A controversial offshore petroleum exploration licence has been cancelled by the federal government, citing reasons of public interest.
Petroleum Exploration Permit 11 (PEP11) covers more than 4500 square km off the NSW coast between the Sydney suburb of Manly to Newcastle.
PEP11 is the only offshore petroleum exploration licence granted in NSW, and has been held since 1999.
Federal Industry and Science Minister Ed Husic announced on Friday applications to renew the licence and change the kind of surveying it grants have been refused.
In his decision, Mr Husic cited “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.
“The Australian government is committed to following due process for all offshore petroleum applications to ensure the fair and safe regulation of the petroleum industry in Australia.”
In his decision to cancel the licence, Mr Husic cited public interest concerns and funding considerations. Picture: NewsWire / Martin Ollman
Asset Energy was the operator of PEP11, holding a 85 per cent interest in the licence. PEP11 was initially cancelled by former prime minister Scott Morrison in 2022 after fierce community pressure, two months before the federal election.
Asset Energy took the decision to the Federal Court, arguing the decision was made out of bias. After it was revealed Mr Morrison secretly swore himself into multiple ministries, Asset Energy amended its case to argue he never had the authority to make the decision.
The incoming Albanese government was required by the Federal Court to pay Asset Energy’s costs and to reassess the decision.
Multiple grassroots organisations have opposed PEP11 for seven years. Community groups had organised protests and gathered more than 80,000 signatures against the licence.
The rejection of PEP11 on Friday was met with jubilation from community groups, who say they can now “breathe a sigh of relief”.
Community groups say they can now ‘breathe a sigh of relief’ after years of opposition to PEP11. Picture: Supplied
Surfrider Australia, a grassroots non-profit dedicated to the protection of Australia’s oceans and beaches, opposed the project “due to its unacceptable environmental impacts, negative economic impacts on recreational and commercial fishing, as well as its negative impacts on coastal tourism”.
PEP11 covered a stretch of ocean almost twice the size of the ACT.
Surfrider Australia member Rowan Hanley said the win was a “historic moment” and a “huge win for the marine environment”.
“It’s outrageous to think oil and gas companies even considered putting at risk the most populated coastline in Australia,” he said.
After it was revealed Mr Morrison secretly swore himself into multiple ministries, Asset Energy argued in Federal Court he never had the authority to make the decision. Image: Supplied
“These waters and coastlines are loved and enjoyed by so many, and we are glad to see them protected forever through the actions of the community coming together to have their voices heard.”
In it a submission to the government, Asset Energy’s parent organisation – Advent Energy –said it would be “an extraordinarily short-sighted and capricious act to prevent a product that had been safely produced and was much in demand from reaching the homes and businesses that demanded it.”
“The situation with domestic gas supply on the east coast has been identified as critical for several years,” the energy company said.Community groups believed this was not the case, as Mr Hanley said “we don’t have a gas supply problem, we have a gas export problem”.
“Australia exports over three times the amount of gas we use domestically … The gas industry is mostly multinational, and pays next to no tax, no PRRT, and little in royalties,” he said.
“ To continue to allow them to expand into Australia’s pristine marine ecosystems, in the middle of the climate crisis, is madness.”