Origin reports Australia Pacific LNG project 88% complete and production and sales for the December Quarter.

(16 pages)

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.

(16 pages)

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.


Contacts

Media
Lina Melero
General Manager External Affairs
Ph: +61 2 8345 5217
Mobile: +61 427 017 798
Investors
Chau Le
Group Manager, Investor Relations
Ph: +61 2 9375 5816
Mobile: +61 467 799 642