Construction company fined $180,000 for waste oil tank explosion

A construction company was fined $180,000 and ordered to pay the Prosecutor’s costs in relation to a waste oil tank explosion that resulted in a labourer suffering serious burns (SafeWork NSW v Hibernian Contracting Pty Ltd [2025]).

The incident

Camden Council engaged Hibernian Contracting Pty Ltd to redevelop the Council’s works depot in Narellan, New South Wales. Hibernian Contracting subcontracted Bride View Civil Pty Ltd to supervise the works at the site.

Part of the works involved dismantling a workshop located on top of a concrete pit that was just over 2 metres deep. The work also involved emptying the contents of the pit, which was to be filled in afterwards to make way for a new concrete pavement entrance to a weighbridge.

Between 13 and 17 August 2022, work was undertaken at the pit, including to remove tanks and metal covering the pit. On 17 August, the removal of the waste oil tank was not an allocated task. Unlike all the other tanks, the waste oil tank had not been emptied prior to the works being undertaken.

In the late morning, a Hibernian Contracting labourer grabbed an angle grinder and entered the pit alone. A short time after, he used the angle grinder to cut through a thin pipe connected to the waste oil tank so it could be lifted out, without telling anyone. The sparks from the grinder ignited oil in the tank, causing an explosion. A flame of approximately 10 metres high engulfed the pit and the worker.

Charge and sentencing

Hibernian Contracting was charged with a failure to ensure the health and safety of its workers, and as a result of that failure, a worker was exposed to a risk of death or serious injury or illness.

Hibernian Contracting pleaded guilty to the offence.

The Court heard that Hibernian Contracting:

did not have a hot work permit in place and workers were able to freely access hot tools to conduct work at the site;
was provided with a copy of the Construction Environmental Management Plan by Camden Council, which outlined the presence of various oil drums and tanks, but the subcontracted supervisor had not reviewed it; and
failed to determine whether the existence of various waste oils, chemicals and fuels in the relevant area created a hazardous area.

Hibernian Contracting was fined $180,000 and ordered to pay the Prosecutor’s costs.

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