In its latest half-yearly report, released this week, Origin said output had fallen due to the Jingemia shut-in, the sale of the Tubridgi field in the previous year, and natural field decline from the Katnook area in the Otway Basin and the Cooper, Surat and Bowen basins.
This was more than enough to offset higher gas production from coal seam methane as the Spring Gully project ramped up.
But the company expects projects which have recently come online or about to soon start production to boost its output significantly.
Origin has spent aggressively on acquiring and developing new production assets. The company’s growth capital expenditure for the last half was $A254 million, $A86 million higher than in the corresponding 2004 period.
This included expenditure of $A31 million on coal seam methane assets in Queensland and $A25 million on Perth Basin oil and gas assets in Western Australia, as well as $A58 million on the BassGas Project and $A95 million on the offshore Otway Gas project, both offshore Victoria.
Capital expenditure on acquisitions totalled $A66.5 million, comprising $A33 million spent on an additional 5% stake in BassGas, $A19 million to buy an additional 1% interest in the Otway Basin and a $A13 million acquisition of two LPG ships.
At the long-awaited BassGas Project, commissioning of the onshore plant has begun. Raw gas from the offshore platform will be introduced into the facility in March with first product sales expected shortly thereafter. Full production is expected to be achieved during April and will give Origin more than 8 PJ gas per year.
In Central Queensland, the Spring Gully CSM development began production in June last year and is performing well ahead of expectations. Production capacity has reached 35 TJ/d, far more than the scheduled capacity of 23 TJ/d. Origin said that production capacity would continue to increase as the facility ramps up to service contracts with AGL, Queensland Alumina and Incitec Pivot over the next two years.
The Talinga pilot project in Queensland is now fully commissioned, and Origin has purchased a 42% interest in the adjacent QGC-operated Argyle project, which will start supplying gas to Incitec Pivot in Brisbane in mid 2007.
The Otway Gas Project, operated by Woodside, has made steady progress with installation of the offshore platform jacket completed in January. Production is due to start in mid 2006.
Meanwhile, a final investment decision on the Kupe Gas Project, in the offshore Taranaki basin, New Zealand is expected to be made in the first half of 2006. Industry observers expect Kupe to be approved and the project is expected to start delivering gas during 2008, which would give Origin a further 10 PJ/a of gas production.
