Environmentalists are celebrating after Norwegian energy giant Equinor confirmed it is pulling out of a planned oil exploration in the Great Australian Bight.
The company said the proposed oil drilling was no longer deemed "commercially competitive."
"We will engage with the federal and state authorities regarding our decision to discontinue the exploration program," Equinor's local boss Jone Stangeland said on Tuesday.
"We hold an exploration permit offshore Western Australia and will maintain other ongoing interests and activities in Australia."
'Extremely disappointing'
Resources Minister Keith Pitt is disappointed by the decision and is encouraging other proponents to fill the void.
"I know many will find Equinor's decision not to proceed with this oil exploration project in the Great Australian Bight extremely disappointing, and it is particularly hard for South Australia," Mr Pitt said.
"The Bight Basin remains one of Australia's frontier basins and any proposals for new oil and gas fields in this area will be assessed fairly and independently."
Mr Pitt's ministerial predecessor, Matt Canavan, added that the decision was "disappointing news."
The Australian Petroleum Production and Exploration Association has also registered its frustration, saying the project could have shored-up local energy supplies and eased Australia's reliance on imported oil.
"The proposed exploration activity had been subject to an extreme campaign of false and exaggerated claims that deliberately overstated the risks and ignored the potential benefits," spokesman Matthew Doman said.
Australia's independent regulator approved the oil drilling in December.
An earlier study found oil exploration in the Great Australian Bight could create 2000 jobs and generate more than $7 billion in annual tax revenues.
'An incredible win'
Greenpeace and others have welcomed the withdrawal as "a win for the environment".
"This is an incredible win for people power and nature after years of relentless campaigning by coastal communities, indigenous traditional owners, surfers, the seafood industry, tourism operators and other local businesses," chief executive David Ritter said.
BP, Chevron and Karoon Gas have all withdrawn from the Bight but Santos, Murphy Oil and Bight Petroleum still have plans to drill there.
"The only way to protect coastal communities and the Great Australian Bight's unique marine life is to rule out drilling permanently," Mr Ritter said.
"The Australian government should now impose a permanent moratorium on oil drilling in this precious marine wonderland."
Anti-oil drilling protesters gathered at Currumbin on Queensland's Gold Coast as part of a national protest action against Equinor's oil exploration plans. Source: AAP
Fellow environmental activist group Extinction Rebellion Australia weighed in on the decision, labelling it a powerful win for grassroots campaigners.
Greens Senator Sarah Hanson-Young added that the result will help protect her state's tourism and fishing industries.
