Barossa project disruptors in the gun to pay Santos legal costs.
In a strategic legal payoff, Santos has secured a pivotal victory as a federal court judge agreed to their request to subpoena documentation held by three environmental activist groups. This decision positions Santos favourably in the legal battle and places the activists on the hook for the substantial legal expenses incurred by the oil giant in defending the case.
The lawsuit, spearheaded by traditional custodians, impugns Santos's purported negligence in evaluating submerged cultural patrimony, prompting a plea for an injunction against pipeline bids until a revamped environmental blueprint garners scrutiny from the National Offshore Petroleum Safety and Environmental Management Authority. This litigious saga burgeons into a pivotal juncture for Australia's LNG sector, as Santos's legal eagles attempt to recoup substantial legal expenditures from environmental crusaders entangled in the Munkara affair, catalysing the suspension of pipeline plans in November 2023.
Earlier, Santos submitted a formal petition to the court, requesting subpoenas for four activist organisations: Sunrise Project, ECNT, Market Forces, and Jubilee. These groups are involved in a lawsuit concerning the extensive legal delays surrounding the Barossa Gas Export Pipeline project in the Timor Sea.
The financial support these organisations provided to the Environmental Defenders Office (EDO) concerning the Munkara affair raises questions about their potential responsibility for legal expenses. This has led to significant tension between energy giants and environmental advocacy groups. The consequences of these legal proceedings extend into corporate governance and environmental stewardship, creating ripples that affect both sectors.
Counting the cost
Plagued by substantial financial haemorrhaging resultant from protracted legal skirmishes, Santos has earmarked an additional $300 million investment to buttress the beleaguered Barossa gas project. As a result, the total cost has increased to between $4.5 billion and $4.6 billion. The marquee gas venture was initially scheduled to launch earlier but is now expected to begin in the third quarter of 2025.
Nonetheless, Santo's boss, Kevin Gallagher, stated in the company's recent quarterly communiqué to the ASX that he now has "clear sight" on pivotal projects to replace the Darwin LNG's declining fortunes and underperforming LNG plant in Gladstone, Queensland.
Court's decision
Justice Natalie Charlesworth approved Santos's request to access financial records and correspondences between activist groups and the EDO last Wednesday. This enables Santos to recover costs from campaign organisations regarding the lawsuit brought by the EDO on behalf of the traditional owners of the Tiwi Islands.
The dossier encompasses financial underpinnings, legal safeguards, and exchanges between the factions regarding the legal proceedings. Market Forces is one of the groups involved, but they have avoided making public statements about the matter. However, ENB understands Market Forces may still be held liable for their involvement, as the disclosure exemption differs from financial obligations.
ENB understands a mediation rendezvous among stakeholders is slated for the coming week. This will likely be preceded by another judicial deliberation in the coming weeks, during which the adjudicator hints at a prospective adjudication on financial liabilities.
