Tamboran Resources is a controversial Australian ASX-listed gas company that focuses on gas exploration and fracking of unconventional shale gas resources, particularly in the Northern Territory’s Beetaloo Sub-basin.
Founded in 2009, Tamboran Resources primary asset is its substantial acreage in the Beetaloo Sub-basin. The extraction of coal seam gas does not always require hydraulic fracturing, whereas the extraction of shale gas always needs hydraulic fracturing.
Tamboran Resources in the news …
7 June 2024 Beetaloo Basin fracking gas approval sparks outrage The Northern Territory government’s approval of Tamboran’s Environment Management Plan for fracking in the Beetaloo Basin ignited widespread concern and outrage. This decision faced strong criticism from doctors, First Nations people, environmentalists, and community groups. They urged Federal Environment Minister Tanya Plibersek to scrutinize the plan under the water trigger provisions in national environment laws.
7 June 2024 Environmental Breaches in NT Fracking Projects Exposed Community groups in the Northern Territory called on Federal Environment Minister Tanya Plibersek to immediately apply the water trigger to fracking projects in the Beetaloo Basin. This urgent appeal came in response to troubling reports of numerous environmental and compliance breaches by Empire Energy. Among the most serious of these breaches, Empire Energy failed to inform the NT government’s Heritage Branch about stone artefacts discovered near the Carpentaria 4 wellpad, waiting nearly 18 months before reporting the find.
16 May 2024 NT Govt Signs Deal for Unapproved Fracking Project Top End groups raised alarms about the integrity of the fracking assessment process in the Northern Territory after the US petroleum company Tamboran announced a gas supply deal with the NT Government for a project that had not received approval. Tamboran revealed to the ASX that it had signed an agreement to supply gas from the Shenandoah Pilot Project, a venture still under government assessment.
6 May 2024 Intention to list on the New York Stock Exchange Tamboran plans to list its common stock shares on the New York Stock Exchange (NYSE) through a US Initial Public Offering (IPO) under the ticker symbol “TBN.”
Tamboran said in the ASX announcement: “Tamboran’s Board of Directors believes that a US listing has the potential to improve liquidity and provide access to deeper capital markets that better understand the development of shale gas.” Apparently US investors are more enthusiastic about fracking Australia than Australians are.
31 october 2023 Emissions wildly underestimated from fracking in NT An independent assessment of the expected carbon and methane emissions from the proposed gas fracking project in the Beetaloo Basin and the processing activities at the Middle Arm gas hub in the Northern Territory revealed a significant underestimation of these emissions. The assessment highlighted the inadequacy of available offsets to mitigate these emissions.
23 May 2023 Fracking incidents on cattle station in Beetaloo Basin NT Two workers allege they were instructed to continue spraying contaminated drill rig water around a gas fracking site in the Northern Territory’s Beetaloo Basin, despite Tamboran Resources being aware of the contamination.
16 May 2023 ABC’s 7:30 program reported that Tamboran Resources was involved in several pollution incidents at an exploration drilling site. These incidents endangered people, livestock, the environment, and the sacred Newcastle Creek on Rallen’s Tanumbirini Cattle Station.
In 2022, the Senate Inquiry into Oil and gas exploration and production in the Beetaloo Basin reported that “actions of Tamboran Resources Limited (Tamboran) that may constitute contempt of the Senate.”
The chairperson of the inquiry, Senator Sarah Hanson-Young, wrote: “The committee considers it unacceptable that Tamboran, a publicly listed company, whose subsidiary has received a multi-million-dollar grant of taxpayer money, has refused to appear and answer questions in relation to its petroleum exploration activities in the Beetaloo Basin.”
The Northern Territory Government’s fracking inquiry into fracking was widely criticised for its terms of reference. The Pepper Inquiry was not set up to inquire whether “if” fracking should commence, but rather “how” it can overcome objections and proceed. The Inquiry’s Final Report recommended that the Northern Territory Government accept and implement all 135 Inquiry recommendations in order to mitigate the risks to “acceptable levels”.
Tamboran Resources Environmental Concerns
Tamboran Resources, like many companies involved in the energy sector, has faced its share of controversies. These controversies mainly revolve around environmental concerns, community relations, and regulatory compliance, particularly given the sensitive nature of unconventional gas extraction methods. Here are some of the key issues that have surrounded Tamboran Resources:
Fracking and Water Usage
One of the primary controversies surrounding Tamboran Resources is its use of hydraulic fracturing, or fracking, in the extraction of shale gas. Fracking involves injecting high-pressure fluid into the ground to fracture rock formations and release natural gas. This method has raised significant environmental concerns, particularly regarding water usage and potential contamination of groundwater sources.
Fracking can lead to the depletion of local water resources and the contamination of aquifers with chemicals used in the fracking process. While Tamboran has stated its commitment to following best practices and regulatory standards to mitigate these risks, environmental groups remain skeptical.
Greenhouse Gas Emissions
Another environmental issue associated with Tamboran’s operations is the release of methane, a potent greenhouse gas, during the extraction and production of natural gas. Methane leaks can significantly contribute to climate change, and there are concerns about the effectiveness of measures to prevent such leaks. Tamboran has faced pressure to adopt more stringent monitoring and mitigation strategies to address these emissions.
Tamboran Resources Community Relations
Indigenous Land Rights
Tamboran’s operations in the Beetaloo Sub-basin have sparked controversies related to Indigenous land rights. The Beetaloo region is home to several Indigenous communities, and there have been disputes over land use and the impact of gas exploration on culturally significant sites. Indigenous groups have expressed concerns about the lack of consultation and potential environmental damage to their ancestral lands.
