A Norwegian company has cancelled plans to drill for oil off the Great Australian Bight.
Equinor has become the third company to set its sights on the section of coastline off South Australia, only to pull out.
This latest company was granted environmental approval in December last year to dig deep into the earth, about 362 kilometres south of the coast, at a depth of 2.5 kilometres and drill for 24 hours a day for 60 days.
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However, it has now come out and said that the project is no longer 'commercially competitive' after a 'holistic review of its exploration portfolio', according to the ABC.
Equinor Australia company manager Jone Stangeland said: "We have received bids for the drilling rig, the helicopters, the supply base - the cost for these activities is just too high and too expensive to go ahead and drill the well.
"We hold an exploration permit offshore [of] Western Australia and will maintain other ongoing interests and activities in Australia."
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BP was first given approval to drill in the same area in 2016, however abandoned plans shortly after. The company was followed by Chevron a year later, which also quickly changed its mind.
Equinor has been under pressure from environmental groups, who say the oil project could be harmful if there's a big spill.
The company was asked to provide a worst-case scenario for an oil spill and it revealed that there could be oil hitting Australians shores from Albany in Western Australia to Port Macquarie in New South Wales.
Shortly after the environment approval was granted last year, The Wilderness Society lodged an application with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), the regulator for projects like this.
According to the ABC, the Society says Equinor failed to consult with environment groups, key Indigenous groups and local governments on its plans. Wilderness Society SA director Peter Owen said the company's decision to withdraw its project is the right move.
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"It's been obvious for a long time now that the people of Australia are very concerned about proposals for deep-sea drilling in the bight," he said.
"This is fantastic, it's great to see Equinor following the responsible lead of BP, Chevron and withdrawing from proposals to drill in the bight."
Federal Resources Minister Keith Pitt wasn't as happy.
He added: "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.
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"The Liberals and Nationals Government remains committed to encouraging the safe development of Australia's offshore petroleum resources."
Featured Image Credit: Lindam333 (Creative Commons)