ST. JOHN'S The Canada-Newfoundland and Labrador Offshore Energy Regulator has recently reported on a significant incident involving an oil spill and gas leak aboard the Hibernia oil platform, which could have posed severe risks of explosion and fire. The regulator classified the spill, which occurred on May 12, as a "major hydrocarbon release" due to the volume of oil that escaped from a malfunctioning piece of equipment.
Fortunately, no injuries were reported, and the 1,600 litres of crude oil that leaked did not enter the surrounding ocean. The incident took place while Hibernia personnel were preparing to transfer crude oil to a tanker at around 11 a.m. They detected unusual noises emanating from the platform's utility shaft, which led to the discovery that a drain on a sludge pump had been sheared off, resulting in the crude oil leakage. At this time, gas was also identified in the vicinity. The situation was eventually contained when a worker managed to close a manual valve on the defective pump.
The regulator emphasized that this incident had the potential to lead to a fire, explosion, or even fatalities, highlighting the gravity of the situation. Subsequently, the independent regulatory body requested additional information from the Hibernia Management and Development Company (HMDC), the entity responsible for operating the platform, which is situated approximately 315 kilometres east of St. John's. Among other inquiries, the regulator aims to uncover the root causes of this incident and evaluate the company's response measures.
In response to the incident, HMDC is undertaking its own investigation and submitted preliminary findings to the regulator on May 27. At the time of reporting, a spokesperson for the company was unavailable for comment regarding the spill.
The Hibernia oil platform is one of four oil installations situated off the eastern coast of Newfoundland and was the first to commence oil production in November 1997. Recently, Kerry Moreland, the president of ExxonMobil Canada, expressed confidence in the longevity of the Hibernia oilfield, stating that new wells and ongoing investments would sustain oil production "well beyond" its originally anticipated 30-year lifespan.
However, this recent spill is not the first concern for HMDC; since 2017, the company has faced fines for three other spills from the gravity-based platform resting on the ocean floor. Notably, in August 2023, the company was fined $400,000 due to an investigation surrounding a larger spill that released approximately 12,000 litres of crude oil into the North Atlantic on July 17, 2019, creating two extensive slicks that stretched several kilometres. Moreover, in January 2023, HMDC initially pleaded not guilty to three charges in a provincial court in St. John's but ultimately pleaded guilty to one charge, incurring a legal penalty.
Other fines include a reduction from $40,000 to $28,000 in April 2022 for an incident in August 2019, where a power outage led to 2,200 litres of a crude and water mixture seeping into the sea. The penalty was mitigated following the company's argument that their cleanup efforts had successfully averted wildlife encounters with the spill. Additionally, in October 2017, HMDC pled guilty to continuing operations on the platform after detecting a leak in December 2013, leading to a spill of about 6,000 litres. As a result, the company received an $80,000 fine and was ordered to contribute $170,000 to the federal Environmental Damages Fund.
This detailed report sheds light on the ongoing challenges faced by HMDC and highlights the importance of stringent oversight in the offshore energy sector to prevent such hazardous incidents and ensure environmental safety.
