Origin Energy will sell its stake in its Beetaloo Basin gas project at a loss and review all its other exploration permits in a move that will distance it from an environmental controversy and end its association with sanctioned Russian oligarch Viktor Vekselberg.
Chief executive Frank Calabria said gas remained “a core part of our business” but getting out of gas exploration would free up money to “grow cleaner energy and customer solutions, and deliver reliable energy through the transition”.
Environment groups mostly welcomed the announcement but said the decision had not removed the threat of gas exploration and fracking to the Beetaloo Basin.
Origin has not completely severed links with the Beetaloo project – it has agreed to buy any gas the field produces from its new owner, a group backed by Texas oilman Bryan Sheffield.