Gas giant Santos has ended its nearly three decade sponsorship of the popular Darwin Festival, following a lengthy campaign by environmentalists and traditional owners opposed to fossil fuels and fracking.
Santos has been a major financial supporter of the well known arts and cultural event in the Northern Territory, holding the naming rights for the opening concert each year.
However, the gas company's plans to develop the multi-billion dollar Barossa gas field off the territory's coast has created concern for some sections of the community, about its impact on climate change.
In a letter sent to the Darwin Festival Board on Tuesday, Santos confirmed it would not be involved in next year's event.
"As we understand it, the board now has alternative sponsorship options for the Darwin Festival, which has not been the case in previous years," the letter said.
"As such, Santos advises that it will not be seeking to renew or extend the sponsorship contract beyond the current term, which expires on 31 December 2022."
Darwin Festival offered 'alternative funding'
In a statement on Tuesday evening, the Darwin Festival board said its agreement with Santos had "come to an end after almost three decades".
"The board of Darwin Festival would like to thank Santos for its support over those years, particularly for supporting the opening night concert which has helped showcase local Australian artists and provide Territorians with a free night of entertainment to kick of the Festival each year."
The Darwin Festival board did not mention different funding arrangements moving forward.
However, a coalition of artists, environmental groups and traditional owners called Fossil Free Arts NT on Tuesday said it had offered the festival's board $200,000 over two years in alternative funding, on the condition it ended any agreement with the energy company.
A spokeswoman for Fossil Free Arts NT, Anna Weekes, said the decision was "welcome news" and showed Santos' "attempts to greenwash its gas projects no longer wash with artists, audiences or the wider community".
But she said the festival could go further by cutting ties with all fossil fuel companies and called for a shake up within its management.
The McKinnon Family Foundation said it was one the organisations that provided money towards the alternative offer.
"Sponsorship of community events by tobacco companies was once okay but has become unacceptable," its director Sue McKinnon said.
"The same has happened with fossil fuel sponsorship and festivals and institutions here and overseas are waving it goodbye."
Last month, Tiwi Islands traditional owners won a federal court challenge against the project after arguing they were not properly consulted.
The company has said the project would create about 600 jobs during construction and would represent the biggest investment in the oil and gas industry in over a decade.
