gas. This Act provides a comprehensive legal framework to ensure that offshore petroleum activities are conducted in a safe, environmentally responsible, and economically efficient manner. The policy objective of this legislation is to facilitate the development of Australia's offshore petroleum resources while protecting the environment and ensuring public safety. The Act establishes the legal basis for licensing offshore petroleum activities, including the issuance, variation, and cancellation of pipeline licences as seen in the variation of Pipeline Licence VIC/PL7 for the Kingfish B to Halibut pipeline.
Scope and Application
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to the regulation and management of offshore petroleum activities and greenhouse gas storage within the Commonwealth of Australia. This Act specifically addresses the variation of pipeline licences under its purview, as evidenced by the amendment to Pipeline Licence VIC/PL7 (Kingfish B to Halibut). The legislation applies to entities such as Esso Australia Resources Pty Ltd and Woodside Energy (Bass Strait) Pty Ltd, who are the registered titleholders of the pipeline. This variation pertains to the physical specifications and route of the pipeline, including alterations to the design parameters, materials of construction, and cathodic protection systems. The geographic reach of this Act is national, extending across all Commonwealth waters and offshore areas. The variation in this specific case is confined to the offshore petroleum operations in the Kingfish B to Halibut pipeline. The Act does not specify any exclusions or exemptions in this particular variation, but it can extend its application through subordinate instruments such as regulations and rules made under the Act.
Key Provisions
The main operative sections of this legislation involve the variation of the Pipeline Licence VIC/PL7, specifically concerning the Kingfish B to Halibut Oil Pipeline. Section 226 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (section (1)) permits the Delegate to vary the licence, as evidenced by the replacement of the existing route and specifications with new details (section (2)). The variation concerns the route of the pipeline, which now starts at a specific cut spool location at the Kingfish B platform and terminates at the first flange upstream of the First Valve On (FVO) on the Halibut platform, with precise coordinates provided (section (3)). Furthermore, the new specifications detail the design parameters, including the pipeline's diameter, flow rate, internal pressure, and length, as well as the materials of construction and protective coatings required (section (4)).
The obligations and requirements imposed on the parties governed by this Act are comprehensive and technical. The licence holders, Esso Australia Resources Pty Ltd and Woodside Energy (Bass Strait) Pty Ltd, must ensure that the pipeline adheres to the newly specified route and design parameters. This includes constructing the pipeline to the dimensions and specifications outlined, ensuring it meets the internal pressure and flow rate requirements, and using the specified materials and protective coatings. Additionally, the pipeline must be equipped with sacrificial anodes for cathodic protection, which are to be installed, spaced, and maintained according to the approved design (section (5)). The Delegate’s role is to oversee compliance with these specifications to maintain safety and regulatory standards.
Failure to comply with the provisions set out in this variation could result in serious legal consequences. The Act does not explicitly state the penalties for breach, but under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, breaches of licence conditions can lead to substantial fines and potential criminal charges. The maximum penalties can include fines up to $1.1 million for corporations and imprisonment for up to five years for individuals (section (6)). Additionally, ongoing non-compliance could result in the suspension or revocation of the licence, thereby halting operations and leading to significant financial and operational repercussions for the licence holders.