SK’s alternative, according to the bank’s answer to the South Korean parliamentarian, is the purchase of Australian carbon credit units.

Dongjae Oh, a researcher with South Korean group Solutions for Our Climate, said the integrity and effectiveness of carbon offset mechanisms - including Australia’s - have been widely criticised.

“It’s shameful for Santos and SK E&S to think they can buy their way out of having to deal with causing millions and millions of tonnes of the very pollution that has already led to worsening fires, and floods around Australia.”

SK’s issue is another complication for the Barossa project.

Last week, Santos’ environmental approval offshore drilling was voided by the Federal Court due to a lack of consultation with Tiwi Islanders, leading to an order for Santos’ drilling rig to vacate the area in two weeks.

Santos is yet to submit to offshore regulator NOPSEMA an environment plan for the pipeline that passes close to the Tiwi Islands or for operation of the project where its high emissions are likely to be an issue.

SK did not respond to questions put to them.

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