Lakes Oil Sues Victoria Over Ban

Victoria, Australia focused natural gas player Lakes Oil has challenged the state government's decision to ban onshore exploration in the Supreme Court of Victoria and sought damages to the tune of A$2.7bn (US$2.02bn).

The writ filed asserts that the actions of the Victorian minster for resources, in depriving the company of its opportunity to use its exploration permits for the purpose for which they were intended, constitutes a derogation from those grants, Lakes Oil said December 6.

Victoria premier Daniel Andrews (Credit: Government of Victoria)

“The unjust and unlawful actions of the Victorian government, and its proposed bill to ban onshore exploration, have caused significant losses to the company and its 11,000 long-standing shareholders,” the company added.

The state government permanently banned exploration and development of all onshore unconventional gas, including hydraulic fracturing and coalbed methane August 30, arguing the move will protect the “clean, green” reputation of Victoria’s agriculture sector, which employs more than 190,000 people. It tabled legislation permanently to ban fracking before the state's parliament on November 30.

Shardul Sharma