Australian gas company Santos’ largest project under development, the Barossa gas project, has been impacted by delays on its drilling activity and is not allowed to lay the pipeline to connect the Barossa gas field to Darwin where the gas will be processed.

Drilling activity was first halted following the Federal Court ruling on 21 September 2022 that overturned approvals for the Barossa gas project’s drilling environment plan. This ruling was upheld when Santos lost its appeal on 2 December 2022. This has meant Santos is not allowed to conduct any drilling activity until it has completed its consultation with Indigenous groups.

Further work was impacted in January 2023 when the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) issued a direction requiring Santos to undertake assessment of Indigenous traditional, spiritual and cultural connections to underwater cultural heritage places along the route of the new Barossa pipeline in the Bonaparte Basin offshore the Northern Territory.

Key findings:

• Even if Barossa clears its many regulatory hurdles, Santos may not have a rig to drill the gas field as its contract is due to expire and the equipment is now booked elsewhere.
• Investors deserve full and clear disclosure of any material impacts the many legal and environmental issues surrounding Barossa will have on the project's timeline.