‘Origin
Energy has a strong presence within Australia and New Zealand; their permits
allow the exploration of new resources onshore in the Otway and Perth basin,
whilst offshore Bonaparte Bass Basin, and the onshore Cooper/ Eromanga and
Surat and Bowen Basins in Australia; and in the Taranaki, Northland, and
Canterbury Basins in New Zealand’ (Origin Energy Limited SWOT Analysis, 2012).
‘Origin
has production interests in the Cooper Basin, which is the principal supplier
of natural gas to New South Wales, South Australia, and Queensland. It is one
of the largest producers of coal seam gas (CSG) in Australia and has interests
in major CSG fields at Spring Gully, Fairview, and Peat in central Queensland.
The company’s major projects include Kupe Gas Project (New Zealand), Otway Gas
Project (Victoria), and Spring Gully expansion (Queensland). As of June 2011,
the company’s total 2P reserves amounted to 7,041 petajoules equivalent (PJe),
reflecting an increase of 13% over that in the previous year. Origin Energy’s
significant upstream activities strengthen its business (Origin Energy Limited
SWOT Analysis, 2012).
‘Whilst
Origin’s Energy operations are booming in Australia they haven’t pushed the
global barrier to push its operations elsewhere. The company generates more
than 80% of its revenues from Australia. The company operates two power
stations, a retail natural gas, electricity, LPG, and a coal seam gas plant in
Queensland. It has oil and gas exploration and production facilities in
Victoria and three power stations in South Australia. It also has oil and gas
exploration and production activities and retail LPG in Western Australia.
Outside
Australia, the company operates in New Zealand through its subsidiary Contact
Energy.
The
company's high dependence on Australia increases its business risk and also
exposes it to local economic and operating conditions among other increasing
business risks’ (Origin Energy Limited SWOT Analysis, 2012).
Over
the years Origin Energy has strengthened its business platform through targeted
acquisitions and strategic agreements. The company continues to enter into
agreements and acquire companies to enhance its business portfolio.
‘In
June 2014, Contact Energy reached an agreement to supply Fonterra with steam
and electricity from the Te Rapa cogeneration plant for a term of eight years
commencing 1 July 2015.
Further,
in May 2014, Origin Energy, together with Sasol, signed a conditional farm-in
agreement with Falcon Oil & Gas Australia Limited (Falcon) for three
onshore exploration permits in the Northern Territory's Beetaloo Basin. Upon
completion of the farm-in agreement, Origin Energy and Sasol will each hold a
35% interest in the three permits and Falcon will hold a 30% interest. Located
about 500 kilometers south-east of Darwin, the permits cover an area of more
than 18,500 square kilometers within the Beetaloo Basin, which is highly
prospective for shale gas and associated liquids (Origin Energy Limited SWOT
Analysis, 2012).
These
strategic acquisitions and agreements will provide a strong platform for growth
for Origin
Energy
across markets by expanding its business portfolio and also help in the long
term growth
and
sustainability of the company (Origin Energy Limited SWOT Analysis, 2012).
‘Origin Energy is facing increasing competition in
New Zealand and Australian market. The company faces competition from AGL
Energy, BHP Billiton, Caltex Australia, Country Energy, Delta Electricity,
Energex, EnergyAustralia, Integral Energy, Santos, and TRUenergy. The
increasing competition in these markets could lead to a decline in the
company's market share’ (Origin Energy Limited SWOT Analysis, 2012).
‘The
potential discovery of significant new gas resources in eastern Australia could
have a significant impact on the supply and demand dynamics of the eastern
Australian gas markets, resulting in changes in gas prices and therefore Origin
Energy’s future revenues and purchase costs.Furthermore, Origin Energy’s
customer accounts marginally declined by 3,000 accounts in FY2014.
The
net position includes a reduction of 41,000 electricity customer accounts. This
was due to restricted customer win and retention activities, as well as because
of the increased competition in New Zealand and Australian markets. Thus, the
increasing competition in these markets could lead to a decline in the
company's market share and erode existing customer base’ (Origin Energy Limited
SWOT Analysis, 2012).
