Origin Energy’s gas project in the Beetaloo Basin has been cleared of any breach of sanctions against Russia.
The gas and electricity company sought advice from federal officials after Viktor Vekselberg, who is linked to Origin through a trail of business ties, was added to the list of oligarchs barred under the sanctions regime.
Guidance received from the Australian Sanctions Office found exploration activities in the Northern Territory’s Beetaloo Basin “do not breach Australian sanctions laws”, Origin spokesman Andrew Thornton said on Tuesday.
Since no gas is being produced and no revenue generated, the official assessment was that the Russian businessman’s share in Beetaloo has no direct or indirect benefit to him.
Mr Vekselberg is a beneficiary of a foundation that holds 100 per cent of the shares in Lamesa Holdings, a minority shareholder of Falcon Oil and Gas Limited, which is the parent company of Origin’s junior partner in the Beetaloo Basin venture.
Mr Thornton said Origin welcomed the “timely assessment”.
Origin will now focus on completing the Beetaloo exploration program commitments by drilling and testing a further two wells.
Origin is the majority shareholder and operator of the Beetaloo Basin joint venture and carries 100 per cent of the costs of exploration activity.
Gas executive Tim O’Grady told a Senate inquiry last month the joint venture is between Origin and Falcon, but admitted the company had asked officials for guidance.
“It has nothing to do with Mr Vekselberg,” he said.
“We have no relationship at all. There is an (about four per cent) interest by Mr Vekselberg but it is a passive interest.”
Critics say that link should be severed.
