OIL

Probe into environmental effects of Kumul spill

OIL Search and the Gulf Provincial Government have agreed to an independent investigation into the alleged environmental impact of the minor oil spill at the Kumul offshore terminal last month, which forced the company to suspend production from its oil fields in the PNG highlands.

Probe into environmental effects of Kumul spill

Brisbane-based firm Hydrobiology began investigating the spill last Friday. However, at a meeting in Port Moresby yesterday involving Provincial Governor Chris Haiveta and Oil Search, a widening of the term of reference – at the request of the Provincial Government – was agreed to.

Around 6700 litres of oil spilled into the ocean on August 9 after an accident during a standard loading operation.

Immediately following news of the spill, Haiveta claimed locals living on the coast had reported dead marine life, which was attested to the spill. However, Oil Search has maintained it has not seen any evidence of an environmental impact caused by the spill.

The investigation will involve several water and soil samples to test for presence of crude oil along the Turama River, the Balimo River system, the Fly River, Daru and the Eastern Gulf including Yule Island. The investigation will also involve an assessment of any impact on marine flora and fauna.

The Gulf Provincial Government will split the cost of the investigation with Oil Search.

Late last month, the PNG Department of Petroleum and Energy ordered the company to close the terminal until department officials could inspect repairs and give the all-clear to resume normal operations, which was received last Thursday.

As a result of the production shut-in last week, Oil Search estimated that approximately 920,000 barrels of gross production, around 460,000bbl net to Oil Search, were deferred.

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