The inquiry, formally launched with a briefing to the Australian Petroleum Production and Exploration Association (APPEA) Board during the national APPEA Conference, is being conducted by the Inspector of Transport Security, Mick Palmer.

“The inquiry, which is the first ever comprehensive review of our nation’s offshore oil and gas facilities security, is in response to the growing threats from international terrorism and piracy,” said Mr Albanese.

“It is important to note that while at this time there is no known specific threat against any of our facilities, in light of the current global security environment, it is crucial that we remain vigilant and take all reasonable steps to ensure our security preparedness and arrangements are equal to any emerging threats.

“An act of terrorism against any offshore facility in or near Australian waters would not only be extremely damaging to our natural environment but also very costly to our economy. This growing sector already employs more than 10,000 Australians and generates over $22 billion in annual export earnings.

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“Australia's reserves of oil and gas are concentrated offshore in the north-west of Australia, the Bass Strait and the Timor Sea. The development of these oil and gas resources has raised Australia’s international profile in global oil and gas production, but such a profile may also attract undesirable attention in highlighting Australia as a potential target for terrorism or other criminal acts including piracy.

“Add to this the fact that current exploration and production activities in Australia are moving towards deeper and more distant waters, in increasingly remote offshore locations, and the critical importance of continuous vigilance in regard to the issue of security becomes obvious,” Mr Albanese said.

The inquiry is looking at:

  • Government and industry relationships, communication and coordination;
  • The nature and extent of current security control and oversight arrangements;
  • The development and implementation of security programs;
  • Possible sea and landside security gaps and areas for improvement;
  • The economic, environmental and economic cost of a violent takeover of any offshore oil or gas infrastructure;
  • Coastal and high seas shipping routes used in the transport of oil and gas products;
  • The supply and support of offshore platforms and facilities used to deliver building components for offshore oil and gas fields.

APPEA is providing physical support to the Inquiry in the form of two liaison officers to work closely with the Inquiry and to facilitate policy and security level meetings and site inspections both within Australia and overseas.

The operational phase of the Inquiry commenced with site visitations in the Bass Strait and further domestic discussions and site visitations are planned for the Northern Territory, Western Australia and Timor Leste during the June-August period.

Mr Palmer is due to provide an interim report in late 2011 and the Inquiry is expected to be completed in the latter part of 2012.