The $25B Curtis Island project that's paid off for energy giant
AN INVESTMENT that blew Origin Energy's debt out to $13.3 billion two years ago has paid off, with the industry giant revealing boosts to production and revenue late last year.
In its December 2016 quarter report Origin Energy says the $16 billion Australia Pacific LNG on Curtis Island was instrumental in boosting its revenue by 157% compared to the same period in 2016.
Revenue for the quarter was $544.3 million, with a major lift coming from its flagship Curtis Island project.
APLNG, now 100% operational, loaded and shipped 26 cargoes during the quarter, to Sinopec, China, and Kansai, Japan.
With the Curtis Island project's second production line producing its first cargo of LNG in early October, APLNG has shipped 82 cargoes to date.
Origin chief executive officer of integrated gas, David Baldwin said; "We are pleased to see recent investments in Australia Pacific LNG and the Otway Basin driving strong increases in production and revenue".
"Australia Pacific LNG was a major driver of the growth in revenue for the quarter, with the first cargo from train two produced in early October 2016 and ramp up continuing in advance of the 90 day two train operational test," Mr Baldwin said.
The revenue boost sets the scene for a further debt-reducing plan to offload seven of Origin's assets, but hold on to its 37.5% stake in APLNG.
The sell off, which was announced in December last year, will simplify Origin's business, by selling the assets as a separate entity called NewCo.
Meanwhile, shares in Origin, which have gained 40% in the past four months, slipped 2.2% to $7.09, according to the Australian Financial Review.
APLNG participated in the drilling of 120 development wells during the quarter (119 operated, 1 non-operated) in the Surat and Bowen Basins.