AUSTRALIA

Last chance for BP in Bight

BP's CONTROVERSIAL plans to drill Australia's Southern Margin with the hopes of opening a new Aus...

Last chance for BP in Bight

The National Offshore Petroleum Safety and Environmental Management Authority said yesterday that it had completed its review of the latest proposed environmental plan for drilling in the wild metocean environment of the Bight.

NOPSEMA has again decided it was still not happy with BP's plans, however it has left the door open, providing the company with a further "opportunity to modify and resubmit" its environment plan.

NOPSEMA rejected the plan because it feels it is not appropriate for the nature and scale of the proposed activity, and said that BP has still not demonstrated that it has reduced the risks to the lowest level possible, or that the oiler has carried out sufficient consultations.

BP issued a statement that the NOPSEMA decision was "not a rejection but another step in the normal, iterative process with this regulator".

The UK oiler first submitted its environmental plan last October, and in the eight months since it still has been unable to satisfy the government that it is prepared to deal with a potentially ruinous oil spill close to various tourist and fishing communities.

In the same window the Australian Senate has held hearings into drilling in the Bight.

A report had been expected on May 12, but that has since been extended to June 20, and with the Parliament not expected to sit before the July 2 double dissolution election it will be considered by the next Senate.

"We will now assess NOPSEMA's feedback and work toward resubmitting our environment plan in the coming months," the BP statement said.

NOPSEMA has asked for the revised plan by July 15, at which time it may determine a reasonable opportunity has been given and it may refuse to accept the plan although BP can request an extended timeframe.

A July submission would give NOPSEMA at least 30 days to review the latest revision plan.

BP said that it had allowed sufficient time in its program schedule for the regulatory process and it would continue to work toward commencing exploration drilling in late 2016.

BP hopes the four-well program will kick off with Stromlo-1, and then there will be a pause to assess the results. Each well is expected to take 45-170 days.

The company expects to take delivery of a new semi-submersible mobile offshore drilling unit Ocean Great White in the fourth quarter.

The rig, built at a cost of some $US755 million in the Hyundai Heavy Industries shipyards of South Korea, has a day rate of $585,000, and is on a fixed two-year contract for BP.

The ultra-deep water harsh environment rig, operated by Diamond Offshore, was named last August.

Construction work has begun at the marine supply base in South Australia to support the drilling.

Operations in the Bight remain sensitive.

Junior Bight Petroleum has been struggling for years to gain approvals for its seismic surveys off King Island.

In mid-2012 it missed its original year one deadline for EPP 41 and EPP 42 in the Duntroon Sub-basin in, west of the Ceduna Sub-basin where BP aims to drill because of community opposition.

It recently had its work program in EPP 41 extended to July 2018 when 850sq.km 3D seismic and one exploration well are now due, while in EPP 42 it needs to shoot 181sq.km of 3D and 405km of 2D by July 2018.

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