MANAGEMENT OF ENVIRONMENTAL AND STAKEHOLDER ISSUES FOR OFFSHORE EXPLORATION ACTIVITIES IN THE OTWAY BASIN

Woodside Energy Ltd. has been managing seismic acquisition and drilling operations as part of a gas exploration program in the offshore Otway Basin in southwest Victoria since July 1999. There are a number of sensitive and complex environmental and multiple-use issues facing companies undertaking exploration activities in these waters, including a seasonal aggregation of feeding blue whales, winter calving and breeding habitat for southern right whales and a productive rock lobster fishery. Recent changes to the legislative regime for environmental approvals of petroleum activities in Commonwealth waters has introduced further complications for operators in this area. Consequently, a key aspect of this exploration program has been the pro-active management of environmental and stakeholder issues. A comprehensive management strategy addressing these issues was developed for seismic acquisition and drilling operations, with the key objectives of ensuring regulatory compliance and facilitating a process where all stakeholders were fully informed about proposed activities. This process focussed on informing stakeholders of the potential impacts of seismic acquisition and drilling, and how Woodside intended to manage those impacts. This approach was driven by a desire for continuous improvement of performance, over and above compliance with all regulatory requirements. It also recognises the legitimacy of stakeholder risk through social, environmental and political values, and has had environmental and economic benefits for the project. Environmental benefits included early identification and assessment of potential environmental impacts resulting from the different phases of exploration, development of management strategies to control and mitigate these potential impacts, and improved environmental awareness across the project team, joint venture partners and external stakeholders. Prevention of delay or denial of regulatory approvals for exploration activities had significant economic benefits to Woodside and the joint venture partners. The development and implementation of a stakeholder involvement process, involving explorers, external affairs and environmental advisers, was an innovative approach that has application across other Woodside activities and the industry generally, particularly for projects in locations with a high level of environmental sensitivity, multiple-use and stakeholder concern.