Page 10 - AsianOil Week 48 2022

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Court upholds challenge to Santos'

Barossa gas project

INVESTMENT AUSTRALIA’S federal court has rejected an for work at Barossa, which is its largest project.
appeal by energy group Santos to resume drilling “Santos does not anticipate any material
The decision could have at its $3.6bn Barossa gas project off the north- cost or schedule impact, and first gas from
implications for other ern Australian court, following opposition from the Barossa gas project remains on track to be
offshore gas projects. local indigenous groups. The ruling raises the delivered in the first half of 2025,” the company
risk of other offshore gas developments stalling commented.
in the country. The challenge by the Munupi clan member,
Three federal court judges concluded that Dennis Tipakalippa, was based on the argument
Santos had not consulted all of the indigenous that the Barossa project posed a risk to sacred
people on the Tiwi Islands that it should have sites and the spiritual connection of the clan to
done for its environmental plan. The ruling sup- the Sea Country north of the Tiwi Islands in the
ported a challenge that was brought by a mem- Timor Sea.
ber of the Munupi clan. “Our sea is like our mother – we are part of
The decision has broader implications. It the sea and the sea is part of us. Santos and every
means that offshore developers will need to other gas company must take note that this is
consult a wide range of groups, including those our country and we must be consulted,” Tipa-
with cultural interests, when they seek regu- kalippa said in a statement after the court made
latory approvals. That could result in delays to its decision.
projects such as Woodside’s $12bn Scarborough Barossa lies 140 km north of the Tiwi Islands.
gas development, and the connected Pluto LNG Santos had to halt drilling at the project in Sep-
expansion scheme. tember, after a judge ruled that the environmen-
“There is now the risk of more delays and tal approval issued by the National Offshore
obstacles in the progression of important energy Petroleum Safety and Environmental Manage-
projects,” Australian Petroleum Production and ment Authority (NOPSEMA) was void, as no
Exploration Association (APPEA) CEO Saman- consultation with the Munupi clan had taken
tha McCulloch warned in a statement. place.
The court ruling on December 2 made a dent Credit Suisse analyst Saul Kavonic argues
on gas companies’ share prices. Stock at Santos that the decision “may cause a material delay to
closed 3.8% below the previous session, while Barossa, as a new consultation process is under-
Woodside shares ended 2.6% lower. taken and a new environmental plan is submit-
Santos said it would submit fresh applications ted and assessed by NOPSEMA.” ™

P10 www. NEWSBASE .com Week 48 05•December•2022