Santos Ltd (ASX:STO) has set up a fund of at least A$110 million aimed at supporting Aboriginal communities over the life of its Barossa Gas Project, about 285 kilometres north-northwest of Darwin, The Australian Financial Review reported.
The oil and gas company plans to allocate up to A$10 million during the development phase to coastal Aboriginal communities, including the Tiwi Islands, home to traditional owners who unsuccessfully brought legal action to block a gas pipeline for the project.
A second fund, yet to be detailed but designed for benefit sharing with Aboriginal communities once production commences in the September quarter of 2025, is expected to contribute at least A$100 million over the project's life of 20 years or more.
This announcement follows a Federal Court decision dismissing a challenge by Tiwi Islanders against the pipeline, a move that enabled Santos to proceed with the project, now estimated to cost between US$4.5 billion and US$4.6 billion.
The Barossa Aboriginal Future Fund aims to enhance community infrastructure, health, education and employment opportunities.
The governance and calculation details of the fund are still under discussion with the communities involved, including those in the East Arnhem, West Arnhem, Darwin-Daly-Wagait and Victoria River District regions, alongside the Tiwi Islands.
Sharing benefits
At a press conference in Darwin announcing the funds, Santos chief executive offier Kevin Gallagher emphasised the significance of projects such as Barossa and the revamp of the Darwin LNG plant that will process the gas, in supporting local Aboriginal communities.
“The Barossa gas and DLNG life extension projects are already training and employing Aboriginal Territorians, and we plan to do much more,” he said, referring to a new jobs program providing scaffolding and mechanical maintenance services for Darwin LNG.
“Sharing the benefits of projects like Barossa is a meaningful step we can take towards closing the gap.”
The long-term aim is to establish a lasting relationship with the Tiwi community, amid the ongoing approval process for the project's environmental plan.