Santos Rejects Proposal to Call Off Narrabri CSG Project in New South Wales

Australian oil and gas major Santos has rejected proposal by some shareholders to write off the Narrabri coal seam gas project in northwest New South Wales (NSW).

Ninety-eight shareholder, representing approximately 0.019 percent of the company’s shares on issue, are among 104 signatories to a notice sent to Santos that Narrabri project be withdrawn from company portfolio and Santos begin a process for investigation renewable energy investment options.

"The Narrabri gas project threatens Santos' reputation and now that it is the sole coal seam gas project proposed for NSW makes Santos look like a rogue operator," the proposed resolution said.

Santos in a separate statement rejected the call for the resolution to be put before shareholders.

“Santos advises that it will not be putting the proposed resolution to the AGM,” the company said. It stated that the requisition fails to satisfy the requirements of section 249N of the Corporations Act.

The company went on to add that a similar resolution was the subject of extensive debate at the 2014 AGM and overwhelmingly rejected by shareholders with 99.2 percent of the vote cast against the resolution.

“The proposed resolution would not have been a legally binding resolution and the Board would not have been required to include it on the AGM agenda,” Santos further said.

According to Santos, the proposed Narrabri Gas project could supply NSW homes, small businesses, major industries and electricity generators with up to half the state’s natural gas needs.