Monday, February 28, 2011

Origin JV may sell down more of APLNG

Origin Energy may sell down more of its stake in the $35 billion Australia Pacific LNG (APLNG) project after it divested a combined 15% stake to Sinopec with its joint venture partner ConocoPhillips. The current ownership structure of the project - Origin Energy (42.5%), ConocoPhillips (42.5%) and Sinopec (15%).

The $35 billion APLNG project has the following objectives -
-- Development of the Walloons gas fields in the Surat and Bowen basins in south central Queensland with up to 10,000 CSG wells; these gas fields may include Spring Gully, Peat, Denison, Fairview, Arcadia Ridge, Kenya, Kenya East and Angry Jungle;
-- Construction and operation of a 450 km main gas pipeline to connect the Walloons gas fields with the LNG facility near Laird Point;
-- Construction and operation of an LNG facility on Curtis Island near Gladstone for production and export of approximately 18 Mtpa of LNG. The final configuration of the LNG plant is yet to be determined, but may comprise up to four trains, each producing ~4.5 Mtpa of LNG.

APLNG project reserves, as of June 30, 2010 were: Proved plus Probable - 10,143 PJ (1,594.126 MMBOE), Proved plus Probable plus Possible - 14,598 PJ (2,294.293 MMBOE) and Contingent Resources on best estimate case - 4,844 PJ (761.307 MMBOE). ConocoPhillips anticipates peak production of 1.05 net Bcf/d in 2023, excluding effects of possible reversions.

The project has recently won environmental approval from the federal government. The companies aim to make a final investment decision to proceed with the project later this year and expect to rapidly progress the project to sanction, with the first LNG cargo to be delivered in 2015. The project life is approximately 30 years.

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