Australia's Yolla Mid-Life Extension Project Reactivated, Drill Rig Contract Secured

---

Researched by Industrial Info Resources Australia (Perth, Australia)--Origin Energy (ASX:ORG) (Sydney, Australia) is resuming the development of the Yolla Mid Life Extension (MLE) project in the Bass Straight, offshore Victoria, Australia. Seadrill Management PTE Limited (NYSE:SDRL) (London, England) will supply a rig to drill two production wells in the Australian 2014--2015 summer.

The award was announced on the April 1. Seadrill will utilize its West Telesto jack-up rig for the drilling program in a contract worth about US$31 million. Seadrill will transport the jack-up rig to the site, offshore Victoria, in the Bass Straight body of water, at around 80 metres depth. The contract includes the cost of mobilization of the West Telesto, scheduled in the fourth quarter of 2014, on completion of drilling, which is currently underway in Vietnam.

The West Telesto jack-up rig was designed by naval architects and marine engineering firm Friede and Goldman Limited (Houston, Texas). Designed in the early 2000s, the JU-2000E is a self-elevating drilling unit, capable of operating in harsh natural environments in all weather conditions.

The West Telesto will drill two production wells, the Yolla-5 and Yolla-6, and the contract also includes two option wells. The Yolla-5 and Yolla-6 wells are both expected to take 51 days.

The drilling program is the second phase of the Yolla MLE project, which has been on hold. It initially was intended to be performed during the 2012--2013 Australian summer. The first phase of the Yolla MLE project involved an upgrade to safety equipment, strengthening of the helipad and installation of accommodation on the originally unmanned offshore production platform. Part of phase one was not performed as planned; installation of compression and condensate pumping facilities on the platform. Unfavourable weather conditions caused problems, and Origin Energy demobilized the project, citing the high costs of chartering the installation vessel to perform the work. Origin Energy decided that rescheduling the activity was the best option rather to than wait for favourable weather.

The Yolla MLE project was sanctioned in the fourth quarter of 2009. The purpose of the mid-life extension project is to access additional natural gas to meet demand from the south east Australian domestic market.

Origin Energy is active in the states of Queensland, South Australia, New South Wales, Victoria, Northern Territory and Western Australia in the oil and gas and power generation industries.

View Plant Profile - 3072982

View Project Report - 300092469 300093117

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.