Australia: Origin Quarterly Production Down 2 Percent

October 31, 2011

Origin Energy Limited today released the Quarterly Production Report for its Exploration and Production business, reporting production of 36.3 petajoules equivalent (PJe) and sales revenues of $232.3 million, for the quarter to 30 September 2011.

During the quarter, significant progress continued to be made on the Australia Pacific LNG project.

Australia Pacific LNG announced a Final Investment Decision on the first phase of its coal seam gas to liquefied natural gas project, underpinned by a sale and purchase agreement with Sinopec for the supply of 4.3 million tonnes per annum of LNG. Australia Pacific LNG also completed a Subscription Agreement facilitating the acquisition by Sinopec of a 15 per cent ownership interest in the joint venture, diluting Origin’s interest to 42.5 per cent.

Origin Executive Director, Finance and Strategy, Ms Karen Moses, said “The Exploration and Production business achieved production consistent with the same quarter last year.

“Sales revenues increased by 4 per cent to $232.3 million, reflecting significantly higher crude oil prices and a modest increase in average gas prices.

“Higher production from the Otway, Perth and Cooper basins compensated for a reduced share of production from Australia Pacific LNG following dilution of Origin’s interest from 50 per cent to 42.5 per cent, as a result of completion of the Subscription Agreement with Sinopec.

“Australia Pacific LNG continues to deliver strong production, achieving well deliverability rates ahead of expectations. At the end of the Quarter, average production from operated assets was 243 TJ/d and 58 TJ/d from non-operated assets (Australia Pacific LNG share),” Ms Moses said.

Compared with the June Quarter 2011, production was 2 per cent lower. This was due to decreased production in the Otway as a result of compressor maintenance, lower customer nominations and the reduced share of Australia Pacific LNG production. Sales volumes equalled the June quarter at 39 PJe, while sales revenues were 3 per cent higher reflecting higher natural gas and crude oil prices.

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Source: Origin Energy, October 31, 2011