Australia’s offshore safety regulator has ordered junior operator SGH Energy to halt a subsea gas leak and address well integrity issues at the Longtom gas field offshore Victoria, as the company progresses plans to potentially restart production.
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) issued formal directions requiring SGH Energy to stop the leak originating from a subsea Christmas tree at the Longtom-3H well, and to carry out detailed integrity assessments across the field’s subsea infrastructure.
The Longtom field, located in Commonwealth waters in the Gippsland Basin, has remained shut-in since production ceased several years ago. NOPSEMA’s action follows regulatory concerns that existing arrangements were insufficient to manage the ongoing leak and associated environmental and safety risks.
Under the directions, SGH Energy must assess the condition of primary and secondary well barriers at both the Longtom-3H and Longtom-4H wells, take remedial action to stop the gas release, and submit a report to the regulator detailing the outcome of the work. The company has also been instructed to deliver a technical study outlining what is required to return the wells to a condition suitable for future service.
NOPSEMA further requires SGH Energy to reinstate continuous well integrity monitoring once remedial works are completed, strengthening oversight of the subsea assets should the operator move forward with reactivation plans.
SGH Energy has confirmed it will comply with the regulator’s directions. Failure to meet the requirements could result in enforcement action under Australia’s offshore petroleum safety and environmental legislation.
The Longtom field first entered production in 2009 but was later shut down following infrastructure issues that disrupted communications with subsea facilities. While valves and isolation systems remain closed, the regulator has maintained close scrutiny of the asset due to the presence of hydrocarbons and the risks associated with ageing subsea infrastructure.
The intervention highlights NOPSEMA’s continued focus on well integrity and environmental compliance, particularly for late-life or dormant offshore assets where restart activity is being considered.
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