BassGas JV Puts Final Price Tag on Yolla Enhancement

Origin, as operator of the BassGas Joint Venture, announced that the final investment decision has been made for the $345 million Yolla Mid-Life Enhancement ("MLE") project.

Origin's Executive General Manager, Paul Zealand said, "BassGas plays an important role in supplying gas to the Victorian market. Enhancing the offshore facilities represents the planned second phase of development for the Yolla gas field and a significant further investment in the BassGas asset.

"The initial field development plan included additional drilling and subsequent export compression, to extend field production. The joint venture is also seeking to upgrade the offshore production facilities."

Two development wells, Yolla-5 and Yolla-6, will be drilled and on-platform pumping and compression equipment will be installed to extend the production life of the Yolla gas field.

The Yolla-A platform, which currently operates in an unmanned configuration, will be converted to a normally manned platform through the installation of living quarters and a range of safety related systems and equipment.

On-platform construction and drilling activity is expected to commence in the December quarter of 2010 using a semisubmersible tender assisted drilling unit. The additional wells and accommodation facilities are expected to be operational by the June quarter of 2011. The pumping and compression facilities are expected to be operational by mid 2012.

Origin's share of cost for this project is expected to be $147 million.

Separately, a major scheduled maintenance campaign at BassGas has now commenced and it is expected that the facility will be offline until late February 2010. Maintenance activities will be undertaken at the onshore gas plant and the offshore production platform with production constraints on the Yolla-3 and Yolla-4 wells to also be addressed.

Project participants are:

  • Origin Energy Limited 42.5% (Operator)
  • AWE Limited 42.5%
  • CalEnergy Gas (Australia) Ltd 15.0%