Oil and Gas News

Origin continues stable production despite soft LNG prices

Origin Energy has maintained steady gas production during the September quarter as it contended with the impact of low commodity prices at the Australia Pacific LNG (APLNG) operation in Queensland.

The company recorded 64.5 petajoules (PJ) of production in the September quarter, the same as the June 2020 quarter but below the September 2019 quarter (66.5 PJ).

Its 3 per cent drop against the September 2019 quarter was a result of reduced production at Condabri, Talinga, Orana (Queensland) in response to lower demand and planned facility maintenance.

Origin also offset increases at Reedy Creek, Combabula and Peat with the ramp up of ERIC pipeline and planned facility maintenance.

Chief executive officer Frank Calabria said: “Gas production was steady for the quarter, however as expected, realised prices were lower as the lagged impact of oil prices on APLNG’s contracts started to flow through to revenues.

“The majority of sales are under long-term contracts, which provided some protection from soft LNG spot prices during the quarter.”

Origin reported that drilling activity for the year ahead has been reduced at APLNG, following subdued demand for LNG and strong performance from its gas fields.

Calabria highlighted the company’s exploration progress in the Beetaloo Basin in the Northern Territory, where it completed factor stimulation during the quarter.

Last month, Origin, with joint venture partner Falcon Oil & Gas, reported they had completed 11 stages of hydraulic stimulation of the horizontal Kyalla 117 well at the Beetaloo project.

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