WA MINES and Petroleum Minister Norman Moore says the state government will prosecute Apache Energy for failing to maintain and repair the Varanus Island gas pipeline.
According to the prosecution, Apache Energy’s subsidiary Apache Northwest and its co-licensees failed to maintain the pipeline in good condition and repair, contravening the petroleum pipelines act.
Minister Moore claims the sales gas pipeline was corroded in the area of the pipeline rupture which caused the Varanus Island explosion on 3 June 2008.
The National Offshore Petroleum Safety Authority investigated the blast, and found Apache had failed to effectively maintain pipelines, causing the explosion.
The explosion caused a gas shortage in Western Australia, costing the state $6.7b in its business production forecast during the September 2008 quarter.
Earlier this month, Apache Energy successfully blocked the Federal-State inquiry from seeing documents it provided to the NOPSA investigation. The final report will be finished in June 2009.
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