Origin reports Australia Pacific LNG project 88% complete and production and sales for the December Quarter
Origin Energy Limited (Origin) today reported that the Australia Pacific LNG project is 88 per cent complete and on track to deliver first LNG in mid-2015. The update was provided as part of the release of the Company’s Quarterly Production Report for its Exploration and Production business for the quarter to 31 December 2014.
Origin Chief Executive Officer LNG, Mr David Baldwin said, "We continue to make significant progress in the delivery of the Australia Pacific LNG project.
"The Upstream component of the project is 90 per cent complete, with 1,019 development wells drilled and 666 wells commissioned, while the Downstream component is 86 per cent complete and the final Train 2 module has been set on its permanent foundations.
"The Australia Pacific LNG project remains on track for first LNG in mid-2015," Mr Baldwin said.
Origin reported production for the quarter to 31 December 2014 of 33.4 petajoules equivalent (PJe) and sales revenue of $235.6 million.
Production was 4 per cent lower than the previous quarter, primarily attributable to lower production at Otway due to maintenance activities and lower customer nominations by Origin, a planned maintenance shut down at BassGas, as well as lower seasonal demand at Kupe, partly offset by higher production at Australia Pacific LNG. Sales revenue decreased 6 per cent compared to the previous quarter, reflecting lower production and a lower average commodity price, partly offset by the timing of product liftings.
Origin reported production for the six months to 31 December 2014 of 68.3 PJe and sales revenue of $486.7 million.
As foreshadowed, production decreased when compared to the six months to 31 December 2013. Origin reduced its call on production from its Upstream business in order to take advantage of cheaper ramp gas available from Queensland’s CSG-LNG projects. Revenue decreased compared to the six months to 31 December 2013 primarily reflecting lower production and reduced third party prices and volumes.
During the quarter, Origin also announced that the Speculant-1 exploration well had encountered potentially commercial quantities of gas in primary target Waarre Formation reservoirs in the Otway Basin, offshore Victoria. Origin has a long history of gas production in Victoria, and continues to evaluate the development options for the Speculant-1 resource, to help position its gas portfolio to meet future growth in demand for gas.
NOTE: The report does not cover other areas of the integrated energy businesses undertaken by Origin, including electricity generation, energy retailing, non-hydrocarbon development activity or its subsidiary, New Zealand’s Contact Energy.
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About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the Company has approximately 6,700 employees and is a leading producer of gas in eastern Australia. Origin is Australia’s largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has one of the country’s largest and most flexible generation portfolios with approximately 6,010 MW of capacity, through either owned generation or contracted rights. Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia’s largest CSG to LNG projects based on Australia’s largest 2P CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, a leading integrated energy company, operating geothermal, thermal and hydro generation facilities totalling 2,359 MW and servicing approximately 568,000 electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au
