Santos accused of misleading investors after $4.7bn offshore gas project delayed by historic Tiwi Federal court action

A formal complaint has been sent to the corporate watchdogs after Santos claimed a delay to a major NT gas project would not hit their bottom line.

A major gas company has been accused of misleading investors after a $4.7bn offshore project’s progress was torpedoed by an historic Federal Court decision.

The Environment Centre Northern Territory has lodged a formal complaint against Santos for potentially misleading statements over its Barossa Gas project, off the Tiwi Islands.

ECNT asked the investment watchdogs, the Australian Securities and Investments Commission and the Australian Securities Exchange, to investigate statements by the company following its major Federal Court defeat.

Munupi Senior Lawman Dennis Tipakalippa successfully sued the federal gas regulator over a lack of consultation over the $4.7bn gas offshore Barossa Gas fields project, 138km from the Tiwi Islands.

Munupi Senior Lawman Dennis Tipakalippa successfully sued the federal gas regulator . Picture: Supplied

In September Justice Mordecai Bromberg revoked the licence after finding the approvals from the gas regulator, National Offshore Petroleum Safety and Environmental Management Authority, were legally invalid because of a failure to consult with Tiwi Island people.

In the lead up to the hearing, Santos representatives told the court delays to drilling would carry a significant financial burden.

In July the court rejected an interlocutory injunction application which would have stopped drilling during the hearing.

Justice Bromberg said Santos had argued “it will suffer a daily loss in the order of hundreds of thousands of dollars”.

Munupi people as they fight Santos in the Federal Court. Picture: (A)manda Parkinson

“The drilling operations are a step in an elaborate project involving billions of dollars in investment that is the subject of extensive planning and scheduling,” he said.

“I accept, a substantial risk that a delay in the commencement of the drilling operations will prejudicially impact upon the scheduled work necessary to be undertaken once drilling has been completed, because essential contractors and equipment may become unavailable.”

Despite the September decision and failed appeal attempt, Santos told investors it did not expect any “material costs or schedule impact” to the Barossa Gas Project.

“Santos does not anticipate any material cost or schedule impact, and first gas from the Barossa Gas Project remains on track to be delivered in the first half of 2025,” Santos wrote on December 2.

Environmental Defenders Office special counsel Alina Leikin in Darwin on September 21.

Environmental Defenders Office Special Counsel Alina Leikin said this statement to investors was in stark contrast to the sworn evidence before the court, which described “significant cost, substantial risk of prejudicial impact on scheduled work and detriment to third parties resulting from a potential six-week delay”.

“Santos has now been delayed almost three months and who knows how long that delay will continue.”

ECNT Director Kirsty Howey said misleading markets was a very serious matter, and required investigation from the corporate watchdogs.

ECNT Director Kirsty Howey said misleading markets was a very serious matter, and required investigation from the corporate watchdogs. Picture: Glenn Campbell

“Santos has been speaking out of both sides of its mouth when it comes to its Barossa gas project,” Ms Howey said.

The EDO filed the letter of complaint on the ECNT’s behalf, with senior solicitor Zoe Bush saying the letter to investors “may constitute misleading or deceptive conduct”.

“The omission of this information could potentially mislead a reasonable person into thinking that Santos does not expect the Full Court’s (appeal) decision to materially impact the cost or schedule of the Barossa project,” Ms Bush wrote.

The EDO has requested ASIC investigate and get Santos to “provide the market with full and frank disclosure” of the expected impact of the Barossa Gas project delays.

Santos was contacted for comment, but did not respond by deadline.

Originally published as Santos accused of misleading investors after $4.7bn offshore gas project delayed by historic Tiwi Federal court action