29 July 2011
Quarterly Production Report June 2011
Origin Energy Limited ("Origin") today announced record annual production and sales revenues for its Exploration and Production business, released in the company's Production Report for the quarter to 30 June 2011.
This follows the release yesterday of Origin's 2011 Annual Reserves Report, in which the company announced a 13 per cent annual increase in total Proved plus Probable (2P) reserves.
Origin Executive Director, Finance and Strategy, Ms Karen Moses, said "The Exploration and Production business has delivered record annual production of 135 Petajoules equivalent (PJe), up 30 per cent on the prior year. Sales revenues also increased to a record $835 million, an increase of 32 per cent on the prior year.
"The strong performance was driven by a 36 per cent increase in production from Australia Pacific LNG as gas was supplied into major new contracts, higher production from Origin's increased share of Otway, a full year's contribution from Kupe and higher production from BassGas after an extended shutdown in 2009/2010.
"Notably, the record increases were achieved amid a challenging operating environment with extreme weather conditions impacting a number of our assets.
"Origin also reported a 13 per cent annual increase in 2P reserves to 7,041 PJe, driven by increases in our CSG reserves held through Australia Pacific LNG and in the Ironbark area," Ms Moses said.
During the year, Australia Pacific LNG made significant progress on its CSG to LNG project, culminating with a Final Investment Decision announced on 28 July 2011. The decision initiates development of the first LNG train and infrastructure to support a second train, and is underpinned by a sale and purchase agreement with Sinopec for the supply of 4.3 million tonnes per annum of LNG. Sinopec has also subscribed for a 15% equity interest in Australia Pacific LNG1.
"The Final Investment Decision on the first phase of the Australia Pacific LNG project marks the commencement of one of Australia’s largest LNG export projects," Ms Moses said.
"Australia Pacific LNG holds Australia's largest 2P CSG reserves, including extensive acreage within the premier production fairways providing high quality gas resources with high deliverability," Ms Moses said.
Production for the quarter to 30 June 2011 was 37 PJe, or 23 per cent, higher than the June Quarter in 2010, with all asset areas either increasing production or maintaining production at comparable levels. Most notably, Otway increased production by 49 per cent. Total sales volumes and revenues increased by 8 per cent and 11 per cent respectively.
Compared with the March Quarter 2011, production was 28 per cent higher, as Otway returned to higher production levels and CSG and Cooper Basin production increased after the floods experienced earlier in the year. Sales volumes and revenues were 19 per cent and 14 per cent higher respectively, reflecting the increased production.
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- The agreement for Sinopec to subscribe for a 15 per cent equity interest in the Australia Pacific LNG joint venture is now unconditional with completion due to occur shortly.