Tamboran refuses to recognise or negotiate with Nurrdalinji Aboriginal Corporation whose members include native title holders and Traditional Owners from the Amungee Mungee, Beetaloo, Hayfield, Kalala, Newcastle Waters – Murranji, Nutwood Downs, Shenandoah, Tandyidgee, Tanumbirini, Daly Waters Township, Ucharonidge native title determinations.
Social License to Operate
Gaining and maintaining a social license to operate is crucial for Tamboran. The company’s activities have led to protests and opposition from local communities and environmental activists who are concerned about the long-term impacts of gas extraction. Picking and choosing who they negotiate with is not consulting with stakeholders, and has lead to even more angst and arguments.
Tamboran Resources Regulatory Compliance
Legal Challenges
7 Feb 2023 Anti-fracking group Central Australian Frack Free Alliance (CAFFA) began legal action in the Northern Territory Supreme Court against the Northern Territory government’s decision to permit exploration in the Beetaloo Basin. CAFFA are represented by the Environmental Defenders Office. CAFFA claims that the former NT environment minister did not adequately consider the environmental impact of allowing Tamboran Resources to drill 12 exploratory wells in the basin.
Corporate Governance
Transparency and Accountability
Questions have been raised about Tamboran’s transparency and accountability, particularly in how it communicates its environmental and social impact. Stakeholders, including investors and community members, have called for greater disclosure of the company’s environmental performance, risk management strategies, and community engagement efforts.
In 2022, Tamboran Resources refused to come to the Senate Inquiry into Oil and gas exploration and production in the Beetaloo Basin, prompting the Chair to report that “actions of Tamboran Resources Limited (Tamboran) that may constitute contempt of the Senate.”
Tamboran Resources
While Tamboran Resources is positioned to be a significant player in the Australian natural gas industry, it must navigate a complex landscape of environmental, social, and regulatory challenges. Addressing these controversies effectively will be crucial for the company’s long-term success and its ability to secure a social license to operate. Enhancing transparency, engaging with stakeholders, and implementing robust environmental safeguards are essential steps for Tamboran to mitigate controversies and build a more sustainable and responsible business model.
Tamboran’s Intention to list on the New York Stock Exchange in the hope they find investors “that better understand the development of shale gas” than Australians reflection of their history on the Australian Stock Exchange, where investors have watched the share price halve in five years.
Tamboran Resources 5 year share price history chart, retrieved 9 June 2024
Tamboran Top 20 shareholders
Top 20 Shareholders of TBN hold 79.51% of shares on issue, as at 8 June 2024.
| Name | Shares | Capital |
|---|---|---|
| Hsbc Custody Nominees (Australia) Limited | 271,907,965 | 15.84% |
| Sheffield Holdings Lp | 222,792,820 | 12.98% |
| Citicorp Nominees Pty Limited | 153,823,820 | 8.96% |
| Hsbc Custody Nominees (Australia) Limited (Gsco Customers A/C) | 119,540,434 | 6.96% |
| Morgan Stanley Australia Securities (Nominee) Pty Limited (No 1 Account) | 114,589,114 | 6.67% |
| Helmerich & Payne International Holdings Llc | 105,952,380 | 6.17% |
| Hsbc Custody Nominees (Australia) Limited | 73,263,607 | 4.27% |
| David N Siegel (Company Director) | 45,102,124 | 2.63% |
| Bnp Paribas Noms Pty Ltd (Drp) | 43,642,429 | 2.54% |
| Milestone Exploration Llc | 35,760,872 | 2.08% |
| Geotech Investments Pty Ltd | 31,608,637 | 1.84% |
| Venture Holdings Sarl Spf | 24,167,920 | 1.41% |
| Yeronda Nominees Pty Limited | 22,970,912 | 1.34% |
| Hsbc Custody Nominees (Australia) Limited A/C 2 | 20,992,613 | 1.22% |
| Jeffrey J Rooney (Siegel Dynasty A/C) | 19,719,418 | 1.15% |
| UBS Nominees Pty Ltd | 18,163,546 | 1.06% |
| Bnp Paribas Nominees Pty Ltd (Ib Au Noms Retailclient Drp) | 11,536,691 | 0.67% |
| John R Hislop | 10,622,806 | 0.62% |
| Mrs Gillian Leslie Tidey | 10,440,000 | 0.61% |
| Jufran Carbon Pty Limited | 8,424,275 | 0.49% |
Tamboran Resources director Andrew Robb
In the 80s Mr Robb was Executive Director of the Cattle Council of Australia, and Executive Director of the National Farmers’ Federation. From 1990 to 1997 Mr Robb was the Federal Director and Campaign Director of the Liberal Party. From 1997 to 2004 Mr Robb worked for Kerry and James Packer negotiating the digital TV deals for Channel 9. In 2004 Mr Robb was elected to the Federal seat of Goldstein until he quit parliament in 2016.
In 2016, Andrew Robb joined a Chinese company, Shandong Landbridge Group, which had been granted a 99-year lease on Port Darwin in 2015, as a “high-level economic consultant”. The lease did not require approval from the foreign investment review board while Mr Robb was trade minister. Landbridge Group is chaired by Ye Cheng, a billionaire with links to the Chinese Communist Party. Gas giants CNOOC and China National Petroleum are among Landbridge’s business partners.
Mr Robb’s $73,000 per month contract with Landbridge began the day before the 2016 election. The Prime Minister’s statement of ministerial standards prohibits former ministers lobbying, advocating or conducting business meetings with members of the government for an 18-month period after ceasing to be a minister, and they will not take personal advantage of information to which they have had access as a Minister.
Mr Robb is also a board member of the Kidman cattle enterprise which is majority-owned by Gina Rinehart’s Hancock Prospecting, and is Ms Rinehart’s representative on the board of the Network Ten television station. Mr Robb is Chairman of LandCorp Australia, a property development company.
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