A contractor's error is believed to have been responsible for a fuel spill that dumped thousands of litres of diesel at the D'Albora Marinas at Rushcutters Bay.
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Authorities, meanwhile, are also investigating a pollution slick in Rose Bay to the east to determine whether it is sourced from a separate spill.
Sydney's Port Authority and the NSW Environment Protection Authority are working with the marina to contain and remove the spill using floating booms and other equipment, with investigations on the cause continuing.
Tim Allerton, a spokesman for D'Albora said "close to 6000 litres" spilled from a diesel tank, with contractors alerting authorities of the spill at about 8pm on Tuesday. The Port Authority put the size of the spill at about 7000 litres.
While much of the diesel spilled on to the marina's surface and was contained in a pontoon, some of the diesel ended up in the water. D'Albora Marinasis located adjacent to the Cruising Yacht Club in Rushcutters Bay.
"We apologise to everyone in regard to the incident," Mr Allerton said. "We're throwing all the resources we can muster to clean up the spill."
It's understood that the contractors were working on a decommissioned diesel tank at the site. A line connected to a second, operating tank was accidently cut, leading to the spill into the surrounding area.
"As EPA investigations are continuing we are unable to provide any comment at this stage," a spokeswoman for the agency said.
"The spill is contained and Port Authority of NSW will continue the clean-up operation," a spokeswoman for the authority said, adding that it was using a 300m boom and absorbent padding in its work.
Mr Allerton said about six boats were within the circle of booms to contain the spill: "We"ll cover the cost of any cleaning or damage to the boats".
He said there had been little chance of ignition to the spilt fuel contained on the surface of the marina. The sun would also help limit the damage from the diesel on the water, with a portion of it evaporating.
It is unclear how marine life is affected at this stage.
Second spill?
The Port Authority, meanwhile, is working to clean up what it says is an oil spill to the east, at Rose Bay.
A spokeswoman for the authority said crews are trying to contain the spill and have yet to identify whether it is diesel from the Rushcutters Bay leak or a "secondary" incident.
One person who contacted Fairfax Media said the spill in Double Bay was "far from contained", with the slick visible as far to the east as Seven Shillings Beach.
"There is a strong smell," the person said. "You can see [the fuel] being washed onto the sand there."
