Origin’s Russian gas links under scrutiny

Angela Macdonald-Smith
Senior resources writer

Feb 28, 2022

The Russian links of Origin Energy’s partner in its controversial Northern Territory gas exploration play have come under scrutiny after Russia’s invasion of Ukraine, triggering calls from interest groups for the exploration permits to be scrapped and for a ban on any government funding for the work.

The parent company of Origin’s junior partner in its Beetaloo Basin venture, Falcon Oil & Gas, is partly owned by Lamesa Group, a company controlled by an ally of Russia’s President Putin, Viktor Vekselberg

Mr Vekselberg was already subject to international sanctions over Russia’s invasion of Crimea in 2018.

The Australasian Centre for Corporate Responsibility noted that Mr Vekselberg’s representative, Maxim Mayorets, sits on the Falcon board.

It highlighted Falcon’s Russian links alongside those of Queensland Alumina Ltd, a joint venture between Rio Tinto and Russia’s Rusal International, which is partly owned by separate companies connected with Russian oligarch Oleg Deripaska and with Mr Vekselberg.

“Following Russia’s invasion of Ukraine, Australian companies, including Origin Energy and Rio Tinto, must immediately review their relationships with companies owned or part owned by oligarchs aligned with Russian President Vladimir Putin,” ACCR director Dan Gocher said.

Anti-corruption NGO Publish What You Pay also called for federal Resources Minister Keith Pitt to rule out any public money going to Falcon through the government’s Beetaloo grant programs – part of its gas-fired recovery strategy – and to consider revoking the exploration permits.

An Origin spokeswoman said the company would “continue to monitor the situation closely”, noting that the Origin/Falcon venture has not applied for or received any government funding for its Beetaloo activities.

“Origin will follow any rules dictated by the Australian government, and other governments as appropriate, with respect to sanctions,” she said.

“Origin is the majority owner and operator of the Beetaloo Joint Venture with significant operational control over any activities undertaken in the Beetaloo Basin. Origin is carrying 100 per cent of the costs for current exploration activities, with no funding being provided by its joint venture partner.”

The comments came as British oil major BP said it would exit its 19.75 per cent shareholding in Russian oil company Rosneft and take a “material” charge on its results after the board decided that the involvement “simply cannot continue” after last week’s invasion.

Meanwhile Shell Australia chairman Tony Nunan said the global group was closely monitoring the situation in Ukraine but saw no immediate impact on the Australian business, which would keep supplying contracted customers both in the domestic and overseas markets.

Image Credit: AFR 2022