Offshore staff
ADELAIDE, Australia — Santos may have to revise its drilling and completion schedule for the Barossa Gas Project in the Timor Sea, following a ruling by Australia’s Federal Court.
Justice Bromberg decided to set aside the acceptance by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) of Santos’ environmental plan for the activities at a site 140 km north of the Tiwi Islands.
Drilling activities will be suspended pending the outcome of a favorable appeal outcome or the approval of a fresh environment plan.
The court based its decision on a finding that NOPSEMA could not be lawfully satisfied that the drilling environment plan met criteria required by the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 regulations and had failed to assess whether the plan demonstrated consultation on Santos’ part with each relevant individual.
Santos countered that it had engaged about the proposed drilling activities with the Tiwi Land Council, a representative body with statutory authority under the Aboriginal Land Rights (Northern Territory) Act 1976; and with the Northern Land Council, the Native Title representative body for the Tiwi Islands.
NOPSEMA, the company added, has accepted its efforts to consult with Tiwi Islanders in accordance with the regulations when it decided to accept the environment plan for those activities.
Currently the Barossa Gas Project is about 46%, and drilling activities are not on the critical path, Santos said, “and we have headroom in the project cost contingency.”
The company concluded that “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.”
09.21.2022
