Mid Life crisis averted via upgrade

PRODUCTION has resumed at the BassGas Mid Life Enhancement Project (MLEP): a joint venture between AWE (46.25 per cent), Origin Energy Resources (42.5 per cent) and Toyota Tsusho Gas E&P Trefoil (11.25 per cent).
Production was suspended late last year to enable the upgrade of the Yolla platform in the Bass Strait to a manned facility, and the installation of export compression and condensate pumping modules. While the free flow of uncompressed gas and condensate from Yolla to the Lang Lang gas plant has now resumed, the installation of a compression module has been postponed indefinitely.
After an unsuccessful first attempt to install the compression module, the revised project plan proposed installation in the summer of 2012 to 2013 and development drilling during the summer of 2013 to 2014.
However, the cost of phase one works has nearly doubled from the original$360 million budget, while two, which will involve the drilling of development wells, has been deferred.
“The return of Yolla to free-flow production signals the completion of infield activities for the current program,” operator Origin Energy’s chief executive upstream Paul Zealand said.
“The joint venture is currently reviewing the timing and sequencing of development drilling and installation of export compression and condensate pumping modules, the outcome of which will be advised at a later date.”
AWE managing director Bruce Clement said rescheduling the installation meant that “no further downtime for the module lift will be required at BassGas for the remainder of the 2012 [to] 2013 financial year”.
“This should lead to reduced development capex and some improvements in production and revenue, and we will update guidance for these items for the 2012 [to] 2013 financial year in our upcoming quarterly report,” he said.
The development is designed to produce about 20 petajoules of sales gas, 1 million barrels of condensate and 65,000t of LP gas per year. According to a statement, AWE “remains confident” for the long-term production potential of BassGas.

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