Australian energy firm Origin Energy has completed the final phase of the mid-life enhancement (MLE) project at BassGas offshore Australia.
BassGas project produces gas, condensate and LPG from the offshore Yolla field located in Bass Strait between Victoria and Tasmania. Product is conveyed via pipeline from the Yolla platform to a gas processing facility at Lang Lang in Victoria.
AWE Limited, a joint venture partner in the BassGas project in production license T/L1 offshore Tasmania, reported on Friday that the project was completed ahead of time and under budget.
The final phase of the MLE project entailed installation and commissioning of compressor and condensate pumping unit at the Yolla-A platform. This follows drilling, completion, and gas sales from the final two development wells, Yolla-5 and Yolla-6, in 2015.
According to AWE, compression of Yolla gas began on June 12, 2017, with production reaching the nameplate capacity of 63,5 million cubic feet per day on June 24 following a period of performance testing and system fine-tuning.
David Biggs, CEO and Managing Director of AWE, said: “The commencement of compression on the Yolla-A platform marks the end of the BassGas MLE project.
“We anticipate a significant improvement in BassGas production from July 2017, and we are planning to commence marketing our share of uncontracted gas from the Yolla field to prospective customers in 2018.
“We are also working with the operator, Origin Energy, on development concept studies for the nearby Trefoil field, which is similar to the Yolla field in terms of gas-condensate mix.”
The completion of the MLE project triggers a cash payment of $2.5 million to AWE from Prize Petroleum, in line with the terms of the sale of an 11.25 percent interest in BassGas to Prize in 2014. The payment is not expected to be received until FY18.
The T/L1 license is operated by Origin Energy Resources Limited with 42.5 percent interest. The remaining partners in the license are AWE, Toyota Tsusho Gas E&P Trefoil Limited, and Prize Petroleum with 35, 11.25, and 11.25 percent interest, respectively.