Origin's E&P Business Grows

Origin Energy Limited  has released its quarterly report for its Exploration and Production business for the quarter to 31 March 2012, reporting production of 31 petajoules equivalent (PJe) and sales of $203 million.

During the quarter Australia Pacific LNG, Origin's joint venture with ConocoPhillips and Sinopec, signed binding agreements with Sinopec for the supply of an additional 3.3 million tonnes per annum (mtpa) of LNG, and an increase in Sinopec's equity interest in Australia Pacific LNG from 15 per cent to 25 per cent.

Completion of the agreements is subject to approvals from Australia's Foreign Investment Review Board and the Chinese government, and a Final Investment Decision being taken on Australia Pacific LNG's second LNG train, which is expected by mid-2012.

Origin Chief Executive Officer, Upstream, Mr Paul Zealand, said, "Production for the March Quarter was 31 PJe, which represents a six per cent increase on production achieved during the prior corresponding period.

"Increased production from Australia Pacific LNG and the Otway Gas Plant during the quarter more than offset reduced production from the planned shut down of BassGas for the Yolla Mid Life Enhancement project and the dilution of Origin's interest in Australia Pacific LNG from 50% to 42.5% in August 2011.

"Sales volumes of 33 PJe during the quarter were consistent with those achieved during the same period in 2011. However, higher commodity prices pushed sales revenues up by two per cent to $203 million when compared with the March Quarter last year," Mr Zealand said.

As disclosed to the market on 23 April 2012, the Yolla Mid-Life Enhancement project has reached a major milestone with the successful lifting and connection of the new accommodation and controls module to the Yolla A platform in Bass Strait. The joint venture is targeting to restart production from Yolla in July, with project commissioning and completion during the September Quarter.