Australian Petroleum Production and Exploration Association (APPEA), a body representing the Australian oil and gas industry, is disappointed by BP’s decision not to pursue its proposed exploration project in the Great Australian Bight.
To remind, the oil giant on Tuesday said it wouldn’t move ahead with the proposed drilling offshore South Australia, as the project would not create value in the near to medium term.
“BP has determined that the GAB project will not be able to compete for capital investment with other upstream opportunities in its global portfolio in the foreseeable future,” the company said.
According to APPEA, the move by BP is disappointing for South Australians who would have benefitted from the economic activity the project promised.
“The international environment for the oil and gas industry is challenging and companies are regularly reviewing their investment plans,” said APPEA Director South Australia Matthew Doman.
He said: “BP’s decision is a stark reminder that global investment in Australian resource projects cannot be taken for granted. But the resource potential of the Great Australian Bight remains significant and the economic and energy benefits of developing those resources will be substantial.”
Doman said Chevron, Murphy Oil, Santos and other companies proposing exploration in the Bight would continue to pursue their plans.