Oil and gas explorer Origin Energy’s hard work has been paying off, with the company announcing this week that its annual production has increased to a record 135 petajoules (PJe) for the year ending in June, up 30 per cent from last year. Sales revenue increased 32 per cent to a company record of $835 million.
Origin Energy’s Executive Director of Finance and Strategy Karen Moses said the company’s strong performance was driven by a 36 per cent increase in production from its Australia-Pacific LNG project in Gladstone, Queensland, where gas was supplied into major new contracts.
The increases were also attributed to higher production from Origin's increased share of Otway, a full year's contribution from Kupe and higher production from BassGas after an extended shutdown in 2009/2010.
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Origin also reported a 13 per cent annual increase in 2P reserves to 7,041 PJe, driven by increases in our CSG reserves held through Australia Pacific LNG and in the Ironbark area, the company said.
During the year, Australia Pacific LNG made significant progress on its Coal Seam Gas to LNG project, culminating with an approval just days before the company announced its production record. The decision initiates development of the first LNG train and infrastructure to support a second train, and is underpinned by a sale and purchase agreement with Sinopec for the supply of 4.3 million tonnes per annum of LNG.
"The Final Investment Decision on the first phase of the Australia Pacific LNG project marks the commencement of one of Australia’s largest LNG export projects," Moses said. It holds Australia's largest 2P CSG reserves, including extensive acreage within the premier production fairways providing high quality gas resources with high deliverability.