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Oil Industry Shake-Up in Montara Report

The long-awaited report into the Montara oil spill off the north coast of WA last year is to give more ammunition to the Gillard Government's push for an overhaul of regulations covering the booming oil and gas industry.

The findings of the Montara Commission of Inquiry, to be released by Federal Resources Minister Martin Ferguson this week, are also likely to raise serious questions about the operations of the Thai-owned company involved in the disaster and criticise drilling safety procedures in the lead-up to the incident.

The West Australian understands the report will be critical of the current mess of State and Federal government oversight on offshore oil and gas operations, and give weight to the Government's argument to create a single national oil and gas regulator.

Mr Ferguson's plan for a national regulator, which could be based in Perth, will bring him into conflict with WA Mines and Petroleum Minister Norman Moore, who opposes any move that may strip the State of the power to oversee oil and gas operations.

It is believed the report will confirm the oil leak was caused by the failure of the primary well control barrier, a concrete plug at the base of the well.

The Montara well, about 200km off the Kimberley coast, spewed oil and gas into the Timor Sea for 74 days after a drilling operation to extract oil from an undersea reservoir went wrong. It was the worst spill of its kind in 25 years.

Click here to read the full story on theWest.com.au