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An Australian court rejected an appeal by Santos Ltd. (OTCPK:STOSF) Friday to overturn a decision that stopped drilling on its $3.6B Barossa natural gas project off the coast of northern Australia, dealing a blow to the company’s biggest project.
The court backed a challenge led by Tiwi Islanders that had overturned a previous approval for drilling granted by the National Offshore Petroleum Safety and Environmental Management Authority.
Santos (OTCPK:STOSF) suspended drilling in September after a judge found the environmental approval for its permit was invalid on the grounds the company had not properly consulted with traditional owners about the project.
The case could have important implications for how energy and mining companies handle negotiations with Australia’s indigenous groups.
Image and article originally from seekingalpha.com. Read the original article here.