Origin Energy released the Quarterly Production Report for its Exploration and Production business for the quarter to 31 December 2013, reporting production of 37 petajoules equivalent (PJe) and sales revenue of $281 million.
When compared to the corresponding quarter in 2012, production increased 28 per cent primarily reflecting higher volumes from Otway Basin. Sales revenue increased by 39 per cent compared to the corresponding quarter in 2012, reflecting increased production, higher average commodity prices and higher third party sales volumes.
When compared to the previous quarter, production decreased by 1 per cent as higher plant availability and increased volumes at Otway were offset by lower seasonal demand at Kupe. Sales revenue decreased 9 per cent from the September quarter 2013, reflecting production levels and lower average commodity prices.
Origin Chief Executive Officer Upstream, Paul Zealand said, “Origin’s continued strong production performance during the period can be attributed to the investments made in prior periods to improve the reliability and availability of producing assets.”
Origin also reported on the progress of the Australia Pacific LNG project.
Upstream Project Update
The Upstream Operated project was 58% complete at 31 December 2013. 108 development wells were drilled in the Quarter with a total of 564 Phase 1 wells drilled to date. 356 diameter kilometres (603 wells equivalent) of gathering lines were constructed.
Water and gas production from the Condabri resource area commenced during the Quarter.
At 31 December the pipeline was 91% complete. Mainline welding is complete through to Curtis Island with a number of tie-ins remaining.
Condabri Central Train 1 commissioning activities were underway in December while construction work on Condabri South, Orana, Reedy Creek gas plants and the Talinga Pipeline Compression facility is progressing.
Downstream Project Update
The Downstream project is 62% complete at the end of December 2013. The tenth, eleventh and twelth shipments of modules were delivered to Curtis Island during the Quarter.
A number of key equipment packages were delivered including the second shipment of pre-fabricated substation buildings, the boil-off gas compressors, LNG loading arms, Train 1 molecular sieve dehydrators and propane storage drums.
Further, items in transit included the three Train 1 cold boxes, the last two Train 2 refrigeration compressors and the final shipment of structural steel. Construction activities during the Quarter included setting the remaining Train 1 propane condenser modules on their foundations, installing the Train 1 molecular sieves, mercury removal beds and compressor substation, completing the Train 2 compressor table tops and commencing setting of the Train 2 refrigeration compressors.
Subsequent to the end of the Quarter, the first Train 1 methane and ethylene cold boxes were delivered and set in January 2014.
On the first LNG tank, the outer wall concrete pour was completed and the roof concrete pour was completed.
On the second LNG tank, the first half of the final segment concete pour of the outer wall was completed.
For the LNG jetty, deck panel installation was completed on the loading platform and concrete pours commenced. All modules were placed on the jetty trestle.
LNG World News Staff, January 31, 2014; Image: Origin