Major gas field works for Surat Basin – Origin/APLNG

Major gas field development works are set to begin in the Surat Basin as Origin Energy moves ahead with its Australia Pacific LNG (APLNG) project.

The Collaborative Well Delivery (CWD) phase of the project calls for the delivery of approximately 200 wells per annum in the Basin through a series of work packages.

Origin has awarded the two-year CWD contract, which has an additional two-year option, to CIMIC Group’s construction company, Leighton Contractors.

The CWD project is expected to generate revenue of approximately $209 million (AUD 300 million) to Leighton Contractors over two years.

The company has reported that local subcontractors, suppliers and personnel from the Western Downs region will deliver at least 15 percent of the project works.

The project’s planning phase for the first Project Works Package is underway and construction works are expected to begin this month.

The CWD development supports APLNG’s ongoing Upstream operations and supply to its Liquefied Natural Gas (LNG) export facility on Curtis Island, post the construction phase which is largely complete.

Leighton Contractors Managing Director Roman Garrido said the new contract extends the upstream infrastructure the company has delivered for APLNG in the past three years.

CEO of Origin’s gas and LNG business, David Baldwin, said the CWD contract offers significant savings of 45 percent per well connected for APLNG relative to wells delivered during the construction phase of the project.

Two months ago, Origin re-affirmed its commitment to the APLNG project, despite the company recording a loss of $658 million for the last financial year.

Origin Chairman Gordon Cairns pointed out that the company had consistently stated that the 2015 and 2016 financial years were transitional years for Origin, as it completed the final stages of its investment in APLNG.

“Work on the APLNG project is nearing completion and the project remains on track to commence sustained production from Train 1 from the second quarter of the 2016 financial year and from Train 2 approximately six months later,” Mr Cairn said.

At the time, Origin Managing Director Grant King said Origin had made strong progress on plans to reduce APLNG’s total upstream cost structure by $1 billion per annum.

“During the period, initiatives were implemented to reduce annual upstream costs by approximately $650 million, with a target of an additional $350 million of cost reduction initiatives to be implemented by the end of the 2016 financial year,” Mr King added.

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2 Responses to Major gas field works for Surat Basin – Origin/APLNG

  1. Paul McGarry says:

    Hi guys.
    I am an all round plant operator working in Fifo construction and pipelines over 5 years now. I am available for works in the Surat basin as soon as Leightons start these works. Please don’t hesitate to contact me at any time.
    Kind Regards
    Paul McGarry

  2. Ian Schulz says:

    Very interested in this job

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