Origin Energy will divest 100 per cent of its interest in the Beetaloo Basin, and has announced an intention to exit its upstream exploration permits, as the company focuses on its strategy and ambition to lead the energy transition.
Headquartered in Sydney, Origin is a major integrated electricity generator, and electricity and natural gas retailer.
Agreements have been executed with Tamboran, an entity 50/50 owned by Tamboran Resources Limited and its substantial shareholder, Bryan Sheffield, to divest Origin’s interest in the Northern Territory’s Beetaloo Basin for an upfront consideration of $60 million and a royalty on future production over the life of field across the Origin interest being acquired. Origin has also executed a gas sale agreement for offtake of future gas production.
Origin will undertake a strategic review of all remaining exploration permits (excluding its interests in Australia Pacific LNG) with a view to exiting those permits over time. Origin will continue to comply with its obligations under existing joint venture agreements and work with its joint venture partners as it considers its exit.
Origin expects to record a non-cash post-tax loss of $70 – $90 million in relation to the transaction. The company is currently the majority participating interest holder (77.5%) and operator of a joint venture with Falcon Oil and Gas Australia (22.5%) exploring for shale gas across three permit areas (EP 76, 98 and 117) in the Northern Territory’s Beetaloo Basin.
(Source: Origin – Image: Drilling site in the Beetaloo Basin/Tamoran Resources)