For the second time, Australia’s offshore oil and gas authority NOPSEMA has rejected Norwegian oil-giant Equinor’s proposal to drill for oil in the Great Australian Bight.
NOPSEMA issued a notice to Equinor requiring it to modify and resubmit its environment plan. Equinor must provide NOPSEMA with further information about matters relating to consultation, source control and oil spill risk. “The opportunity to modify and resubmit does not represent a refusal or rejection of the environment plan,” says NOPSEMA. NOPSEMA is required by law to provide titleholders a reasonable opportunity to modify and resubmit their plan if it doesn’t meet the regulatory requirements for acceptance.
Research undertaken by The Australia Institute research which was released this week indicates that South Australia stands to gain just one tenth of one percent of total state revenues from the project over its 40 year lifetime. Modelling based on industry projections of basin wide oil reserves shows the Norwegian Government would receive estimated profits (in net present terms) of A$8.1 billion if Equinor were to develop the base case scenario. The South Australian Government would receive just A$0.3 billion and the Australian Government would receive A$7.4 billion. Read on.
Title inspiration thanks to Public Enemy.