After months of silence regarding the contentious Petroleum Exploration Permit 11 (PEP11), Minister for Resources and Water Keith Pitt has provided some insight into his decision-making process, but still no decision.
The renewal of the now-expired PEP11 permit would allow gas and oil drilling off the coast of Newcastle, stretching to Sydney. The final decision for this gas and oil exploration comes down to Minister Pitt.
The project has been contested by many coastal communities, local MPs and politicians, all standing against the renewal of the PEP11 permit. Prime Minister Scott Morrison has also spoken out against it.
Following previous attempts and letters written to Pitt requesting a final decision to be made, Member for Newcastle Sharon Claydon said she had “finally” received a letter of response.
“In our previous correspondence, I outlined Australia’s robust regulatory regime and its requirements for undertaking petroleum activities,” Pitt wrote.
“No environment plan has been lodged or is under assessment for any activity in the PEP11 permit area, and no further activity will be able to occur in this area until all necessary approvals are in place.
“The permit holder has applied for additional time to complete their work program commitments and a variation to the current conditions.”
The permit holder is Asset Energy, a subsidiary of oil and gas exploration company Advent Energy.
In early June 2021, NovoNews reported that Asset Energy had issued a call for tender to provide subsea wellhead equipment to build foundations for a drilling well.
“This is an important step in the preparation and planning for the Baleen-1 well (and) ensures that Asset will be ready to commence drilling after relevant approvals have been received,” the Advent Energy announcement stated.
Since then, a second tender has been issued to provide a conductor, surface casing and associated services.
On July 31, Advent Energy’s June 2021 Quarter Operations Report outlined a submission to the National Offshore Petroleum Titles Administrator (NOPTA) to “enable drilling of the Baleen drill target in the PEP11 permit offshore NSW”.
“The PEP11 Joint Venture has reviewed the work program and now proposes to proceed with the drilling of a well at Baleen (to be called Seablue-1) subject to approvals from NOPTA and other regulatory authorities, and financing, and has made an application to NOPTA to change the current Permit conditions,” the report stated.
“The application to NOPTA includes the extension of the permit title for up to two years to enable the drilling and includes an application for the removal of the requirement for a 500 sq. km 3D seismic program. NOPTA has confirmed that this application is now in the final decision phase.”
The “final decision phase” was something that Pitt wrote about in the letter to Claydon, which was “a matter for the Joint Authority, consisting of myself as the federal Minister for Resources, and the Hon John Barilaro, New South Wales Deputy Premier and Minister for Regional New South Wales”.
“Having received the advice of Mr Barilaro, I am currently considering this matter. My decision will be evidence-based, taking into account the advice of NOPTA, requirements under the Offshore Petroleum and Greenhouse Gas Storage Act 2006, the associated regulations and guidelines, as well as any other relevant considerations,” Pitt wrote.
On February 17, 2021, Barilaro recommended PEP11 not be renewed, placing the final decision on Pitt’s desk.
Hayley McMahon