Santos shareholders push for distance from Narrabri

PERTH (miningweekly.com) – Australian oil and gas major Santos has received a resolution from shareholders urging that the company withdraw from its Narrabri gas project, in New South Wales.

The shareholders noted in their documentation to Santos that the Narrabri project was facing sustained community opposition and a legal challenge in the New South Wales Land and Environment Court over the approval of a wastewater treatment facility in the Pilliga forest.

The shareholders maintained that the project threatened the company’s reputation and, now that it was the sole coal seam gas project proposed for New South Wales, made Santos look like a "rogue operator".

“We believe that Santos is best to walk away from the controversial Narrabri gas project and rebuild investor confidence with established business priorities, and by looking forward to new opportunities in the renewable energy sector,” the shareholders said.

However, Santos noted on Wednesday that the resolution stemmed from shareholders holding only 0.019% of the company’s issued shares, with the miner adding that as such, the resolution would not be presented to the company’s annual general meeting, planned for May 4, as it did not meet the requirements of a resolution, as set up by the Corporations Act.

Furthermore, the miner pointed out that a similar resolution was overwhelmingly rejected by shareholders at a 2014 annual general meeting, with 99.2% of the votes cast against the resolution.

Meanwhile, it has emerged that damages of some A$75 000 were sustained at the Narrabri site over night, as equipment, which included solar panels, batteries, solar regulators and security cameras were either stolen or damaged.

While the company did not release comment about the damages, The Australian Petroleum Production and Exploration Association (Appea) said of greater concern was the tampering and removal of items at gas well-heads, putting personnel safety at risk and creating potential for damage to the surrounding environment.

“Illegal acts that place health, safety and the environment at risk are deplorable,” Appea CEO Malcolm Roberts said.

“We respect the rights of people to peacefully protest but there is no justification for trespassing, vandalising equipment and harassing people for doing their jobs.”

Roberts urged the New South Wales Parliament to support proposed tougher penalties that protect workers and communities from illegal and unsafe protests.

“Protestors have nothing to fear from proposed new penalties if they abide by the law,” he said.