Santos slams court decision to halt drilling on Barossa gas project
Santos has attacked a court decision that forced a halt to drilling on its $4.7bn Barossa gas development in the Northern Territory.
Santos has attacked a court decision that forced a halt to drilling on its $US3.6bn ($5.4bn) Barossa gas development in the Northern Territory, calling for an appeal and demanding governments urgently address broader uncertainty on resource project approvals.
Tiwi Island traditional owner Dennis Tipakalippa won a Federal Court case on Wednesday that found Santos failed to consult traditional owners, after he had sued the national environmental watchdog over its approval of the offshore drilling plans.
Santos has suspended drilling activities at the site, 140km north of the Tiwi Islands, pending a favourable appeal or the approval of a fresh environmental plan, and said it was disappointed by the decision.
The South Australian company owns 50 per cent of Barossa with South Korea’s SK E&S holding a 37.5 per cent stake and Japan’s JERA 12.5 per cent.
“Given the significance of this decision to us, our international joint venture partners and customers, and the industry more broadly, we consider that it should be reviewed by the Full Federal Court on appeal,” Santos said in a statement.
“Santos appreciates the strong support from our Japanese and Korean joint venture partners, who have, in good faith, and on the back of Australia’s historical reputation as a safe and stable investment destination, invested in this project.
“Project approval uncertainty is a public policy issue that should be urgently addressed by Australian governments to reduce risk for trade and investment in projects around the country.”
The Environmental Defenders Office said the decision it was a huge victory and would have global implications for consultation with First Nations people on resource projects. “Today’s decision puts oil and gas companies on notice. It sets a new standard about the consultation that companies are required to conduct with First Nations peoples before drilling in the sea,” EDO special counsel Alina Leikin said.
Santos 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.
“The National Offshore Petroleum Safety and Environmental Management Authority had accepted our efforts to consult with Tiwi Islanders in accordance with the regulations when it decided to accept the environment plan for those activities,” Santos said.
Santos approved Barossa last year, with production ensuring the Darwin LNG plant remains running as supplies from old fields run out. Initial gas has been targeted by the first half of 2025.
It said on Wednesday the Barossa project was 46 per cent complete, noting drilling was not on the critical path for the project and saying it held “headroom” in the project cost contingency.
Santos gained control of both Barossa and Darwin LNG after snapping up ConocoPhillips’ Northern Australia business for $2bn in October 2019, cementing its LNG exposure, in addition to stakes it holds in Queensland’s GLNG project and ExxonMobil’s PNG LNG plant in Papua New Guinea.
Santos in March boosted its climate targets and introduced a new pledge requiring emissions to be offset before it signs off on new offshore greenfield energy projects.
The Morrison government earlier this year successfully appealed against a court ruling that found the environment minister had a duty of care to protect children from harm caused by climate change.
Led by Melbourne schoolgirl Anjali Sharma, a group of teenagers launched a landmark class action in May last year in a bid to prevent the expansion of Whitehaven Coal’s Vickery mine.
