Origin reports increase in exploration and production

Origin Energy Limited (Origin) has released the Quarterly Production Report for its Exploration and Production business for the quarter to March 31, 2013 – reporting production of 30 petajoules equivalent (PJe) and sales revenues of $199 million.

When compared to the previous quarter, production was 2 per cent higher. Sales revenues decreased by 1 per cent despite a 4 per cent increase in sales volumes, as the average LPG price fell from its December Quarter 2012 peak.

Origin Upstream chief executive officer Paul Zealand said the company achieved higher total production for the quarter, as production in the Otway and Kupe basins rebounded following the successful completion of planned maintenance and inspection activities.

When compared to the same quarter in 2012, production was 5 per cent lower primarily due to the dilution of Origin’s interest in Australia Pacific LNG and lower production from Australia Pacific LNG following extreme wet weather conditions.

Sales revenues fell by 2 per cent in line with lower production, with higher average gas prices (including carbon) helping to offset a 6 per cent decline in sales volumes.

Australia Pacific LNG continues to meet major milestones and at the end of the March Quarter the Upstream component of the project was approximately 35 per cent complete, with the Downstream component approximately 37 per cent complete.

The Upstream project is on track to achieve its full year drilling target with a total of 256 Phase 1 wells drilled to date, despite extreme wet weather conditions slowing drilling activity during the quarter.

Australia Pacific LNG further boosted its rig capacity during the quarter and now has five rigs supporting the drilling program.

Curtis Island based construction activities were also impacted by Tropical Cyclone Oswald during the Quarter, however start up dates for the two LNG trains remain unchanged.