The long-running battle over Petroleum Exploration Permit 11 (PEP11) has returned to the Federal Court this week, with Asset Energy pressing for an extension of the offshore exploration licence despite fresh rejections from both state and federal governments.
On Tuesday, September 16, Asset Energy’s application was heard in Sydney, reopening a contentious issue that has stirred political, environmental and community opposition across the Central Coast, Northern Beaches and Hunter regions.
Coast Community News has covered the PEP11 dispute over the years, but it took a sharp turn in February 2023, when the Federal Court “quashed” a decision by former Prime Minister Scott Morrison acting as the Resources Minister to terminate the licence in 2021.
That judgment followed a settlement between Asset Energy and the Commonwealth, with the government agreeing to pay the company’s legal costs.
As a result, the matter was returned to the Commonwealth-NSW Offshore Petroleum Joint Authority for further consideration.
After nearly two years of uncertainty, the Federal Government finally moved in January 2025 to reject the project outright, citing the public interest.
The NSW Government reinforced that stance with new legislation banning offshore oil and gas exploration in state waters.
Despite those democratic setbacks, Asset Energy has now chosen to return to court, arguing the original exploration permit should be extended.
BPH Energy, a related company and key funder of the venture, has kept shareholders informed through updates lodged with the Australian Stock Exchange.
Environmental groups and coastal community advocates, many of whom campaigned vigorously against PEP11 over the past decade, say they are frustrated to see the issue resurface in the courts once more.
The prospect of offshore gas drilling off the Central Coast has long divided opinion, but residents, councils and community groups have repeatedly voiced their opposition, citing risks to the marine environment, tourism and local amenity.
With both the Federal and NSW governments on record as opposing the project, campaigners are hopeful the court will bring finality to the issue.
The court is expected to retire for some time to consider the case, which may have very real precedents on the parliament’s control over resource extraction.
For now, however, the licence question remains unresolved, leaving the future of PEP11 hanging in the balance.
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