Origin Energy Chairperson Scott Perkins confirmed at the company’s annual general meeting that Origin will exit its Kimberley oil and gas interests “over time”.
When the Origin farm-in with Buru Energy for seven permits covering 20,000km2 in Western Australia’s Canning Basin in the Kimberley was announced in December 2020, the company stated: “Origin will now hold positions in three large prospective onshore basins – the Beetaloo, Canning, and Cooper-Eromanga – giving us exposure to conventional and unconventional gas plays and what we believe are the most prospective shale formations in Australia.”
The unconventional gas play in the Kimberley would have to be fracked. Fracking is highly controversial around the world and is banned in many countries.
Origin stated at the time of the farm-in: “The total estimated spend by Origin over a two-year period is expected to be approximately $35 million inclusive of a two-well drilling program and seismic work.”
Origin Energy Chairperson Scott Perkins was asked a question by a shareholder at the AGM (54min 17sec): “Did Origin know about the significant opposition to fracking in the Kimberley’s Canning Basin before going into the joint venture with Buru Energy, and in hindsight do you think it was a bad move given the loss occurred on the failed Currajong gas well?”
Scott Perkins, Chair answered: “These permits are currently part of the strategic review and our intention is to exit these permits over time. Our decision to co-invest alongside Buru as the operator of those activities was we think an entirely appropriate one. Third point I’d make is, as with the Northern Territory scientific study supported by the CSIRO into the safety of fracking, we think there is ample, ample scientifically based evidence to support the safety of fracking in appropriate circumstances.”
Environs Kimberley Director Martin Pritchard said it is a very sensible decision by Origin.
“They got the message that fracking the Kimberley would mean significant reputational damage, particularly for companies like Australian Super, which is the largest investor in the company,” Mr Pritchard said.
“The Origin exit signals plainly to investors that fracking in the Kimberley is not a good investment, and will be a stranded asset in the future,” said Mr Pritchard.
