News: STO UPDATE 1-Australia's Santos rejects allegations of human rights violations

(Updates with details on the letter, background)

May 25 (Reuters) - Australian gas producer Santos Ltd (STO) said on Thursday it was categorically rejecting the allegations of human rights violations at its Barossa Gas project, Darwin LNG Life Extension project and Narrabri Gas project.

The company said some of its investors and financiers received a letter from Equity Generation Lawyers, a law firm active in climate-related cases, on behalf of up to nine individuals, alleging breaches of human rights of Tiwi Island, Larrakia and Gomeroi people arising from its projects.

The letter asked the financiers to exit loans and not proceed with any future approvals for the projects.

It asked the investors to "immediately begin to effectively exercise its leverage, on Santos to stop development of the Barossa, DLNG and Narrabri projects, or if this is not achieved within a reasonable time, divest".

The gas producer said the claimants have "not sought to have their grievances determined or remedied in a court of competent jurisdiction where Santos could properly respond".

Environmental and Indigenous groups have been campaigning for years against Santos' $3.6 billion project off northern Australia.

A group of Australian Indigenous people had lodged human rights grievances with a dozen banks in April, urging them to withdraw a $1 billion loan to Santos for its Barossa offshore gas project.