The future of one of the Kimberley’s largest proposed oil and gas projects remains unclear after its backers withdrew their request for an environmental assessment. 

Theia Energy was seeking environmental approvals from West Australia's Environmental Protection Authority (EPA) on a proposal to drill and frack two exploration wells at a site 155 kilometres south-east of Broome. 

The approvals were sought as part of the company's Great Sandy Desert Project, which would establish a network of fracked oil and gas wells connected by pipelines on a section of Karajarri traditional owners' land.

But documents published this month by the EPA have shown the company requested the regulator terminate their environmental assessment for the two exploratory wells, putting the project in doubt. 

Theia Energy was in the early stages of preparing an "environmental scoping document" for the EPA assessment when it decided to halt the environmental approval process required to frack at the site, a spokesperson for the regulator said. 

"On 30 June 2022, Theia Energy Pty Ltd requested termination of the assessment of their referral application and withdrew its Theia – 3H Exploration Well Stimulation Program proposal from assessment," the spokesperson said. 

"A new referral to the EPA would be required should the company want to pursue the same proposal." 

Theia Energy was contacted for comment but declined to speak publicly on its withdrawal from the process.

Withdrawal follows delays on fracking reforms

The project's withdrawal comes amid delays to the implementation of state fracking reforms. Reforms were recommended after a 2018 inquiry into the controversial resource extraction process in WA.

The inquiry recommended the development of a code of practice outlining the minimum standards for onshore exploration and production proposals for the industry. 

The state government aimed to implement the reform in late 2020 but it didn't come to fruition, with government figures saying staff on the project were moved onto coronavirus-related work. 

In September 2021 the government updated its website announcing plans that it would introduce regulations instead of the code, citing concerns the code would not be enforceable.  

"Further examination/analysis of a draft Code of Practice …  has revealed that the code, as developed to date, would not be enforceable as required by the Inquiry’s recommendations," the website reads. 

Eighteen months since the proposed code was expected to be implemented, a spokesperson for the Minister for Mines and Petroleum, Bill Johnston, confirmed the government has been in the process of drafting regulations.  

"There are nine actions to be completed for the Implementation Plan … this includes the regulations in lieu of a Code of Practice," the spokesperson said. 

"Drafting is underway for both the regulations and the Amendment Bill." 

The delay in implementing the code-turned-regulations has cast doubt over what obligations oil and gas exploration companies like Theia Energy need to meet in WA to operate, according to industry figures. 

Claire Wilkinson is the Australian Petroleum Production and Exploration Association's (APPEA) director for WA and says the industry needs certainty to get projects off the ground in the state.

"We're obviously keen that they [the regulations] be finalised as soon as possible because that will provide some certainty to project proponents in the Kimberley area," she said. 

"I think we're all very keen to get to the end of this process so that companies know exactly what's required of them.

"We're confident now that government is moving ahead that we will get a conclusion hopefully by the end of this year." 

Environmentalists say ban fracking

Director of Environs Kimberley Martin Pritchard welcomes the news Theia requested the EPA pull its environmental approval proposal but remains sceptical that the proposal has been binned.   

"They still have a petroleum lease across that area," he said.

"There's every chance that they could either try and sell that lease or come back with another proposal."

Mr Pritchard has called on the state government to ban the resource extraction process in WA, citing concerns it will contribute to climate change and damage the Kimberley. 

"Who really wants to be responsible for releasing huge amounts of carbon-dioxide pollution, and wants to be responsible for industrialising the Kimberley into the future?" he said. 

"This is not going to end until the McGowan government bans fracking in the Kimberley." 

The ABC contacted the Karajarri traditional owners for comment on the termination of the environmental approval process.