BP pulls plug on Bight exploration

Energy titan BP has pulled out of the $1.4 billion program to explore for oil in the Great Australian Bight, drawing both praise and criticism

BP has pulled out of plans to drill for oil in the Bight.

NERGY titan BP has pulled out of the $1.4 billion program to explore for oil in the Great Australian Bight, drawing both praise and criticism.

The company said that following a review of its upstream strategy earlier this year, the Bight drilling program was not economically viable.

“We have looked long and hard at our exploration plans for the Great Australian Bight but, in the current external environment, we will only pursue frontier exploration opportunities if they are competitive and aligned to our strategic goals,” said BP managing director for exploration and production, Australia, Claire Fitzpatrick.

“After extensive and careful consideration, this has proven not to be the case for our project to explore in the Bight.”

BP’s plan to drill exploration wells about 400km west of Port Lincoln has been the subject of environmental protests in South Australia, with opponents raising the spectre of the company’s Deepwater Horizon disaster in the Gulf of Mexico in 2010.

BP said its joint venture partner Statoil had been informed and understood the change in strategy.

“BP is a long-term, significant investor in Australia, most visibly through our retail network and refinery and also as a participant in the North West Shelf and Browse ventures,” Ms Fitzpatrick said. “We expect to continue to consider further opportunities to invest and grow our business here.”

While celebrated by environmental groups, the move drew the ire of SA Treasurer Tom Koutsantonis, who said BP had damaged its international reputation.

“They made a promise to the Australian Government that they would spend nearly $1.4 billion on exploration in the Great Australian Bight. In Australia, you’re only as good as your word,” he said.

The decision leaves Melbourne-based junior explorer Karoon Gas among the likes of Santos and US-based Chevron still with a permit to explore in the Bight.