Regulator Raises Compliance Concerns Over Gas Operations at Santos Barossa Project

Australia's offshore oil and gas regulator has expressed concerns regarding ongoing non-compliance issues at energy company Santos's multi-billion-dollar Barossa project. According to correspondence reviewed by ABC News, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) issued a warning to Santos following an inspection conducted in March at its onshore gas storage facility located on Darwin Harbour.

The regulatory agency stated that inspectors observed key components of the company's environmental plan were not being properly implemented regarding fuel management and flaring, a process that releases carbon dioxide into the atmosphere. The initial warning highlighted that Santos needed to place a greater focus on meeting its regulatory commitments.

Subsequent inspections conducted at the offshore Barossa facility, situated approximately 300 kilometres north of Darwin in the Timor Sea, revealed that the previously identified problems remained unresolved. The regulator noted that this pattern of continued non-compliance several months after the initial findings was concerning, and suggested that ineffective management of environmentally relevant equipment could indicate a broader systemic issue within the company's operations.

A NOPSEMA spokesperson explained that the warning stemmed from findings that Santos failed to adequately set, monitor, and manage its fuel and flare performance in accordance with its environment plan commitments. The spokesperson added that both fuel usage and gas burn-off levels exceeded the estimates outlined in the plan for the hook-up and commissioning phase.

In response to the regulatory concerns, economists and environmentalists accused Santos of disregarding the problem, warning that it could result in higher than expected emissions and pollution levels. Meanwhile, a Santos spokesperson stated that the company had engaged with NOPSEMA to agree on a forward plan and establish actions aligned with the results of onshore and offshore inspections.

The Santos spokesperson further maintained that the company has not faced any enforcement action from NOPSEMA regarding the Barossa project. Additionally, the spokesperson stated that Santos has not received any notices of non-compliance concerning fuel and flare obligations or reporting requirements outlined in the environment plan.