Origin says Beetaloo is not breaching Russian sanctions
Origin Energy said on April 12 that the Australian Sanctions Office (ASO) had advised its Beetaloo Basin shale concession is legal despite the involvement of a company backed by Russian oligarch Vikto Vekselberg.
Canberra slapped Vekselberg with targeted financial penalties and a travel ban last month in response to Moscow's actions in Ukraine, Reuters said. The oligarch is invested in Beetaloo's junior shareholder Falcon Oil & Gas, through his 100%-owned investment vehicle Lamesa Holdings.
The ASO concluded exploration work at Beetaloo could continue as Mr Vekselberg had no immediate access to the asset and therefore could not directly benefit.
Origin has a 77.5% operated stake in the Beetaloo Basin venture, while Falcon Oil & Gas has 22.5% equity interest. The partners are currently preparing to drill and test a further two exploration wells.
The partnership area includes three exploration concessions focused on shale layers in the 28,000 km2 Beetaloo sub-basin. Origin took on the concessions in 2014 and has estimated the area could contain 6.6 trillion ft3 in contingent gas resources.
Andrew Thornton, the company's head for integrated gas, said: "We welcome the timely assessment by DFAT and will focus on completing our Beetaloo exploration program commitments by drilling and testing a further two wells.
"While no gas is currently being produced and no revenue is being generation, Origin will continue to exercise diligence in this matter, and seek further advice should joint venture structures change or should the project progress beyond exploration. Origin remains committed to complying with Australian sanctions laws."