- BPH Energy (BPH) shares are down this morning after releasing a statement about the Sydney Basin oil and gas project, PEP11
- PEP11 is operated by BPH’s investee company, Advent Energy, and the project is currently awaiting a two-year licence renewal, which is due this week
- Yesterday, NSW Deputy Premier John Barilaro said he is not in favour of the oil project, and the application should be rejected
- However, Advent and its joint venture partner have yet to hear from the National Offshore Petroleum Titles Administrator about the licence renewal
- Advent has hit back at the Deputy Premier’s comments, saying it has safely drilled in the area before and could do it again
- On the market today, BPH is down 13.8 per cent and is trading at 12.5 cents
BPH Energy (BPH) investee company Advent Energy has made a statement about NSW Deputy Premier John Barilaro’s comments on its PEP11 renewal.
PEP11 (Petroleum Exploration Permit 11) covers Advent’s oil and gas operations in the Sydney Basin. Advent holds a 85 per cent interest in the operation, and ASX-listed Bounty Oil and Gas (BUY) holds the remaining 15 per cent.
PEP11 has been the talk of the town along the New South Wales coastline, as the project is currently awaiting a licence renewal, which is due this week and would extend the permit for two years.
Yesterday, NSW Deputy Premier and Minister for Regional Industry and Trade John Barilaro said he is not in favour of the oil project and will “refuse further applications to extend the life of PEP 11.”
Barilaro went on to to say that further drilling would be a disaster even if things went well, “but if they didn’t, it could be potentially catastrophic.”
Notably, federal opposition leader Anthony Albanese also wants the permit rejected.
However, Advent and Bounty have yet to get an offical response from the National Offshore Petroleum Titles Administrator (NOPTA) about the licence renewal.
Australian Energy Market Operator (AEMO) Daniel Westerman has emphasised the importance of gas in the Australian economy.
“As our economy recovers from the impacts of the pandemic, the gas markets operated by AEMO will continue to play an important role in both export and domestic energy sectors,” Daniel said yesterday.
PEP 11
Advent and Bounty have invested over $25 million in PEP 11 and say they have safely drilled on the permit previously.
The joint venture partners are in the process of securing a rig for the project and will release further details shortly.
“The joint venture looks forward to confirmation from NOPTA of the approval of its applications,” BPH told the market today.
Advent has affirmed its position on “Net Zero” and clean energy technology.
“Net zero” means achieving an overall balance between emissions produced by oil and gas operations and emissions taken out of the atmosphere.
“Advent Energy is a strong supporter of plans for Net Zero by 2050 and sees the company playing a direct role in achieving that target, especially in New South Wales,” the company said.
“It aims to do this in two ways: First, by finding gas closest to Australia’s biggest energy market; gas which can be used to provide reliable back-up for increased uptake of renewable energy in NSW. Second, through its plans to explore for opportunities in offshore NSW for carbon capture and storage (CCS), a key clean
energy technology,” it added.
CCS is part of a suite of solutions with the potential to mitigate greenhouse gas emissions and help address climate change.
The application
Advent’s bid is to suspend its Permit Year 4 work program commitments and extend the permit’s protection due to the COVID-19 pandemic.
The application was made under the COVID-19 WorkBid Exploration Permits, which was released by the Federal Government on April 20, 2020.
In the release, the Government recognised that the pandemic was having a
significant impact on the offshore petroleum sector and that additional flexibility would be needed to assist titleholders.
The companies are now awaiting an answer, which will be given by the NSW joint authority.
BPH has noted that NOPTA will provide advice to the Federal Minister, who is the federal representative on the joint authority.
The joint authority of NSW is formed by the State Minister and the responsible Commonwealth Minister. If both these ministers disagree, then the responsible Commonwealth Minister will have the last say.
On the market today, BPH is down 13.8 per cent and is trading at 12.5 cents, while Bounty is down 3.33 per cent, trading at 2.9 cents per share at 10:30 am AEDT.