Origin warns of oil price impact on APLNG
PERTH (miningweekly.com) – A continued low oil price could impact the earnings oil and gas major Origin Energy expects to receive from its investment in the Australia Pacific liquefied natural gas (APLNG) project.
In a shareholder review, MD Grant King noted that the company was actively and aggressively reviewing all aspects of Origin’s business and the funding thereof and would take "whatever steps necessary" to ensure that the company could continue to operate effectively in a sustained period of low oil prices.
As the upstream operator of the APLNG, Grant said Origin had initiatives in place to reduce the project’s operating and capital costs by $1-billion a year below costs experienced during the construction phase.
Of this, about $650-million had been achieved in the 2015 financial year with the remaining $350-million of cost reduction initiatives to be implemented by the end of the 2016 financial year.
“Completion of the APLNG project in the current financial year will be a major milestone in the development of your company. Upon completion, we believe Origin is well placed to deliver increasing value for shareholders in the years ahead,” Grant added.
The $24.7-billion APLNG project would comprise two processing trains each with a 4.5-million-tonne-a-year nameplate production capacity.
The upstream component of the project was 97% complete and the downstream component 92% complete as at the end of June. Sustainable LNG production from the first train had been targeted for the second quarter of 2016, with the second train to follow six months later.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
