Australia: Yolla MLE Offshore Project Advancing, Origin Energy Says

Origin Energy Resources Limited, a 100% owned subsidiary of Origin Energy Limited (Origin), as operator of the BassGas Joint Venture, advises 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, offshore Australia.

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.

Commenting on the update, Bruce Clement, Managing Director AWE Limited which holds 46.25% in the project said: “The installation of the accommodation and controls module on the Yolla platform is a significant and important milestone for the project. However, the slippage of the Operator’s project schedule and the increase in Phase 1 costs are disappointing and the delay in restarting production will reduce AWE’s production guidance for 2011-12 to 4.7 million BOE.

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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Offshore Energy Today Staff, April 23, 2012