Origin Buys Out Sasol from Oz Shale JV

Australian independent Origin Energy has bought South Africa producer Sasol’s 35% stake in the Beetaloo joint venture, in Australia's Northern Territory, taking its share to 70%, Origin said May 5. It recently announced the discovery of a material shale gas resource in the Beetaloo basin.

“Along with joint venture partner Falcon Oil & Gas Australia, we look forward to progressing our understanding of the play and maturing the contingent resources to reserves over time, subject to the outcome of the Northern Territory’s inquiry into hydraulic fracturing,” Origin CEO Frank Calabria said.

The Beetaloo basin is the most prospective onshore basin for shale gas in Australia and company test results estimate the joint venture’s contingent resource at a substantial 6.6 trillion ft³ of natural gas, he said.  

The transaction is subject to the satisfaction of certain conditions and is not expected to impact on Origin’s short term focus on debt reduction as there are no immediate capital requirements in the Beetaloo, the company stated.  Located about 500 km south-east of Darwin, the three Beetaloo joint venture permits cover an area of more than 18,500 km² within the Beetaloo Basin.  

After the transaction for which no value details were provided, Origin will have 70% stake in the joint venture while Falcon retain 30%.

Falcon said that Sasol was departing the joint venture to focus on its African and North American assets and said it recognised its contribution. It said the transaction will not impact Falcon's 2014 farmout agreement "as Origin will now assume 100% of the future costs of the farmout."

Shardul Sharma