In 2001, it received an $8000 fine after 23,000 litres of light crude oil was released in July 1999 into the waters off Varanus Island, which is about 110 km west of Dampier.

Apache Northwest Pty Ltd pleaded guilty in the Karratha Magistrates Court for failure to carry out good oilfield practice and securing the safety, health and welfare of persons engaged in its operations. It also has to pay $2,050 in costs.

In the latest incident, air was inadvertently pumped inside production equipment containing hydrocarbons during pipe-work modifications, leading to an internal flash fire.

The Department of Industry and Resources said while no one was injured and no equipment was damaged, the incident had potential to be more serious.

In the 2001 incident, the spill occurred after a chain attached to a transfer hose caught and sheared off a valve on a subsea loading line, when a tanker attempted to hook up to transfer crude oil abroad.