BP leaving Bight: APPEA disappointed, Greens say ‘good riddance’

Australian Petroleum Production and Exploration Association (APPEA), a body representing the Australian oil and gas industry, is disappointed by BP’s decision not to pursue its proposed exploration project in the Great Australian Bight.

To remind, the oil giant on Tuesday said it wouldn’t move ahead with the proposed drilling offshore South Australia, as the project would not create value in the near to medium term.

“BP has determined that the GAB project will not be able to compete for capital investment with other upstream opportunities in its global portfolio in the foreseeable future,” the company said.
According to APPEA, the move by BP is disappointing for South Australians who would have benefitted from the economic activity the project promised.

“The international environment for the oil and gas industry is challenging and companies are regularly reviewing their investment plans,” said APPEA Director South Australia Matthew Doman.

He said: “BP’s decision is a stark reminder that global investment in Australian resource projects cannot be taken for granted. But the resource potential of the Great Australian Bight remains significant and the economic and energy benefits of developing those resources will be substantial.”

Doman said Chevron, Murphy Oil, Santos and other companies proposing exploration in the Bight would continue to pursue their plans.

In its announcement on Monday, BP said nothing on the recent pressure by environmental groups for the oil giant to abandon the project due to environmental concerns. Since the start of BP’s proposed project the Australian Greens and the Greenpeace have released several statements deeming the project an environmental disaster waiting to happen, even pointing to BP’s 2010 Deepwater Horizon blowout in the U.S. Gulf of Mexico.

While BP avoided the environmental aspect, and the activist pressure in its announcement, APPEA’s Doman said: “The oil and gas industry recognizes that activist scare campaigns have fueled concern about exploration activity in the Bight. It is important that public discussion about the industry remains anchored in information that is factual, complete and relevant to the environment where the activity will take place. We will continue to work with local stakeholders and the wider community to address their questions and concerns.”

He said that with proper regulatory oversight, there is no reason a safe, sustainable offshore petroleum industry should not be possible for South Australia, as it has been in Victoria and WA for several decades.

Greens: Good riddance!

To remind, BP has said its decision to leave the GAB is purely economical. However, the Australian Greens have issued a statement titled: “BP out of the Bight: Community 1, Big Oil 0,” hinting that the public pressure was a factor as well.

South Australian Greens Senator Sarah Hanson-Young said: “BP has said goodbye to the Bight, I say good riddance to BP. This is a great win for the community who made it clear that BP wasn’t welcome from the beginning.

“BP should never have been given an exploration permit, especially considering the disaster in the Gulf of Mexico. Big Oil should see the writing on the wall. BP knew that this project was never going to get approval and was deeply unpopular with the South Australian community. Now we need to protect the Great Australian Bight from all of the other companies who are trying to put it at risk.”

“Big Oil should see the writing on the wall. BP knew that this project was never going to get approval and was deeply unpopular with the South Australian community. Now we need to protect the Great Australian Bight from all of the other companies who are trying to put it at risk.”

She also said that the Greens have a Bill before the Senate that would “permanently protect the Great Australian Bight from companies that are trying to drill for oil and gas.”

“It’s time that Bill was supported so that this precious natural environment can be protected for generations to come,” Senator Hanson-Young said.

BP had proposed to drill four wells in the area, however, that drilling program was rejected by the regulatory body NOPSEMA. BP then submitted another drilling program, proposing two wells. The final decision for the two well program has been postponed by NOPSEMA, which has asked for more information from BP regarding the proposed program.

‘Leave the Bight!’

Another activist group, The Wilderness Society, has welcomed the BP decision, saying that all oil and gas companies should follow BP’s lead and leave the Great Australian Bight.

The group highlighted the fact that Australia’s offshore oil and gas regulator, NOPSEMA, has sent back BP’s application to drill in the Bight three times.

“If BP, with all its experience, cannot produce an acceptable drilling plan for NOPSEMA, the remaining companies exploring in the Bight will be wasting their shareholders’ money trying to pursue this folly,” said Wilderness Society National Director Lyndon Schneiders.

“This decision shows that it’s too expensive to establish the significant and costly risk management and clean up capacity infrastructure needed to protect our communities from the enormous spill risks associated with drilling in this part of the world. Clearly, this is a far-too-high-cost oil basin for any oil company to consider exploiting.”

While APPEA’s Matthew Doman said Chevron, Murphy and Santos would continue pursuing their drilling plans in the Great Australian Bight, The Wilderness Society has a different opinion.

“Chevron, Santos, Murphy, and Karoon—which received its permit just last week—will face the same massive costs and increasing community opposition that BP experienced. We call on these companies to follow BP’s lead and leave the Bight, and the communities surrounding the Bight, in peace,” Schneiders said.

Wilderness Society South Australia Director Peter Owen said: “The Great Australian Bight waters are deeper, more treacherous and more remote than the Gulf of Mexico, where BP was responsible for 800 million liters of oil spewing into the Gulf for 87 days in 2010. Waves in the Bight in winter are six times bigger than the waves in the Gulf of Mexico around the time of BP’s disaster. Even in summer, Bight waves are four times higher.

The Wilderness Society has called for the government to rescind all exploration permits in the Bight Basin.

Offshore Energy Today Staff