The Environment Centre NT has said it has lodged a formal complaint to the Australian Securities and Investments Commission and the Australian Stock Exchange about Santos, alleging the company issued false and misleading statements to investors about its Barossa gas project during and after a recent court battle.

In the letters to the authorities Environmental Defenders Office senior solicitor Zoe Bush said was acting for Environment Centre NT, and said they were concerned about statements made by Santos in an ASX announcement released on December 2.

ECNT director Kirsty Howey alleged Santos told the Federal Court in June that delaying drilling would cost the company significantly but after its appeal was recently rejected, told the market the delay would not materially effect it.

“The company told the Federal Court in June that delaying drilling would cost the company hundreds of thousands of dollars a day,” she said.

“…in November, when the Federal Court rejected its bid to restore a drilling licence, the company told the market that, despite a delay of months, there would be no materials cost impact and the project timetable would stay on track. Santos can’t have it both ways,” she said.

“Misleading markets is a very serious matter. We have referred these matters to the corporate watchdogs to ensure the company adheres to the high standards the public expects and the law demands.

“Santos must be compelled to provide the market with a full and frank disclosure of the expected impact of the Federal Court’s most recent decision on the Barossa project, so investors and the public are fully informed.”

Santos did not respond to a request for comment.

In the letters to the authorities the Ms Bush said the primary judge summarised the evidence provided by Santos as follows: “Turning then more directly to the balance of convenience, I accept Santos’ unchallenged contention that if it’s drilling, due to commence on 17 July 2022, is injuncted, it will suffer a daily loss in the order of hundreds of thousands of dollars”.

Environment Defenders Office special counsel Alina Leikin, who acted on behalf of the ECNT, said Santos’ project has already been behind by three months and without certainty how long the delay would last.

“Santos gave sworn evidence in the Federal Court, which was accepted by Justice Bromberg, about the significant cost, substantial risk of prejudicial impact on scheduled work and detriment to third parties resulting from a potential six-week delay,” Ms Leikin said.

In early December the full Federal Court upheld a September ruling that invalidated Santos’ approvals to drill for gas in its Barossa gas project in the Timor Sea above the Tiwi islands, after Munupi clan elder Denis Murphy Tipakalippa had taken the company to court in June, arguing they did not consult properly with traditional owners.

In a historic decision, the Court presided over by Justices Kenny, Mortimer and Lee, dismissed Santos’ arguments that Tiwi Islanders were not required to be consulted about potential impacts to “their sea country”, and the decision may mean companies will not be able to rely on consulting only with land councils but must consult more widely, such as with clan groups, to achieve environmental approvals.

“..We consider that Santos was required by reg 11A(1)(d) to consult Mr Tipakalippa and the Munupi clan because they had interests that may be affected by Santos’ proposed activities under the Drilling EP,” the judgement read.

The judgement said the Barossa Field sits in the Timor Sea about 300km north of Darwin, and 138km north of the Tiwi Islands. The judges said Santos intends to pipeline the gas through a pipe connected to an existing Bayu-Undan pipeline in Commonwealth waters and aimed to provide a new, 20-year source of natural gas for the company’s existing LNG facility at Wickham Point in the harbour outside of Darwin.

Santos had argued that they did not need to consult with the Tiwi traditional owners because they did not have relevant interests, and stated the company had consulted with the Tiwi Land Council.