Norwegian energy giant Equinor has informed Australian authorities of its decision to discontinue its controversial exploration drilling plan (Stromlo-1) in the Ceduna sub-basin, offshore South Australia.
The company announced that following a holistic review of its exploration portfolio, it has concluded that the project’s potential is not commercially competitive compared with other exploration opportunities in the company.
“The approval of the Stromlo-1 exploration well Environment Plan confirmed our ability to safely operate in the Bight. However, Equinor has decided to discontinue its plans to drill the Stromlo-1 exploration well, as the opportunity is not commercially competitive,” said Jone Stangeland, Equinor’s country manager for Australia.
Equinor has informed federal, South Australian and local authorities about its decision. The company entered the licences in the Ceduna sub-basin as a partner in 2013 and took over as operator with a 100 per cent equity share in 2017.
“We will engage with the federal and state authorities regarding our decision to discontinue the exploration program. We hold an exploration permit offshore Western Australia and will maintain other ongoing interests and activities in Australia,” Mr Stangeland said.