31 October 2012

Quarterly Production Report September 2012

BassGas and Otway return to production after planned shutdowns.

Quarterly Production Report (18 pages)

Origin Energy Limited (Origin) today released the Quarterly Production Report for its Exploration and Production business for the three months ending 30 September 2012, reporting production of 33 petajoules equivalent (PJe) and revenues of $225 million.

During the period, Australia Pacific LNG, in which Origin has a 37.5 per cent interest, announced that a final investment decision (FID) on the second train of its two-train CSG to LNG project had been approved. In addition, the subscription agreement for Sinopec to increase its shareholding in Australia Pacific LNG from 15 per cent to 25 per cent was completed. This reduced Origin's shareholding in Australia Pacific LNG to 37.5 per cent.

The Australia Pacific LNG project continues to make good progress and remains on budget and on track to deliver first LNG in mid 2015. At 30 September 2012, the Upstream project was 20 per cent complete and the Downstream project was 23 per cent complete.

Origin Chief Executive Officer, Upstream, Mr Paul Zealand said, "Following a major planned shutdown at the Otway gas plant, the Otway Basin recorded an 11 per cent increase in production for the September Quarter, when compared to the June Quarter. Origin's overall production and revenues were largely in line with the prior quarter, reflecting the higher Otway production, Origin's lower shareholding in Australia Pacific LNG and no gas production in the Surat Basin.

"BassGas did not contribute to production during the September Quarter due to the extended shutdown for the Mid Life Enhancement project, however the current infield activities associated with the project have since been completed and production recommenced on 15 October 2012. Consistent with the BassGas shutdown, production in the September Quarter decreased by 10 per cent and revenues decreased by three per cent, when compared with the September Quarter 2011.

"Origin is pleased to have its two major producing assets in southern Australia - BassGas and Otway - back in production after planned shutdowns, and helping to meet the energy needs of the south eastern Australian market," Mr Zealand said.

Sales volumes during the September Quarter reduced to 36 PJe, an eight per cent decrease on that achieved in the same period in 2011. However, as a result of higher average prices, revenues during the September 2012 quarter decreased by only three per cent to $225 million.

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 Contact Energy of New Zealand.


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