Santos is facing legal action over an oil spill in WA.

The Western Australian Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) has initiated legal proceedings against Santos WA Northwest Pty Ltd following a condensate spill at the Varanus Island Marine Terminal. 

The incident, which occurred on 20 March 2022, resulted in the release of approximately 25,000 litres of light oil into the marine environment near the Pilbara coast.

The spill was caused by a ruptured subsea hose during an offloading operation, according to DEMIRS. 

The department alleges Santos failed to manage its licensed pipeline “in a proper and workmanlike manner”, a breach of the Petroleum (Submerged Lands) Act 1982. 

This failure allegedly led to the uncontrolled release of petroleum.

While Santos initially described the spill as “minor” with a “negligible” environmental impact, allegations of harm to marine life have since been raised. 

Senator David Pocock has presented parliamentary evidence from a whistleblower, including images of three dead dolphins found near the spill site. 

The whistleblower disputed Santos' claims, describing the incident's impact as significant and accusing the company of downplaying its severity.

Santos has denied responsibility for the dolphin deaths, saying the carcasses were first observed prior to the spill and could not be located for retrieval during subsequent searches.

Following the spill, DEMIRS ordered Santos to revise its environmental management plan to strengthen operational controls and minimise future risks.

The Varanus Island facility, acquired by Santos in 2018, is a critical hub for processing oil and gas, yet has been the site of other industrial safety incidents. 

Eight months prior to the spill, a separate platform lift operation off Varanus Island nearly resulted in fatalities.

DEMIRS has also faced scrutiny over its enforcement record, with reviews finding insufficient penalties for breaches by major operators, raising concerns about regulatory effectiveness. In response, DEMIRS has increased its enforcement activities, issuing over 100 warning letters and fines totalling $660,000 since January 2023.

The legal case against Santos is set for its first hearing in the Karratha Magistrates Court on 6 January 2025. 

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