Norwegian oil giant Equinor has abandoned plans to drill for oil in the Great Australian Bight, declaring the controversial project did not make commercial sense.
The company said on Tuesday it had told federal, South Australian and local authorities it had decided to scrap the $200m project to deepwater drill in the Great Australian Bight Marine Park.
It is the third major oil company to abandon plans to drill in the bight, following BP and Chevron.
“Following a holistic review of its exploration portfolio, Equinor has concluded that the project’s potential is not commercially competitive compared with other exploration opportunities in the company,’’ the company said in a statement.
The decision is a significant win for environment groups and other opponents of the project, including Indigenous elders and local councils. The proposal sparked protests across the country supported by tens of thousands of people opposed to fossil fuel extraction in a marine wilderness area.
Equinor’s announcement comes shortly after the proposed Stromlo-1 well site, in water more than 2.2km deep and nearly 400km off the South Australian coast, was granted environmental approval by the federal offshore petroleum regulator. The Wilderness Society launched legal action challenging the decision last month, arguing opponents had not been properly consulted.
The federal minister for resources, Keith Pitt, said the decision was disappointing but the company had made clear it would still be part of the oil and gas industry in Australia.
More to come
