Variation of Pipeline Licence VIC/PL7 (Kingfish B to Halibut Oil Pipeline)

Administered by Department of Industry, Science and Resources

Legislation au C2020G00010 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/PL7

(KINGFISH B TO HALIBUT 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/PL7, 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”

 

b)        deleting the words:

 

“the renewal of Pipeline Licence VIC/PL7, 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/PL7, 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 25th day of August 1988.
 

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 B to Halibut Oil Pipeline is described in the table below, and displayed in the map below, commencing at the first flange downstream of the Last Valve Off (LVO) on the Kingfish B platform and terminating at the first flange upstream of the First Valve On (FVO) on the Halibut platform. Coordinates are based on Geodetic Datum of Australia (GDA94).

ID

DESCRIPTION

EASTING

NORTHING

1

LVO Kingfish B Manifold

603462.20

5727244.46

2

Inflection Point 01

603463.66

5727232.68

3

MLA150 Fuel Gas Pipeline Crossing

603605.60

5727234.87

4

Inflection Point 02

606200.35

5727259.74

5

FVO Halibut Manifold

615266.08

5748492.49

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 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)     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 said riser pipework shall be API Spec. 5LX Grade X52 or X65 seamless pipe and have an external diameter of 508 mm and a wall thickness of 19.1 mm, or other pipe that is approved. The original riser is X52 seamless pipe and a 13.8 m section has been replaced with X65 material between EL +8350 mm and EL – 1980 mm.

 

In the splash zones, the risers are coated with a 47 mm thick Monel sleeve. Below this, the risers are coated with Denso SeaShield 100. Denso SeaShield consists of a tape and high density polyethylene outer jacket. The risers then have a 25 mm thick CWC and a 3.2 mm CTE corrosion coating down to the seabed.”

 

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 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.

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.

 

In the splash zones, the risers are coated with a 47 mm thick Monel sleeve. Below this, the risers are coated with Denso SeaShield 100. The risers then have a 25 mm thick CWC and a 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)     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)       amending the numbering of Part I Specification, Section (D) Cathodic Protection to be:

 

“(C) Cathodic Protection”

 

j)       deleting Part I Specification, Section (E) Pressure Control

 

k)     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 framework for the regulation and administration of offshore petroleum activities and greenhouse gas storage within Australian jurisdiction. The Act addresses the need for a cohesive and efficient legislative approach to managing the exploration, production, and storage of petroleum resources in offshore areas, as well as the storage of greenhouse gases to mitigate environmental impacts. The Act was enacted by the Parliament of Australia with the aim of ensuring the sustainable and environmentally responsible development of offshore petroleum resources, while also facilitating investment and economic growth in the sector. This legislation allows for the regulation of activities by setting clear licensing and compliance requirements, thereby aiming to balance the interests of industry, the environment, and the public. The Act empowers the Commonwealth–Victoria Offshore Petroleum Joint Authority to administer and enforce the provisions of the Act, including the variation of pipeline licences as necessary. The recent variation of Pipeline Licence VIC/PL7, affecting the Kingfish B to Halibut Oil Pipeline, exemplifies the Act's application in refining operational details and ensuring compliance with current standards and regulations. This variation seeks to update and clarify the terms and conditions of the licence, ensuring alignment with the legislative framework and any subsequent amendments, while maintaining the operational integrity and safety of the pipeline.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to entities involved in the exploration, development, production, and storage of offshore petroleum and greenhouse gas in Australian waters. This legislation governs the operations of companies such as BHP Billiton Petroleum (Bass Strait) Pty. Ltd. and Esso Australia Resources Pty Ltd., which hold offshore petroleum titles and licenses, such as the Pipeline Licence VIC/PL7 for the Kingfish B to Halibut Oil Pipeline. The Act covers the geographic reach of Commonwealth waters and offshore areas, including specific locations such as the seabed off the coast of Victoria. The Act's provisions extend to the construction, operation, and maintenance of pipelines for the conveyance of petroleum, subject to the conditions outlined in the licence and the overarching regulations. The application of the Act is further extended or restricted through subordinate instruments, such as regulations and guidelines, which provide detailed operational standards and compliance requirements. Certain exclusions or exemptions may apply, but these are not specified in the provided text.

Key Provisions

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the Act) governs the variation of the Kingfish B to Halibut Oil Pipeline Licence (VIC/PL7) through Sections 226, 264 and 708. These sections empower the National Offshore Petroleum Titles Administrator, acting on behalf of the Commonwealth-Victoria Offshore Petroleum Joint Authority, to modify the terms and conditions of the licence. Specifically, the text of the renewal of the Pipeline Licence (Section 1) is altered to replace the previous 21-year renewal term with a new term that aligns with the Act and its regulations. Additionally, the 'Interpretation' section (Section 2) is updated to clarify the definitions of 'the Act' and 'the Regulations'. The 'First Schedule' (Section 3) revises the pipeline route, detailing its starting and ending points, and provides coordinates based on the Geodetic Datum of Australia (GDA94). The 'Second Schedule' (Section 4) updates the pipeline design specifications, materials of construction, and protective coatings, ensuring they comply with the current standards and regulations. Under the Act, the licensees, BHP Billiton Petroleum (Bass Strait) Pty. Ltd. and Esso Australia Resources Pty Ltd., are obligated to adhere to the provisions of the Act and the regulations. This includes ensuring the pipeline's design, materials, and operational practices meet the specified standards. The licensees must also ensure compliance with any new conditions imposed by the variation of the licence. These obligations extend to maintaining the pipeline in a safe and environmentally sound condition, which includes regular inspections and reporting as required by the Act and its regulations. Violations of the Act or the regulations may result in civil or criminal penalties. For example, non-compliance with the operational standards could lead to fines or imprisonment, depending on the severity of the breach. The specific penalties are not detailed in the variation but are outlined in the Act itself, which provides for penalties such as substantial fines and potential imprisonment terms for serious breaches. The exact penalties would be determined by the relevant authorities upon investigation and adjudication of the breach.

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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.