Santos Limited: Difference between revisions

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<!---not actually in the archived version of this source around that date---As of 2008, Santos was participating in on- and offshore oil and gas exploration and production ventures throughout Australia, in the [[Timor Gap]], [[Indonesia]], [[Papua New Guinea]], [[India]], [[Bangladesh]], [[Egypt]], [[Vietnam]] and [[Kyrgyzstan]].<ref name=oilvoice1>{{cite web | url= http://www.oilvoice.com/Description/Santos/6fee81bd.aspx | title=Santos | publisher= OilVoice | access-date=19 April 2008}} {{dead}}</ref>--->
 
The South Australian and Queensland gas reserves are the main sources of natural gas to the [[eastern states of Australia]]. Santos is the primary venture partner and operator of [[natural gas processing]] facilities at Moomba in SA and Ballera in [[Queensland]], and pipelines connecting those facilities with Adelaide, Sydney, [[Melbourne]], [[Brisbane]], [[Rockhampton]] and [[Mount Isa]].{{Citation needed|date=May 2016|reason=does it operate the pipelines?}}[[File:Santosinnamincka.jpg|thumb|Santos drill rig near [[Innamincka, South Australia|Innamincka]] ([[Cooper Basin]]), 1959]]
 
===Gas and LNG===
[[File:Santosinnamincka.jpg|thumb|Santos drill rig near [[Innamincka, South Australia|Innamincka]] ([[Cooper Basin]]), 1959]]
Santos has made significant discoveries in the [[Browse Basin]], off the northwest of [[Western Australia]]. On 22 August 2014 the company announced a major [[Natural-gas condensate|gas condensate]] discovery at the Lasseter-1 exploration well in WA-274-P in the basin, in which Santos had a 30% interest in company with [[Chevron Corporation|Chevron]] (50%) and [[Inpex]] (20%). It was the second major discovery by the company in the area in two years.<ref name="SantosWA">{{cite news|title=Higher interim dividend by Santos as oil and gas revenue rises|url=http://www.australiannews.net/index.php/sid/225005177|date=21 August 2014|access-date=22 August 2014|publisher=Australian News.Net}}</ref>
 
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Santos has an interest in the [[Darwin, Northern Territory|Darwin]] LNG project, which was the first [[liquefied natural gas]] project in the [[Northern Territory]] and the second in Australia. It has been supplied by the Bayu-Undan field, which is anticipated will be exhausted during the 2020s, hence the intention to develop the [[#Barossa project|Barossa project]] to replace the dwindling reserves.<ref name="Richardson 2021">{{cite web | last=Richardson | first=Nathan | title=Australia's Santos takes FID on Darwin LNG Barossa backfill project | website=S&P Global Commodity Insights | date=30 March 2021 | url=https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/033021-australias-santos-takes-fid-on-darwin-lng-barossa-backfill-project | access-date=7 June 2022}}</ref>
 
==== Barossa project ====<!---redirects target this section--->
The Barossa project is a proposed [[gas field]] in the [[Timor Sea]], situated in Australian waters around {{cvt|300|km}} north of Darwin. It is intended to take over from Bayu-Undan field after its reserves are exhausted, supplying LNG to the Darwin facility via a new pipeline which, for part of its length, runruns parallel to the existing [[Bayu-Undan to Darwin Pipeline]].<ref>{{cite web |title=Darwin Pipeline Duplication (DPD) Project NT EPA Referral |url=https://ntepa.nt.gov.au/__data/assets/pdf_file/0010/1081369/referral-report.PDF |publisher=Northern Territory Environment Protection Authority (NT EPA) |access-date=2021-12-08 |ref=BAA-201 0003}}</ref> Condensate oil will also be extracted.<ref name="Richardson 2021" /> It is situated around {{cvt|300|km}} north of Darwin, in Australian waters. Worth {{AUD|4.7 billion}}, the project was signed offapproved in 2021, with gas production is expected to commence in 2025. The project is expected to create about 600 jobs during construction and 350 ongoing jobs in Darwin over the following 20 years.<ref name="Bardon 2022">{{cite web |last=Bardon |first=Jane |date=7 June 2022 |title=Tiwi traditional owners launch Federal Court action to try to stop Santos Barossa gas field |url=https://www.abc.net.au/news/2022-06-07/nt-tiwi-islands-launch-court-action-santos-barossa-consultation/101128926 |access-date=7 June 2022 |website=ABC News |publisher=[[Australian Broadcasting Corporation]]}}</ref>
<!---redirects target this section--->
The Barossa project is a proposed [[gas field]] in the [[Timor Sea]], intended to take over from Bayu-Undan field after its reserves are exhausted, supplying LNG to the Darwin facility via a new pipeline which, for part of its length, run parallel to the existing [[Bayu-Undan to Darwin Pipeline]].<ref>{{cite web |title=Darwin Pipeline Duplication (DPD) Project NT EPA Referral |url=https://ntepa.nt.gov.au/__data/assets/pdf_file/0010/1081369/referral-report.PDF |publisher=Northern Territory Environment Protection Authority (NT EPA) |access-date=2021-12-08 |ref=BAA-201 0003}}</ref> Condensate oil will also be extracted.<ref name="Richardson 2021"/> It is situated around {{cvt|300|km}} north of Darwin, in Australian waters. Worth {{AUD|4.7 billion}}, the project was signed off in 2021, with gas production is expected to commence in 2025. The project is expected to create about 600 jobs during construction and 350 ongoing jobs in Darwin over the following 20 years.<ref name="Bardon 2022"/>
 
