4 May, 2016
Santos should cut its losses on worthless Narrabri CSG project
Santos has lost more than $1 billion on worthless Narrabri coal seam gas project
North-west NSW farmers and Traditional Owners again protest at Adelaide AGM
Protest to be held in Sydney, Newcastle and Brisbane too
Santos should cut its losses before it wastes any more of its shareholders’ money on the worthless Narrabri coal seam gas project, the company and shareholders will be reminded at its annual general meeting in Adelaide today.
“Two years ago 300 Santos shareholders submitted a resolution to the AGM calling for the company to drop the Narrabri Gas Project because of the reputational, regulatory and investment risks involved,” said Wilderness Society Newcastle Campaign Manager Naomi Hodgson who’s attending the AGM.
“Sadly, the shareholders voted down the resolution and the company has had to write off its investment in the project it paid $924 million for.
“The company is now fighting for its future while its reputation continues to take a flogging as farmers, townspeople, Traditional Owners and environmentalists continue to blockade the site, with 300 incidents reported and 40 arrests made just this year alone. Many of those people have travelled to Adelaide to attend the AGM.”
Kate Smolksi, the head of NSW’s peak environment group the Nature Conservation Council, is also attending the AGM.
“The Narrabri coal seam gas project has been environmentally disastrous with ongoing spills and leaks of toxic coal seam gas waste water during exploration,” Ms Smolski said.
“We are totally opposed to the Pilliga CSG operations because of the very serious risks it poses for wildlife and critical water resources, and are determined to stop this important natural area being turned into an industrial gas field.
“Shareholders need to be aware that Santos executives are putting their investments at risk by pursuing this project against very strong community opposition. The community movement has successfully blocked and shut down several other gas projects in NSW, so we have a demonstrated capacity to conduct a sustained campaign against Santos’ Pilliga operations.”
Financial analyst Bruce Robertson, who was instrumental in prosecuting the successful economic argument against AGL’s now shelved Gloucester Gas Project, will attend the Santos AGM.
“Gas from the Santos Narrabri Gas Project will not even fetch a price to cover the costs of production,” Mr Robertson said.
“The company has valued this entire project as absolutely worthless and reclassified its reserves as ‘contingent’, meaning currently it is not a viable economic prospect.”
Gunnedah farmer and councillor David Quince is attending his fourth consecutive Santos AGM.
“We told Santos years ago this Narrabri Gas Project would bring nothing but pain to the company,” Mr Quince said.
“It’s worth absolutely nothing now and our whole farming community in north-west NSW region is still determined to stop this project. Will Santos continue to flog a dead horse against the will of the local people?
“Santos has said it won’t go where it’s not wanted; it’s not welcome anywhere in north-west NSW.”
Gomeroi Traditional Owner Deborah Briggs has travelled from Narrabri for the AGM.
“The Gomeroi custodians of the Pilliga do not give our consent to Santos's CSG plans. Coal seam gas threatens our sacred waters, our rich cultural heritage of the Pilliga and directly jeopardises the future of our people,” Ms Briggs said.
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Coal and gas
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