The Australian offshore regulator, NOPSEMA, has ordered Vermilion Energy to shut in operations at its Wandoo field and halt all crude offloading via the field's export system. This directive follows a hydrocarbon release in December 2025, which was the fourth such incident since 2021. The regulator has identified systemic failures in the company's Environmental Management System, including repeated non-compliance with its Environment Plan and inadequate inspection, maintenance, and assurance processes.

Regulatory Directive and Required Actions

NOPSEMA issued a General Direction specifying that Vermilion cannot resume petroleum offtake until the regulator is satisfied that interim controls are in place to ensure the export system is safe, fit for purpose, and environmental risks are reduced to as low as reasonably practicable. Furthermore, the company must transition to a fully replaced export system by 31 December 2027. After this date, offloading through the existing system—comprising the pipeline-end manifold, export hose, CALM buoy, and chains—will be prohibited unless NOPSEMA agrees otherwise.

Systemic Management Failures

An inspection in October 2025 and the subsequent leak investigation revealed deficiencies in Vermilion's management systems. NOPSEMA stated these findings are consistent with unresolved weaknesses identified in previous health, safety, and environment inspections, indicating that corrective actions and assurance processes have not addressed the underlying causes. The regulator noted these systemic issues, which may have contributed to the December 2025 leak, have been repeatedly communicated to Vermilion through various enforcement measures, but the company has not effectively resolved them.

Mandatory Independent Review

Vermilion is required, within 180 days of the 6 February direction, to engage an independent third party—approved by NOPSEMA—to conduct a detailed review of its HSE management system as it relates to infrastructure integrity within the Wandoo production licence. This review must identify any gaps in managing the integrity of existing infrastructure and propose necessary corrective actions. NOPSEMA also highlighted that breaching a General Direction is an offence, with fault-based offences potentially resulting in five years' imprisonment.

Vermilion's Operations and Future Plans

Vermilion has operated the Wandoo field, located offshore Western Australia, for 21 years. The company is currently planning additional offshore activities, including a geophysical and geotechnical survey and exploration drilling in 2026/2027. It plans to drill one nearfield exploration well next year and, depending on results, up to six subsequent wells over the following five years. However, the operational and drilling Environment Plans for these proposed activities will require separate approval from NOPSEMA.