For a fourth time a investigating oil and gas exploration in the聽Beetaloo Basin聽in the Northern Territory (NT) has had to ask for an extension.
The Coalition is refusing to shed light on how a $21 million grant, from the Beetaloo Cooperative Drilling Program (BCD), was allocated to聽oil and gas company Empire Energy聽which has close ties to the Liberal Party.
The , published last August, found that three funding grants had been given to Imperial Oil and Gas, a subsidiary of Empire Energy (EE).
EE has close ties to the Minister for Energy and Emissions Reductions, Angus Taylor and the committee found that these close ties may have improperly influenced grant decisions subsequently made by the Minister for Resources and Water Keith Pitt.
Committee chair Greens Senator Sarah Hanson-Young noted in a , published on April 19, that the Greens had pushed for the Senate to disallow the BCD, but were rebuffed by the major parties which voted to retain the $50 million in funding.
BCD was set up in 2020 under Pitt鈥檚 watch to provide grants of up to $750,000 to $7.5 million for each well to eligible applicants (with a maximum of three wells). BCD is funded聽through the Industry and Research Development (Beetaloo Cooperative Drilling Program) Instrument 2021 with the aim of accelerating exploration for oil and gas companies in the Beetaloo Basin.
The committee鈥檚 interim report investigated the first of three funding grants 鈥 worth up to $21 million 鈥 approved for Imperial Oil and Gas.
Since last June year when the Senate set the inquiry up, ministers have been evasive or unwilling to provide answers to questions about how the BCD operates, Hanson-Young said.
The Senate has twice asked for unredacted correspondence between EE and the ministers, but to no avail. Hanson-Young said the ministers鈥 were 鈥渃alculated to obstruct the inquiry, hide the nature of the relationship between the government Ministers and donors receiving public money, as well as demonstrating complete disregard for the function of the Senate and the committee鈥.
A second gas company in possible contempt, the progress report noted, is聽Sweetpea Petroleum, a subsidiary of Tamboran Resources. It was given $7.5 million by the BCD program and has refused to front the committee despite being summoned to on March 25. It has been referred to the Senate Privileges Committee for possible contempt of parliament and, if found guilty, faces a fine of $25,000.
By not fronting the inquiry, it has not been asked about its joint venture with Santos in the Beetaloo,聽Sweetpea鈥檚 registration in tax-haven Delaware in the United States, and any relationship it might have with the Coalition government.
Greens representatives also queried why a sanctioned Russian billionaire is still being allowed to hold an interest in three petroleum exploration permit areas, via joint venture partners聽Falcon Oil and Gas and Origin Energy, in the Beetaloo Basin.
Viktor Vekselberg was sanctioned by the US in 2018 and Australia in March, after the war on Ukraine started. He has a 4% financial interest in Origin through his company Lamesa Holdings.
When asked about whether Australia鈥檚 sanctions regime had been breached, whether Vekselberg鈥檚 shares would rise as exploration moved to production, or whether the government could identify his assets, the Department of Foreign Affairs and Trade was evasive, saying: 鈥淭here can be very complex business structures that make those things difficult鈥.
Hanson-Young said reports suggest the Russian oligarch uses shell companies to conceal his assets.
Origin said DFAT affirmed it had not breached Australia鈥檚 sanctions law as Vekselberg is not benefitting from any asset 鈥渢ied to鈥 Beetaloo.
Hanson-Young said the federal and NT governments 鈥渁ppear to be doing whatever it takes to open up this new giant gas field鈥.
The Coalition committed $1.5 billion in the last budget to new petrochemical infrastructure at Middle Arm in Darwin Harbour which聽would act as a guaranteed customer for Beetaloo gas.
Two days before the government went into caretaker mode, on April 10, the federal government and the NT Labor government signed the Commonwealth-NT Bilateral Energy and Emissions Reduction Agreement (Bilateral Agreement). The Senate committee sought more information about this agreement but has received very little information.
It is telling that the Labor members of this committee have been at pains to emphasise their concerns over the alleged cronyism but not the underlying issue 鈥 opening up the NT to shale gas exploration and production in a climate emergency. Senators Nita Green, Yanyuwa woman Malarndirri McCarthy and Glenn Sterle said the exploration of the basin had 鈥渃ontributed to the economy of the NT through direct and indirect jobs and spending鈥 and they were concerned that the federal government鈥檚 failed to provide adequate information would result in an undermining of the 鈥減ublic鈥檚 faith in the spending of public money, and ultimately in the process for the exploration of the Beetaloo Basin being undermined.鈥
In additional comments, McCarthy criticised the companies鈥 lack of consultation with Traditional Owners, including the Northern Land Council, but affirmed her support for 鈥渆conomic opportunities in the Beetaloo sub-basin鈥.
Hanson-Young pointed to Emeritus Professor Ian Lowe鈥檚 research that the Beetaloo Basin 鈥渉as the potential to increase Australia鈥檚 emissions by up to 13%, with total lifecycle emissions up to double Australia鈥檚 entire current emissions鈥.
鈥淰iewing this in combination with the apparent abandonment of the NT government to require gas companies to offset all lifecycle emissions, this inquiry must continue to scrutinise the roll out of funding and other 鈥榠n kind鈥 support for the federal and NT governments into the 47th听辫补谤濒颈补尘别苍迟.鈥
NT Traditional Owners fought for more than a year for the Senate inquiry to be set up because they are opposed to fracking the basin and public money being given to fossil fuel giants. They also travelled hundreds of聽kilometres聽to Darwin in April to put their聽opposition to fracking on the record.
They are not giving up on protecting country.