Australia’s peak oil and gas lobby group has warned the Federal Court’s move to quash regulatory approval of Woodside’s Scarborough gas seismic blasting plan could threaten gas supply and stifle investment.
On Thursday, Mardudhunera woman Raelene Cooper successfully overturned the National Offshore Petroleum Safety and Environmental Management Authority’s (NOPSEMA) approval of Woodside’s seismic testing plan off Western Australia’s north-west coast.
AEP chief executive Samantha McCulloch said the decision would have far-reaching implications.Credit: Nine
The court ruled the regulator did not have the statutory power to approve the project’s environmental plan knowing Cooper had not been consulted about the 40-day testing regime, rendering the permit invalid.
Cooper voiced concerns about the threat the activity, which involves releasing blasts of air at the seabed and recording the echoes, may pose to marine life and areas of cultural significance.
The ruling could result in further delays for the oil and gas giant’s $18.7 billion mega-project.
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But Australian Energy Producers chief executive Samantha McCulloch told 6PR Radio Perth the decision had far-reaching implications and demonstrated an increasing number of obstacles in the way of “critical” energy projects.
She called on the government to provide greater clarity on the regulations, claiming the ruling was evidence the system was broken and the regulator’s approvals weren’t worth the paper they were written on.
“What we’re seeing is just a lack of clarity, a lack of certainty around the rules of the game when it comes to offshore developments,” she said.
“Even an approval by the regulator is frankly not worth the paper it’s written on - you cannot make billion dollar investments when your approval can be overturned.
“We have a significant logjam now, in terms of offshore [development] approvals and plans for decommissioning and carbon capture and storage projects vital to reducing emissions.
“This is costing hundreds of millions of dollars in terms of the delays, but more importantly, it’s also threatening reliable and affordable gas supply to the domestic market and our international customers.”
McCulloch said the situation threatened Australia’s capacity to compete internationally for investment and tarnished its reputation as a reliable and stable investment destination.
“Regulations which provide clarity and certainty for industry while maintaining consultation obligations are desperately needed,” she said.
“Governments must make clear regulations for consultation that maintain high standards of consultation with stakeholders, including Traditional Owners, but also provide regulatory certainty when an approval is granted.”
Cooper addressing the media outside court.Credit: Jesinta Burton
The decision is the second of its kind to be handed down in the past year, bearing similarities to the ruling in the court stoush over Santos’ Barossa project in the Northern Territory.
Woodside – which pointed out the judgment did not in any way criticise any action by the company – has vowed to continue working with the regulator to obtain clearance for the activity and consult all relevant stakeholders.
The company committed to the development of the offshore Scarborough gas field in 2021, which will see the capacity of its Pluto export plant double.
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