AUSTRALIA

Finishing line in sight for APLNG

THE Origin Energy-led Australia Pacific LNG project is well on its way to completion with the ups...

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The downstream segment was sitting at 82% completion at the same time.

"Pleasingly, the project is on track for first LNG in mid-2015 with full production expected from both trains by the end of FY2016," Origin CEO LNG David Baldwin said.

Higher production from the APLNG project during the quarter helped to offset declines in Origin's Otway Basin assets and the Kupe field in New Zealand.

The offset kept overall production in line with the June quarter, recording 34.9 petajoules of gas, 33.1PJ of which was supplied by APLNG.

Sales revenue decreased by 11% compared to the previous quarter, and 18% compared to the previous corresponding quarter last year, reflecting the timing of product liftings, lower third party sales volumes and lower average commodity prices.

Origin spent $38 million on exploration and evaluation activities during the quarter and $80 million in capital expenditure on development and production activities.

The company drilled 166 development wells during the quarter for APLNG, bringing the total number of wells drilled to 985 while 446 wells were commissioned by the end of the period.

Around 70 wells per month are now being commissioned on an ongoing basis.

All modules for Train 1 of the project are now set, while three modules were shipped for Train 2 during the period.

All modules are expected to be delivered and set for Train 2 by the end of 2014.

Outside of APLNG, the company completed its sale and purchase agreement with Karoon Gas Australia, paying an initial $600 million for the two offshore exploration permits, with a further $200 million to come in milestone payments.

The sale deals Origin in to ConocoPhillips' Greater Poseidon big gas discoveries.

The company also won a new exploration permit in the Bonaparte Basin for a six-year term and identified a new major conventional gas discovery, Waitsia, in its Senecio-3 tight gas appraisal well in the Perth Basin, Western Australia.

Operations at the company's Kincora gas processing plant in Queensland's Surat Basin remained suspended during the quarter pending completion of an asset review.

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