Christine F Miller
                           Consultant
          Business Continuity Manager
Helping build business resi...
DISCLAIMER
My remarks should NOT be
considered the views of the
Australian Government or any of
its departments or agencie...
Overview
WHERE is Varanus Island?
WHAT happened on
3 June 2008?
INQUIRIES & IMPACTS
LESSONS LEARNT since
Longford & Varanu...
Varanus Island




                 4
Apache &
 Santos


Apache &                     HJV - Apache,
Santos                       Kufpec & Tap Oil




          ...
6
7
8
9
Pipelines entering the plant from the sea



                                     10
Control room staff
on a quiet day 11
Helping build business resilience
                                    12
SHOW VIDEO
from
Varanus
Island




             13
14
Helping build business resilience
                                    15
16
17
18
Helping build business resilience
                                    19
Helping build business resilience   VARANUS ISLAND
                                    4 June 2008      20
21
Helping build business resilience
                                    22
Helping build business resilience
                                    23
Helping build business resilience
                                    24
Initial
inspections




          25
Crikey 1 - After
the explosion




                   26
Crikey 2
– The
damaged
pipes




      27
Crikey 3 –
A piece of
pipe




        28
Crikey 4 – The
corroded pipe




                 29
Helping build business resilience
                                    30
National
Offshore
Petroleum
Safety
Authority
(NOPSA)
reported
7 October 2008

           31
1330 hrs 3/6/08
1427 hrs


                                 Sketch from
                                 NOPSA Report
    ...
FINDINGS - NOPSA INQUIRY

Possible breaches of WA legislation

     “Some findings…may
     constitute
     non-compliance...
The Senate
Economics Committee
made
6 Recommendations




    Helping build business resilience


                        ...
Helping build business resilience
                                    35
Offshore Petroleum Regulation Inquiry




         Australia’s Minister for
         Resources & Energy
         Martin Fe...
Offshore Petroleum Regulation Inquiry
Reduced terms of reference & publication


           David Agostini
           Form...
The WA Gas Supply &
Emergency Management Committee (GS&EMC)
    Government of Western Australia
                          ...
Helping build business resilience
                                    39
•WA State
                   •WA Local
                   •The       Commonwealth
Helping build business resilience
      ...
Following 3 June 2008,
WA’s business continuity
experienced a non-routine
business disruption
or a supply chain disruption...
Then Western Australian
                  Premier Carpenter




                                      42
WA
Office of Energy
gas pipelines




  Helping build business resilience

                              43
44
Reduced gas & power




                 45
Recommissioned
coal fired
power
stations




                 46
Mineral/petroleum production
Woodside gas processing, Karratha




                                    47
Mineral
processing
                               Fertiliser &
                               ammonia


 Alumina     Nicke...
Logging & construction
                         Cement production




                                     49
Reduced
gas
impacted
industrial
laundries

Hospitals


Hospitality
and tourism


              50
Food processing




                  51
Reduced
beer &
soft
drink
supplies




       52
www.tisn.gov.au

Helping build business resilience
                                                 53
Economic & Energy
Security Dependencies
     Prime
     Minister
     Kevin Rudd



     Wayne Swan
     Treasurer

      ...
Lessons Learnt Summary 1

       “Everyone is a reporter”
             Expect insurance delays
                Expect inqu...
Lessons Learnt Summary 2

 Beware “risk blindness”


 Seek “collective mindfulness” =
  HROs & organisational resilience

...
Lessons Learnt Summary 3

    Inject scenarios beyond the local
    & maximise options for your
    reliability profession...
International Safety Quality
Environment Management
Association (ISQEM)

         http://www.isqem.com/


                ...
Any questions?
        b4crisis@grapevine.net.au
        Cell/Mobile +61 416 113 250
Photos courtesy of
Neptune Marine -
r...
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One Explosion (Varanus Island) Many Inquiries 18 10 09

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One of a continuing series of presentations on the Varanus Island gas pipeline ruptures, explosion & fire of 3 June 2008. The focus of this paper is inquiries, but other papers have focussed on business impacts in WA, Australia and internationally.

