Origin commits to BassGas enhancement project
ASX/Media Releases
18 Dec 2009
Origin Energy Resources Limited (“Origin”), as operator of the BassGas Joint Venture, announces that the final investment decision has been made for the $345 million Yolla Mid-Life Enhancement (“MLE”) project.
Origin’s Executive General Manager, Mr Paul Zealand said, “BassGas plays an important role in supplying gas to the Victorian market. Enhancing the offshore facilities represents the planned second phase of development for the Yolla gas field and a significant further investment in the BassGas asset.
“The initial field development plan included additional drilling and subsequent export compression, to extend field production. The joint venture is also seeking to upgrade the offshore production facilities.
Two development wells, Yolla-5 and Yolla-6, will be drilled and on-platform pumping and compression equipment will be installed to extend the production life of the Yolla gas field.
The Yolla-A platform, which currently operates in an unmanned configuration, will be converted to a normally manned platform through the installation of living quarters and a range of safety related systems and equipment.
On-platform construction and drilling activity is expected to commence in the December quarter of 2010 using a semi-submersible tender assisted drilling unit. The additional wells and accommodation facilities are expected to be operational by the June quarter of 2011. The pumping and compression facilities are expected to be operational by mid 2012.
Origin’s share of cost for this project is expected to be $147 million.
Separately, a major scheduled maintenance campaign at BassGas has now commenced and it is expected that the facility will be offline until late February 2010. Maintenance activities will be undertaken at the onshore gas plant and the offshore production platform with production constraints on the Yolla-3 and Yolla-4 wells to also be addressed.
| Project participants are: | |
| Origin Energy Limited | 42.5% (Operator) |
| AWE Limited | 42.5% |
| CalEnergy Gas (Australia) Ltd | 15.0% |
For further information please contact:
Investors
Angus Guthrie
Group Manager, Investor Relations
Ph: +61 2 8345 5558
Mobile: +61 417 864 255
Media
Lina Melero
General Manager, Corporate Communication
Ph: 02 8345 5217
Mobile: 0427 017 798
About Origin Energy
Origin Energy is Australasia's leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing.
Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 incorporated joint venture with ConocoPhillips, Origin is developing Australia's largest CSG to LNG project 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