In an unexpected move yesterday, the National Offshore Petroleum Safety and Environmental Management Authority accepted Equinor's EP a month earlier it previously suggested it would.
It is the second of four approvals needed for the well, which is scheduled at the end of next year. Equinor received its first approval in 2011.
Following the acceptance, environmental group The Wilderness Society said it would fight Equinor and NOPSEMA in the courts, to repeal the approval of the EP.
"The vast majority of Australians don't want oil drilling in the Great Australian Bight, and we will now be looking at our legal options to protect Australians from this risky and unwanted drilling," Wilderness Society South Australia director Peter Owen said in a statement yesterday.
Talking to Energy News this morning Greenpeace also said it was considering its options for a legal fight against the approval.
"We do not speak for the Wilderness Society, but we are also keeping our options open and we certainly have not ruled out taking legal action against both Equinor and NOPSEMA," Greenpeace director Jamie Hanson said.
"If there is one thing for sure, we will do all we can to make sure this well does not go ahead. Yesterday's approval flies in the face of experts, communities, Traditional owners, surfers and coastal communities, not to mention the south Australian seafood industry."
If the environmentalists do lodge formal proceedings against NOPSEMA, the case would be heard in the Federal Court of Judicial Review. The case would hinge on the Administrative Decisions Judicial Review Act of 1977.
Energy News understands the basis of the claim would take into consideration NOPSEMA's consultation process, and information transparency regarding a second rig and in-depth planning.
However, should the environmental groups consider action against NOPSEMA's decision to accept the EP, it will not delay further permitting applications by Equinor.
A previous audit by Australia's chief scientist Dr Alan Finkel found NOPSEMA to be a competent regulator however.
Equinor still needs to have its wellhead operations plan approved and a safety case approved. The decision will then go before relevant ministers for sign-off.
These two final steps will not be impacted by any legal contest of the acceptance of the EP unless the court grants an injunction.
Regardless, any legal action would be costly to both parties. Earlier this month the Wilderness Society sacked key campaign and management staff and is struggling to keep afloat.
The not-for-profit organization recorded a A$1.7 million deficit over the last financial year on the back of revenue and donation falls. However, it has been spending big on its priority campaigns including its opposition to Equinor.
Equinor plans to drill its wildcat from November next year during the summer period.
It is in an area of the Great Australian Bight which is considered a "desert area" of the seabed where heavy deep-sea fishing trawling has been conducted for decades.
The Bight spans 46,000 sq.km however Equinor's permit EPP39 covers just over 6000 sq.km of this area in the Ceduna sub-basin.
Yesterday federal resources minister Matt Canavan, a long-time supporter of Equinor's plans, welcomed the decision by NOPSEMA.
"Finkel… completed his audit in September this year and found NOPSEMA to be a highly skilled, professional and competent regulator with the appropriate processes and procedures in place to assess environment plans," he said in a statement this afternoon.
Finkel's audit did not find any issues with Equinor or NOPSEMA but did suggest better transparency, explanation and stakeholder engagement would be beneficial in the future for such projects.
"The acceptance of our environment plan by the independent regulator marks an important milestone. We have been preparing for safe operations for two and a half years, holding over 400 meetings with more than 200 organisations across Southern Australia," country manager for Australia Jone Stangeland said.
