Jul 12 - Origin Provides Update on Yolla MLE Project

Source Press
Company Origin Energy Limited 
Tags Production/Development, Upstream Activities
Date July 13, 2012

Origin Energy Limited  (Origin), as operator of the BassGas Joint Venture, provided an update on the Yolla Mid-Life Enhancement (MLE) project.

As previously advised, Phase 1 of the MLE project involves upgrading Yolla from an unmanned offshore platform to a manned platform and installing export compression and condensate pumping modules.

Origin Chief Executive Officer Upstream, Mr Paul Zealand said, "The majority of Phase 1 construction works for the Yolla MLE project including the installation of accommodation facilities, strengthening of the helipad and new control and safety systems, are nearing completion.

"The lift of the compression module onto the Yolla platform was unsuccessful. Weather conditions in the Bass Strait are unlikely to provide an appropriate opportunity to complete the compressor lift and installation prior to completion of all other Phase 1 works," Mr Zealand said.

As a consequence, Yolla will return to its usual free flow production mode. The commissioning of the accommodation module and associated safety and control systems will be completed as part of the restoration to free flow production. Production is expected to resume during the September Quarter 2012.

Origin is currently evaluating installation of the compression module during the summer of 2012/2013.

Returning the Yolla platform to free flow production at this point in the project, will increase total costs for Phase 1 from approximately $460 million to approximately $490 million. Additional costs associated with the subsequent installation of the compression module will be established as part of a final decision on the broader works program including Phase 2 of the project.

"The MLE is an important project to extend the producing life of the Yolla field and maximise recovery of reserves, ensuring BassGas can continue to meet the growing demand for gas in south east Australia," Mr Zealand said.

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