ASX/Media Release
31 January 2012
Origin releases Exploration and Production report for December Quarter
Origin Energy Limited (Origin) today released its Quarterly Production Report for its Exploration and Production business for the quarter to 31 December 2011, reporting production of 29 petajoules equivalent (PJe) and sales revenues of $198 million.
Australia Pacific LNG, Origin's joint venture with ConocoPhillips and Sinopec, continued to reach major milestones with its coal seam gas to liquefied natural gas project during the quarter.
On 17 November 2011, Australia Pacific LNG signed a binding agreement with Kansai Electric Power Company for the sale and purchase of approximately 1 million tonnes per annum (mtpa) of LNG for 20 years. In addition, Australia Pacific LNG signed a non-binding Heads of Agreement with Sinopec on 12 December 2011 for the sale of a further 3.3 mtpa of LNG through to 2035, and additional equity taking Sinopec's ownership interest in Australia Pacific LNG from 15 per cent to 25 per cent. These agreements were converted to binding agreements on 20 January 2012, completing the marketing of Australia Pacific LNG's second LNG train.
Origin Chief Executive Officer Upstream, Mr Paul Zealand, said "Production for the December Quarter was 29 PJe, compared with 31 PJe in the prior corresponding period. Planned maintenance shutdowns at the Otway and Kupe gas plants and commencement of the BassGas gas Mid Life Enhancement contributed to the decrease in production, as did a lower share of production from Australia Pacific LNG following dilution of Origin's interest from 50% to 42.5% as part of the completion of the Subscription Agreement with Sinopec in August 2011.
"Sales volumes were 31 PJe, compared to 36 PJe in the prior corresponding period, however higher crude oil prices and a modest increase in average gas prices helped to drive sales revenues 5% higher to $198 million," Mr Zealand said.
During the December Quarter, Origin successfully carried out planned major maintenance shutdowns at the Kupe Gas Plant in New Zealand and the Otway Gas Plant in Victoria. The Yolla Mid Life Enhancement Project at BassGas in Victoria also commenced during the quarter. Phase 1 will involve the addition of accommodation modules and offshore compressions, and is expected to result in the platform being offline until late in the June Quarter 2012.
NOTE: The report does not cover other areas of the integrated energy businesses undertaken by Origin, including electricity generation, energy retailing or its subsidiary Contact Energy of New Zealand.
Read the full Quarterly production report (108KB)
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About Origin Energy
Origin Energy is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. Listed in the S&P ASX top 20 the company has more than 5,200 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.5 million electricity, natural gas and LPG customer accounts and has one of the country's largest and most flexible generation portfolios with more than 5,310 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 CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing 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
