Inpex receives regulator warning over mercury emissions

• Japan-based exporter Inpex received an official warning from the offshore regulator following a second toxic mercury incident off the coast of Western Australia.
• The offshore safety authority ordered the company to hire independent experts to review emissions at two of its facilities.
• The regulatory action follows an accidental discharge of mercury sulphide into the ocean and a separate incident involving potential worker exposure.

The National Offshore Petroleum Safety and Environmental Management Authority directed Inpex to bring in independent experts to review mercury emissions at two facilities located 450km from Broome.

The direction followed an investigation into a September incident where the company disclosed an accidental discharge of mercury sulphide into the ocean, coming just weeks after offshore workers were reportedly exposed to the chemical.

"We are working constructively with the offshore regulator to address the matters identified in the notice and further strengthen our systems and controls," said Inpex Senior Vice President Corporate Bill Townsend.

The regulator noted that bypasses and altered operations of the mercury management system had materially changed the emissions of the toxin compared to the approved environmental plan.

The compliance order represents a regulatory challenge for the Japanese energy giant, which operates the major Ichthys liquefied natural gas project in northern Australia.

The environmental warning marks the latest scrutiny for the company as international regulators increase oversight on hazardous waste management and offshore oil and gas emission standards.