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Origin Energy: Yolla MLE Project Reaches Major Milestone (Australia)

April 23, 2012

Origin Energy: Yolla MLE Project Reaches Major Milestone

Origin Energy Resources Limited, a 100% owned subsidiary of Origin Energy Limited (Origin), as operator of the BassGas Joint Venture, announced that the Yolla Mid-Life Enhancement (MLE) project has reached a major milestone with the successful lifting and connection of the new accommodation and controls module to the Yolla A platform in Bass Strait.

Origin Chief Executive Officer Upstream, Mr Paul Zealand said, “Offshore construction for Stage 1 of the Yolla MLE project is well advanced. The safe installation of the accommodation module is an important part of the platform upgrade, which will continue with the addition of gas compression and new condensate pumping capabilities.

“The MLE will improve operational efficiencies at BassGas and access remaining gas reserves to allow the continuing supply of gas to help meet Victoria’s energy needs,” Mr Zealand said.

The successful installation of the accommodation module and associated controls equipment paves the way for further critical work on the construction program. This will include the lifting into place of the compression and condensate pump modules in coming weeks, followed by commissioning works to complete Stage 1 of the MLE project.

The joint venture is targeting to restart production from Yolla in July, with project commissioning and completion during the September Quarter.

Unique offshore construction challenges associated with working on the remote Yolla platform, together with some minor scope changes, have led to an extension of the time required to complete the project. This has resulted in an increase in total costs for Stage 1 from approximately $360 million to approximately $460 million.

Evaluation of the program for Stage 2 of the BassGas MLE project continues. This will include the drilling of the Yolla 5 and Yolla 6 development wells and is currently expected to be undertaken during the summer of 2013 / 2014.

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LNG World News Staff, April 23, 2012; Image: AWE Limited