Beetaloo Basin: Origin Energy sells $60m share to Tamboran Resources

Australia’s largest energy company has sold its stake in the Territory’s most controversial gas project. The company seeks to divert its interest.

Australia’s largest energy company, Origin, has sold its share of the Beetaloo Basin gas prospect to Tamboran Resources for $60m.

A statement released on Monday morning by Origin said it would divest 100 per cent of its interest in the Beetaloo Basin as a precursor to shedding other onshore exploration permits “as the company focuses on its strategy and ambition to lead the energy transition”.

However, Origin wants to buy gas from the field from which it’s divesting and will also receive royalties from the three Beetaloo permits it sold to Tamboran.

The sale is subject to NT Ministerial approval relating to the transfer of shares.

Origin has been exploring in the Beetaloo for the past eight years. It will retain a connection with the project via a 10-year gas sales agreement to buy gas produced by Tamboran at Beetaloo.

Prior to Monday’s announcement, Origin owned 77.5 per cent of its Beetaloo joint venture and junior partner Falcon Oil & Gas Australia had 22.5 per cent.

Origin chief executive Frank Calabria said the sale of its Beetaloo assets would give the company additional flexibility.

Origin Energy chief executive Frank Calabria Picture: Justin Lloyd

“The decision to divest our interest in the Beetaloo and exit other upstream exploration permits over time will enable greater flexibility to allocate capital towards our strategic priorities to grow cleaner energy and customer solutions and deliver reliable energy through the transition,” he said.

“We believe gas will continue to play an important role in the energy mix and it remains a core part of our business.

“Notwithstanding the prospectivity of any of these permits, typically the experience in progressing these types of projects is that the exploration and appraisal phase can be uncertain and it can be capital intensive to bring projects into production. Ultimately we believe Origin is better placed prioritising capital towards other opportunities that are aligned to our refreshed strategy.

“The suite of agreements executed with Tamboran allow Origin to realise value created by our investment and exploration activities to date and ensures another operator present in the area and committed to developing its resources, can continue to take the venture forward.”

NT Environment Centre co-director Kirsty Howey said Origin’s withdrawal from the project was the “beginning of the end” for fracking at the Beetaloo.

“Origin is the biggest player in the Beetaloo and for them to walk away shows that this industry is not viable, even with massive amounts of taxpayer subsidies,” Dr Howey said.

“The Fyles government should realise that Territorians don’t want fracking and that its madness to keep supporting this polluting industry.”

Environment Centre NT’s Kirsty Howey. Picture: Glenn Campbell

Chief Minister Natasha Fyles doubled down on her support for gas as an energy transition source.

“We all want to shift to renewables and clean energy, but we need to have a sustainable energy supply,” Ms Fyles said.

“In terms of moving forward, we’ve got a strong investment into renewables and we’re doing work. We have an independent inquiry and we’re implementing those recommendations.”

Legislation supporting the findings from the independent Pepper Inquiry are expected to progress through the Territory parliament by the end of the year.

Originally published as Beetaloo Basin: Origin Energy sells $60m share to Tamboran Resources