FT: What is the Government’s assessment of the extent of the fuel leak, and what immediate environmental impacts have been identified on marine life, water quality, and the surrounding coastline?
PM: Based on joint investigations conducted by inspectors from the Department of Environment, the Ministry of Public Works, and the Ministry of Health, the Government confirms that the fuel leak was contained entirely by the facility’s engineered containment system, specifically the bund and separator pit. Immediate containment measures were activated once the leak was identified. Most of the leaked fuel was directed into the bund collection system. Fuel tanker trucks were mobilised to progressively empty the affected tank, allowing the leak point to be sealed once fuel levels dropped below that point. The leak location was confirmed to be the same point as a previously sealed defect. Inspectors observed localised traces of overflow from the pump station and bund into a nearby drain and surrounding areas, which are being addressed through controlled clean-up and regulatory directions. Drone surveillance over the Walu Bay drainage and riverine system confirmed that there was no fuel discharge into the marine environment. At this stage, monitoring continues as a precaution.
FT: Have environmental monitoring and containment measures been deployed, and which agencies are involved in the response?
PM: Environmental containment and monitoring measures were deployed immediately following the observation of the incident. The agencies involved in the response were the Department of Environment, Ministry of Public Works, Ministry of Health, and the National Fire Authority, alongside the company’s occupational health and safety team under regulatory supervision. Containment systems ensured spilt fuel flowed over concrete surfaces into the separator pit. The National Fire Authority supported site safety by cooling pipes and infrastructure to reduce fire and explosion risk. The excess water observed around the facility resulted from these fire-prevention measures. Fuel transfer operations have been completed to stabilise the system and allow permanent repairs to be completed safely.
FT: Is an environmental impact assessment being conducted to determine short- and long-term effects of the spill, including potential damage to fisheries and biodiversity?
PM: An environmental impact assessment is not warranted at this stage, as the incident has been contained within the facility and did not result in a confirmed discharge into the wider marine environment. The appropriate regulatory pathway in this case is through waste and pollution control enforcement, as provided for under the Environment Management Act and the Waste Disposal and Recycling Regulations. The Department of Environment will continue inspections and monitoring to ensure there are no delayed or secondary impacts. Should evidence emerge of environmental harm beyond the site boundary, we will conduct further assessment and remedial action consistent with the law.
FT: What clean-up and remediation measures have been ordered, and who is responsible for meeting the cost of these efforts?
PM: The company has been directed to fully wash the affected areas within the facility, including the pump station, bund perimeter, and surrounding surfaces. All water from the washing is being captured and directed into the separator pit to prevent discharge into external drains or waterways. Any contaminated material is being managed in accordance with approved waste handling procedures. Petro Oceania Ltd is fully responsible for the clean-up and remediation costs, and is currently bearing all expenses associated with containment, fuel transfer, clean-up, and corrective works.
FT: Under existing environmental laws and regulations, what penalties or sanctions may apply if negligence or non-compliance is established?
PM: Petro Oceania Ltd holds a valid Waste Disposal Permit as regulated by the Waste Disposal and Recycling Regulations. The company activated containment and emergency response measures immediately, which is a requirement of their permitted conditions and response plan. Under the Environment Management Act 2005, enforcement action applies where there is evidence of non-compliance or breach of permit conditions. The enforcement tools include remedial notices, fixed penalties for serious breaches, stop-work orders in emergency situations, and prosecution where legal thresholds are met. At this stage, enforcement will be determined strictly on evidence. If investigations confirm a breach of permit conditions or failure to contain pollutants, the appropriate penalties will be applied in accordance with the law.
FT: Has the tanker operator or responsible company been issued with any notices, directives, or enforcement actions at this stage?
PM: Yes. Inspectors have issued remedial directions requiring continued containment, controlled clean-up, and verification to ensure that no fuel spillage occurs beyond the site. Further regulatory notices will be issued requiring maintenance and infrastructure upgrades, particularly given the condition of ageing infrastructure and the recurrence of leakage at a previously repaired point. These actions are consistent with the regulator’s powers under the Environment Management Act and the Waste Disposal and Recycling Regulations.
FT: What steps will the Government take to prevent similar incidents in the future, particularly in high-risk industrial zones such as Walu Bay?
PM: The Government will strengthen oversight of high-risk industrial facilities through targeted regulatory action, including enhanced inspections, mandatory maintenance requirements, and infrastructure integrity checks for fuel storage and transfer systems. Operators will be required to ensure containment systems, bunds, pumps, and separator pits remain fully functional and fit for purpose. Where necessary, enforceable upgrades will be directed to reduce recurrence risk. Walu Bay is a historically impacted industrial area, and this incident reinforces the importance of preventive maintenance, compliance, and early intervention to ensure public safety and the wider environment.
