Workplace safety watchdog launches legal action over Santos oil spill linked to dead dolphins

Western Australia’s workplace safety watchdog has launched legal action against oil and gas major Santos over a 25,000-litre condensate spill at its Varanus Island operation two years ago.

The legal action is a fresh headache for Santos, which was accused of covering up the deaths of at least three dolphins whose carcasses were found floating upside down in waters near the spill.

The leak occurred while the tanker Catalan Sea was being loaded with oil.

On March 20, 2022, about 25,000 litres of condensate leaked from a hose Santos used to load a tanker moored off its Varanus Island gas processing facility, 75 kilometres from WA’s Pilbara coast.

The Department of Energy, Mines, Industry Regulation and Safety alleges Santos did not operate its licensed pipeline “in a proper and workmanlike manner”, and failed to prevent the spill as required under the Petroleum (Submerged Lands) Act 1982.

Neither Adelaide-based Santos nor DEMIRS made the spill public at the time and, when it was revealed by WAtoday in April 2022, Santos described the incident as a “minor” one which had a “negligible” impact.

Senator David Pocock tabled photos of the three dead dolphins, one of which was a pup, as well as a statement from a whistleblower in February last year.

The whistleblower questioned Santos’ claim that the impact was negligible.

“I felt strongly that Santos’ comment was baseless, designed to mislead and avoid accountability,” they said.

DEMIRS executive director of resource and environmental compliance Tyler Sujdovic said the incident underlined the importance of robust, proactive risk management and strict adherence to safety and environmental regulations.

“The benefits of resource extraction must not come at the expense of Western Australia’s long-term environmental sustainability,” Sujdovic said.

“The department will continue to work with industry and local communities to ensure resource projects strike the right balance between extraction and environmental stewardship.”

In response to the spill, DEMIRS required Santos to strengthen its operational controls by amending the company’s environmental plan to reduce the risk of future incidents.

Santos was contacted for comment.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.