Origin Energy Limited has 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.

Read the full Quarterly Production Report online.

Michelle is a freelance journalist and editor who, as well as covering all the latest and breaking industry news, is a gun proofreader and editor who never misses a trick.

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