Tamarind Taranaki told to stop pumping oil from offshore field until conditions met
Thursday, 28 November 2019
Struggling oil company Tamarind Taranaki has been issued an abatement notice to stop pumping crude oil from three wells in the Tui field off the region's coast after an oil spill last week.
Environment Protection Authority (EPA) issued the abatement notice this week to the Malaysian-based company, which is currently under voluntary administration owing more than $190m to creditors.
The notice stopped Tamarind Taranaki extracting oil from the Pateke 3H, Pateke 4H and Amokura wells to the Umuroa floating production storage and offtake vessel, or FPSO, in the Tui field until certain conditions were met, the EPA said.
Tamarind will be able to resume production when the company complied with the abatement notice conditions, the authority said.
**READ MORE:
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Under the conditions the company must 'conclusively identify the source of the hydrocarbon sheen and provide evidence to the EPA supporting the conclusion reached, assess the condition of the flowlines and associated connections of Pateke 3H, Pateke 4H and Amokura wells, and provide evidence to the EPA that confirms system integrity will be maintained on start-up.'
The authority is continuing to investigate the spill which was detected after a 20-30m long sheen about 400m from the Umuroa was discovered about 60km off shore on November 21.
The sheen, estimated by Tamarind to be about 100 litres, dispersed naturally.
A subsequent survey undertaken by the company found a 10-12 metre split in the flow line connecting the Umuroa to the Tui 2H well.
Tamarind Taranaki can appeal the abatement notice and is working with the EPA to achieve compliance.
BW Offshore, which operates the Umuroa, is due to leave the Tui field in December 31 after Tamarind Taranaki decided not to renew its contract in September.
The Norwegian-based company estimates it is owed $35.8m (US$23m) by Tamarind in unpaid costs.
Tamarind pulled out of a $300m drilling programme at the Tui field in September after the first of three planned wells proved dry.
It has been estimated it could now cost the Government $155m to decommission the oil field if Tamarind can not find a way out of it's financial struggles and continue operating.