Santos loses appeal over Barossa gas field but insists it will hold to schedule

Santos says it will stick to its original schedule to deliver the first gas from its controversial $3.6 billion Barossa offshore gas field in northern Australia in 2025, despite losing a legal appeal on Friday to restart drilling.

The Australia’s Federal Court on Friday dismissed the appeal by Santos, upholding a September ruling that the offshore gas regulator National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) should not have approved drilling in the Barossa gas field in the Timor Sea.

The court found that the company had failed to properly consult with Traditional Owners of the Munupi clan  over its environmental plan.

Santos is promoting Barossa as one of the world’s lowest-cost new LNG supply projects, with gas exports earmarked for Japan and Korea, but is opposed by climate activists for its impact on global emissions, and local landowners for the impact on their communities.

Tiwi Islander Dennis Tipakalippa and other Tiwi residents initially launched legal action in June to halt drilling, fearing it could damage their sea country.

Justice Debra Mortimer said on Friday the court ordered that the appeal be dismissed. The ruling means Santos must revise the drilling environment plan for the project to address matters contained in the judgment.

In a statement, Santos said it would now proceed with applications for all remaining approvals in accordance with guidance provided by the court and did not anticipate any material cost or schedule impact on the project.

“As a result, Santos does not anticipate any material cost or schedule impact, and first gas from the Barossa Gas Project remains on track to be delivered in the first half of 2025,” it said.

In earlier court proceedings, Santos claimed consultation with Traditional Owners in 2016, however planning documents submitted to the regulator suggested just two unanswered emails and one missed phone call were recorded during the consultation period.

As reported by RenewEconomy, documents submitted by Santos indicated there was no face-to-face engagement between parties. The company had previously argued that climate impacts of the drilling would be minimised through carbon capture and storage technology, an as yet unproven technology.

“I want to congratulate Dennis Tipakalippa and the Munupi Traditional Owners for protecting their country and sea,” Greens spokesperson for resources and Yamatji-Noongar woman Senator Dorinda Cox said. “Today we have seen cultural giants defeat a billion dollar company.”

Cox said it was “appalling” that Santos failed to consult traditional owners over the potential environment impacts of the project.

By some estimates, the project would release *15.61 million tonnes of carbon dioxide emissions annually as the gas is extracted, developed and burned.

After Santos bought the Barossa gas field from ConocoPhillips in 2020, Fortescue Metals Group and Fortescue Futures Industries founder Andrew Forrest told media  that Santos was “about to kick off one of the most polluting projects in the world.”

*CORRECTION: This article has been corrected to show that Santos’ Barossa gas project is estimated to release 15.61 million tonnes of CO2. A previous version had misplaced the decimal point to say 1.56 million tonnes.