Banks face Tiwi Islander claim over Santos’ Barossa loans

Seven traditional owners have lodged complaints against the big four banks and a raft of international financiers over human rights concerns for Santos’ Barossa project.

The traditional owners, including Dennis Tipakalippa, who prevailed in a federal-court case in September that found Santos had erred with the project and not held adequate talks with indigenous people about the development. Picture: Environmental Defenders Office

Major Australian and international banks face human rights complaints from traditional owners over funding a $1.5bn loan for Santos’ Barossa offshore project in the Timor Sea.

Seven traditional owners have lodged complaints against the big banks and a raft of international financiers over human rights concerns, saying Santos failed to adequately consult the affected Tiwi communities about the impacts of the Barossa project and there was therefore no free, prior and informed consent – a key human right for traditional owners.

“ANZ and other banks should have undertaken due diligence and never funded Santos,” the statement released on Tuesday said.

The traditional owners include Dennis Tipakalippa, who prevailed in a federal-court case in September that found Santos had erred with the project and not held adequate talks with indigenous people about the development.

That decision caused upheaval across Australia’s offshore oil and gas industry and raised concern over the permitting process for the development of new gas supplies.

The Barossa gas field, 300km north of Darwin, is being developed as a source of gas to keep Santos‘ Darwin LNG plant running, with Japanese and South Korean gas companies among the investors in the project.

ANZ bank, one of the banks receiving the complaint, contributed the equal highest amount of $US65m ($97m) to the $US1bn loan and reportedly arranged it with the Commonwealth Bank of Australia and Japan’s largest bank, MUFG, each earning $US2.5m ($3.7m) in fees, according to the statement released.

Therese Wokai Bourke, a Malawu clan leader filing the complaint, stated: “We want the banks to rethink what they’re doing and stop investing in companies that are destroying our world and environment. Banks are enabling Santos to continue doing what they are doing without any care about our human rights and what they’re doing to the environment we live in.”

The $US3.6bn project is a key development in a tightening global market, Santos chief executive Kevin Gallagher has said.

The Environmental Defenders Office said, at the time, the decision “sends a message to all gas companies that they cannot sideline First Nations people.” It previously said in September the ruling was a huge victory and would have global implications for consultation with First Nations people on resource projects.

Santos has previously said “consistent with previous practice” it had discussed the proposed drilling activities with the Tiwi Land Council, a representative body with statutory authority under the Aboriginal Land Rights Act 1976.

It also held talks about the proposed drilling activities with the Northern Land Council, the ­Native Title representative body for the Tiwi Islands.

NOPSEMA had given the green light for Barossa, but the September court ruling had found it failed to assess whether the drilling plan demonstrated that Santos consulted with each person that it was required to under regulations.

The offshore authority told Senate Estimates in November that it was now required to apply a far broader definition of “relevant persons” since the Barossa decision.

It revealed it had issued 43 decision notices since the court judgment on environment plans under assessment, requiring companies to consult in line with the court decision.

Originally published as Banks face Tiwi Islander claim over Santos’ Barossa loans