===== Emissions =====
The project has been criticised for its future [[carbon emissions]]. If developed, Barossa would become the most [[emission intensity|carbon-intensive]] gas development in Australia.,<ref name="vorrath" /> Whendue to the projecthigh wasconcentration purchasedof from{{CO2}} ConocoPhillipsin Barossa's gas of about 18 per cent.<ref>{{Cite news |date=2023-11-14 |title=Sea dumping legislation paves way for opening of new gas fields in 2020,Timor itSea was|url=https://www.abc.net.au/news/2023-11-14/sea-dumping-carbon-capture-storage-legislation-santos-barossa/103078290 projected|access-date=2024-05-17 to|work=ABC produceNews |language=en-AU}}</ref> It has been estimated that as much as 1.5 tonnes of {{CO2}} could be produced for every tonne of LNG.<ref>{{citationCite web needed|title=Santos back to the drawing board on unapproved Barossa gas project |url=https://ieefa.org/articles/santos-back-drawing-board-unapproved-barossa-gas-project |access-date=June2024-05-17 2022|website=ieefa.org |language=en}}</ref> A 2021 report using the Darwin LNG project as a case study suggested that emissions could be greatly reduced by the use of [[solar power]] by using Sun Cable's [[Australia-Asia Power Link]].<ref name="vorrath">{{cite web |last1=Vorrath |first1=Sophie |title=Gas industry proposes big solar to halve LNG emissions, with support of Sun Cable |url=https://reneweconomy.com.au/gas-industry-proposes-big-solar-to-halve-lng-emissions-with-support-of-sun-cable/ |website=RenewEconomy |archive-url= https://web.archive.org/web/20211117065028/https://reneweconomy.com.au/gas-industry-proposes-big-solar-to-halve-lng-emissions-with-support-of-sun-cable/ |archive-date=17 November 2021 |language=en-AU |date=16 November 2021 |url-status=live}}</ref> but the [[Institute for Energy Economics and Financial Analysis]] (IEEFA) described the project as an “emissions factory with a gas by-product”,<ref>{{Cite web|date=2021-06-23|title='A carbon dioxide emissions factory': New $4.7b gas field may release more {{CO2}} than LNG, says report|url= https://www.abc.net.au/news/rural/2021-06-24/santos-barossa-gas-carbon-emssions-twiggy-forrest/100224254 |access-date=2021-08-13 |website=ABC News|language=en-AU}}</ref> saying that even if it employed [[carbon capture and storage]], the project would continue to release financially risky carbon dioxide emissions at the site, onshore and across the whole [[supply chain]].<ref>{{cite web |title=IEEFA Update: Santos won't solve the problem of Barossa LNG with carbon capture and storage |url=https://ieefa.org/ieefa-update-santos-wont-solve-the-problem-of-barossa-lng-with-carbon-capture-and-storage/ |website=[[Institute for Energy Economics & Financial Analysis]] |archive-url= https://web.archive.org/web/20211023234116/https://ieefa.org/ieefa-update-santos-wont-solve-the-problem-of-barossa-lng-with-carbon-capture-and-storage/ |archive-date=23 October 2021 |date=20 October 2021 |url-status=live}}</ref>
 
