Origin Energy says it will push ahead with gas exploration in the Beetaloo Basin after the Australian government cleared it of breaching sanctions against Russian oligarch Viktor Vekselberg, who has a stake in the project.
The energy company’s position contrasts with that of miner Rio Tinto, which last week said that due to Australian and overseas sanctions it had taken full control of alumina refinery Queensland Alumina Limited, where another sanctioned oligarch, Oleg Deripaska, holds an interest.
Australia slapped sanctions on Vekselberg and Deripaska last month after activists questioned why the two men were not on an earlier list when they were known to have interests in assets in the country.
Vekselberg has a stake in Origin’s Beetaloo project through his 16% shareholding in Origin’s joint venture partner, the London-listed Falcon Oil & Gas.
Origin said it had “received guidance from the Australian Sanctions Office (ASO) confirming that Origin’s exploration activities in the Northern Territory’s Beetaloo Basin do not breach Australian sanctions laws”.
“The ASO’s assessment is that an asset is not currently being directly or indirectly made available to, or for the benefit of, Mr Vekselberg [as designated person] through the Beetaloo joint venture’s activities,” the company said.
Origin’s head of integrated gas, Andrew Thornton, welcomed the assessment and said the company “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 generated, 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,” he said.
“Origin remains committed to complying with Australian sanctions laws.”
On Friday, Rio Tinto said it was taking full operational control of QAL “as a result of the Australian government’s sanction measures”.
The refinery is 80% owned by Rio Tinto and 20% by Rusal, Russia’s biggest aluminium producer.
Rusal is in turn owned by En+ Group, where Deripaska has a 45% stake and Vekselberg is also a shareholder.
Rio’s decision came despite assurances from En+ last month that Deripaska “cannot receive any type of financial benefit from his minority holding in En+, Rusal or any part of the group and is completely blocked from receiving dividends” as the result of a 2019 deal with US authorities under which the companies were released from sanctions and the oligarch reduced his shareholding to 45%.
