By David Winning
SYDNEY--Origin Energy Ltd. said it will sell its assets in the Northern Territory's Beetaloo Basin and plans to exit exploration permits not associated with the Australia Pacific LNG project.
Origin Chief Executive Frank Calabria said the move would enable "greater flexibility to allocate capital toward our strategic priorities to grow cleaner energy and customer solutions."
Origin said it has agreed to sell its wholly owned interests in the Beetaloo Basin to Tamboran (B1) Pty Ltd. for 60 million Australian dollars (US$40.4 million) upfront plus a royalty on future production. It has also agreed to buy natural gas produced from the field in future.
Origin said it expects to record a loss after tax of A$70 million-A$90 million on the transaction in its result for the six months through December.
Separately, Origin said it will review its remaining exploration permits with a view to exiting them over time, excluding those associated with the APLNG facility.
"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," Mr. Calabria said. "Ultimately, we believe Origin is better placed prioritizing capital toward other opportunities that are aligned to our refreshed strategy."
Write to David Winning at david.winning@wsj.com
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