SYDNEY: Australia’s Origin Energy says it will divest its entire stake in the Northern Territory’s Beetaloo Basin for A$60mil (US$40.4mil) and that it intends to exit its upstream exploration permits amid a push towards clean energy.

The power producer said Origin will sell its 77.5% interest in the Beetaloo Basin joint venture to Tamboran (B1) Pty Ltd, an entity 50%-owned by natural gas company Tamboran Resources Ltd.

The Beetaloo Basin is a shale sub-basin in Australia’s Northern Territory considered comparable to the prolific Marcellus Shale, the biggest United States natural gas field.

Origin also said it will undertake a strategic review of all remaining exploration permits, excluding its interests in Australia Pacific Liquefied Natural Gas, with a view to exiting those permits over time.

Origin set a target for net-zero direct and indirect emissions by 2050 in August, as energy companies around the world outline efforts to curb emissions amid investor pressure.

“We believe Origin is better placed to prioritise capital towards other opportunities that are aligned to our refreshed strategy,” the company said in a statement.

Origin said it expects to record a non-cash post-tax loss of A$70mil to A$90mil on the sale of Beetaloo interests.

The company added that “our commitment to sustainability is reflected in our purpose - getting energy right for our customers, communities and planet.

“We’re taking steps to help shape a better energy future for society. We are focused on progressively decarbonising our business.”

 - Reuters