===== Tipakalippa case =====
A March 2022 legal challenge by leaders of the Jikilaruwu [[Tiwi Islands]] clan targeted the South Korean state-owned Export-Import Bank of Korea and the Korea Trade Insurance Corporation, which are planning to lend Santos approximately {{AUD|950m}} (£530m). They hoped to prevent Santos from building the gas pipeline near Cape Fourcroy, a habitat for many marine species, and a place where many Aboriginal people hunt, live, and camp.<ref>{{Cite news|url=https://www.bbc.com/news/business-60828912|title = South Korea sued to stop deep-sea gas pipeline|newspaper = BBC News|date = 23 March 2022}}</ref> However the case failed in the Seoul District Court.<ref>{{cite web | last=Bardon | first=Jane | title=Traditional owners vow to keep fighting Barossa gas field despite losing South Korean court battle | website=ABC News| publisher= [[Australian Broadcasting Corporation]] | date=25 May 2022 | url=https://www.abc.net.au/news/2022-05-25/nt-santos-barossa-gas-tiwi-larrakia-lose-southkorea-court-figh/101097372 | access-date=7 June 2022}}</ref>
In June 2022, [[traditional owners]] of the [[Tiwi Islands]] filed a lawsuit against Santos and the [[Australian Government|federal government]], who they said had not properly consulted them. Munupi Senior Lawman and Tiwi Traditional Owner [[Dennis Tipakalippa]] also argued that [[National Offshore Petroleum Safety and Environmental Management Authority|NOPSEMA]], the federal offshore gas regulator, should not have approved Santos’ plans to drill the Barossa gas field due to the Santos' inadequate consultation.<ref>{{cite web |date=21 September 2022 |title=Tiwi Traditional Owner wins legal challenge to Santos Barossa Gas Project |url=https://www.edo.org.au/2022/09/21/tiwi-traditional-owner-wins-legal-challenge-to-santos-barossa-gas-project/ |access-date=2022-09-21 |publisher=Environmental Defenders Office}}</ref> The traditional Owners are concerned about the effect on the nesting areas of [[flatback turtle|flatback]] and [[olive ridley turtle]]s, which provide one of the [[Aboriginal Australians|Aboriginal people]]'s traditional food sources. Four federal government [[marine park]]s, including [[Ashmore Reef]], are also in the vicinity. Santos has submitted an environmental impact plan, which includes the potential impact of an oil spill, and its plans for cleanup should one occur.<ref name="Bardon 2022" /> In September 2022 Judge Mordecai Bromberg found that NOPSEMA was "not lawfully satisfied that consultation had occurred", dismissing Santos’ environmental plan, thus invalidating its approvals for drilling. As a result Santos had to disconnect its drilling rig from the sea north of Melville Island and leave the Barossa field by 6 October 2022.<ref>{{cite web |last1=Nadig |first1=Smruthi |date=21 September 2022 |title=Santos Australia loses environmental protection case in Tiwi Islands |url=https://www.offshore-technology.com/news/santos-australia-loses-environmental-protection-case-in-tiwi-islands/ |access-date=2022-09-21 |publisher=Offshore Technology}}</ref> In December Santos lost an appeal.<ref>{{Cite web |title=Dennis Murphy Tipakalippa v National Offshore Petroleum Safety and Environmental Management Authority & Anor |url=https://climatecasechart.com/non-us-case/dennis-murphy-tipakalippa-v-national-offshore-petroleum-safety-and-environmental-management-authority-anor/ |access-date=2024-05-17 |website=Climate Change Litigation |language=en-US}}</ref><ref>{{Cite news |date=2022-12-03 |title=Santos has lost a major gas battle against Tiwi Islands' traditional owners. Here's why they hope Barossa will still go ahead |url=https://www.abc.net.au/news/2022-12-04/nt-explainer-santos-federal-court-loss-barossa-gas/101730568 |access-date=2024-05-17 |work=ABC News |language=en-AU}}</ref> In January 2023 NOPSEMA ordered Santos to stop construction on their pipeline to enable a cultural heritage survey to be done.<ref>{{Cite news |date=2023-01-25 |title=Santos ordered to pause Barossa project pipeline construction after watchdog's surprise inspection |url=https://www.abc.net.au/news/2023-01-25/nt-santos-pause-barossa-gas-pipeline-nopsema-direction/101888172 |access-date=2024-05-17 |work=ABC News |language=en-AU}}</ref> Despite no direct involvement in the case, in April 2024 Sunrise, Jubilee Australia and the [[NT Environment Centre]] were ordered to hand over documents, to determine whether Santos will also pursue costs for the lawsuit carried out by the EDO on behalf of Tiwi Island traditional owners, which has been critiqued by human rights groups.<ref>{{Cite news |last=Kurmelovs |first=Royce |last2=Cox |first2=Lisa |date=2024-04-25 |title=Activist groups not directly involved in Tiwi Island lawsuit must hand over documents to Santos, court rules |url=https://www.theguardian.com/law/2024/apr/25/tiwi-island-lawsuit-santos-sunrise-jubilee-australia-nt-environment-centre-edo |access-date=2024-05-17 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>
 
