How does the NSW Gov's proposed legislation affect Bounty Oil & Gas's operations?

$BPH How does the NSW Gov's proposed legislation affect Bounty Oil & Gas's operations?

Bounty Oil & Gas Responds to NSW Offshore Drilling Legislation

In a significant development on 6 February 2024, the New South Wales (NSW) State Government announced its intention to introduce legislation aimed at protecting coastal waters from offshore drilling and mining activities.

This move directly impacts various stakeholders, including Bounty Oil & Gas NL (Bounty), an Australian oil producer and explorer with vested interests in offshore projects like PEP 11. The proposed legislation seeks to prohibit sea bed petroleum and mineral exploration and recovery within NSW coastal waters, sparking a response from companies operating in the vicinity.

PEP 11 and Jurisdictional Boundaries: NSW Government's Jurisdiction

Bounty clarified that the NSW Government's jurisdiction extends only up to 3 nautical miles offshore from the NSW coast. The company emphasized that PEP 11, targeted for gas exploration approximately 26 km offshore, falls beyond this limit and under the jurisdiction of the Commonwealth of Australia. The National ... Offshore Petroleum and Safety Authority (NOPSEMA), a federal entity, oversees gas exploration operations, safety, and environmental controls in such areas.

Company's Stance on Environmental Protection

Bounty and its partners, including BPH Energy, assert their commitment to protecting the coastal and offshore marine environment. They highlighted that any activities within the PEP 11 permit area would necessitate specific approval from NOPSEMA, ensuring compliance with stringent environmental regulations.

Legal and Operational Developments: Ongoing Legal Proceedings

In a legal battle concerning PEP 11's extension and related applications, the NSW State Government, as part of the Joint Authority, was directed to make determinations according to law. This case underscores the complex regulatory landscape governing offshore exploration activities in Australia.

Exploration Preparations

Despite the looming legislative changes, Bounty continues preparations for the proposed Seablue-1 well at the Baleen prospect within PEP 11. The company is actively engaging with drilling contractors to secure a mobile offshore drilling unit, demonstrating its intent to proceed with exploration activities while adhering to regulatory requirements.

Future Gas Strategy and Industry Response

The Australian Government's Future Gas Strategy, aiming to outline a plan for gas production and consumption through 2050, has garnered substantial industry support. Submissions from various sectors emphasize the critical role of gas in ensuring energy security and supporting the transition to renewable energy sources. These submissions advocate for increased gas supply to prevent shortfalls and maintain competitive pricing.

NSW Legislation Implications

The NSW Government's proposed legislation represents a proactive measure to safeguard coastal waters from potential environmental hazards associated with offshore drilling and mining. While it highlights the state's commitment to environmental protection, it also raises questions about the future of offshore exploration projects like PEP 11 and their alignment with national energy strategies.

Bounty Oil & Gas NL's response to the NSW Government's proposed offshore drilling and mining legislation underscores the intricate balance between environmental conservation and energy exploration. As the debate unfolds, the outcome will likely have far-reaching implications for the energy sector, regulatory practices, and environmental stewardship in Australia.

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