Variation of Pipeline Licence VIC/PL8 (Mackerel A to Halibut A)

COMMONWEALTH OF AUSTRALIA

Sections 226, 264 and 708

Offshore Petroleum and Greenhouse Gas Storage Act 2006

VARIATION OF PIPELINE LICENCE VIC/PL8

(MACKEREL A TO HALIBUT A)

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/PL8, dated 20 July 1990 (the Licence), for which:

Esso Australia Resources Pty Ltd

(ABN 62 091 829 819)

BHP Billiton (Bass Strait) Pty. Ltd.

(ABN 29 004 228 004)

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/PL8, 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/P28, 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 (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 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 Mackerel 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).

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 ‘SPECIFICATION,’ Section (A) Design

and

substituting under the heading ‘SPECIFICATION,’ Section (A) Design the following:

“The pipeline design is based on the following parameters –

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

(ii)      a flow rate of 15899 sm3/d (0.100 MMbbl/d) of liquid hydrocarbons;

(iii)    a maximum internal design pressure of 14,893 kPag;

(iv)    a pipeline length of approximately 9.4 km.

b)     deleting the following text under ‘SPECIFICATION,’ Section (B) Materials of Construction

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

c)      Deleting the current text under the heading ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (i) Steel Pipe

and

substituting under the heading ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (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 and Esso Australia Limited Supplemental pipe specification accompanying the pipeline licence application. There is a 4 km replacement section beginning at MKA and terminating at the flexible jumper. All replacement rigid linepipe has an external diameter of 323.9 mm and a wall thickness of 12.7 mm.

The original section of pipeline starts at the other side of the flexible jumper to HLA. This section of pipeline has an outer diameter of 323.9 mm and a wall thickness of 9.53 mm.

The tie-in spool has an external diameter 323.9 mm and a wall thickness of 12.7 mm thick. It also has a corrosion coating of 0.5 mm thick FBE and a 25 mm CWC. The CWC extended from the riser to tie-in spool flange connection to the tie-in spool to pipeline connection.

The first sections of both the export riser on MKA and the import riser on HLA are fabricated from A106 Grade B sour service seamless CS line-pipe between the pig launcher/receiver and the first riser flange. The first sections have an external diameter of 323.9 mm and a wall thickness of 21.44 mm. The rest of the riser section are made from API-X52 sour service seamless CS line-pipe, have a diameter of 323.9 mm and a wall thickness of 19.05 mm.

The lower sections of the risers have 1-1.5 mm UHB epoxy coating. The export riser splash zone at MKA is wrapped in a 12.7 mm CS sleeve and a 5 mm Monel sleeve. The import riser splash zone at HLA is wrapped in a 12.7 mm CS sleeve.

The flexible jumpers are fabricated from composite material manufactured by Coflexip and have a Nylon-11 pressure containing sheath. The flexible jumper is 65.8 mm long, has an internal diameter of 305 mm and a wall thickness of 55.2 mm.”

d)     deleting ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (ii) Valves and Fittings

e)      deleting the text from under the heading ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (iii) Protective Coating

and

substituting under the heading ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (iii) Protective Coating

“Primary external corrosion protection for the pipeline is provided by a CTE coating and a high density polyethylene coating called Yellow Jacket.

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.”

f)       amending the numbering of ‘SPECIFICATION,’ Section (B) Materials of Construction, subsection (iii) Protective Coating to be:

“(ii) Protective Coating”

g)     amending the numbering of ‘SPECIFICATION’, Section (B) Materials of Construction, subsection (iv) Weight Coating to be:

“(iii) Weight Coating”

h)     deleting ‘SPECIFICATION,’ Section (C) Connections to Pipeline

i)       amending the numbering of ‘SPECIFICATION,’ Section (D) Cathodic Protection, to be:

“(C) Cathodic Protection”

j)       deleting ‘SPECIFICATION,’ Section (D) Cathodic Protection, subsection (a)

k)     amending the numbering of ‘SPECIFICATION,’ Section (D) Cathodic Protection, subsection (b) to be:

“(a)”

l)       amending the numbering of ‘SPECIFICATION,’ Section (D) Cathodic Protection, subsection (c) to be:

“(b)”

m)   amending the numbering of ‘SPECIFICATION,’ Section (D) Cathodic Protection to be:

“(C) Cathodic Protection”

n)     deleting ‘SPECIFICATION,’ Section (E) Pressure Control

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