TLDR
The offshore oil and gas regulator NOPSEMA has warned Santos that fuel use and gas flaring at its Barossa project ran above the estimates in its environment plan, and that the problems had not been fixed months after inspectors first raised them, according to a letter reported by the ABC. Santos says it has not faced enforcement action.
KEY TAKEAWAYS
Australia's offshore oil and gas regulator has warned Santos that it is failing to manage fuel use and gas flaring at its $5.6 billion Barossa project as promised, and that problems inspectors raised months ago had not been fixed.[1]
In a letter seen by the ABC, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) said it issued a warning after inspecting Santos's onshore facility on Darwin Harbour in March, where key parts of the company's environment plan on fuel management and flaring were not being carried out. A later inspection of the offshore Barossa facility, about 300 kilometres north of Darwin in the Timor Sea, found the issues remained. "This exhibition of continued non-compliance, several months after the issues were initially raised, is of concern to NOPSEMA," the letter said.[1]
More flaring than planned
"The warning followed inspection findings that Santos was not adequately setting, monitoring and managing fuel and flare performance in line with its environment plan commitments," a NOPSEMA spokesperson told the ABC. "Both fuel use and flaring were above the estimates outlined in the plan for the hook-up and commissioning phase."[1] Inspectors also said "ineffective" management of environmentally relevant equipment may point to a "broader systemic issue".[1]
Santos rejected any suggestion it was in breach. A spokesperson said the company "has not faced any enforcement action from NOPSEMA in respect of the Barossa Project nor has it received any notice of non-compliance in relation to any fuel and flare obligations, including reporting requirements, in the environment plan". The company said its plan allows it to review estimates over the project's life and that it had agreed a forward plan with the regulator.[1]
A gas field already under scrutiny
Barossa began shipping gas from Darwin to Japan after years of delays.[1] Kevin Morrison of the Institute for Energy Economics and Financial Analysis said the overruns meant "the project's emissions and pollution is higher than forecast", noting Barossa has "the highest CO2 concentration in any gas field developed for LNG exports".[1] Santos's Darwin LNG plant, which processes Barossa gas, has also been leaking methane from a storage tank for years, the ABC has reported.[1]
NOPSEMA asked Santos to explain how it would fix the problems, review its environment plan and track its performance, and scheduled another inspection for the third quarter of 2026. It did not say whether that inspection has happened or whether it will take further action.[1]
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