Woodside Energy’s Scarborough gas project could be delayed after the Federal Court found the regulator wrongly provided approval before the company had adequately consulted a traditional custodian who was concerned seismic testing could harm her cultural heritage.

In a decision that could spell trouble for other offshore projects, Federal Court judge Craig Colvin determined that the offshore petroleum regulator did not have the statutory power to grant an approval that was conditional on further consultation. The approval is one of several Woodside needs to advance the huge LNG project which is already at risk of delay.