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One Explosion (Varanus Island) Many Inquiries 18 10 09

  1. 1. Christine F Miller Consultant Business Continuity Manager Helping build business resilience 1
  2. 2. DISCLAIMER My remarks should NOT be considered the views of the Australian Government or any of its departments or agencies for which I have worked. Any information in this presentation is drawn from public sources. 2
  3. 3. Overview WHERE is Varanus Island? WHAT happened on 3 June 2008? INQUIRIES & IMPACTS LESSONS LEARNT since Longford & Varanus incidents Helping build business resilience 3
  4. 4. Varanus Island 4
  5. 5. Apache & Santos Apache & HJV - Apache, Santos Kufpec & Tap Oil Woodside ChevronTexaco, Santos & ExxonMobil 5
  6. 6. 6
  7. 7. 7
  8. 8. 8
  9. 9. 9
  10. 10. Pipelines entering the plant from the sea 10
  11. 11. Control room staff on a quiet day 11
  12. 12. Helping build business resilience 12
  13. 13. SHOW VIDEO from Varanus Island 13
  14. 14. 14
  15. 15. Helping build business resilience 15
  16. 16. 16
  17. 17. 17
  18. 18. 18
  19. 19. Helping build business resilience 19
  20. 20. Helping build business resilience VARANUS ISLAND 4 June 2008 20
  21. 21. 21
  22. 22. Helping build business resilience 22
  23. 23. Helping build business resilience 23
  24. 24. Helping build business resilience 24
  25. 25. Initial inspections 25
  26. 26. Crikey 1 - After the explosion 26
  27. 27. Crikey 2 – The damaged pipes 27
  28. 28. Crikey 3 – A piece of pipe 28
  29. 29. Crikey 4 – The corroded pipe 29
  30. 30. Helping build business resilience 30
  31. 31. National Offshore Petroleum Safety Authority (NOPSA) reported 7 October 2008 31
  32. 32. 1330 hrs 3/6/08 1427 hrs Sketch from NOPSA Report 7 October 2008 3 4 1 2 32
  33. 33. FINDINGS - NOPSA INQUIRY Possible breaches of WA legislation “Some findings…may constitute non-compliance with pipeline conditions” (p 37). Helping build business resilience 33
  34. 34. The Senate Economics Committee made 6 Recommendations Helping build business resilience 34
  35. 35. Helping build business resilience 35
  36. 36. Offshore Petroleum Regulation Inquiry Australia’s Minister for Resources & Energy Martin Ferguson AM MP WA Minister for Mines & Petroleum Norman Moore MLC 36
  37. 37. Offshore Petroleum Regulation Inquiry Reduced terms of reference & publication David Agostini Former GM, Woodside NW Shelf & a Non-Executive Director, Neptune Marine Kym Bills Former CEO Australian Transport Safety Bureau (ATSB) 37
  38. 38. The WA Gas Supply & Emergency Management Committee (GS&EMC) Government of Western Australia Chaired by Jason Banks, Office of Energy WA Coordinator of Energy GS&EMC conducted WA’s Gas Supply & Emergency Management Review Announced by WA Minister for Energy Peter Collier MLC 38
  39. 39. Helping build business resilience 39
  40. 40. •WA State •WA Local •The Commonwealth Helping build business resilience 40
  41. 41. Following 3 June 2008, WA’s business continuity experienced a non-routine business disruption or a supply chain disruption Helping build business resilience 41
  42. 42. Then Western Australian Premier Carpenter 42
  43. 43. WA Office of Energy gas pipelines Helping build business resilience 43
  44. 44. 44
  45. 45. Reduced gas & power 45
  46. 46. Recommissioned coal fired power stations 46
  47. 47. Mineral/petroleum production Woodside gas processing, Karratha 47
  48. 48. Mineral processing Fertiliser & ammonia Alumina Nickel smelting 48
  49. 49. Logging & construction Cement production 49
  50. 50. Reduced gas impacted industrial laundries Hospitals Hospitality and tourism 50
  51. 51. Food processing 51
  52. 52. Reduced beer & soft drink supplies 52
  53. 53. www.tisn.gov.au Helping build business resilience 53
  54. 54. Economic & Energy Security Dependencies Prime Minister Kevin Rudd Wayne Swan Treasurer 54
  55. 55. Lessons Learnt Summary 1 “Everyone is a reporter” Expect insurance delays Expect inquiries Helping build business resilience 55
  56. 56. Lessons Learnt Summary 2 Beware “risk blindness” Seek “collective mindfulness” = HROs & organisational resilience Helping build business resilience 56
  57. 57. Lessons Learnt Summary 3 Inject scenarios beyond the local & maximise options for your reliability professionals Helping build business resilience 57
  58. 58. International Safety Quality Environment Management Association (ISQEM) http://www.isqem.com/ 58
  59. 59. Any questions? b4crisis@grapevine.net.au Cell/Mobile +61 416 113 250 Photos courtesy of Neptune Marine - repairing Varanus Island’s pipelines 59

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