Equinor has walked away from its plans to drill in the Great Australian Bight offshore South Australia despite having recently received environmental approval from the Australian Government’s offshore regulator to drill the proposed Stromlo-1 wildcat.
Jone Strangeland, the company’s country manager in Australia, said that the decision was taken following a holistic review of its worldwide exploration portfolio.
“Equinor concluded that the (Stromlo) project’s potential is not commercially competitive compared with other exploration opportunities in the company,” he said.
The $200 million (Aus.) plan was for the drilling of Stromlo-1 in 2,200 m of water in permit EPP39 about 370 km south of the coastline of the Nullarbor Plain using a mobile rig supported by three service vessels and two helicopters.
In giving its approval in mid-December, Australian National Offshore Petroleum Safety and Environmental Management Authority (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 (OGJ Online, Dec. 19, 2019).
The approval enabled the company to drill 24-hours a day for 60 days between November and April in either 2020-21 or 2021-22.
The exploration program sparked opposition from environmental groups and in January the Wilderness Society launched legal action challenging NOPSEMA’s decision.
Equinor is the third major company to withdraw from drilling plans in the Bight following BP’s exit in 2016 and Chevron in 2017.
Equinor took an interest in the Bight permits in 2012 and moved to 100% in 2013. Australian Government Resources Minister Keith Pitt said Equinor’s decision to withdraw was disappointing, but he expressed support for future exploration in the Bight.
“The Bight remains one of Australia’s frontier basins and any proposals for new oil and gas fields in this area will be assessed fairly and independently,” he said.
There are now calls from environmental groups to protect coastal communities and the area’s marine life by permanently ruling out drilling programs and proposing the Great Australian Bight for World Heritage listing.
Equinor will maintain a presence in Australia through its interest in permit WA-542-P in the north Carnarvon basin offshore Western Australia.
