Australia-based energy company, Santos (ASX:STO), announced that the Federal court has given the green light for an appeal against the National Native Title Tribunal’s judgment on certain lease grants of oil production at its paramount Narrabri gas project.

The Tribunal had previously given Santos the approval to continue with the A$3.6 billion project in December 2022.

It stated that the advantages tipped the balance over concerns raised by the Gomeroi traditional owners, who suggested the project could endanger their culture, land, water, and potentially contribute to climate change.

However, Santos reported that the court has ruled the National Native Title Tribunal made a legal error by deciding not to take into consideration evidence on climate impacts provided on behalf of the Gomeroi applicant.

The long-awaited Narrabri coal seam gas project is located in New South Wales, the most highly populated state in Australia, which sources all its gas supply from neighboring states.

Santos confirmed that work continues to secure land access, resolve native title disputes, obtain pipeline licensing and remaining environmental approvals to get the Narrabri and the Hunter Gas Pipeline ready for a final investment decision.

Santos is an Australian energy company specializing in oil and gas exploration and production.