Origin Energy will sell 100 per cent of its interest in the...

Origin Energy will sell 100 per cent of its interest in the Northern Territory's Beetaloo Basin and plans to exit its upstream exploration permits, the latest move by the power giant to sharpen its focus on clean energy generation.

Deals have been struck with Tamboran Resources and its substantial shareholder, Bryan Sheffield, to offload Origin’s interest in the gas-rich Beetaloo Basin for an $60m and a royalty on future production over the life of field across the Origin interest being acquired.

Origin said it had also executed a gas sale agreement for offtake of future gas production.

The Sydney-based producer will also 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.

"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," Origin chief executive Frank Calabria said.

"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 Australian 19 September 2022