Yesterday the Magistrates' Court of Victoria imposed a criminal penalty of $330,000 against the drilling company over the deaths of Stena Clyde floorman Peter Meddens and toolpusher Barry Denholm during drilling in the Bass Strait.
The fine related to Stena's failure to implement and maintain systems of work that were safe and without risk to health.
The magistrate's decision follows a sentencing hearing which was held on in August where both Stena and the Commonwealth Director of Public Prosecutions presented their submissions.
When delivering her decision the magistrate said that the profound impact on the victims' families was in evidence in the victim impact statements.
The court found that while there were safety systems in place, but their lack of implementation on the day gave rise to the charge.
"Scrupulous adherence to systems is essential. The consequence of any negligence is profound," the magistrate said.
The fine, less than one day's rig rate at the time, is supposed to send a message to others in the industry about the importance of safety.
Since the accident occurred the penalty amounts under the law have been significantly increased.
The maximum penalty for an operator of a facility negligently breaching their duties relating to occupational health and safety regulations is now $1.487 million, an increase of 170% on the previous maximum penalty of $550,000.
"This decision provides further evidence of NOPSEMA's commitment to prosecuting serious breaches of the Offshore Petroleum and Greenhouse Gas Storage Act in the interests of a safe and environmentally responsible Australian offshore petroleum industry," National Offshore Petroleum Safety and Environmental Management Authority CEO Stuart Smith said.
Stena, which pled guilty to the charge, has expressed its regrets over the deaths.
Investigations found that senior management on the Stena Clyde failed to apply the Stena management of change principles in failing to carry out a new risk assessment and toolbox talk after altering the original plan of works.
Further, Stena conceded that senior members of the drilling crew failed to ensure that a revised risk assessment had been carried out prior to implementing the new plan.
