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PEP11 Oil and Gas License Dispute Resurfaces in Federal Court

UPDATE: The contentious PEP11 oil and gas license dispute is back in federal court as of September 16, 2023, with Asset Energy challenging previous government decisions and reigniting community and environmental concerns across the Central Coast, Northern Beaches, and Hunter regions.

In a dramatic turn, the Federal Court has reopened discussions on the PEP11 exploration permit, which was previously quashed when Scott Morrison, acting as Resources Minister, terminated it in 2021. This decision came after a settlement where the Australian government agreed to cover Asset Energy’s legal fees, allowing the case to return to the Commonwealth-NSW Offshore Petroleum Joint Authority for further review.

After nearly two years of uncertainty, the Federal Government took decisive action in January 2025, outright rejecting the PEP11 project. This rejection was reinforced by the NSW Government, which enacted new legislation prohibiting offshore oil and gas exploration in state waters. Despite these setbacks, Asset Energy is pushing back, seeking to extend the original exploration permit.

Community activists and environmental groups are expressing their frustration as the legal battle resumes. Many have campaigned against PEP11 for over a decade, voicing strong opposition due to potential risks to the marine environment, tourism, and local communities. Local councils and residents have consistently opposed offshore gas drilling, emphasizing the dangers it poses to their coastal lifestyle.

The court is now tasked with reviewing the case, which could significantly influence parliamentary control over resource extraction in Australia. As the legal proceedings unfold, campaigners are hopeful for a resolution that aligns with public interest, especially given the recorded positions of both the Federal and NSW governments against the project.

The court is expected to deliberate for some time, leaving the future of PEP11 uncertain. For now, the fate of this controversial license remains unresolved, as stakeholders await the court’s critical decision that could shape the future of offshore drilling in the region.

Stay tuned for further developments as this urgent issue continues to evolve.

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