According to information released in the media this week, “Galp and ENI decided to abandon the exploration project in the Alentejo basin."
If this decision is confirmed and, therefore, this indeed is the end of the three contracts held by this alliance, PALP is happy - but also warns of a need to analyse the legal implications.
The Platform for an Algarve Free of Oil (PALP) has been pushing from the beginning for a transparent debate and an Algarve free of exploration and extraction of oil and gas.
As is public knowledge, PALP submitted (on 27.04.2017) an injunction to stop the administrative license, through the Administrative and Fiscal Court of Loulé, which received a positive court ruling (on 12.08.2018.)
It is important to remember that PALP had overturned a government resolution, issued by the Ministries of the Sea and of the Economy, lifting the injunction.
Also, after the August court ruling, both the Ministry of the Sea and the Department of Natural Resources and Marine Services (DGRM), as well as ENI and Galp, appealed the sentence.
Now, in a press release, Galp and ENI say they have, "decided to abandon the exploration project in the Alentejo basin.”
We are happy with this decision but we are also analysing the legal implications of this declaration and hope soon to know the position of the Government on this matter - politically and legally.
We remain concerned with the contracts signed by the State with Australis Oil & Gas which are still in effect for the onshore concession area of Aljubarrota. It is important to recall Australis intends to start drilling in 2019 and, just as in the Algarve, local councils, associations and residents have presented their strong opposition.
We emphasise that the Law 109/94 of 26 April is still in course. This law has a clear, if outdated, purpose: "to give a new impulse to the activities of oil exploration and research and, consequently, of development and production."
Until withdrawn, this law provides for, "more favourable conditions of access, simplifying administrative procedures and establishing clear operational rules in a manner that is adjusted to the reality and practice of the oil industry."
While this legal framework exists, the threat of new concessions is real, either under the present Government or those following.
PALP pushes for two measures:
1) a general revision of the environmental legislation and the creation of a strong plan for Portugal’s sea area that foresees this type of situation and protects the sea from future threats and
2) the development of an effective National Strategy for Renewable Energy in the medium and long-terms that overrides political cycles and takes into account the international agreements that Portugal signed regarding decarbonisation and climate change which will affect the country.
In spite of this victory, the court process continues* and PALP will continue to press for an end to the laws that facilitated the 15 concession contracts - the reason PALP was formed.
P'la Plataforma Algarve Livre De Petróleo
* All donations to cover the costs of the lawyer, are welcome; more information on http://crowdfunding.palp.pt
