Australia has refused further permits to two explorers for the controversial petroleum exploration permit 11 (PEP-11) in the offshore Sydney basin, citing public interest and financial stability concerns.
The 4,500km² block near the NSW state cities of Sydney and Newcastle contains shale and conventional gas reserves. It was controlled by 85pc stakeholder Asset Energy, 100pc-owned by unlisted oil and gas explorer Advent Energy, and 15pc owner Australia-listed Bounty Oil and Gas.
The Commonwealth-New South Wales (NSW) offshore oil joint authority refused the stakeholders' PEP-11 applications on 16 January, federal Labor industry minister Ed Husic said on 17 January. "The joint authority refused the applications for reasons of public interest, concerns about the applicants' estimate of the cost of works and their ability to raise the necessary capital to fund the proposed works," Husic added.
The firms were initially refused an extension for PEP-11 in 2021, by then Coalition prime minister Scott Morrison. But Asset appealed this decision, alleging procedural unfairness.
Electorates in the northern suburbs of Sydney were considered crucial in Australia's 2022 federal election, which Morrison and his Coalition ultimately lost. Gas exploration and production is politically unpopular in many parts of Australia, despite ongoing concerns about energy shortfalls.
Bounty claimed PEP-11 contains potential gas resources of 4.7 trillion ft³ (133bn m³) but the region has not produced any commercial quantities to date.