===== South Korean case =====
In June 2022 [[traditional owners]] of the [[Tiwi Islands]] filed a lawsuit against Santos and the [[Australian Government|federal government]], who they said had not properly consulted them. In the lawsuit Dennis Tipakalippa (senior lawman of the Munipi Clan) also argued that [[National Offshore Petroleum Safety and Environmental Management Authority|NOPSEMA]], the federal offshore gas regulator, should not have approved Santos’ plans to drill the Barossa gas field due to the Santos' inadequate consultation.<ref>{{cite web |title=Tiwi Traditional Owner wins legal challenge to Santos Barossa Gas Project |date=21 September 2022 |url=https://www.edo.org.au/2022/09/21/tiwi-traditional-owner-wins-legal-challenge-to-santos-barossa-gas-project/ |publisher=Environmental Defenders Office |access-date=2022-09-21}}</ref>
A March 2022 legal challenge by leaders of the [[Larrakia people|Larrakia]] and Jikilaruwu [[Tiwi Islands]] clan targeted the South Korean state-owned Export-Import Bank of Korea and the Korea Trade Insurance Corporation,. whichAn areinjunction planningapplication attempted to lendstop Santosthe approximatelyExport-Import Bank of Korea (KEXIM) and the Korea Trade Group (K-Sure) from providing loans and guarantees of up to A$700 million for the project.<ref>{{AUDCite news |950m}}date=2022-05-25 (£530m)|title=Traditional owners vow to keep fighting billion-dollar gas project despite losing court battle |url=https://www.abc.net.au/news/2022-05-25/nt-santos-barossa-gas-tiwi-larrakia-lose-southkorea-court-figh/101097372 |access-date=2024-05-17 |work=ABC News |language=en-AU}}</ref> They hoped to prevent Santos from building the gas pipeline near Cape Fourcroy, a habitat for many marine species, and a place where many Aboriginal people hunt, live, and camp.<ref>{{Cite news|url=https://www.bbc.com/news/business-60828912|title = South Korea sued to stop deep-sea gas pipeline|newspaper = BBC News|date = 23 March 2022}}</ref> However the case failed in the Seoul District Court.<ref>{{cite web | last=Bardon | first=Jane | title=Traditional owners vow to keep fighting Barossa gas field despite losing South Korean court battle | website=ABC News| publisher= [[Australian Broadcasting Corporation]] | date=25 May 2022 | url=https://www.abc.net.au/news/2022-05-25/nt-santos-barossa-gas-tiwi-larrakia-lose-southkorea-court-figh/101097372 | access-date=7 June 2022}}</ref>
The traditional owners are concerned about the effect on the nesting areas of [[flatback turtle|flatback]] and [[olive ridley turtle]]s, which provide one of the [[Aboriginal Australians|Aboriginal people]]'s traditional food sources. Four federal government [[marine park]]s, including [[Ashmore Reef]], are also in the vicinity. Santos has submitted an environmental impact plan, which includes the potential impact of an oil spill, and its plans for cleanup should one occur.<ref name="Bardon 2022">{{cite web | last=Bardon | first=Jane | title=Tiwi traditional owners launch Federal Court action to try to stop Santos Barossa gas field | website=ABC News| publisher= [[Australian Broadcasting Corporation]] | date=7 June 2022 | url=https://www.abc.net.au/news/2022-06-07/nt-tiwi-islands-launch-court-action-santos-barossa-consultation/101128926 | access-date=7 June 2022}}</ref> In September 2022 Judge Mordecai Bromberg dismissed Santos’ environmental plan, thus invalidating its authorisation for drilling. As a result Santos had to disconnect its drilling rig from the sea north of Melville Island and leave the Barossa field by 6 October 2022.<ref>{{cite web |last1=Nadig |first1=Smruthi |title=Santos Australia loses environmental protection case in Tiwi Islands |date=21 September 2022 |url=https://www.offshore-technology.com/news/santos-australia-loses-environmental-protection-case-in-tiwi-islands/ |publisher=Offshore Technology |access-date=2022-09-21}}</ref>
 
==Financial results==