Santos' decommissioning liability matches a quarter of its $22b value, but its disclosures to investors fared poorly against the latest accounting standards, according to an international survey.
Australia's biggest oil and gas producer has posted record production and cut costs, but weak fossil fuel prices have weighed on profits
Investors beware: after spending more than $40 million in the Canning Basin, the US-owned company's continued pursuit of remote gas appears to be throwing good money after bad.
Longer pipelines into Cockburn Sound must be built before port construction begins or 15 per cent of Perth's water supply will be lost.
EXCLUSIVE
The Cook government may have to spend an additional $1 billion to build its controversial Westport container terminal in Kwinana to avoid shutting down an adjacent desalination plant that provides 15 per cent of Perth's water.
In March, Water Corporation engineers were told the utility would need to close the Perth Seawater Desalination Plant as soon as dredging for Westport commenced, as the churned-up water would not be clear enough to supply the desalination plant.
For 20 years, the desalination plant has sucked in about 1 million cubic metres of seawater a year to produce 450,000 cubic metres of fresh water and return 550,000 cubic metres of brine to Cockburn Sound.
A Water Corporation employee not authorised to speak to the media told Boiling Cold that attendees at the utility's annual water quality forum heard it would cost about $1 billion to extend the plant's intake and outfall pipelines further into Cockburn Sound to be clear of the proposed port.
An indicative schedule for Westport shows that work on marine infrastructure is scheduled to begin in 2028, allowing the port to start operations late in the next decade. If this schedule held, there is little time for Water Corporation to design, obtain environmental approval and then construct the longer pipelines.
The outfall pipeline must be sufficiently clear of the port to allow currents to safely disperse the brine, preventing excessively salty water from damaging the environment or entering the intake pipeline.
The cost for the longer pipelines is an added impost for Westport's current cost estimate of $7.2 billion, which is already $2.5 billion more than the original price of $4.7 billion.
Boiling Cold sent questions to the Minister for Transport Rita Saffioti, and the Minister for Water Simone McGurk.
In a joint response, a state government spokesman said Westport and Water Corporation worked closely together and the consultation had resulted in the port facilities being moved one kilometre south to minimise impact on the desalination plant.
He said the two agencies and the Department of Treasury will further refine the cost estimate for the work required to keep the desalination plant operating and ensure the port works also allow for a proposed expansion of the desalination plant.
It is understood the plant will not be shut down under any circumstances.
Perth water users will not bear the burden of the extra work caused by Westport.
"Government will fund any additional investments that may be required, and will not impose additional levies to fund those works," the spokesman said.
Chief executive Bill Oplinger told Wall Street the miner had responded to all 60,000 comments on its WA expansion plans—in fact, it responded to fewer than 10, and some were unacceptable.
The WA government will soon decide whether Black Mountain Energy can frack 20 wells near the Kimberley's Fitzroy River, but promised measures to protect the environment and the rights of local people are not yet in place.
If the US miner is found to have mined too close to a large jarrah tree, it would trigger an automatic cancellation of its right to mine much of its lease.
An independent review found Black Mountain conducted a "limited and disjointed" assessment that came to "largely unsupported" conclusions.
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