An internal audit conducted by Petronas, a global energy company, on its own operations – highlighted recently by the Vancouver Sun – will likely have to be taken into account by the Canadian Environmental Assessment Agency (CEAA).
The Sun obtained a 732-page internal audit that Petronas conducted in 2013 of its operations. According to the September 11 Sun story, the audit pointed to serious concerns about some of the company’s oil and gas operations in Malaysia, where the company is headquartered. The report included photos of badly rusted valves and pipes used in the company’s operations, and warned of potentially “catastrophic” consequences if not addressed.
In response to the Sun story, Petronas released a statement in which it insists the problems have been fixed, and that the purpose of the audit was to identify those areas of its operations that need improvement. “Audits, such as the one referred to in the article, are widely performed in the industry with only one objective – to ensure that best practices are not only maintained, but also improved upon,” said Wee Yiaw Hin, CEO of Petronas’ upstream operations.
Petronas’ $36 billion Pacific NorthWest liquified natural gas (LNG) project is currently in the CEAA environmental review process. It is believes the CEAA may have to include the Petronas audit as part of the review.