Origin Energy reports 10 per cent drop in quarterly production

Origin Energy has announced its production in the September quarter fell 10 per cent to 33.1 petajoules equivalent.

The company attributed the loss to a lack of output from its BassGas facility as it underwent an upgrade.

Revenue fell 3 per cent to $224.5 million as lower sales volumes more than offset higher average prices.

Origin said its flagship development, the $23.6 billion Australia Pacific Liquefied Natural Gas (APLNG) project – a joint venture with ConocoPhillips – continues to make good progress and remains on budget and on track to deliver first LNG in mid 2015. As of September 30, 2012, the Upstream project was 20 per cent complete and the Downstream project was 23 per cent complete.

The project is one of three coal seam gas-to-LNG developments being built in Queensland.

Origin CEO Upstream Paul Zealand said the company’s overall production and revenues were largely in line with the prior quarter and reflected the higher Otway production, Origin’s lower shareholding in Australia Pacific LNG and no gas production in the Surat Basin.

“BassGas did not contribute to production during the September Quarter due to the extended shutdown for the Mid Life Enhancement project, however the current infield activities associated with the project have since been completed and production recommenced on October 15, 2012,” Mr Zealand said.

“Origin is pleased to have its two major producing assets in southern Australia – BassGas and Otway – back in production after planned shutdowns, and helping to meet the energy needs of the south eastern Australian market.”

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