Santos backs communities with Barossa future fund

The Barossa project is delivering for coastal communities more than a year out from the delivery of first gas.

First gas from Santos’ Barossa project has been delayed by at least several months and the total estimated cost has blown-out to almost $7bn because of a discredited legal process that stalled the project.

Santos chief executive Kevin Gallagher announced in Darwin on Thursday the company and its joint venture partners would invest up to $10m into a newly formed Barossa Aboriginal Future Fund to drive development in coastal communities and homelands.

He said between now and first gas next year, the company would spend $10m improving community and homeland infrastructure, investing in health, education, housing and community resilience and establishing pathways to skilled, well-paid secure jobs and business opportunities.

A Protester holds up a sign "Santos Out of Tiwi Islands" at the front of the Federald Court Of Australia on November 15, 2022 in Melbourne, Australia. (Photo by Tamati Smith/Getty Images)

“It’s a very exciting initiative focused on investments and those communities to help close the gap,” Mr Gallagher said.

“That’s investment focused on infrastructure, jobs, creating real jobs and helping us to close that gap and it’s right that benefits fund should be there to serve those communities over the next 10-15 years.

“We’re very proud and excited and believe it’s going to be an industry first in terms of the significance and the scale of the fund. It’s very important that when we build these mega projects that our communities are part of that story and are able to benefit from development of these projects.”

Tiwi Islands resident Richard Hadley Tungatalum welcomed the new fund.

“We do have a lot of problems and poverty,” he said.

“Education is really key to the world, so we want to build a strong education on the island.

“Also infrastructure and roads that lead to our homeland and many people in the coastline have difficulties to go back to their homeland. The gap is widening, widening and now Santos is opening the door.

“It’s great we’re gong to build a good relationship with Tiwi people and the coastal people of the Top End.”

At a welcome to country ceremony, senior Larrakia Traditional Owner Bill Risk applauded Santos for its investment in the Territory.

Tiwi TO Richard Hadley Tungatalum supports the Barossa project.

“We’ve had a longstanding relationship with Santos dating back 20 years and we’re happy for that relationship to continue,” Mr Risk said.

“We look forward to working into the future with Santos.”

The Barossa project stalled in 2022 when the Federal Court found in favour of an action by Tiwi Elder Dennis Tippalippa and the Environmental Defender’s Office forced the company back to the consultation table.

When regulator NOPSEMA ratified the second consultation round late last year, an eleventh-hour injunction from Tiwi TO Simon Munkara again stalled the project.

On January 15 federal court judge Natalie Charlesworth threw the application out, finding a University of WA professor lied to Tiwi islanders during a cultural mapping exercise and said an EDO lawyer had falsely represented information provided by elders.

Mr Gallagher did not rule out further legal challenges against the Barossa project and called for more certainty around project approvals.

“I think activism is certainly not over and I suspect that is the way the world is going forward,” he said.

“I think whether it’s in Australia or elsewhere, governments need to try to find that right balance between allowing a reasonable voice to oppose, challenge and to be consulted with holding up projects after they’re approved.

“It’s no secret I don’t thing the balance is right given that we were delayed for a year or so after we had the project approved.”

Originally published as Santos backs communities with Barossa future fund