Australian Origin reports Higher December Quarter Production

Origin Energy on January 31 reported a 47% rise in Q4 2016 production at 80.1 petajoules, driven primarily by increased LNG production by Australia Pacific LNG and the start of production from Halladale and Speculant in the Otway Basin.

Revenue for the December quarter was $A$544.3mn (US$411mn), a 157% increase on the corresponding period last year and a 27% increase on Q3.

“Australia Pacific LNG was a major driver of the growth in revenue for the quarter, with the first cargo from Train 2 produced in early October 2016 and ramp up continuing in advance of the 90 day two train operational test. Australia Pacific LNG loaded and shipped a total of 26 cargoes during the quarter, predominantly to Sinopec and Kansai. Australia Pacific LNG has now shipped 82 cargoes from Curtis Island to date,” Origin CEO Integrated Gas, David Baldwin said.

The Halladale and Speculant fields completed their first full quarter of production following first gas on August 26, 2016. “The project is expected to make a meaningful contribution to Australia’s east coast gas supply,” Baldwin added.

In the half year to December 31, 2016, production was 154.3 PJe representing a 51% increase on the prior corresponding period. Revenue of A$973.9mn represented a 123% increase on the prior corresponding period.

Origin’s improved output comes as it plans to divest its conventional upstream business via initial public offering with NewCo to be listed on the Australian Securities Exchange. NewCo will include Origin’s interests in the Otway Gas Project, BassGas Project, Kupe Gas Project, and the Perth, Cooper, Bonaparte and Canterbury basins. Origin will retain its interests in Australia Pacific LNG, Ironbark and the Browse and Beetaloo basins.

Shardul Sharma