Energy

BPH Energy fights for PEP-11 review as validity of Morrison’s self-appointments is challenged

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By Danica Cullinane - 
BPH Energy ASX BPH PEP-11 gas Scott Morrison self-appointments challenged Federal Court Asset Energy

BPH Energy’s investee Asset Energy is alleging former PM Scott Morrison’s decision to veto its offshore gas permit was biased and politically motivated.

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Following the release of Federal Government discovery documents, BPH Energy’s (ASX: BPH) investee Asset Energy continues to allege former Australian Prime Minister Scott Morrison was biased in his decision to not renew the offshore New South Wales gas exploration permit PEP-11.

In an ASX announcement this week, BPH noted that on 5 October 2022, a bundle of documents relating to the former Prime Minister’s purported decision were provided to the Federal Court of Australia by the Commonwealth Minister for Resources.

BPH revealed that Asset, which holds an 85% operating stake in the 4,500-square kilometre permit PEP-11 with joint venture partner Bounty Oil and Gas (ASX: BUY), confirmed the “bundle of documents” on 5 October have been made publicly available and relate to Mr Morrison’s purported decision.

The federal case is proceeding alongside an inquiry ordered by Prime Minister Anthony Albanese into Mr Morrison’s “secret” self-appointment to five ministerial portfolios, including resources, in 2020 and 2021.

PEP-11 permit rejection

Asset, a wholly-owned subsidiary of Advent Energy in which BPH holds a 36.1% interest, had applied to drill the Seablue-1 well within PEP-11 before the Commonwealth-NSW Offshore Petroleum Joint Authority refused to vary and suspend the conditions and extend the term of the permit beyond February 2021.

Asset commenced proceedings in the Federal Court in June, alleging that Mr Morrison was biased and “failed to afford procedural fairness” in his decision to cancel the permit. It is speculated that his bias was due to multiple inner-Sydney electorates opposing the permit, as fellow resources minister Keith Pitt had been willing to grant the extension.

The explorer is seeking a review of the decision and recently raised $1.2 million through a share placement with plans to attribute some of the funds to its PEP-11 drilling program.

Morrison’s secret appointments deemed ‘invalid’

Meanwhile, former High Court judge Virginia Bell is leading a formal inquiry into Mr Morrison’s conduct as he secretly appointed himself to five portfolios including health, finance, treasury, home affairs, and industry, science and resources, between March 2020 and May 2021.

Ms Bell’s findings are expected to be made public on 25 November.

Another former High Court justice Bill Gummow recently questioned the validity of Mr Morrison’s additional ministerial roles in a note in the Australian Law Journal. He pointed out the former prime minister’s failure to gazette and publish the appointments was not in compliance with Section 64 of the Constitution.

“How are clandestine ministers to be restrained from exceeding their powers if their identity was not disclosed as a component of their appointment process under section 64?” Justice Gummow wrote.

“How is a minister to be called to account to the House or the Senate for the administration of the portfolio he or she holds in secret?” he added.

According to public documents published by the Department of Prime Minister and Cabinet, Mr Morrison’s secretive cabinet of one created more than 700 sets of minutes from meetings he held with himself.