Origin Energy Limited (Origin) today released the Quarterly Production Report for its Exploration and Production business for the quarter to 30 September 2014, reporting production of 34.9 petajoules equivalent (PJe) and sales revenue of $251.1 million.

Production of 34.9 PJe in the September Quarter 2014 was in line with the June Quarter 2014, reflecting Origin's lower call on production at Otway and lower customer nominations at Kupe, offset by higher production at the Cooper Basin and Australia Pacific LNG. Sales revenue decreased by 11 per cent compared to the previous quarter reflecting the timing of product liftings, lower third party sales volumes and a lower average commodity price.

When compared to the corresponding September Quarter in 2013, production is down 7 per cent reflecting lower contributions from Otway, BassGas and Kupe, partially offset by Australia Pacific LNG following the commencement of production at Kenya East and Condabri in May 2014 and June 2014 respectively. Sales revenue decreased by 18 per cent reflecting lower production, the timing of product liftings and a lower average commodity price.

Origin Chief Executive Officer Upstream, Mr Paul Zealand said, "Origin's production volumes during the quarter reflected the anticipated lower call on production. In order to benefit from the availability of additional LNG ramp gas, Origin will maintain a degree of flexibility through its nominations into the 2015 financial year."

In reporting on the progress of the Australia Pacific LNG project, Origin Chief Executive Officer LNG, Mr David Baldwin said, "Pleasingly, the project is on track for first LNG in mid-2015 with full production expected from both trains by the end of FY2016."

The Upstream component of the project is 85 per cent complete at 30 September 2014. Australia Pacific LNG drilled 166 development wells, bringing the total number of development wells drilled to 985 at 30 September 2014. Approximately 70 wells per month are now being commissioned on an ongoing basis.

Reedy Creek Train 1 and 2, Orana Train 1 and 2 and Condabri South Train 2 Gas Processing Facilities achieved mechanical completion. Gathering installation activities continued and a total of 583 diameter kilometres of pipe have now been installed. Pipeline commissioning continues to support gas facility commissioning with preparations to pack the pipeline to Curtis Island underway. Water treatment facilities at Condabri are now operational and importantly local farmers are receiving processed water to irrigate their land.

The Downstream component is 82 per cent complete at 30 September 2014. All modules for Train 1 are set and during the quarter the Train 1 Inlet Air Chiller was installed at Curtis Island. All remaining Train 2 modules are expected to be set prior to the end of the 2014 calendar year. LNG Tanks A and B were also hydrostatically tested. Commissioning and Start-Up (CSU) activities are ramping up with the first systems turned over from construction to the CSU team.

NOTE: The report does not cover other areas of the integrated energy businesses undertaken by Origin, including electricity generation, energy retailing, nonhydrocarbon development activity or its subsidiary Contact Energy of New Zealand.

Read the full Quarterly Production Report (315KB)


For further information please contact:

Media
Chris Zipf
Senior External Affairs Manager
Ph: +61 7 3028 5398
Mobile: +61 429 078 331

Investors
David Moon
Group Manager, Investor Relations
Ph: +61 2 9375 5816
Mobile: +61 437 039 310

About Origin Energy

Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 6,000 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with approximately 6,010 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.

In New Zealand, Origin is the major shareholder in Contact Energy, a leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin is also a major operator and participant in petroleum exploration acreage in New Zealand.

Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.

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