An offshore industry chief said yesterday that BP’s decision to scrap plans to drill in the Great Australian Bight would disappoint businesses and workers.
Australian Petroleum Production and Exploration Association (APPEA) said the project would have helped create jobs and investment, as well as reducing the country’s dependence on oil imports.
APPEA director Matthew Doman also accused activists of scaremongering about the dangers of drilling in the Bight, which is home to nature reserves and supports a large fishing industry.
Mr Doman said exploration activity would only take place “under the highest environmental standards”.
Last month, an academic said BP’s proposals for dealing with a blowout in the Bight fell a “long way short” of industry best practice.
BP said its U-turn was nothing to do with Nopsema, the regulatory body that was running the rule over the firm’s latest application.
The company said it had reviewed its upstream strategy and concluded the Bight would not be as competitive as other frontier regions.
Claire Fitzpatrick, BP’s managing director for exploration and production, Australia, said: “This decision has been incredibly difficult and we acknowledge it will be felt across the South Australia region.
“We have made significant progress with preparations for drilling in the Bight with the support of communities and federal, state and local governments.
“We acknowledge our commitments and obligations and our priority now is to work with government and community stakeholders to identify alternative ways of honouring these.”
Mr Doman 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.
“Success in the Bight would ease Australia’s reliance on imported oil and deliver South Australia much-needed new investment and jobs.”
Mr Doman also said other companies’ like Chevron would continue to pursue their plans to drill in the Bight.
He added: “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.
“The oil and gas industry recognises 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.”
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