September 1-28, 2024: Issue 634

 

PEP11 Update: September 2024 - preliminary view of Minister is that applications should be refused

BPH Energy Limited and Bounty Oil & Gas NL (Bounty) for the PEP11 Joint Venture announced on 5 August 2024, Asset Energy Pty Ltd (Asset) as operator for and on behalf of the joint venture partners, has filed an Originating Application for Judicial Review in the Federal Court seeking the following:

1. A declaration that the Commonwealth-New South Wales Offshore Petroleum Joint Authority has breached an implied duty by failing to make a decision under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) with respect to two pending applications relating to Petroleum Exploration Permit NSW–11 (PEP11 Permit); and

2. An order that the Joint Authority be compelled to determine the applications within 45 days.

The securities of BPH Energy Ltd (‘BPH’) were placed in trading halt on Wednesday August 7 at the request of BPH, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 12 August 2024 or when the announcement is released to the market.

Asset states it initially applied for federal determination in late December 2019, seeking a variation and suspension of the conditions of the PEP11 permit and an extension of the term of the permit. Asset sought further time to drill an exploration well in PEP11 and, if successful, to conduct post-well studies rather than a 3D seismic survey.

See August 2024 update: PEP11 Proponents File New Claim in Federal Court: 'Determine applications within 45 days'

This followed on from the April 2024 announcement by the Hon Madeleine King MP that she has recused herself from future decisions on Petroleum Exploration Permit 11 (PEP-11).

The Minister for Industry and Science, the Honourable Ed Husic MP, would take future decisions relating to PEP-11. 

''Minister Husic was appointed to administer the Department of Industry, Science and Resources upon being sworn-in as a Minister on 1 June 2022 and has the legal authority to take future decisions on PEP-11.

The Australian Government has been consistent in its position that it will not provide a running commentary on PEP-11 and this remains the case.'' the statement reads

Ms King, along with Prime Minister Albanese, have made statements to the effect that they oppose PEP11, which could lead to a conflict of interest alike that seen when former Prime Minister Morrison made statements along similar lines, prior to acting in that portfolio to cancel the permit.

See: Minister For Resources Recuses Herself From PEP11 Decision - April 2024

On Wednesday September 18 the following statement was released:

Statement on PEP-11

18 September 2024: The Hon Ed Husic MP, Minister for Industry and Science

I would like to provide a brief update on the current status of the PEP-11 applications.

I have carefully considered all material submitted by Asset Energy Pty Ltd and formed a preliminary view that the applications should be refused.

As part of the ordinary fair process I have given Asset Energy an opportunity to provide further information to address concerns that I currently hold about the applications.

This gives Asset Energy an opportunity to address my concerns before any final decision is made.

Once I receive a response from Asset Energy I will carefully consider any further information provided.

The Australian Government is committed to considering the applications in accordance with due process under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

I will not make further comment while the process is underway.

BPH issued a statement the same day that it is forwarding the relevant correspondence to its lawyers and will update the market as appropriate. David Breeze (Director) authorised the release of this announcement to the market.

On the same day, Dr. Sophie Scamps, MP for Mackellar, stated:

After years of fighting the oil and gas project proposed off the Sydney to Newcastle coast we are now close to victory. 

Industry minister Ed Husic has formed a “preliminary view” that the PEP 11 permit should not be renewed.

Asset Energy, the company behind the project, now has an opportunity to make submissionsto address the Minister’s concerns and I respect the need for due process.

But a preliminary decision to reject this project is a big step forward in this decade-long fight and vindication of the stance of community independents in fighting for communities.

As Community Independents standing up for the peninsula, Zali Steggall, Jacqui Scruby and I have fought long and hard to ensure that the Federal Government understands why our community wants to stop oil and gas development off our pristine beaches.

This project has been roundly rejected by the millions of people who live along the coast between Sydney and Newcastle, including the people of Mackellar.

This project poses unreasonable risks to the environment, to marine life and to other activities such as tourism that depend on our pristine coastline and now the Federal government has acted.

Jacqui Scruby, Independent candidate for the state seat of Pittwater in the upcoming by-election, stated

“As a local, I’ve seen the community outcry against mining off our beautiful beaches.

Last election I acted on it, writing the bill that eventually saw offshore drilling for oil and gas banned in NSW.

Federally, independents Sophie Scamps and Zali Steggall have led the charge. Today’s announcement is a victory for independents and their communities, and shows us that when we stand up and demand change, change is possible.

This by-election, if you want a local representative who will act with integrity to protect Pittwater, vote independent.”

Petroleum Exploration Permit 11 (PEP 11), covers 4,500 square km of ocean along our favourite beaches, from the Illawarra to Newcastle. It was originally surveyed in 1981 but there was no action until 2010 when the first exploratory wells were sunk. Progress on its development then stalled. More seismic testing took place in 2018.

In 2021 the company that holds the permit, Asset Energy, applied to renew the permit.

PEP-11 quickly became an election issue and a source of community concern. The former Prime Minister, Scott Morrison, who had secretly appointed himself to the resources portfolio (and several other portfolios) refused to renew PEP-11.

Asset then appealed to the Federal Court challenging the decision. In February this year.

After receiving advice that it would likely lose the case, the Labor government agreed to revisit the decision.

The decision was referred to Commonwealth-New South Wales Offshore Petroleum Joint Authority for consideration.

The NSW government has already legislated to give force to its opposition to the project.

This includes amendments to state environmental protections to prevent offshore petroleum and gas mining in state coastal water and banning other developments for the purposes of seabed petroleum and gas projects.

However, the project could still go ahead in federal waters if the permit is renewed. 

Previously