The Australian National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) has accepted Norwegian company Equinor’s environmental plan for the drilling of controversial wildcat Stromlo-1 in permit EPP39 in the South Australian sector of the Great Australian Bight.
The rigorous approval process took 8 months, with NOPSEMA twice asking Equinor to resubmit its plans.
Stromlo-1 is to be drilled 372 km south of the coastline of the Nullarbor Plain in 2,200 m of water using a mobile rig supported by three service vessels and two helicopters.
In giving its approval, NOPSEMA said it has imposed stringent conditions to ensure a high level of protection to the environment in recognition of the region’s unique values and sensitivities.
The approval enables the company to drill 24-hours/day for 60 days between November and April in either 2020-2021 or 2021-2022.
NOPSEMA’s environmental approval is seen as the main hurdle in the company’s quest. There are, however, two further regulatory hurdles to jump prior to the start of any drilling program. Equinor still needs approval for a well-head operations plan and a facility safety case.
The company was first granted title over its two Great Australian Bight permits in 2011 and it has faced strong opposition from the environmental lobby.
On hearing news of NOPSEMA’s approval, both Greenpeace and the Wilderness Society said they are considering their options and have not ruled out taking legal action against both Equinor and NOPSEMA.
Similar plans to drill in the Bight were abandoned in 2017 and 2018 respectively by BP and Chevron. Coincidentally, the Australian and South Australian governments in mid-December reported that both majors have committed to investing a total of $116.5 million (Aus.) in oil and gas exploration activities in Australia. Half will be directed to projects in South Australia, including onshore Cooper basin, with a view to increasing energy supplies in the State and in southeast Australia.
This news follows the conclusion of Good Standing Agreement negotiations with BP and Chevron following their aborted drilling plans and exit from the Great Australian Bight permits.
The Federal Minister for Resources and Northern Australia, Matt Canavan, said that Australia’s offshore oil and gas policy ensures that companies which commit to a program of exploration deliver on that commitment.
“In rare cases where commitments are not met, companies are encouraged to re-direct exploration within Australia,” he said.
BP and Chevron have 3 years to deliver on their investments. BP plans to invest $40.6 million (Aus.) by October 2022 and Chevron will invest $75.9 million (Aus.) by September 2023.
Both companies are finalizing contractual negotiations for a range of regional studies with third party proponents.