Leak allegations raise questions over Otway Basin gas drilling

A GAS company exploring for new offshore gas reserves near the Twelve Apostles is facing public scrutiny following allegations of a methane leak cover-up at its Darwin LNG facility.

ConocoPhillips, which is test drilling in the Otway Basin off Victoria’s south-west coast, is alleged to have failed to disclose a major methane leak from the Bayu-Undan field in 2023, according to media reporting last week.

The federal offshore regulator, NOPSEMA, confirmed to the ABC that it was not notified of the methane release, despite having responsibility for safety and environmental oversight in offshore oil and gas activities.

The allegations have drawn criticism from environmental groups including Greenpeace Australia Pacific, who say the incident raises broader concerns about offshore gas operations near sensitive marine habitats in Victoria.

“If ConocoPhillips intentionally covered up a massive incident in Darwin, who’s to say they won’t do it in the Otway Basin too?” Greenpeace head of climate and energy Joe Rafalowicz said.

“The Otway Basin is an incredibly important area for marine life, including southern right whales, pygmy blue whales, dolphins and little penguins. An incident here could have serious impacts on wildlife, water quality, and industries like fishing and tourism.”

The Otway Basin exploration project, which ConocoPhillips acquired from Origin Energy, involves deep-sea drilling off the coast of Port Campbell and the Bay of Islands Coastal Park.

A public consultation is now open on a proposed new permit in the area, as part of the Victorian government’s plans to expand gas development in offshore waters.

Earlier this year, another offshore operator, Woodside, accidentally released large amounts of plastic waste during a decommissioning operation off Port Campbell, prompting criticism from conservationists and the local fishing sector.

Greenpeace has called for greater scrutiny of offshore operators and a shift away from new gas approvals, saying incidents such as the Bayu-Undan leak undermine public confidence in industry regulation.

ConocoPhillips has not publicly responded to the allegations but there are media reports the company was made aware of the leak in May 2023.

NOPSEMA said it had launched an inquiry into why it was not informed of the methane release.

Consultation on the new Victorian offshore exploration permit remains open.

For more information, head to engage.vic.gov.au