Origin Updates Progress of Dispute on the BassGas Project

Origin Energy Resources Limited received a Notice of Dispute from Clough Limited. This Notice of Dispute contains a number of claims by Clough Limited against the Joint Venture Owners of the BassGas Project, which repeat allegations previously made.

These allegations have previously been considered by the Joint Venture Owners and found to be wholly without merit. Accordingly, the Joint Venture Owners will defend these claims and prosecute their own claims for liquidated damages as a consequence of Clough failing to achieve completion of the project within the time stipulated by the Contract.

Insofar as Clough has alleged that the Project Manager has not acted honestly and fairly, the Joint Venture wishes to advise that they have all confidence in the Project Manager and in particular his integrity.

While the Joint Venture Owners would normally wish to resolve disputes of this nature by discussion and negotiation, it would now appear that the matter will be resolved in accordance with the dispute resolution provisions in the Contract. Pursuant to this process the allegations by Clough Limited and the Joint Venture Owners can be properly tested. The Joint Venture Owners are confident that this process will vindicate their position.

Despite this unfortunate distraction, Origin, on behalf of its co-venturers, is continuing its business on the greater BassGas Project. Origin's engineers are still working to achieve first production from the Yolla field before the end of the current quarter, and encouraging drilling operations continue at the nearby Trefoil-1 exploration well.