A GROUP of Santos shareholders have banded together to force the company to hold a vote amongst its investors on the future of its controversial Narrabri coal seam gas (CSG) project.
The shareholder group will raise its resolution at Santos’ upcoming annual general meeting (AGM) in May, exercising its power under section 249N of the Corporations Act.
Santos will oppose the resolution, saying it has been driven by activists groups which misrepresent its operations.
The resolution says: “Santos has built a strong and positive brand over many years.
"The Narrabri coal seam gas project presents too many risks to that brand and to investors’ confidence in our company’s portfolio.
“As Santos shareholders, we are concerned by the ongoing reputational, regulatory and investment risks.
“We move that the Narrabri Gas Project in North West NSW be withdrawn from Santos' portfolio.”
A spokeswoman for Santos said the company rejects “this portrayal of our operations by activist groups".
“These groups continue to misrepresent the truth to communities in their drive to stop the development of Australia's resources.
“We will treat a resolution as seriously as any other. But the company's Board will oppose this resolution and advise shareholders to do the same.
“And we remain confident that the development of gas resources in Australia can be done safely and sustainably.”
The Wilderness Society drove the initiative to form a resolution.
Under the Act, 100 shareholders holding at least a $500 parcel of shares, are required to force a vote.
According to The Wilderness Society’s Newcastle campaign manager Naomi Hogan, over 200 shareholders have signed the resolution.
The Society was decided to take action after fielding calls from several shareholders voicing concern over the Narrabri project, Ms Hogan said.
Santos will verify the shareholders signatures are genuine in the lead up to the AGM.
Mike Foley
Senior journalist for The Land.
Senior journalist for The Land.
